Chesapeake Lodging Trust
(
CHSP
), a real estate investment trust (REIT), recently acquired the
429-room Hyatt Regency Mission Bay Spa and Marina hotel in San
Diego, California for $62.0 million. The transaction was funded
with available cash resources and borrowings under its existing
revolving credit facility.
Located in the Mission Bay area, the luxury hotel features ocean
views, a 187 slip marina, full-service spa, award-winning food and
beverage outlets, and three slide pools. It also includes over
37,000 square feet of meeting space.
Chesapeake has planned a $6 million "softgood refresh" renovation
to the hotel which underwent a major refurbishment in 2007. This is
an important acquisition for Chesapeake Lodging, owing to the
strength of the Hyatt brand and the compelling growth opportunity
of the San Diego market. The strategic move is expected to be
accretive to the long-term earnings and supplement its portfolio of
premium high-quality properties.
The company has been active on acquisitions over the recent period
of time. Chesapeake acquired the 520-room W Chicago - Lakeshore
hotel located in Chicago for $126.0 million from
Starwood Hotels & Resorts Worldwide, Inc.
(
HOT
) in August 2012.
Chesapeake owns luxury and upper-upscale hotels in some of the most
desirable locations in the United States. The company specifically
focuses on owning and acquiring hotels at prices below replacement
cost, with attractive return on investments and significant upside
potential. Currently the company owns 14 hotels with an aggregate
of 4,465 rooms in 6 states and the districts of Columbia.
Chesapeake currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We also have a long-term Neutral
recommendation on the stock. One of its competitors,
Host Hotels & Resorts Inc
(
HST
) also holds a Zacks #2 Rank, which translates into a short term
Buy rating.
CHESAPEAKE LODG (CHSP): Free Stock Analysis
Report
HOST HOTEL&RSRT (HST): Free Stock Analysis
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