ANNAPOLIS, Md.–(BUSINESS WIRE)–May. 31, 2013– Chesapeake Lodging Trust (NYSE: CHSP) (the “Trust”) announced today that it has purchased the fee simple interest in the 313-room Hyatt Fisherman?s Wharf from an affiliate of Hyatt Hotels Corporation (NYSE: H) for $103.5 million, or approximately $331,000 per key. The Trust entered into an agreement with Evolution Hospitality to manage the hotel under a franchise agreement with a Hyatt affiliate.
?We are very excited to acquire our third San Francisco hotel while we grow our relationship with Hyatt,? stated James L. Francis, President and Chief Executive Officer of the Trust. ?Hyatt Fisherman?s Wharf is an outstanding property with a terrific location that complements our hotels in the Financial District and Union Square.?
?One of the core ways we will continue to achieve strategic growth is through capital recycling. This transaction creates value as it unlocks capital at a strong pricing level, maintains our long-term brand presence in the market, and expands a relationship with a good owner who is investing in the property through a renovation program,? said Stephen Haggerty, global head, real estate and capital strategy for Hyatt. ?With multiple Hyatt hotels in its portfolio, we are excited to deepen our relationship with Chesapeake and look forward to more collaboration in the future.?
The five-story property is located on North Point Street in the heart of Fisherman?s Wharf, one of San Francisco?s main tourist destinations, and is proximate to Ghirardelli Square, the Cannery, Pier 39, North Beach, Chinatown, Alcatraz, the Maritime National Historic Park and the Cable Car turnaround. The hotel is also a short distance from the Financial District, Nob Hill, Union Square and the Moscone Convention Center. The hotel features 313 well sized guestrooms including 8 suites, 19,000 square feet of flexible meeting space, a full service restaurant and lounge, a coffee shop, a heated outdoor pool and a large state-of-the-art fitness center. The property also includes approximately 4,700 square feet of ground level retail space.
The Trust intends to commence a renovation of the hotel in the fourth quarter 2014. The design will capture a sophisticated spin on the maritime and nautical themes presenting itself within the San Francisco Wharf. ?While the hotel has been very well maintained by Hyatt, we see an opportunity to further enhance the asset. The timing of the eight million dollar project will be closely coordinated with our management team to minimize any operational disruption,? continued Mr. Francis.