Park Hotels & Resorts and Chesapeake Lodging Trust have confirmed they have entered into a definitive merger agreement under which Park will acquire all the outstanding shares of Chesapeake in a cash and stock transaction valued at approximately $2.7 billion.
Park Hotels & Resorts has a diverse portfolio of market-leading hotels and resorts with significant underlying real estate, the portfolio currently consists of 51 premium-branded hotels and resorts located in prime U.S. markets
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust which owns 20 hotels with an aggregate of 6,288 rooms in eight states and the District of Columbia.
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| Photo Hyatt |
Park plans to sell five non-core hotels prior to the proposed closing, including both of Chesapeake’s New York City hotels (the 122-room Hyatt Herald Square New York and the 185-room Hyatt Place New York Midtown South), in addition to three non-core Park hotels which are currently under contract. On a pro forma basis that accounts for these sales, the combined company would consist of 66 high-quality hotels located in key urban and resort markets in 17 states and the District of Columbia.
“We are thrilled to strategically combine our two companies in a compelling transaction that is accretive for stockholders,” said Thomas J. Baltimore, Jr., Chairman and CEO of Park. “Chesapeake’s high-quality portfolio of hotels will accelerate our strategic goals of upgrading the quality of our portfolio and achieving brand, operator and geographic diversity."
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