Tuesday, 7 May 2019

Park Hotels & Resorts buys Chesapeake Lodging Trust for $2.7 Billion

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. 

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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