LOS ANGELES-Chesapeake Lodging Trust of Annapolis, MD has acquired the 188-room Hilton Checkers hotel in Downtown L.A. from Tarsadia Hotels for $46 million and will continue to operate it as a Hilton, according to the new owners. Chesapeake says that it has entered into an agreement with Crestline Hotels and Resorts Inc. to operate the hotel under the Hilton flag.
Jordan Richman, a Grubb & Ellis senior vice president in the company’s Hotels, Golf & Leisure practice group who represented both parties in the transaction and facilitated the sale in conjunction with Felix Cacciato of Hotel Equity Advisers, describes the Checkers as “the finest boutique hotel in the Greater Downtown Los Angeles area.” He points out that it is located in the heart of the city’s financial business district. Richman also comments that the transaction “is a good indication that the region’s hotel market is beginning to turn after the economic downturn, which is a welcome reprieve.” Also, it’s the only four-diamond boutique hotel in Downtown L.A., he says.
Located at 535 S. Grand Ave., the 12-story hotel was built in the 1920s and underwent significant renovations in 2008. The property includes a restaurant, a spa and lounge and meeting areas both indoors and outdoors. Richman also notes the hotel’s proximity to the Staples Center, Los Angeles Convention Center, Nokia Theater L.A. Live, Disney Concert Hall, The Music Center and Cathedral of Our Lady of the Angels.
Chesapeake said that it funded the acquisition of the Checkers with proceeds from the company’s initial public offering, which was completed on Jan. 27 this year, according to an SEC filing by the REIT. The company also said in its filing that it has entered an agreement to buy the 153-room Courtyard Anaheim at Disneyland Resort hotel in Anaheim for $25 million.