Chesapeake Takes DTLA Ace Hotel for $103M

LOS ANGELES—Chesapeake Lodging Trust has purchased the Ace Hotel Downtown and the Theatre at Ace Hotel in Downtown Los Angeles for $103 million, or $566,000 per door. As part of the purchase agreement, Chesapeake has entered into a new agreement with the Ace Hotel, which will continue to operate at the location.

“We like the Los Angeles market. We also own the Hilton Checkers, which is up the street, so we have been studying Downtown L.A. for quite some time, and this was just an opportunistic buy for us,” Douglas W. Vicari, EVP and CFO at Chesapeake Lodging Trust, tells GlobeSt.com. “The hotel was completely repositioned and renovated, and we liked the area and what was happening both from a commercial perspective and from a residential perspective in the market. Given our history with the checkers, we felt like this was a good buy for us at this point in the cycle.”