SANTA BARBARA, CA-Chesapeake Lodging Trust has acquired the fee simple interest in the Hyatt Santa Barbara and two adjoining properties totaling 200 rooms from a Hyatt affiliate for $61.0 million, or approximately $305,000 per key.

The Trust entered into a management agreement with HEI Hotels and Resorts to operate the hotel under a franchise agreement with a Hyatt affiliate.

“We are very excited to acquire the recently renovated Hyatt Santa Barbara while we

continue to grow our relationship with Hyatt,” stated James Francis, president and

CEO of the trust. “The property is ideally located on the Pacific Ocean and walking distance to the shops and restaurants of downtown Santa Barbara. The city is an extremely popular travel destination with its Mediterranean climate, miles of coastline and beaches, wineries, upscale shopping and restaurants.”

The property is comprised of the 171-room Hyatt Santa Barbara, the 24-room Parkside Inn and a five-villa apartment building that is currently used for long-term, monthly lease stays. Hyatt Santa Barbara is made up of four historic, three-story Spanish colonial buildings that have been carefully restored and are primarily located across from the Santa Barbara beach along East Cabrillo Boulevard. The Trust is still evaluating its options, but has initial plans to renovate and convert the five-villa apartment building into an all luxury suite building.

“We recognized the hotel's long-term potential when we acquired it and leveraged our expertise in architecture and design to further increase its market value,” said Stephen Haggerty, global head, real estate and capital strategy for Hyatt. “We are delighted to be deepening our relationship with Chesapeake and leveraging that higher market value to recycle capital while maintaining a long-term brand presence in the market.”

Hyatt recently completed a $12-million renovation of the property, addressing all guestrooms, corridors, meeting spaces and the registration lobby.

Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The trust owns 20 hotels with an aggregate of 5,932 rooms in eight states and the District of Columbia.

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. As of March 31, the company's worldwide portfolio consisted of 508 properties in 46 countries.