ANNAPOLIS, MD-Locally-based Chesapeake Lodging Trust released its 2014 outlook today and says that it expects market conditions to improve this year due to lower than normal hotel development, combined with an improving economy and increased lodging demand.

“We are very excited about our prospects in 2014 as our hotel portfolio is well-positioned to take advantage of the continued improvement in the lodging industry,” states James L. Francis, Chesapeake Lodging Trust's President and Chief Executive Officer. “We expect hotel fundamentals in 2014 to be stronger than 2013 as new room supply is expected to remain below historical levels and hotel demand continues to strengthen with the recovery in the U.S. economy.”

He continues, “Despite the renovation displacement we expect in 2014 at three of our hotels, we believe we can still deliver very solid top-line and bottom-line growth. The incremental cash flow and value that we expect to generate as a result of these renovations will provide outsized growth in 2015 and beyond.”

Displacement in 2014 will result from the comprehensive renovation at the 520-room W Chicago-Lakeshore, which commenced in the third quarter of 2013 and is expected to be completed in the second quarter of 2014. Other displacements cited by the company include the  renovation at the 410-room W New Orleans to reposition the hotel to the Le Meridien brand, which is expected to commence in the second quarter of 2014 and be completed in the fourth quarter of 2014; and the expected two-month closure in the third quarter of 2014 of the 122-room Holiday Inn New York City Midtown-31st Street to reposition the hotel. Officials with Chesapeake Lodging Trust estimate the impact of the displacement in 2014 from these renovations on its hotel EBITDA to be between $6 million and $6.5 million.