ANNAPOLIS, MD—Chesapeake Lodging Trust hastaped the capital markets to help pay for a pending acquisition inSan Francisco. This week the REIT priced a public offering of 4.2million common shares for $126 million in grossproceeds. It will use the net proceeds from the offering in itsacquisition of the JW Marriott San Francisco UnionSquare. The purchase price for the 337-key hotel is$147.2 million, or $437,000 per key.
Chesapeake has also entered into an agreement to sell the153-room Courtyard Anaheim at Disneyland Resort inAnaheim, CA for a purchase price of $32.5 million, or $212,000 perkey. The net proceeds of this sale will also go to funding the SanFrancisco acquisition.
San Francisco has become a favored location for Chesapeake –indeed many lodging companies – to make acquisitions. To cite oneexample, last year the REIT acquired the 313-room Hyatt Fisherman's Wharf from anaffiliate of Hyatt Hotels Corp. for $103.5 million, orapproximately $331,000 per key.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
