Chesapeake Lodging Trust Acquires Holiday Inn New York City Midtown – 31st Street
ANNAPOLIS, Md.--(BUSINESS WIRE)-- Chesapeake Lodging Trust (CHSP) (the "Trust") announced today that it has closed on the previously announced acquisition of the newly developed, 122-room Holiday Inn New York City Midtown 31st Street located in New York, New York for a purchase price of $52.2 million, or approximately $428,000 per key. The Trust funded the acquisition with a borrowing under its revolving credit facility. The Trust entered into an agreement with Real Hospitality Group to manage the hotel.
James L. Francis, Chesapeakes President and Chief Executive Officer, stated, We are excited to acquire our first hotel in the New York City market at a very compelling entry point. Given the robust demand in midtown Manhattan, our operators experience managing hotels in New York City, and the strength of the IHG reservation system, we expect the Holiday Inn New York City Midtown 31st Street to ramp-up very quickly.
The newly developed Holiday Inn New York City Midtown 31st Street, located on West 31st Street between 5th Avenue and Broadway, is an 18-story structure with 122 well appointed and modern guestrooms. Each room contains a central HVAC system, large upgraded bathrooms with glass tile walls and inset framed mirrors, glass-enclosed showers, an upgraded vanity and hardware, and large ceramic tile flooring. The room mix includes 94 king rooms, 20 double-bedded rooms, six standard rooms equipped for ADA access, and two suites. The hotel also has a roof top bar with unobstructed views of the Empire State Building and the Manhattan skyline. The Trust leases space on the first floor to Contornos Restaurant, an 80-seat upscale Italian restaurant and bar.
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 and extended-stay hotels in urban settings or unique locations in the United States. The Trust owns 12 hotels with an aggregate of 3,512 rooms in six states and the District of Columbia. Additional information can be found on the Trusts website at www.chesapeakelodgingtrust.com.
Chesapeake Lodging Trust
Douglas W. Vicari, 410-972-4142
Source: Chesapeake Lodging TrustCopyright Business Wire 2011