chesapeake lodging trust

Le Meridien San Francisco Sold

The end of the year hotel buy up continues. Chesapeake Lodging Trust announced today that it is buying the 360-room Le Meridien San Francisco for $143 million, or approximately $397,000 per room. A press release states that the company intends to fund the acquisition with a $60 million term loan secured by the hotel that is expected to be funded at the closing of the acquisition, a $45 million borrowing under its revolving credit facility, and remaining proceeds from its recent equity offering. The deal should be wrapped up by the end of the year and the new owner plans to enter into an agreement with a subsidiary of HEI Hotels and Resorts, the hotel's current operator, to manage the hotel under its current franchise flag, so guests won't notice a thing. The recently renovated hotel is one of the top Starwood-branded hotels in San Francisco and the 29-story building has great views of the city and the San Francisco Bay. The hotel also includes Bar 333 & Bistro on the lobby floor and the Park Grill restaurant and lounge on the third floor.

Chesapeake Lodging Trust was started in 2009 and now owns four other hotel properties: the Hyatt Regency Boston, Hilton Checkers Los Angeles, Courtyard Anaheim at Disneyland Resort and Boston Marriott Newton.

Tags: chesapeake lodging trust, le meridien, le meridien san francisco, starwood hotels