Chesapeake Lodging Trust May Be On The Block
Annapolis-based Chesapeake Lodging Trust could soon be on the block with a hefty price tag.
The hotel REIT is exploring a potential sale and could fetch as much as $2B on the open market. As of Wednesday’s close, the company had a current market value of $1.4B, but has struggled along with other REITs in the hotel sector and has seen its shares drop nearly 40% over the past year, the Wall Street Journal reports.
Chesapeake owns 22 higher-end hotels that include more than 6,000 rooms. Among the highlights of its portfolio are The Royal Palm-Miami South Beach, which offers direct beach access and 139 suites, and the Le Meridien in San Francisco, a newly renovated luxury hotel in the heart of the city’s financial district. Locally, the Courtyard Washington Capitol Hill/Navy Yard is a member of the Chesapeake family.
This would be the latest hotel company to hit the market. Earlier this month, word emerged of a bidding war developing over Singapore-based Ascendas Hospitality Trust, with Blackstone and Starwood among the potential suitors. Last month, Blackstone wrapped up a $6B deal to acquire Chicago-based Strategic Hotels and Resorts. [WSJ]