Chesapeake Lodging Trust (NYSE: CHSP) (the "Trust") announced today that it has acquired the 429-room Hyatt Regency Mission Bay Spa and Marina, located in San Diego, California for a purchase price of $62.0 million, or approximately $144,500 per key. The Trust funded the acquisition with available cash on hand and a borrowing under its revolving credit facility. The Trust assumed the existing management agreement with Hyatt Hotels Corporation.
James L. Francis, the Trust’s President and Chief Executive Officer, stated, “We are thrilled to expand our strategic relationship with Hyatt and purchase our second high-quality San Diego hotel, which is located directly on the bay with spectacular ocean views. With the previous owner’s extensive renovation completed in 2007 and our planned $6 million softgood refresh, the Hyatt is the best positioned asset within the immediate marketplace.”
The Hyatt Regency Mission Bay Spa and Marina, located at 1441 Quivira Road, includes many unique service elements on its 19 acres of prominent waterfront footprint. The hotel’s 429 rooms include 137 large suites among its four guestroom buildings, with the remaining rooms averaging a generous 400 square feet. The property features a 187 slip, 97%-occupied marina, the full-service Blue Marble spa, multiple food and beverage outlets including the award winning Red Marlin with 360-degree bay views, three lagoon shaped pools each with its own 120-foot water slide, exclusive water boat taxi service to Sea World’s private VIP entrance, and over 37,000 square feet of meeting space.
“The many features of the property, including the spa, marina and the pools, are remarkable,” continued Mr. Francis. “Combining the strong leadership and power of the Hyatt brand, the growing strength of the San Diego marketplace, and our compelling acquisition price, this hotel is an excellent fit for our expanding portfolio of high-quality hotels in the top lodging markets across the United States.”