Chesapeake Lodging Trust (NYSE: CHSP) (the "Trust") announced today that it has acquired the 222-room The Hotel Minneapolis, a Marriott Autograph Collection hotel, located in Minneapolis, Minnesota for a purchase price of $46.0 million, or approximately $207,000 per key. The Trust funded the acquisition with a borrowing under its revolving credit facility. The Trust entered into an agreement with a subsidiary of HEI Hotels and Resorts, the hotel’s current operator, to manage the property and will continue its affiliation with Marriott under the Autograph Collection.
James L. Francis, the Trust’s President and Chief Executive Officer, stated, “We are thrilled to expand our portfolio with another high-quality, full-service boutique lifestyle property located in the core CBD of Minneapolis. The property has been meticulously restored and is one of the premier hotels in the city.”
The Hotel Minneapolis, located at 215 Fourth Street South, is conveniently connected to the city skywalk system which links more than 80 blocks and over 26 million square feet of prominent office and retail buildings throughout downtown Minneapolis. The 10-story property features 22 suites, 6,000 square feet of meeting and catering space, the 250-seat Max Restaurant and Bar, a large business center, fitness center and approximately 12,000 square feet of leased tenant space. “While we don’t value the tenant cash flow separately from the hotel’s operations, these spaces enhance the cash flow of the property by over 10%,” continued Mr. Francis.
The Hotel Minneapolis’ lobby and ground floor, through a thoughtful restoration program, retained original details and features of the historic 1906 Midland Bank building, including the marble floors and panels, marble columns, and expansive ceilings with detailed hand carved plaster ornamentations. Original bank vaults have been incorporated throughout its modern design, including Audrey’s Vault, the original bank cashier vault now serving as the hotel’s social catering space centerpiece and the hotel’s wine cellar. Mr. Francis continued, “The overall attention to the smallest of details is remarkable; this is truly a special property and excellent addition to our portfolio.”