Chesapeake Lodging Trust Closes $46M Purchase of Ritzy Checkers Hotel in Los Angeles
- Jun 04, 2010
June 4, 2010
By Barbra Murray, Contributing Editor
Approximately four months after having completed its initial public offering, Chesapeake Lodging Trust has made its second acquisition, the 188-room Hilton Checkers Los Angeles. The Annapolis, Md.-based lodging REIT paid Kalpana L.L.C. and 535 Grand Avenue, L.L.C. $46 million in cash to become the upper-upscale boutique hotel’s new owner.
Carrying the address of 535 South Grand Avenue, the Hilton Checkers sits downtown in the core of the Los Angeles business and financial district, not far from the Los Angeles Convention Center and such attractions as the mixed-use L.A. Live entertainment complex and the Walt Disney Concert Hall. In addition to its premier guestrooms, the 16-story property, which was originally developed in the 1920s, features 3,300 square feet of meeting and event space, as well as a restaurant and a fitness facility. Chesapeake has tapped Crestline Hotels and Resorts Inc. to manage the hotel, which will continue to fly the Hilton flag.
Chesapeake walked away with net proceeds of approximately $148.7 million upon the completion of its January 27, 2010 IPO, and committed to investing every penny of it. The company kicked off its portfolio in March with the $112 million acquisition of the 498-room Hyatt Regency Boston from Hyatt Hotels Corp. Next on the list is the 153-room Courtyard Anaheim at Disneyland Resort in Anaheim, Calif. Chesapeake will shell out $71 million for the hotel in a transaction that is on schedule to close by July 29 of this year.
“We have now invested or committed to invest all of the proceeds from our IPO in January,” James L. Francis, President and CEO of Chesapeake, said in an earlier press release announcing the impending acquisitions of the Hilton Checkers and the Courtyard Anaheim. “Consistent with our business plan, we have invested our initial capital in major markets that will benefit as the U.S. economy improves. Both the Hilton and Courtyard hotels, as well as the Hyatt Regency Boston are in great physical condition, requiring little capital, and thus will not experience any renovation disruption after we close on the acquisitions.”