Real EstateAcquisitionsChesapeake Lodging Trust Acquires Hyatt Santa Barbara

Chesapeake Lodging Trust Acquires Hyatt Santa Barbara

ANNAPOLIS, Md.—Chesapeake Lodging Trust and Hyatt Hotels Corporation announced that Chesapeake has acquired the fee simple interest in the Hyatt Santa Barbara and two adjoining properties totaling 200 rooms from a Hyatt affiliate for $61.0 million, or approximately $305,000 per key. The Trust entered into a management agreement with HEI Hotels and Resorts to operate the hotel under a franchise agreement with a Hyatt affiliate.

“We are very excited to acquire the recently renovated Hyatt Santa Barbara while we continue to grow our relationship with Hyatt,” stated James L. Francis, president and chief executive officer of the Trust. “The property is ideally located on the Pacific Ocean and walking distance to the shops and restaurants of downtown Santa Barbara. The city is an extremely popular travel destination with its Mediterranean climate, miles of coastline and beaches, wineries, upscale shopping and restaurants.”

The property is comprised of the 171-room Hyatt Santa Barbara, the 24-room Parkside Inn, and a five-villa apartment building that is currently used for long-term, monthly lease stays. Hyatt Santa Barbara is made up of four historic, three-story Spanish colonial buildings that have been carefully restored. The hotel offers 10,000 square feet of flexible meeting space, a full-service restaurant and lounge, a recently created full-service spa, a heated outdoor pool and whirlpool, a business service center and a large state-of-the-art fitness center.

Hyatt recently completed a $12 million renovation of the property, addressing all guestrooms, corridors, meeting spaces and the registration lobby. The Trust will reposition the restaurant and bar with a new design and service concept.