Annapolis, Md.-based Chesapeake Lodging Trust has acquired the 520-room W Chicago – Lakeshore for a purchase price of $126 million from Starwood Hotels & Resorts Worldwide Inc. As part of the acquisition agreement, Starwood will continue operating the hotel under the W brand.
Chesapeake Lodging Trust funded the acquisition with available cash and cash equivalents and a borrowing under its revolving credit facility. The 32-story hotel's new owner is planning a renovation for the property next year that is budgeted between $35 million and $38 million.
‘This is a unique opportunity for Chesapeake to expand its Chicago footprint with the only lakefront, luxury-branded hotel in Chicago,’ says James L. Francis, CEO of Chesapeake Lodging Trust. ‘This acquisition further complements and creates operational and sales synergies with our W City Center property that we also purchased from Starwood in May of last year.’
(Photo courtesy Igougo.com)