Chesapeake Lodging Trust, headquartered in Annapolis, Md., has entered into a definitive agreement to acquire the 613-room Denver Marriott City Center for a purchase price of $119 million. The trust will also assume the existing management agreement with Marriott International Inc.
Located a few blocks from the Colorado Convention Center, the 43-floor property is the largest mixed-use building in Denver, containing approximately 1 million square feet of office and hotel space.
‘At $194,000 per key for a upper-upscale hotel requiring little additional capital, we are acquiring the hotel well below replacement cost and with a very strong current yield, which makes this acquisition quite compelling, even during these uncertain times,’ says James L. Francis, president and CEO of Chesapeake Lodging Trust.
