Chesapeake Lodging Trust, headquartered in Annapolis, Md., has entered into a definitive agreement to acquire the 185-room Hyatt Place New York Midtown South for a purchase price of $76.5 million, or approximately $414,000 per key. The 25-story hotel is currently under development and is the second New York City hotel acquired by the company in the past month.
In conjunction with the proposed acquisition, Chesapeake Lodging Trust has agreed to provide the seller with $6.5 million in bridge financing to facilitate the completion of the development of the hotel. Chesapeake Lodging Trust has entered into an agreement with Real Hospitality Group to manage the hotel; Real Hospitality Group also manages the trust's other New York City hotel, the Holiday Inn New York City Midtown – 31st Street.
‘We expect the Hyatt Place to ramp up very quickly, given the robust demand in Manhattan, the strength of the Hyatt brand and our operator's extensive experience managing hotels in New York City,’ says James L. Francis, Chesapeake's president and CEO. ‘Following this acquisition, approximately eight percent of our portfolio's hotel rooms will be based in Midtown Manhattan.’