SAN FRANCISCO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Chesapeake Lodging Trust has purchased the fee simple interest in the 313-room Hyatt Fisherman's Wharf from an affiliate of Hyatt Hotels Corp. for $103.5 million, or approximately $331,000 per key. The Trust entered into an agreement with Evolution Hospitality to manage the hotel under a franchise agreement with a Hyatt affiliate.
The five-story property is located on North Point Street in the heart of Fisherman's Wharf. The hotel is also a short distance from the Financial District, Nob Hill, Union Square and the Moscone Convention Center.
The hotel features 313 well sized guestrooms including eight suites, 19,000 square feet of flexible meeting space, a full service restaurant and lounge, a coffee shop, a heated outdoor pool and a large state-of-the-art fitness center. The property also includes approximately 4,700 square feet of ground level retail space.
The Trust intends to begin a renovation of the hotel in the fourth quarter 2014. The design will capture a “sophisticated spin on the maritime and nautical themes presenting itself within the San Francisco Wharf,” according to a prepared statement.
James L. Francis, president and CEO of the Trust, says in a statement. “Hyatt Fisherman's Wharf is an outstanding property with a terrific location that complements our hotels in the Financial District and Union Square.”
According to Stephen Haggerty, global head, real estate and capital strategy for Hyatt, “One of the core ways we will continue to achieve strategic growth is through capital recycling. This transaction creates value as it unlocks capital at a strong pricing level, maintains our long-term brand presence in the market, and expands a relationship with a good owner who is investing in the property through a renovation program.”
Haggerty adds that “With multiple Hyatt hotels in its portfolio, we are excited to deepen our relationship with Chesapeake and look forward to more collaboration in the future.”
Francis adds that “While the hotel has been very well maintained by Hyatt, we see an opportunity to further enhance the asset. The timing of the $8-million project will be closely coordinated with our management team to minimize any operational disruption.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
