High-Valued Hotel Deal Closes

SAN FRANCISCO—Chesapeake Lodging Trust said today that it has closed on the previously announced acquisition of the JW Marriott San Francisco Union Square for a purchase price of $147.2 million, or approximately $437,000 per key. The Trust assumed the existing management agreement with Marriott International, Inc., as well as the existing ground lease covering the property, which expires in 2083.

“We are delighted to close on the previously announced acquisition of the JW Marriott San Francisco Union Square and further expand our presence in the high-growth San Francisco market,” said James Francis, president and CEO of the Chesapeake. “We believe that San Francisco provides some of the strongest lodging fundamentals in the world and we are excited to grow Chesapeake’s footprint in this incredible marketplace to approximately 1,200 keys. The hotel’s excellent downtown, Union Square location and strong operating fundamentals make this acquisition an outstanding addition to our high-quality portfolio.”