Chesapeake Lodging Agrees to Acquire 613-room Denver Marriott City Center
The purchase price is $119 million, or approximately $194,000 per key.
August 25, 2011 - Chesapeake Lodging Trust (NYSE: CHSP) (the “Trust”) announced that it has entered into a definitive agreement to acquire the 613-room Denver Marriott City Center located in Denver, Colorado for a purchase price of $119 million, or approximately $194,000 per key. The Trust intends to fund the acquisition with available cash on hand and by borrowing under its revolving credit facility. Completion of the proposed acquisition is expected within the next 30 days, subject to satisfaction of customary closing conditions. The Trust intends to assume the existing management agreement with Marriott International, Inc.
James L. Francis, Chesapeake Lodging Trust's President and Chief Executive Officer, stated, “The Denver Marriott City Center will be a great addition to our hotel portfolio given the quality of the asset, its location in the CBD of a major market, and its close proximity to the Colorado Convention Center. 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.”
The Denver Marriott City Center, located at 1701 California Street, is part of the mixed-use City Center building ideally situated in the core CBD of downtown Denver and just a few blocks from the Colorado Convention Center. The City Center building with 43 floors is the largest mixed-use building in Denver containing approximately one million square feet of office and hotel space. The Denver Marriott City Center, which is located on the first 20 floors of the building, has 613 guest rooms which were completely renovated in 2009 with the new Marriott guestroom package. The room mix includes 316 kings, 252 double-bedded rooms, 31 executive suites, 12 hospitality suites, and two presidential suites.
The Denver Marriott City Center currently features 28,000 square feet of meeting space, including the 14,500 square foot Colorado ballroom and 6,000 square foot Denver ballroom. The Trust intends to renovate the existing food and beverage outlets, and in the process, relocate the existing restaurant and add an additional 4,500 square feet of meeting space, bringing the total to 32,500 square feet.
The Denver Marriott City Center's strategic location in the heart of the CBD and its proximity to the Colorado Convention Center make the hotel a convenient setting for transient, group and convention business. The hotel's location provides easy access to all of the popular downtown attractions and corporate demand generators. As the only full service Marriott hotel in downtown Denver, the hotel enjoys a strong contribution from the Marriott reservation system and Marriott Rewards loyalty program.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
