May 7, 2019
Park Hotels & Resorts Inc. and Chesapeake Lodging Trust entered into a definitive merger agreement under which Park will acquire all the outstanding shares of Chesapeake in a cash and stock transaction valued at approximately $2.7 billion.
The combined company will have an estimated enterprise value of $12 billion, firmly solidifying Park’s position as the second largest lodging REIT while enhancing and diversifying its portfolio. The board of directors and board of trustees of Park and Chesapeake have both approved the deal.
Park plans to sell five non-core hotels prior to the proposed closing, including both of Chesapeake’s New York City hotels (the 122-room Hyatt Herald Square New York and the 185-room Hyatt Place New York Midtown South), in addition to three non-core Park hotels which are currently under contract. That would leave the combined company with 66 hotels in key urban and resort markets in 17 states and the District of Columbia.
The companies expect the transaction to close by early Q4 2019.
*Pictured Hyatt Regency Boston
For comments, questions or concerns, please contact Dennis Kaiser