Inactive Instrument

Chesapeake Lodging Trust

Equities

CHSP

Chesapeake Lodging Trust : Park Hotels to buy Chesapeake Lodging Trust in a $2.7 billion deal

May 06, 2019 at 06:32 am EDT

(Reuters) - Hotel owner Park Hotels & Resorts Inc on Monday agreed to buy smaller rival Chesapeake Lodging Trust in a cash and stock deal valued at $2.7 billion (2.06 billion pounds) that would create the second biggest lodging real estate investment trust in the United States.

Park's offer of $31.71 per share represents a premium of about 8 percent to Chesapeake Lodging's closing price on Friday.

The merged entity will have an enterprise value of about $12 billion, following the close of the deal by fourth quarter of 2019, and is closely behind No.1 Host Hotels & Resorts Inc's enterprise value of about $17.7 billion, Park Hotels said.

Park's portfolio of properties consists of 51 premium-branded hotels and resorts, which have more than 30,000 rooms located in prime U.S. markets.

Chesapeake Lodging owns 20 hotels, which have a total of 6,288 rooms in eight U.S. states and the District of Columbia.

BofA Merrill Lynch and Barclays were financial advisers to Park Hotels, while Hogan Lovells acted as legal counsel.

J.P. Morgan Securities was financial adviser to Chesapeake, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Polsinelli PC acted as legal counsel.

(Reporting by Ankit Ajmera in Bengaluru; Editing by James Emmanuel)

Latest news about Chesapeake Lodging Trust

Chesapeake Lodging Trust , Park Hotels & Resorts Inc., PK Domestic Property LLC and PK Domestic Sub LLC Announce Management Changes	19-09-18	CI
Chesapeake Lodging Trust(NYSE:CHSP) dropped from S&P 1000	19-09-18	CI
Chesapeake Lodging Trust(NYSE:CHSP) dropped from S&P 600	19-09-18	CI
Chesapeake Lodging Trust(NYSE:CHSP) dropped from S&P Composite 1500	19-09-18	CI
Chesapeake Lodging Trust(NYSE:CHSP) dropped from S&P TMI Index	19-09-18	CI
Chesapeake Lodging Trust(NYSE:CHSP) dropped from S&P Global BMI Index	19-09-18	CI
Park Hotels & Resorts Inc. (NYSE:PK) completed the acquisition of Chesapeake Lodging Trust for approximately $2.5 billion.	19-09-17	CI
Aju Hotels & Resorts completed the acquisition of Hyatt Herald Square New York and Hyatt Place New York Midtown South from Chesapeake Lodging Trust.	19-09-17	CI
Canada auto sales rise slightly in August, ending 17-month rut	19-09-04	RE
Chesapeake Lodging Trust Reports Earnings Results for the Second Quarter Ended June 30, 2019	19-08-01	CI
Aju Hotels & Resorts entered into an agreement to acquire Hyatt Herald Square New York and Hyatt Place New York Midtown South from Chesapeake Lodging Trust for approximately $140 million.	19-07-25	CI
Chesapeake Lodging Trust Declares Dividend for the Second Quarter, Payable on July 15, 2019	19-06-12	CI
Chesapeake Lodging Trust : Park Hotels to buy Chesapeake Lodging Trust in a $2.7 billion deal	19-05-06	RE
Chesapeake Lodging Trust Reports Earnings Results for the First Quarter Ended March 31, 2019	19-05-06	CI
Park Hotels & Resorts Inc. (NYSE:PK) entered into a definitive merger agreement to acquire Chesapeake Lodging Trust for $2 billion.	19-05-05	CI
Chesapeake Lodging Trust Declares Dividend for the First Quarter of 2019, Payable on April 15, 2019	19-03-19	CI
Transcript : Chesapeake Lodging Trust, Q4 2018 Earnings Call, Feb 21, 2019	19-02-21
Chesapeake Lodging Trust Reports Earnings Results for the Full Year Ended December 31, 2018	19-02-21	CI
Chesapeake Lodging Trust Reports Earnings Guidance for the First Quarter and Full Year of 2019	19-02-21	CI
Chesapeake Lodging Trust Declares Dividend for the Fourth Quarter, Payable on January 15, 2018	18-12-18	CI
Transcript : Chesapeake Lodging Trust, Q3 2018 Earnings Call, Nov 01, 2018	18-11-01
Tranche Update on Chesapeake Lodging Trust's Equity Buyback Plan announced on September 29, 2015.	18-11-01	CI
Chesapeake Lodging Trust Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Consolidated Financial Guidance for the Fourth Quarter Ending December 31, 2018 and Revises Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2018	18-11-01	CI
Chesapeake Lodging Trust's Equity Buyback announced on September 29, 2015, has expired with 0 shares, representing 0% for $0 million.	18-09-29	CI
Chesapeake Lodging Trust Declares Dividend for the Third Quarter of 2018, Payable on October 15, 2018	18-09-10	CI

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Company Profile

Chesapeake Lodging Trust is a real estate investment trust. The Company is focused on investments primarily in upper-upscale hotels in various business and convention markets and, on a selective basis, select-service hotels in urban settings or other locations in the United States. The Company operates through the hotel ownership segment. The Company conducts its operations primarily though Chesapeake Lodging, L.P., its operating partnership (the Operating Partnership). The Company owns approximately 20 hotels with an aggregate of 6,288 rooms in seven states and the District of Columbia. The Company's portfolio includes Hyatt Regency Boston; Hilton Checkers Los Angeles; Boston Marriott Newton; Le Meridien San Francisco; Homewood Suites Seattle Convention Center; Hotel Indigo San Diego Gaslamp Quarter; Courtyard Washington Capitol Hill/Navy Yard; Hotel Adagio San Francisco, Autograph Collection; Denver Marriott City Center, and Hyatt Regency Mission Bay Spa and Marina.

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