Park Hotels & Resorts has closed the acquisition of Chesapeake Lodging Trust following receipt of approval for the transaction by Chesapeake’s shareholders.

The total transaction value is around $2.5bn, which includes transaction costs.

This deal expands Park’s presence across several markets including San Francisco, Boston, Denver, Miami, San Diego and Los Angeles.

Besides, it speeds up Park’s strategic goals of upgrading its portfolio and achieving brand, operator and geographic diversity.

Park’s portfolio currently comprises 66 hotels with more than 35,000 rooms located primarily in prime city centre and resort locations.

The deal of Chesapeake increases Park’s total enterprise value to over $10bn.

Park CEO and chairman Thomas J. Baltimore, Jr.,  said: “We are extremely pleased to have completed this strategic acquisition of an exceptional portfolio of hotels which further enhances our overall portfolio quality and positions the Company to drive superior, risk-adjusted earnings growth over the long run.

“This acquisition allows us to diversify our brand portfolio, and we are excited to be joining the Marriott, Hyatt and IHG family of brands. As we have done with our existing portfolio since our separation from Hilton in 2017, we will work tirelessly to unlock the embedded growth opportunities within these assets and create value for Park’s stockholders as we deploy our aggressive asset management strategies.

“I would like to thank the Park associates, as well as our advisors, for their incredible efforts to close this transaction. I would also like to thank Jim Francis and the entire Chesapeake team for their professionalism and partnership throughout this process.”

Thomas J. Baltimore, Jr. will continue to serve as chairman of Park’s board of directors and CEO.

Two former Chesapeake trustees will be added to Park’s board of directors – Thomas A. Natelli and Thomas D. Eckert.