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June 27, 2013

Chesapeake Lodging Trust purchases Hyatt Santa Barbara hotel for $61m

Chesapeake Lodging Trust (Trust), a self-advised lodging real estate investment trust (REIT), has purchased California hotel Hyatt Santa Barbara and two adjoining properties from Hyatt Hotels affiliate for $61m.

By admin-demo

Chesapeake Lodging Trust (Trust) has purchased California hotel Hyatt Santa Barbara and two adjoining properties from Hyatt Hotels affiliate for $61m.

The Trust has also signed a management agreement with HEI Hotels and Resorts to operate the Hyatt Santa Barbara under a franchise deal with Hyatt affiliate.

The two adjoining properties include the 24-room Parkside Inn and a five-villa apartment building, which along with 171-room Hyatt Santa Barbara brings the total number of rooms purchased by Trust to 200.

Hyatt Santa Barbara has four three-storey Spanish colonial buildings that are located across from the Santa Barbara beach along East Cabrillo Boulevard.

The hotel offers guest rooms, including five suites with average area of over 700ft².

It also features 10,000ft² of flexible meeting space, a restaurant and lounge, a spa, a heated outdoor pool and whirlpool, a business service area and a fitness centre.

"The dynamic location along the Pacific Ocean creates the perfect opportunity to create a vibrant food and beverage venue, which will include outdoor seating spaces for both in-house guests and the Santa Barbara community."

Hyatt has recently given a facelift to all guest rooms, corridors, meeting spaces and the reception lobby in a $12m renovation.

The Trust further plans to reposition the restaurant and bar with a new design and service concept, and also plans to convert the five-villa apartment building into a luxury suite building.

Trust president and chief executive officer James Francis said there was minimal work to be done at the hotel following Hyatt’s extensive renovations.

"The dynamic location along the Pacific Ocean creates the perfect opportunity to create a vibrant food and beverage venue, which will include outdoor seating spaces for both in-house guests and the Santa Barbara community," Francis saidd.

Hyatt real estate and capital strategy global head Stephen Haggerty said the company recognised the hotel’s long-term potential when it was acquired.

"We are delighted to be deepening our relationship with Chesapeake and leveraging that higher market value to recycle capital while maintaining a long-term brand presence in the market," Haggerty said.

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