Chesapeake Lodging Trust has entered into an agreement to acquire the 360-room Le Meridien San Francisco in California, US for $143m.
The company intends to fund the acquisition with a $60m term loan secured by the hotel, a $45m borrowing under its revolving credit facility, and remaining proceeds from its recent equity offering.
The sale is expected to be complete by the end of the year.
Chesapeake will enter into an agreement with a subsidiary of HEI Hotels and Resorts, the hotel’s current operator, to manage the hotel under its current franchise flag.
The 29-storey Le Meridien San Francisco features a bar, restaurant, lounge, 1,207m² of meeting space, a fitness centre and a business service centre.