SANTA BARBARA, CALIF.— Chesapeake Lodging Trust (NYSE: CHSP) has acquired the fee simple interest in the Hyatt Santa Barbara and two adjoining properties, totaling 200 rooms for $61 million, or $305,000 per key. Chesapeake entered into a management agreement with HEI Hotels and Resorts to operate the hotel under a franchise agreement with a Hyatt affiliate.
The property includes the 171-room Hyatt Santa Barbara, the 24-room Parkside Inn and a five-villa apartment building that is currently used for long-term, monthly lease stays. The hotel is located near the Pacific Ocean and is within walking distance to the shops and restaurants in downtown Santa Barbara.
“We are very excited to acquire the recently renovated Hyatt Santa Barbara while we continue to grow our relationship with Hyatt,” says James Francis, president and CEO of Chesapeake. “The city is an extremely popular travel destination with its Mediterranean climate, miles of coastline and beaches, wineries, upscale shopping and restaurants.”
Hyatt Hotels Corp. recently completed a $12 million renovation of the property, including all guestrooms, corridors, meeting spaces and the registration lobby. Chesapeake will reposition the restaurant and bar with a new design and service concept, drawing inspiration from the picturesque ocean front beach views.
“There is minimal work to be done at the hotel following Hyatt’s extensive renovations,” says Francis. “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.”
While Chesapeake is still evaluating its options, its initial plans include renovating and converting the five-villa apartment building into a luxury suite property. Plans also include the repositioning of the restaurant and bar with a new design and service concept, drawing inspiration from the picturesque ocean front beach views.
The hotel includes five suites that average more than 700 square feet, 10,000 square feet of flexible meeting space, a full-service restaurant and lounge, full-service spa, heated outdoor pool and whirlpool, business service center and state-of-the-art fitness center.
Fairfield, N.J.-based Chesapeake Lodging Trust is a real estate investment trust focused on investments primarily in upscale hotels in major business and convention markets. The REIT owns 20 hotels totaling 5,932 rooms in eight states and the District of Columbia.
— Blair Siegler