SAN DIEGO — Chesapeake Lodging Trust (NYSE:CHSP) has purchased the 429-room Hyatt Regency Mission Bay Spa and Marina, located at 1441 Quivira Road in San Diego, for $62 million. The hotel sits on a 19-acre, waterfront site that includes a 187-slip marina, which is currently 97 percent occupied.
Chesapeake Lodging partially funded the purchase with available cash, while the balance was paid from its revolving credit facility. The purchase price equates to approximately $144,500 per key.
“We are thrilled to expand our strategic relationship with Hyatt and purchase our second high-quality San Diego hotel, which is located directly on the bay with spectacular ocean views,” says James L. Francis, president and CEO of Chesapeake Lodging. “With the previous owner’s extensive renovation completed in 2007 and our planned $6 million softgood refresh, the Hyatt is the best positioned asset within the immediate marketplace.”
The hotel features the full-service Blue Marble spa, the Red Marlin Restaurant Bar and Terrace with panoramic views, three lagoon-shaped pools each with its own 120-foot water slide, 37,000 square feet of meeting space and a water boat taxi service to a VIP entrance to Sea World. Most of the guestrooms average 400 square feet, while 137 of the rooms have a larger footprint.
“The many features of the property, including the spa, marina and the pools, are remarkable,” remarks Francis. “This hotel is an excellent fit for our expanding portfolio of high-quality hotels in the top lodging markets across the United States.”
Chesapeake Lodging’s stock price closed last week at $19.25 per share, up from trading at $11.79 per share a year ago. Chesapeake assumed the existing management agreement with Hyatt Hotels Corp. (NYSE:H). Hyatt’s stock price closed last week at $39.65 per share, up from trading at $31.08 per share at this time last year.
— John Nelson