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MINNEAPOLIS — Chesapeake Lodging Trust (NYSE: CHSP) has acquired The Hotel Minneapolis, a 222-room hotel located at 215 Fourth St. S. in downtown Minneapolis, for $46 million, or $207,000 per key. The hotel is part of the Marriott Autograph Collection and will remain with the brand.

“We are thrilled to expand our portfolio with another high-quality, full-service boutique lifestyle property located in the core CBD of Minneapolis,” says James Francis, president and CEO of Chesapeake Lodging Trust. “The property has been meticulously restored and is one of the premier hotels in the city.”

Chesapeake Lodging entered into the purchase agreement with a subsidiary of HEI Hotels and Resorts, the majority interest of the managing entity. Chesapeake Lodging has retained HEI to manage the hotel.

The hotel is connected to Minneapolis’ city skywalk system, which links more than 80 blocks and 26 million square feet of office and retail buildings throughout downtown Minneapolis via sky bridges.

The 10-story hotel features 6,000 square feet of meeting/catering space, the 250-seat Max Restaurant and Bar, a business center, fitness center and approximately 12,000 square feet of leased tenant space.

“While we don’t value the tenant cash flow separately from the hotel’s operations, these spaces enhance the cash flow of the property by more than 10 percent,” says Francis.

The hotel has kept marble floors and columns from when it was known as the 1906 Midland Bank building. The original bank vaults have been incorporated into the design.

“The overall attention to the smallest of details is remarkable,” says Francis. “This is truly a special property and excellent addition to our portfolio.”

Chesapeake Lodging Trust’s stock price closed at $18.93 per share on Oct. 26, up from trading at $14.94 per share this time last year.

— John Nelson

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