LOS ANGELES – Chesapeake Lodging Trust (NYSE: CHSP) has acquired the 182-room Ace Hotel Downtown Los Angeles and The Theater at Ace Hotel for $103 million. The seller was Greenfield Partners.
The property is located at South Broadway and 9th Street in the Broadway and Fashion corridors of Downtown Los Angeles. The Ace Hotel occupies a historic, 1920s Spanish Gothic-style property that was previously home to United Artists and Texaco.
The Ace Hotel Downtown opened in January 2014. The property also contains a 1,600-seat theater that was restored prior to the opening. The space features the original salvaged theatrical lights.
“We are thrilled to announce our acquisition of the Ace Hotel and Theatre and further expand our presence in the dynamic Los Angeles market,” says James L. Francis, Chesapeake’s president and CEO. “This historic building and theater were completely restored and reopened early last year. The level of detail and immaculate condition of the facility is remarkable. We are very excited to add another first-class asset to our growing high-quality portfolio.”
The hotel also contains a rooftop bar called Upstairs at Ace Hotel Downtown Los Angeles. It is situated between the pool and a 2,000-square-foot indoor/outdoor lounge area. The building includes restaurant L.A. Chapter and a coffee shop.
The second level features The Mezzanine, a 972-square-foot sitting space with a cocktail bar that also functions as a private meeting and event space. There is an additional 2,160 square feet of dedicated meeting and banquet space throughout the hotel.
Notable artists who have performed at The Theatre recently include Duran Duran, Moby, Courtney Love, Macy Gray and Amy Poehler. The Theatre will host Sundance Next Fest for the second time this August.
“The theater booking pace is up considerably from its first year and will host over 100 events in 2015,” Francis says. “We estimate that the theater alone will generate revenues in excess of $4.4 million and net operating profit of over $2 million.”
Chesapeake Lodging Trust is a lodging REIT that focuses on investments in upscale hotels in major business and convention markets. The trust owns 22 hotels with a total of 6,691 rooms in nine states and Washington, D.C.
Chesapeake’s stock price closed at $31.75 on Thursday, April 30, up from $26.56 one year ago.