Ashford Expands Hotel Management Business With Chesapeake Hospitality Acquisition

Ashford Inc., in a move the Dallas-based firm believes will expand its hotel management business, has acquired Chesapeake Hospitality, through its portfolio company Remington Hotels, an independent hotel management company.

Ashford is acquiring Maryland-based Chesapeake for an initial consideration of $15.75 million, payable with $6.3 million in cash and $9.45 million of a new Series CHP Convertible Preferred Unit, which will pay a 7.28% annual dividend and have a $117.50 conversion price per share.

The strategic transaction is expected to increase the scale and scope of Remington’s hotel management business while expanding Remington’s geographic footprint to complementary Midwestern markets. The acquisition will add several IHG Hotels & Resorts to its portfolio, as well as the 877 key Showboat Atlantic City, which will be the largest hotel in Remington’s portfolio.

“I’m so proud that Chesapeake is joining Remington, a company that is known for its stellar results and has made a real cultural shift in the hotel management space,” said Chris Green, former President and CEO of Chesapeake and newly appointed Divisional President of Remington Hotels.