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Chesapeake Finalizes Sale of NYC Hotels Prior to Merger
In one of its final actions before completing its $2.7-billion merger into Park Hotels & Resorts, Chesapeake Lodging Trust closed on its previously announced sale of its only New York properties, the 122-key Hyatt Herald Square New York and the 185-key Hyatt Place New York Midtown South. The aggregate sale price was $138 million, or approximately $450,000 per key.
Chesapeake didn’t disclose the buyer or buyers. The REIT acquired the Hyatt Herald Square in December 2011 for $52 million, or $428,000 per key, and the newly-developed Hyatt Place New York Midtown South in March 2013 for $76.2 million, or $412,000 per key. The Herald Square property was rebranded from a Holiday Inn.
The $138-million aggregate sale price represents a 5.9% trailing 12-month NOI cap rate. A portion of the sale proceeds was used to defease the mortgage loan secured by the hotels, with an outstanding balance of approximately $85 million.
Pictured: Hyatt Place New York Midtown South.
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- ◦Sale/Acquisition
