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Chesapeake Hospitality Bought Out for $16M Plus $10M Additional Consideration
Greenbelt, MD-based Chesapeake Hospitality has been acquired by Remington Hotels, a wholly owned portfolio company of Dallas, TX-based Ashford, Inc.
Ashford is acquiring Chesapeake for an initial consideration of $15.8 million, payable with $6.3 million in cash and $9.5 million of a new Series CHP Convertible Preferred Unit.
Chesapeake will also have the ability to earn up to $10.3 million of additional consideration based on its base management fee contribution for the trailing 12-month periods ending March 2024 and March 2025 for a total potential consideration of $26 million.
The 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 combined company will operate under the Remington brand, and the transaction diversifies Remington’s client base away from the company’s advised REITs.
As a result of the acquisition, Remington’s mix of third-party hotels increases from approximately 20% to 40%.
- ◦Sale/Acquisition
