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Washington DC  + DC Metro  + Hospitality  | 
Remington Hotels has acquired Chesapeake Hospitality for $15.8 million plus an additional consideration of $10.3 million.

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%.

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About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

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