Chesapeake Lodging Trust Acquires JW Marriott San Francisco Union Square
02 October 2014 - 3:17AM
Business Wire
Chesapeake Lodging Trust (NYSE:CHSP) (the “Trust”) announced
today that it has closed on the previously announced acquisition of
the JW Marriott San Francisco Union Square for a purchase price of
$147.2 million, or approximately $437,000 per key. The Trust
assumed the existing management agreement with Marriott
International, Inc., as well as the existing ground lease covering
the property, which expires in 2083.
“We are delighted to close on the previously announced
acquisition of the JW Marriott San Francisco Union Square and
further expand our presence in the high-growth San Francisco
market,” commented James L. Francis, President and Chief Executive
Officer of the Trust. “We believe that San Francisco provides some
of the strongest lodging fundamentals in the world and we are
excited to grow Chesapeake’s footprint in this incredible
marketplace to approximately 1,200 keys. The hotel’s excellent
downtown, Union Square location and strong operating fundamentals
make this acquisition an outstanding addition to our high-quality
portfolio.”
The JW Marriott San Francisco Union Square is a 337-room “Quiet
Luxury” brand offered by Marriott International. The iconic
21-story building sits on a prime corner location at Mason and Post
in the heart of Union Square and features a 17-story atrium lobby.
The hotel contains some of the largest accommodations in San
Francisco, including 23 luxury suites that range from 600-1,500
square feet. Each guestroom contains a 42-inch flat screen
television, Revive Collection bedding including pillow top
mattresses, a Bose radio, wired and wireless HSIA, a generous work
area with an ergonomic chair, and floor-to-ceiling marble encased
four or five-fixture bathrooms with granite counters and separate
tubs.
Guests arrive via the ground level porte-cochere to the first
floor entry where a glass elevator transports them to the main
lobby on the third floor. The spacious 17-story atrium lobby
features guest registration and concierge services, a variety of
comfortable seating groups, Level III Restaurant and Bar, and the
large “Joie de Danse” bronze sculpture, which is the integral focal
point of the lobby design.
Located on the third floor main lobby, the restaurant and bar
were redesigned and introduced in 2008 as part of the lobby
renovation. The open, flexible space benefits from the soaring
atrium and is used as a catering venue for social events up to 175
guests.
The hotel has 12,445 square feet of highly flexible meeting and
banquet space throughout 19 different meeting rooms. The diverse
mixture of meeting space includes the Metropolitan Ballroom,
well-appointed boardrooms and several breakout rooms on the 21st
floor with views of the Golden Gate Bridge, and the Pacific
Conference Center. The subterranean Pacific Conference Center is
quickly becoming a favorite for law groups given its unprecedented
level of security and privacy.
The JW Marriott San Francisco Union Square features a large
fitness center which was renovated and expanded in 2012. A retail
center offering everyday convenience items and healthy snacks is
located on the third floor and the hotel also features a
full-service business center offering a comprehensive level of
services ranging from copy and fax to notary public and overnight
delivery services. Parking is provided by valet service with
unlimited in and out privileges via the 210-space below grade
garage, which is leased to a third party.
“The hotel is in great condition following an approximate $25
million investment since its conversion to the JW brand in 2007,”
continued Mr. Francis. “We have some exciting upgrades of our own
planned in the coming years to keep this a market leading hotel in
Union Square.”
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate
investment trust (REIT) focused on investments primarily in
upper-upscale hotels in major business and convention markets and,
on a selective basis, premium select-service hotels in urban
settings or unique locations in the United States. The Trust owns
20 hotels with an aggregate of 6,116 rooms in eight states and the
District of Columbia. Additional information can be found on the
Trust’s website at www.chesapeakelodgingtrust.com.
Chesapeake Lodging TrustDouglas W. Vicari, 410-972-4142
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