Park Hotels & Resorts Inc. has completed its previously announced acquisition of Chesapeake Lodging Trust.
The announcement follows approval of the transaction by Chesapeake’s shareholders at a special meeting of Chesapeake shareholders held on September 10, 2019. Based on Park’s closing stock price as of September 17, 2019, the total transaction value is approximately $2.5 billion, inclusive of transaction costs.
In connection with the acquisition, Park will be added to the S&P MidCap 400 Index effective today.
The acquisition expands Park’s presence across several high-growth U.S. markets including San Francisco, Boston, Denver, Miami, San Diego and Los Angeles, and accelerates Park’s strategic goals of upgrading the quality of its portfolio and achieving brand, operator and geographic diversity. On a combined basis, Park’s portfolio now consists of 66 hotels with over 35,000 rooms located primarily in prime city center and resort locations. The acquisition of Chesapeake increases Park’s total enterprise value to over $10 billion, solidifying its position as the second largest publicly-traded lodging REIT.
”We are extremely pleased to have completed this strategic acquisition of an exceptional portfolio of hotels which further enhances our overall portfolio quality and positions the Company to drive superior, risk-adjusted earnings growth over the long run,” said Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park.
Thomas J. Baltimore, Jr. will continue to serve as Chairman of Park’s Board of Directors and Chief Executive Officer. Along with Mr. Baltimore, Park’s existing senior management team will continue to lead the Company.