Chesapeake Lodging Trust Announces a DefinitiveAgreement to Acquire the Le Meridien San Francisco

(Hospitality Business News) December 13, 2010 - - Chesapeake Lodging Trust (NYSE:CHSP) announced today that it has entered into a definitive agreement to acquire the 360-room Le Meridien San Francisco located in San Francisco, California for a purchase price of $143 million, or approximately $397,000 per key. The Company intends to fund the acquisition with a $60 million term loan secured by the hotel that is expected to be funded at the closing of the acquisition, a $45 million borrowing under its revolving credit facility, and remaining proceeds from its recent equity offering. Completion of the proposed acquisition is expected before the end of 2010, subject to satisfaction of customary closing conditions. The Company intends to enter into an agreement with a subsidiary of HEI Hotels and Resorts, the hotel's current operator, to manage the hotel under its current franchise flag.

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