Chesapeake Lodging Trust announced on Tuesday that it bought the 520-room W Chicago – Lakeshore from Starwood Hotels & Resorts Worldwide for US$126 million.
The hotel is one of two W-branded properties in Chicago, both located downtown. The other is the 386-room W Chicago – City Center, which Chesapeake also owns. Chesapeake Lodging Trust, signed a 40-year management agreement with Starwood Hotels & Resorts Worldwide, Stamford, Connecticut, to continue to operate W Chicago – Lakeshore under the W brand.
“This acquisition further complements and creates operational and sales synergies with our W Chicago – City Center property that we also purchased from Starwood in May of last year,” said James Francis, Chesapeake Lodging Trust president and CEO.
Chesapeake funded the acquisition with available cash and cash equivalents and a borrowing under its revolving credit facility. Chesapeake said it will begin the planning process to execute a US$35 million to US$38 million comprehensive renovation of the property, which is expected to commence in the fourth quarter 2013.