Chesapeake Lodging Trust (NYSE:CHSP) (the “Trust”) announced today that
it has closed on the acquisition of the Ace Hotel Downtown and The
Theater at Ace Hotel, located in Los Angeles, California for a purchase
price of $103.0 million, or approximately $566,000 per key. The Trust
entered into a new management agreement with Ace Hotel Group to continue
to brand and operate the hotel.
“We are thrilled to announce our acquisition of the Ace Hotel and
Theater and further expand our presence in the dynamic Los Angeles
market,” commented James L. Francis, Chesapeake Lodging Trust’s
President and Chief Executive Officer. “This historic building and
theater was completely restored and was reopened early last year; the
level of detail and immaculate condition of the facility is remarkable.
We are very excited to add another first-class asset to our growing
high-quality portfolio.”
After a nearly two year comprehensive renovation and restoration of the
historic 1920’s building, the Ace Hotel Downtown Los Angeles opened to
the public in January 2014. The property contains the 182-room hotel and
the stunning and meticulously restored 1,600-seat theater, offering the
most unique meeting, function and entertainment venue of any hotel in
Los Angeles. “The theater booking pace is up considerably from its first
year and will host over 100 events in 2015,” continued Mr. Francis. “We
estimate that the theater alone will generate revenues in excess of $4.4
million and net operating profit of over $2 million.”
The historic 14-story Spanish Gothic property is located at South
Broadway and 9th Street in the rapidly developing Broadway
and Fashion corridor of Downtown Los Angeles. There are 15 Loft Suites
which feature a private kitchenette and range from 479 to 703 square
feet. The 633-square foot Ace Suite includes a living space, a private
kitchenette, and a 494-square foot private terrace. Each well laid out
room offers a unique design which maintains the exposed concrete
ceiling, Homasote covered walls, minimalist furniture, antiqued brass
fixtures and steel framed glass windows. Guestroom amenities include
flat screen TVs, a Revo radio, HSIA, Rudy’s Toiletries, and Pearl+ soaps
with acoustic guitars and turntables in select rooms.
The Ace Hotel features a popular and varied assortment of food and
beverage outlets for guests and visitors to enjoy. Upstairs at Ace Hotel
Downtown Los Angeles, a popular rooftop bar venue is seamlessly
contained between the rooftop pool and an indoor and outdoor lounge area
of nearly 2,000 square feet. With locally inspired décor and artwork,
including the original salvaged theatrical lights, the space is
incredibly attractive with outdoor landscaping and living walls.
Connected to the lobby is the hotel’s main three-meal restaurant, L.A.
Chapter, which also has its own street front entrance and outdoor patio
on Broadway. L.A. Chapter is a carefully cultivated brasserie with a
focus on locally sourced vegetables and seafood. The 1,161-square foot
space has a seating capacity of 121 and includes a full service bar.
Adjacent to the lobby and L.A. Chapter is the Coffee Counter that serves
Stumptown Coffee, delivering a high-end coffee and pastry experience.
Located above the lobby level and L.A. Chapter is the appropriately
named The Mezzanine. With a variety of seating options, the 972-square
foot space includes a cocktail bar and also serves as flexible meeting
and private event space which can accommodate groups up to 85 people.
In addition to the theater, the hotel has 2,160 square feet of dedicated
meeting and banquet space throughout three different meeting areas,
including the 1,600-square foot Segovia Hall. All of the meeting spaces
benefit from natural lighting and connecting doors, allowing for easy
break-outs and flexibility for groups. There is also a fitness center
providing guests with 24-hour access to a fully equipped facility with
reclaimed hardwood floors from an old gymnasium. Behind the reception
desk is an upscale gift shop selling stylish clothing and products
featured in the guestrooms, as well as a photo booth for guests to
document their stay.
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 22 hotels with an
aggregate of 6,691 rooms in nine states and the District of Columbia.
Additional information can be found on the Trust’s website at www.chesapeakelodgingtrust.com.
Copyright Business Wire 2015