ANNAPOLIS, Maryland--Chesapeake Lodging Trust announced today that it has acquired the 210-room Hotel Indigo San Diego Gaslamp Quarter located in San Diego, California for a purchase price of $55.5 million, or approximately $264,000 per key, from InterContinental Hotels Group (LON: IHG, NYSE: IHG (ADRs)). The Company funded the acquisition with a borrowing under its revolving credit facility. The Company entered into a long-term management agreement with IHG to continue operating the hotel under the Hotel Indigo flag.
James L. Francis, Chesapeake's Chief Executive Officer, stated, "The Hotel Indigo San Diego Gaslamp Quarter, recently built in 2009 as a showcase asset for IHG and its Hotel Indigo brand, is an exciting hotel for us as we enter the San Diego market. The hotel will continue to benefit from the growing strength of the locally inspired Hotel Indigo brand, the management expertise and track record of IHG, and the recovery of the San Diego lodging market."
The Hotel Indigo San Diego Gaslamp Quarter, located at 509 9th Avenue, is a full-service, upscale boutique property and the city's first LEED-certified hotel. The hotel features well-appointed modern guestrooms and suites, approximately 1,500 square feet of meeting space, a business center, a fitness center, a parking garage and two food and beverage outlets. Table 509 Bar and Kitchen specializes in menu selections with locally grown produce and the freshest ingredients, while Level 9 Rooftop Bar offers outstanding views of San Diego and center field of PETCO Park, home of the San Diego Padres. The 12-story building is located in the heart of the historic Gaslamp Quarter, just one block from PETCO Park and a short walk to the San Diego Convention Center. The hotel's strategic location in downtown San Diego makes it easily accessible to numerous attractions, including the San Diego Zoo, Seaport Village, Coronado Island, Balboa Park and many outstanding beaches.