Chesapeake anxious to grow presence in industry

New York City–Chesapeake Hospitality wanted to know just one thing at New York University’s International Hospitality Industry Investment Conference—where are the deals and when are they coming?

The Chesapeake of a few years ago might not have been as concerned, but today’s Chesapeake is ready to add to its management portfolio and needs some transactions to get the ball rolling.

EVP Joe Smith has been with the company since March, and he said Chesapeake always has been the quiet hotel management company. Founded in 1957, Chesapeake currently has 14 properties in its portfolio that includes three Hiltons, five Crowne Plazas, a few Holiday Inns and a Sheraton named No. 1 for service in 2009.

Within the last year, the company has had an eye on growth and getting a little louder—a move it is prepared for.

“We could grow by 10 hotels a year and it probably wouldn’t phase us,” Smith said. “If I could get us to 25 hotels, that would be outstanding, then we’d see what changes we’d need to make to get to the next step. Once you get to 20 or 25, things after that get incrementally easier.”
Smith is especially excited about Chesapeake’s latest deal with the new-build Crowne Plaza Madison Gateway, Wis. It is located near the Alliant Energy Center without much updated competition nearby. Smith hopes it is the first deal of many to close out this year.

“We are working with banks and a variety of ownership groups, receiverships—you name it we’ve called on them,” he said. “We don’t see any real volume of deals. … It was only two years ago that 300 deals a year were being done … if we could get half that number of deals moving, that opens up a lot of opportunities.”