Chesapeake Lodging Trust has entered into an agreement to acquire the 337-room JW Marriott San Francisco Union Square for a purchase price of $147.2 million, or approximately $437,000 per key.
The REIT expects to assume the existing management agreement with Marriott International as well as the existing ground lease covering the property on which the hotel is located, which expires in 2083. Completion of the proposed acquisition is expected within the next 45 days, subject to satisfaction of customary closing requirements and conditions.
According to the San Francisco Chronicle, hotel sales topped $500 million in the first half of 2014 in the city.
In addition to the acquisition news, Chesapeake also reportedly has sold the 153-room Courtyard Anaheim at Disneyland Resort located in Anaheim, Calif., for $32.5 million, or approximately $212,000 per key.