Chesapeake Lodging Trust to sell 2 NYC hotels for $138M

The 122-room Hyatt Herald Square New York includes a rooftop bar, a lobby restaurant and bar, a fitness center, a business center and a grab-and-go market. Photo credit: Hyatt Hotels Corp.

Chesapeake Lodging Trust entered into an agreement to sell two New York City hotels—the 122-room Hyatt Herald Square New York and the 185-room Hyatt Place New York/Midtown-South—for an aggregate sale price of $138 million. The trust anticipates the sale will occur in mid-to-late September, prior to the completion of its proposed merger with Park Hotels & Resorts.

The lodging real estate investment trust acquired the Hyatt Herald Square New York in December 2011 for $52.0 million, or $428,000 per key. It bought the Hyatt Place New York Midtown South in March 2013 for $76.2 million, or $412,000. The proposed sales price, which comes out to approximately $450,000 per key, represents a 5.9 percent trailing-12-month net operating income cap rate.

Hyatt Herald Square New York includes a rooftop bar, a lobby restaurant and bar, a fitness center, a business center and a grab-and-go market. Five blocks north, Hyatt Place New York/Midtown-South features a bar, fitness center, business center and grab-and-go market.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


Park and Chesapeake’s boards both agreed to a merger earlier this year. If approved, Park would acquire Chesapeake for $2.7 billion. The terms of the agreement accounted for Chesapeake’s sale of the two Hyatt hotels, as well as three non-core Park hotels. The merger remains subject to the approval of Chesapeake’s shareholders and completion of other customary requirements and conditions. A special meeting to consider and vote upon the proposed merger has been scheduled for Sept. 10.

Chesapeake owns 20 hotels which together represent 6,288 rooms. Its properties are spread across eight states and the District of Columbia.

Suggested Articles

The hotel will implement a new, branded mobile app that delivers control to guests and GEMS, a back-office tool that streamlines operations.

The U.S. is now the only region that has yet to turn a positive month of profit since the COVID-19 pandemic took hold.

While occupancy largely was flat week over week during the seven-day period ending Sept. 19, rate and revenue both declined.