Shareholders of Chesapeake Lodging Trust have approved its proposed merger with a subsidiary of Park Hotels & Resorts, the lodging real estate investment trust spun off from Hilton in 2017, which will acquire Chesapeake for $2.7 billion, putting the combined company's estimated enterprise value at $12 billion.
Chesapeake's assets include 20 hotels with 6,288 rooms in eight states and the District of Columbia. Park has a smattering of hotels in the United States and a small international presence, with hotels in Ireland, the U.K. and Brazil.
At a special meeting of Chesapeake's shareholders, approximately 88 percent of the outstanding shares of the REIT'S common shares of beneficial interest were voted, with approximately 99 percent of the votes cast in favor of the merger.
The merger is expected to close on or about Sept. 18. Upon completion of the transaction, each issued and outstanding common share of beneficial interest of the trust will be converted into the right to receive 0.628 of a share of Park common stock and $11 in cash. Park common stock will continue to trade on the New York Stock Exchange under the symbol “PK” following the merger.