Shareholders approve Chesapeake-Park merger

Hilton Sao Paulo
Park has one hotel in Brazil—the Hilton Sao Paulo. Photo credit: Park Hotels & Resorts

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.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.
Related: Park Hotels & Resorts acquires Chesapeake Lodging Trust for $2.7B

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.

Suggested Articles

In addition to a new deal to expand in Denmark, the chain also is growing in France, Greece and Vietnam.

The newly built property has 140 apartments across a mix of one-, two- and three-bedroom units.

Ahead of the Mediterranean Resort & Hotel Real Estate Forum, Joachim Schmitt discusses the hospitality investment climate.