Back to top

Analyst Blog

Chesapeake Lodging Trust (CHSP - Snapshot Report), a real estate investment trust (REIT), recently acquired the 429-room Hyatt Regency Mission Bay Spa and Marina hotel in San Diego, California for $62.0 million. The transaction was funded with available cash resources and borrowings under its existing revolving credit facility.

Located in the Mission Bay area, the luxury hotel features ocean views, a 187 slip marina, full-service spa, award-winning food and beverage outlets, and three slide pools. It also includes over 37,000 square feet of meeting space.

Chesapeake has planned a $6 million "softgood refresh" renovation to the hotel which underwent a major refurbishment in 2007. This is an important acquisition for Chesapeake Lodging, owing to the strength of the Hyatt brand and the compelling growth opportunity of the San Diego market. The strategic move is expected to be accretive to the long-term earnings and supplement its portfolio of premium high-quality properties.

The company has been active on acquisitions over the recent period of time. Chesapeake acquired the 520-room W Chicago – Lakeshore hotel located in Chicago for $126.0 million from Starwood Hotels & Resorts Worldwide, Inc. (HOT) in August 2012.

Chesapeake owns luxury and upper-upscale hotels in some of the most desirable locations in the United States. The company specifically focuses on owning and acquiring hotels at prices below replacement cost, with attractive return on investments and significant upside potential. Currently the company owns 14 hotels with an aggregate of 4,465 rooms in 6 states and the districts of Columbia.

Chesapeake currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Host Hotels & Resorts Inc (HST - Analyst Report) also holds a Zacks #2 Rank, which translates into a short term Buy rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%