Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Chesapeake Lodging Trust (CHSP - Snapshot Report)), a real estate investment trust (REIT),  has recently announced its decision to offer $5.5 million shares to enhance its liquidity. The company has also decided to grant the underwriters a 30-day option to purchase up to an additional 0.8 million shares.

Chesapeake intends to use the net proceeds from the offering to fund developments as well as future acquisitions of hotels, to repay debt under its revolving credit facility, and for general working capital purposes.

J.P. Morgan Securities LLC, part of J.P Morgan Chase & Co. (JPM - Analyst Report); Wells Fargo Securities LLC, part of Wells Fargo & Company (WFC - Analyst Report)); and Deutsche Bank Securities Inc, part of Deutsche Bank AG (DB - Analyst Report) are the joint book running managers for the offering.

Subsequent to the end of second quarter 2012, Chesapeake closed on $130 million of secured financings to reduce its interest burden. Also the company completed $125 million worth of preferred share offering. With the additional capital raised from this preferred share offering, the company expects the total investment in hotel real estate to reach approximately $1.25 billion.

Chesapeake owns luxury and upper-upscale hotels in some of the most desirable locations in the United States. The company is specifically focused on ownership and acquisition of 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 District 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

Learn more

Start for as little as $4.50 per trade.

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
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%