CHICAGOâ€”Chesapeake Lodging Trust, based in Annapolis, Md., has acquired the 520-room W Chicagoâ€”Lakeshore in Chicago for $126 million, or approximately $242,000 per key, from Starwood Hotels & Resorts Worldwide Inc. Under Chesapeake ownership, Starwood will continue to operate the hotel under the W brand.
Chesapeake funded the acquisition with available cash and cash equivalents and a borrowing under its revolving credit facility.
James L. Francis, president and chief executive office of Chesapeake, said, â€śThis is a unique opportunity for Chesapeake to expand its Chicago footprint with the only lakefront, luxury-branded hotel in Chicago.â€ť
W Chicagoâ€“Lakeshore, located at 644 North Lake Shore Drive, is a 32-story, full-service property with 520 rooms, including 42 suites featuring views of Lake Michigan. Amenities at the hotel include a restaurant, two full-service bars, a 9,600-sq.-ft. Bliss Spa, fitness center and more than 12,000 sq. ft. of meeting and event space. The property is in close proximity to the Navy Pier and within walking distance of East Michigan Avenue and Chicagoâ€™s business districts.
Chesapeake has plans to undertake a $35 million to $38 million renovation of the property, which is expected to commence late in 2013.