Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 06 May 2019

Park Hotels to Buy Chesapeake Lodging in $2.7Bln Deal

The deal will bolster Park's exposure to large coastal cities such as Boston, Miami, Los Angeles, San Diego and San Francisco. It expects to sell five hotels by the time the Chesapeake acquisition closes in the fourth quarter, leaving the combined company with 66 properties and 35,390 rooms in 17 states and Washington, D.C.

Commercial Real Estate Direct Staff Report

Park Hotels & Resorts Inc. has agreed to acquire Chesapeake Lodging Trust in a deal valued at about $2.7 billion.

Under the agreement, Park will pay $11/share plus 0.628 of a Park share for every Chesapeake share, valuing the Chesapeake shares at $31 apiece. Park's existing shareholders will own 84 percent of the combined company.

The deal already has been approved by both companies' boards of directors, but remains subject to approval by government regulators and Chesapeake's shareholders.

Park, a Tysons, Va., REIT that was spun off two years ago by Hilton Worldwide Holdings Inc., noted that its acquisition of Chesapeake will give it an increased exposure to large coastal cities such as Boston, Miami, Los Angeles, San Diego and San Francisco. The company expects demand for properties in those cities to grow and outpace supply. Meanwhile, the deal also will broaden its brand portfolio from all Hilton properties to include Marriott International, Hyatt Hotels Corp. and IHG Hotels & Resorts.

Park was attracted to the performance of Chesapeake's portfolio, which consists primarily of upper-upscale properties in urban areas. Chesapeake's portfolio last year generated $195.37 in revenue per available room, a 4.3 percent increase from 2017, while Park's portfolio generated $174.29 of RevPAR in 2018, a 2.9 percent growth from the previous year.

Park expects to sell five hotels by the time its acquisition of Chesapeake closes in the fourth quarter, leaving the combined company with 66...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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