Hotel owner Park Hotels & Resorts Inc on Monday agreed to buy smaller rival Chesapeake Lodging Trust in a cash and stock deal valued at $2.7 billion that would create the second biggest lodging real estate investment trust in the United States.
Park’s offer of $31.71 per share represents a premium of about 8 percent to Chesapeake Lodging’s closing price on Friday.
The merged entity will have an enterprise value of about $12 billion, following the close of the deal by fourth quarter of 2019, and is closely behind No.1 Host Hotels & Resorts Inc’s enterprise value of about $17.7 billion, Park Hotels said.
Park’s portfolio of properties consists of 51 premium-branded hotels and resorts, which have more than 30,000 rooms located in prime U.S. markets.
Chesapeake Lodging owns 20 hotels, which have a total of 6,288 rooms in eight U.S. states and the District of Columbia.
BofA Merrill Lynch and Barclays were financial advisers to Park Hotels, while Hogan Lovells acted as legal counsel.
J.P. Morgan Securities was financial adviser to Chesapeake, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Polsinelli PC acted as legal counsel.
Source: Reuters.com