Chesapeake Lodging Trust Acquires 222-Room The Hotel Minneapolis
- Nov 13, 2012
Chesapeake Lodging Trust has recently acquired The Hotel Minneapolis, a 222-room Marriott Autograph Collection hotel, for $46 million, or approximately $207,000 per key. The self-advised lodging real estate investment trust funded the acquisition with a borrowing under its revolving credit facility.
James L. Francis, the Trust’s President and Chief Executive Officer, stated, “We are thrilled to expand our portfolio with another high-quality, full-service boutique lifestyle property located in the core CBD of Minneapolis. The property has been meticulously restored and is one of the premier hotels in the city.”
Located at 215 Fourth Street South, The Hotel Minneapolis is connected to the city skywalk system which unites more than 80 block and over 26 million square feet of office and retail buildings across downtown Minneapolis. The 10-story hotel feature 22 suites, 6,000 square feet of meeting and catering space, the 250-seat Max Restaurant and Bar, a business center, a fitness center and around 12,000 square feet of leased tenant space. James L. Francis added: “While we don’t value the tenant cash flow separately from the hotel’s operations, these spaces enhance the cash flow of the property by over 10%.”
The Hotel Minneapolis, through a restoration program, has retained original details and features of the historic 1906 Midland Bank building in its lobby and ground floor. Talking about the modern design of the hotel, James L. Francis said: “The overall attention to the smallest of details is remarkable; this is truly a special property and excellent addition to our portfolio.” Original bank vaults have been incorporated throughout the building, including the original bank cashier vault, Audrey’s Vault, which now serves as the centerpiece of the hotel’s social catering space and the hotel’s wine cellar.
Chesapeake Lodging Trust has entered an agreement with a subsidiary of HEI Hotels and Resorts, the hotel’s current operator, to manage the property and to continue its affiliation with Marriott under the Autograph Collection.
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Photo Courtesy of: www.thehotelminneapolis.com