Chesapeake Lodging Trust (NYSE:CHSP) announced today that it has entered into a Franchise Agreement with a Hyatt affiliate to convert its current property located at 30-32 West 31st Street, New York, NY to the Hyatt Herald Square in the third quarter of 2014. Conversion of the property is expected to occur following the completion of a comprehensive six million dollar renovation. Property operation will close throughout the renovation project which is expected to begin in August and conclude by the end of September 2014.
James L. Francis, Chesapeake Lodging Trust’s President and Chief Executive Officer, stated, “We are very pleased to expand our relationship with Hyatt, by way of up-branding the hotel to the upper-upscale market position in the vibrant midtown area of Manhattan. Hyatt Herald Square will mark our sixth Hyatt property in our growing portfolio of high-quality assets throughout the key markets of North America.”
The design plans are being developed by Paul Vega, founder of VLDG designs of New York and will capitalize on the hotel’s proximity to the Herald Square neighborhood and the nearby Fashion District of Manhattan. The design takes cues from the tactile nature of both industries, creating ideas inspired by the industrial techniques used in each form of production.
The transformational plans include an all-inclusive renovation to each of the 122-guestrooms with custom furniture pieces, new softgoods and seating and extrinsic art influences from the local region. The first floor will be transformed into an intimate upscale lobby and food and beverage experience with gathering spaces geared toward the discerning business and leisure traveler seeking convenient access to business demand generators and the plentiful leisure attractions of Manhattan.
Mr. Francis continued, “The new product will meld perfectly with the roof-top bar experience we created in 2013 which has unparalleled views of the Empire State Building and the surrounding midtown skyline. We expect our new Hyatt hotel will ramp-up very quickly given the robust demand in Manhattan, the strength of the Hyatt brand and our operator’s extensive experience managing hotel properties in New York City. This design centric renovation will perfectly position the hotel for exceptional long-term performance.”
“We are happy to be working with Chesapeake Lodging Trust to be adding our eighth Hyatt-branded hotel in Manhattan to the energetic Herald Square neighborhood,” said Mark Chase, Vice President, Real Estate and Development for Hyatt Hotels & Resorts. “Hyatt Herald Square will offer travelers and city explorers modern boutique accommodations in this vibrant midtown neighborhood and proximate to the fashion district.”
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The Trust owns 20 hotels with an aggregate of 5,932 rooms in eight states and the District of Columbia.
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