Chesapeake Lodging Trust, a specialty REIT planning to aquire upscale hotel properties, announced terms for its IPO on Friday. The Fairfield, NJ-based company plans to raise $250 million by offering 12.5 million shares at a price of $20.00, commanding a market value of approximately $300 million. Concurrently with the offering, Chesapeake plans to sell up to 4.9% of outstanding common shares to newly public Hyatt Hotels Corporation, up to 9.8% to Baron Small Cap Fund, and 150,000 shares to CEO James Francis and CFO Douglas Vicari. The company, which was founded this past June and has yet to acquire any properties, plans to list on the NYSE under the symbol CHSP. J.P. Morgan and Deutsche Bank are the joint bookrunners on the deal, which is expected to price the week of Dec. 7.
