Park Hotels & Resorts has agreed a $2.7 billion deal to buy hotel investment firm Chesapeake Lodging Trust.
Both companies’ boards have agreed the transaction which would put the combined company’s value at about $12 billion.
The deal is expected to close by the end of 2019.
Park Hotels will acquire all Chesapeake’s outstanding shares in a cash and stock deal.
The combined business will own 66 hotels, after the sale of five non-core hotels, including Chesapeake’s 122-room Hyatt Herald Square New York and 185-room Hyatt Place New York.
Arlington based Cheaspeake also owns flagship Marriott and Hilton branded properties.
"Chesapeake’s high-quality portfolio of hotels will accelerate our strategic goals of upgrading the quality of our portfolio," said Park Hotels CEO Thomas J. Baltimore Jr.
Baltimore will lead the combined company.
Park has 51 premium brand hotels comprising about 30,000 rooms.
Under the terms of the deal, Park’s board of directors will expand to 10 members with two additions from Chesapeake’s board of trustees.
