CHICAGO—Chesapeake Lodging trust acquired the 520-room W Hotel Chicago-Lakeshore from Starwood Hotels & Resorts Worldwide for $126 million.
As part of the sale, Chesapeake, a lodging REIT based in Annapolis, MD, has agreed to undertake a comprehensive renovation of the property, the only hotel directly on Lake Michigan. Starwood entered into a 40-year management agreement to continue to operate the hotel.
Chesapeake also owns Chicago’s other W Hotel, the W Hotel Chicago-City Center, which it acquired from Starwood in mid-2011.