ANNAPOLIS, MD—Chesapeake Lodging Trust has closed on a $150 million fixed-rate mortgage loan. The loan is secured by the 502-room Hyatt Regency Boston and was provided by MetLife.
The 10-year loan carries a fixed interest rate of 4.25% per annum, with principal and interest payments based on a 30-year amortization. Proceeds from the loan are expected to be used to repay outstanding borrowings under the company’s revolving credit facility.
“We are pleased to take advantage of the historically low interest rate environment and extend the weighted-average maturity of our debt to 5.5 years,” said Douglas W. Vicari, Chesapeake Lodging Trust’s EVP and CFO. “The appreciation in and shareholder value created by the Hyatt Regency Boston, Chesapeake’s first acquisition and a key asset in our portfolio, allowed us to generate significantly greater proceeds than our previous $95 million mortgage loan, which was prepaid earlier this year.”