Remington Hotels just picked up a third-party hotel management company and the new joint venture will be based in Dallas.
The deal valued the hotel management company, Chesapeake Hospitality, at $26 million, according to the Dallas Business Journal. It gives Dallas-based Remington a wider national footprint, particularly in Midwestern markets such as Pittsburgh, Milwaukee, Detroit and St. Louis. Upon closing the deal, Remington will have a portfolio of 121 managed properties under contract in 28 states and Washington, D.C.
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Chesapeake’s president Chris Green will become a divisional vice president at Remington, according to the Business Journal.
The total price tag of $26 million includes an initial $15.75 million, payable with $6.3 million in cash and $9.45 million in outside funding, per the Business Journal. Chesapeake will also have the ability to earn up to an additional $10.25 million based on its base management fee contribution for the trailing 12-month periods ending March 2024 and March 2025.
The two companies’ combined assets will operate under the Remington Hotels brand. All former Chesapeake hotels will remain under the same management.
[DBJ] — Maddy Sperling