San Diego Business Journal

Maryland REIT Buys Hotel Indigo for $55.5 Million

Monday, June 20, 2011

Maryland-based Chesapeake Lodging Trust has acquired the 210-room Hotel Indigo, in San Diego’s Gaslamp Quarter, for $55.5 million.

The seller is U.K.-based InterContinental Hotels Group, also known as IHG. A June 20 statement from Chesapeake said the real estate investment trust has entered into a long-term management agreement with IHG to continue operating the hotel under the Hotel Indigo banner.

Hotel Indigo, located at 509 Ninth Ave., is a full-service, upscale boutique property which opened in 2009. The 12-story hotel has a business center, fitness center, parking garage and two food and beverage outlets, including a rooftop bar.

The downtown property was San Diego’s first hotel to be certified under the U.S. Green Building Council’s Leadership in Energy and Environmental Design program.

This is Chesapeake’s first San Diego acquisition. The company now owns eight hotel properties, with a total of 2,402 rooms in four states.

— Lou Hirsh