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The Associated Press June 20, 2011, 9:27AM ET

Chesapeake Lodging buys San Diego hotel for $55.5M

Chesapeake Lodging Trust said Monday that it has purchased Hotel Indigo San Diego Gaslamp Quarter from InterContinental Hotels Group for $55.5 million, giving it access to the San Diego market.

The real estate investment trust paid for the transaction by borrowing under its revolving credit agreement.

Chesapeake said it is in a long-term management deal with InterContinental to continue operating the property under the Hotel Indigo name.

The hotel is located in downtown San Diego and houses guestrooms and suites, meeting space, a business center, fitness center, Table 509 Bar and Kitchen and Level 9 Rooftop Bar.

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