UPDATE: Deutsche Bank Downgrades Chesapeake Lodging Trust to Hold on Valuation

In a report published Thursday, Deutsche Bank analyst Tim Wengerd downgraded the rating on Chesapeake Lodging Trust

from Buy to Hold, but reiterated the $24.00 price target. In the report, Wengerd noted, “Despite another solid quarter with significant margin growth, we are downgrading CHSP from Buy to Hold. CHSP's acquisitions through the lodging cycle have proven to be smart thus far. We expect CHSP's hotels to continue performing well given CHSP's under exposure to Washington DC and group business, but after two years of RevPAR and margin outperformance vs. peers, we believe y/y growth may moderate. CHSP's valuation relative to peers is fair, in our view, and we believe the risk/reward is balanced as risks from renovation disruptions increases in 2H 2013 and 2014.” Chesapeake Lodging Trust closed on Wednesday at $23.89.