UPDATE 1-Chesapeake Lodging cuts size of IPO by 40 pct

* Cuts IPO size to 7.5 mln shares from 12.5 mln shrs

* Plans to sell as much as a 4.9-percent stake to Hyatt

NEW YORK Jan 19 (Reuters) - High end hotel company Chesapeake Lodging Trust Corp said on Tuesday it cut the size of its initial public offering by 40 percent after postponing the deal in December.

The New Jersey-based real estate investment trust plans to sell 7.5 million shares for $20 a share, raising about $150 million. It had originally planned to sell 12.5 million shares but postponed the offering due to difficult market conditions.

In a separate deal, Chesapeake plans to sell as much as a 4.9-percent stake to Hyatt Hotels Corp (H.N).

The company declined further comment.

Chesapeake expects net proceeds of roughly $138.5 million, the company said in a filing with the U.S. Securities and Exchange Commission. It plans to use the proceeds to repay loans to its chief executive officer and its chief financial officer, as well as buy hotels.

Chesapeake's executives formerly worked at Highland Hospitality Corp, Crestline Capital Corp, Marriott International Inc (MAR.N), Host Hotels & Resorts Inc (HST.N) and Prime Hospitality Corp [BLKSTP.UL].

Chesapeake plans to list on the New York Stock Exchange under the symbol "CHSP."

The underwriters are being led by J.P. Morgan and Deutsche Bank. They have the option to purchase an additional 1.125 million shares. (Reporting by Clare Baldwin; Editing by Derek Caney)