ARLINGTON, VA. — Hotel Acquisition Company LLC has signed a definitive agreement to acquire Arlington-based Interstate Hotels & Resorts, the nation's largest independent hotel management company. Under the agreement, which is valued at approximately $307 million, Hotel Acquisition Company would purchase all of Interstate Hotels' outstanding common stock and operating partnership units for $2.25 per share in an all-cash transaction. Interstate Hotels' board of directors has unanimously approved the agreement and has recommended approval by the company's shareholders. A special meeting to take the vote will be announced at a later date, but the transaction is expected to close in the first quarter of 2010.
“Our priority, as always, is to maximize shareholder value,” said Thomas Hewitt, Interstate Hotels' chairman and CEO, in a statement. “This is a very compelling offer at a significant premium. The hotel industry remains in deep recession, and we believe this transaction offers the highest and best value to our shareholders.”
Hotel Acquisition Company is a 50/50 joint venture between two notable hospitality companies. The first party is a subsidiary of Annapolis, Md.-based Thayer Hotel Investors V-A LP, which is an equity fund sponsored by Thayer Lodging Group. The other party is Shanghai Jin Jiang International Hotels (Group) Company Limited, a subsidiary of Shanghai, China-based Jin Jiang International Holdings Company Limited, which is China's largest hotel group.
“Interstate has a global reputation as a world-class independent hotel operator. This acquisition significantly accelerates our ability to expand internationally, giving us immediate access to a worldwide platform,” said Yu Minliang, chairman of Jin Jiang Hotels, in a statement.
— Coleman Wood