Interstate Hotels & Resorts Acquired by Private Equity Firm
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U.S.-based global hotel management company Interstate Hotels & Resorts announced Wednesday that it's been acquired by New York private equity firm Kohlberg & Company LLC.
The transaction signals the start of a strategic partnership with the potential to improve Interstate's value.
The company said the acquisition will allow it to enhance its global relationships and access capital resources benefiting its current model of third-party management.
Interstate also said that it will continue its strategic merger and acquisition activities to support additional growth moving forward.
What's more, the company's senior management team will remain and retain their equity stakes.
"This transaction is validation of Interstate Hotels & Resorts' strategy, strength and leadership over the past five years," said CEO Jim Abrahamson in a statement. "The partnership with Kohlberg will enhance the Company's current management processes, with Interstate continuing to lead from a solid position."
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Kohlberg partner Ahmed I. Wahla called Interstate "the clear leader in third party hotel management."
Headquartered in Arlington, Virginia, Interstate managers 425 properties in 10 different countries, providing services to hotels, resorts and conference centers.
Kohlberg acquired Interstate from Thayer Lodging and Jin Jiang International Hotels.
In his own statement, Thayer Lodging president and COO Bruce Wiles said "both firms remain favorable to Interstate, its senior management team and the business and we expect it to continue to deliver outstanding operating results for hotel owners into the future."
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