Interstate has sold its BridgeStreet Worldwide corporate housing subsidiary to an affiliate of Sorrento Asset Management, a Dublin, Ireland-based company for net proceeds of approximately $40.5 millionThe company said that proceeds will be redeployed into investments in hotel real estate through wholly owned acquisitions and joint ventures.
“BridgeStreet has gone through a remarkable turnaround over the past two years,” said Thomas F. Hewitt, chief executive officer. “Lee Curtis, president of Bridgestreet Worldwide, and his team have done an excellent job of managing their existing corporate apartment inventory and driving rates, resulting in significantly increased profits. At the same time, they expanded and entered key U.S. and international markets.
“However, corporate housing, while related, is no longer part of our core growth strategy,” he said. “Now that we have completed the turnaround, we believe the timing is right for us to exit this business and monetize the value we have created. We plan to reinvest those proceeds into our core businesses.
“Sorrento already is well acquainted with BridgeStreet, which already manages corporate apartments for them. We believe this is an excellent fit and the sale represents a win-win
situation for everyone,” Hewitt added.