Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced that it has signed a definitive merger agreement to be acquired by Hotel Acquisition Company, LLC, a 50/50 joint venture between subsidiaries of Thayer Hotel Investors V-A LP, a private equity fund sponsored by Thayer Lodging Group, and Shanghai Jin Jiang International Hotels (Group) Company Limited (“Jin Jiang Hotels”) in a transaction valued at approximately $307 million. Under the agreement, Hotel Acquisition Company, LLC would acquire all of the outstanding common stock and operating partnership units of Interstate for $2.25 per share in an all cash transaction. The price represents a premium of 77 percent over yesterday’s closing stock price. Interstate’s lenders have approved the transaction subject to certain pay downs at closing on its senior credit facility and on one of its non-recourse mortgage loans. The transaction is not contingent upon obtaining any additional financing.
Interstate Hotels & Resorts, a leading hotel real estate investor and the nation’s largest independent management company, today announced that it has opened the 299-room, full-service integrated Lancaster Marriott at Penn Square and Lancaster County Convention Center, comprising a combined 90,000 square feet of meeting space. Interstate has been actively involved in the development of the project for more than a decade, including feasibility, construction oversight and devising marketing strategies to maximize the overall economic benefit for Lancaster County. The $177-million hotel and convention center project is a joint venture of the Redevelopment Authority of the City of Lancaster, Lancaster County Convention Center Authority and private developer Penn Square Partners. Interstate operates both parts of the integrated facility.