By Lisa Kerner
Charlotte, N.C., Dec. 18 - Interstate Hotels & Resorts Inc. agreed to be acquired by Hotel Acquisition Co., LLC for $307 million in cash, it was announced on Friday.
Hotel Acquisition is a 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) Co. Ltd.
Hotel Acquisition will acquire all of the outstanding common stock and operating partnership units of Interstate for $2.25 per share.
The offer price is a 77% premium over Interstate's closing stock price on Thursday, according to an Interstate news release.
Interstate's board of directors unanimously approved the transaction, which is expected to close in the first quarter of 2010.
Closing of the deal is not contingent on financing.
"This is a very compelling offer at a significant premium," Interstate chairman and chief executive officer Thomas F. Hewitt said in the release. "The hotel industry remains in deep recession, and we believe this transaction offers the highest and best value to our shareholders."
Barclays Capital advised Interstate, Bank of America Merrill Lynch advised Thayer Lodging, and UBS Investment Bank advised Jin Jiang Hotels.
Interstate manages and/or has ownership interests in 232 hospitality properties. The company is based in Arlington, Va.
Thayer Lodging is a privately held real estate investment company based in Annapolis, Md.
Shanghai-based Jin Jiang Hotels is China's largest hotel group.
Acquirer: | Hotel Acquisition Co., LLC
|
Target: | Interstate Hotels & Resorts Inc.
|
Announcement date: | Dec. 18
|
Transaction total: | $307 million
|
Price per share: | $2.25
|
Expected closing: | First quarter of 2010
|
Stock price for target: | NYSE: IHR: $1.27 on Dec. 17
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.