The merger between Interstate Hotels & Resorts and Hotel Acquisition Company, LLC, is complete. Hotel Acquisition Company is 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.
Thayer and Jin Jiang announced their intention to purchase Interstate in December and the transaction was valued at approximately $307 million.
Click here for the official news release from Interstate Hotels & Resorts.
Click here for the official news release from Hotel Acquisition Company.
Interstate completes merger with joint venture between thayer lodging group and Jin Jiang Hotels
ARLINGTON, Va., March 17, 2010—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced the completion of the merger with 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 (“Thayer Lodging”), and Shanghai Jin Jiang International Hotels (Group) Company Limited (“Jin Jiang Hotels”). Thayer Lodging, founded in 1991, is a leading private equity sponsor that invests exclusively in the lodging sector. Jin Jiang Hotels is the world’s 13th largest hotel company in terms of number of rooms according to Hotels Magazine.
Shares of Interstate common stock were cancelled and converted into the right to receive $2.25 per share in cash, without interest. Payment information will be mailed to Interstate shareholders as soon as practicable.
Completion of the transaction follows adoption and approval of the merger agreement by Interstate’s shareholders at a special meeting of shareholders on March 11, 2010. Interstate shares have ceased trading on the New York Stock Exchange.
Barclays Capital served as financial advisor to Interstate, BofA Merrill Lynch served as financial advisor to Thayer Lodging, and UBS Investment Bank served as financial advisor to Jin Jiang Hotels. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor for Interstate. Hogan & Hartson LLP served as Thayer Lodging’s legal advisor and Baker & McKenzie LLP served as Jin Jiang Hotels’ legal advisor.
Thayer Lodging Group, Jin Jiang Hotels joint venture completes merger with Interstate Hotels & Resorts, Inc.
WASHINGTON, D.C., March 17, 2010—Officials of Hotel Acquisition Company, LLC today announced the completion of their merger with Interstate Hotels & Resorts, Inc., the nation’s largest independent hotel management company. Hotel Acquisition Company, LLC is a 50/50 joint venture between 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”).
“Interstate is the world’s premier, independent hotel operator. It is a company with great capability and a storied history,” said Leland C. Pillsbury, co-chairman and CEO of Thayer Lodging. “They have an exceptional executive team, and we appreciate what they have accomplished for their clients. We intend to provide them with the financial resources that will allow them to offer even greater service to their existing clients and guests.”
Yu Minliang, chairman of Jin Jiang Hotels, said, “Interstate has an unparalleled global reputation for operating excellence, and we are pleased to be part of this landmark transaction. They have immense potential and now will have the financial strength and flexibility to serve an expanding group of international clients. The company will continue to work closely and profitably with its brand partners.”
Frederic V. Malek, co-chairman of Thayer Lodging stated, “With a 50-year history, Interstate has been a pioneer in international third-party management, from being the first such operator in Russia to playing an increasingly important role in India. Through strategic investment, they will be able to further enhance their systems and capabilities that support growth and profitability for their existing clients, which, in turn, will support the company’s own future growth and profitability.”
