US-based private equity firm Kohlberg has acquired third party hotel management company Interstate from Thayer Lodging and Jin Jiang International Hotels.
Interstate was previously purchased by Thayer Lodging and Jin Jiang International Hotels in 2010.
The latest acquisition will provide Interstate with a new strategic partner and bolster its position in the hotel and hospitality industry, with enhanced global relationships and access to capital resources facilitating its third party management model.
Interstate will also continue with its mergers and acquisitions activities.
Further, senior management team will remain in place and retain equity stakes in the company, providing consistency to brands, owners
Interstate CEO Jim Abrahamson said: "The partnership with Kohlberg will enhance the Company’s current management processes, with Interstate continuing to lead from a solid position, remaining focused on providing intuitive service to guests, and developing the best talent to deliver exceptional returns for owners."
Headquartered in Arlington, US, Interstate is spread across 40 states and the District of Columbia, as well as nine countries outside the US.
It operates 425 properties across branded full- and select-service hotels and resorts, convention centres and independent hotels and employs more than 30,000 people across the world.
Kohlberg & Company partner Ahmed Wahla said: "We are excited to be partners with Interstate’s current management team and its deep team of sophisticated hospitality professionals, and we look forward to supporting Interstate’s continued expansion as well as their unwavering commitment to exceptional service for all brands, owners and guests."
Interstate has been served by Moelis & Company as financial advisor while Morris, Manning and Martin acted as legal counsel.
Kohlberg has been served by Jefferies as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel.
Antares Capital, Madison Capital, TIAA and MetLife have provided debt financing for the transaction.