Interstate Hotels & Resorts Assumes Management of Summit Hotel Properties’ 65-hotel Portfolio (United States)
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Interstate Hotels & Resorts Assumes Management of Summit Hotel Properties’ 65-hotel Portfolio (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy -
New brands / Affiliations
This is a press release selected by our editorial committee and published online for free on 2011-02-16
Interstate Hotels & Resorts, the United States’ largest independent hotel management company, today announced that, effective as of February 14, 2011, the company has assumed management of 65 premium-branded, select-service hotels. The hotels are owned by Summit Hotel Properties, Inc. (NYSE: INN), a newly formed real estate investment trust (REIT) that closed its initial public offering on February 14, 2011. The hotels aggregate 6,533 rooms and are located in 19 states. With this portfolio, Interstate now manages over 300 properties worldwide.
“Our Crossroads Division, which specializes in select-service hotels, transitioned the properties yesterday morning,” said Thomas F. Hewitt, Interstate’s chairman and chief executive officer. “We have extensive experience in assuming management of large portfolios and expect the transaction to be transparent to our guests and our 1,800 new associates. We have the sophisticated operating and financial reporting systems required by institutional investors and publicly held companies and the management bench strength to quickly absorb new hotels into our systems.”
Interstate’s most recent management portfolio takeover was a 13-hotel collection of full-service hotels aggregating 5,466 rooms owned by affiliates of The Blackstone Group. The company also has recently signed 20 individual management contracts for hotel properties in China, India, Russia and the U.S. “We believe there will be a significant number of hotels changing hands over the next few years, which is the most likely time that hotels will change management,” Hewitt noted. “We anticipate unprecedented growth in all of our markets and have the systems and people in place to accommodate that growth.”
“Summit is a highly regarded, experienced real estate investor, and we look forward to working with them in the future as they continue to grow their portfolio through the acquisition of new hotel properties,” said Leslie Ng, Interstate’s chief investment officer.
About Summit Hotel Properties, Inc.
Summit Hotel Properties, Inc. is a self-managed real estate investment trust that was recently organized to continue and expand the existing hotel investment business of its predecessor, Summit Hotel Properties, LLC, a leading U.S. hotel owner. The company will focus exclusively on acquiring and owning premium-branded select-service hotels in the upscale and midscale without food and beverage segments of the U.S. lodging industry. Summit Hotel Properties, Inc.’s portfolio consists of 65 hotels with a total of 6,533 guestrooms located in 19 states.
About Interstate Hotels & Resorts, Inc.
Interstate Hotels & Resorts, Inc, a wholly owned subsidiary of a 50/50 joint venture between subsidiaries of Thayer Lodging and Jin Jiang, is the nation’s largest independent hotel management company based on revenue managed. The company and its affiliates manage and/or have ownership interests in 310 properties with 58,562 rooms in 39 states, the District of Columbia, China, Russia, India, Mexico, Belgium, Canada, Ireland and England. The company has ownership interests in 55 of those properties, including six wholly owned assets. In 2010, Interstate Hotels & Resorts pioneered the first independent hotel management company in China, Interstate China Hotels & Resorts, when it formed a joint-venture partnership with Jin Jiang Hotels, China’s leading hotel operator and developer.
Interstate offers third-party hotel management on a global basis, providing the resources and infrastructure necessary for comprehensive hotel management operations, including sales and marketing, revenue management, food and beverage operations, e-commerce, accounting, and design and construction project management services for hotel owners and developers seeking a proven and experienced hotel management company.
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