News for the Hospitality Executive
Interstate Stockholders Approve Merger with 50/50 Joint Venture Between
Thayer Lodging Group and Jin Jiang Hotels
Interstate Will Delist Common Stock from the New York Stock Exchange
ARLINGTON, Va., March 11, 2010—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced that its stockholders approved, at a special meeting held today, the merger agreement by which Interstate will be acquired by Hotel Acquisition Company, LLC (“HAC”). HAC is 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.
As previously announced on December 18, 2009, under the terms of the merger agreement, the outstanding shares of Interstate common stock will be acquired by HAC for $2.25 per share in cash.
Interstate expects to close the merger no later than March 18, 2010, subject to the satisfaction of various closing conditions of the parties pursuant to the terms of the merger agreement.
In connection with the merger, a request was submitted on behalf of Interstate to the New York Stock Exchange for withdrawal of the listing of its common stock. Interstate’s proposed delisting is contingent, among other conditions, on the closing of the merger. To effect the delisting, the New York Stock Exchange will file a Form 25 with the Securities and Exchange Commission.
About Interstate Hotels & Resorts, Inc.
This press release contains “forward-looking statements,”
within the meaning of the Private Securities Litigation Reform Act of 1995,
about Interstate Hotels & Resorts, including statements containing
words such as “expects,” “believes” or “will,” which indicate that those
statements are forward-looking. Except for historical information,
the matters discussed in this press release are forward-looking statements
that are subject to certain risks and uncertainties that could cause the
actual results to differ materially, including the failure to satisfy certain
closing conditions to the merger agreement and disruption from the transaction
making it more difficult to maintain relationships with owners, employees
and suppliers. Additional risks are discussed in Interstate Hotels
& Resorts’ filings with the Securities and Exchange Commission, including
Interstate Hotels & Resorts’ annual report on Form 10-K for the year
ended December 31, 2008.
|Also See:||Interstate Hotels & Resorts Reports Third-Quarter 2009 Net Loss of $10.3 million; Adds 10 properties to third-party management portfolio / Hotel Operating Statistics / November 2009|
|Interstate Hotels & Resorts Reports Fourth-Quarter 2009 Net Loss of $16.5 million; Receives Notice of Suspension of Trading from NYSE, Last Close on March 11, 2009 was 30 cents / March 2009|