Aimbridge Hospitality, Interstate Hotels & Resorts Announce Merger
Aimbridge Hospitality (“Aimbridge”), a North American independent hotel management firm, and Interstate Hotels & Resorts (“Interstate”), an independent multinational hotel operator, announced that they have entered into a definitive agreement to merge, creating a global leader in third-party hotel management services. The combined company will manage a portfolio of more than 1,400 branded and independent properties in 49 states and 20 countries. Terms of the transaction were not disclosed.
Together, it is expected that Aimbridge and Interstate will have the scale, resources and global reach to reinforce their leading hospitality offerings, continue delivering superior financial and investment performance for hotel partners and create positive experiences for guests. Hotel owners will benefit from a scaled, global platform; enhanced data and analytic capabilities; a top talent pool; and increased support and resources, including sales, marketing, ecommerce and revenue management infrastructure. This enhanced offering will position the combined company for further growth and international expansion.
Dave Johnson, Co-Founder and CEO of Aimbridge, will become CEO of the combined business. Michael Deitemeyer, President and CEO of Interstate, will become Global President, overseeing operations globally and corporate disciplines. The merged company will be a premier employer in the hospitality industry, with a talent pool of more than 60,000 employees delivering best-in-class service worldwide.
“Aimbridge is thrilled about the opportunity to join forces with Interstate to enable us to bring even more value to our hotel owners,” said Dave Johnson, Co-Founder and CEO of Aimbridge. “Our combined scale will ensure access to more robust data and the best talent to further differentiate us as leading hospitality managers. Personally, I am excited to work with Mike Deitemeyer, a good friend and well-respected industry leader.”
“Our united, global portfolio allows us the talent and expertise to ensure we deliver best-in-class operations across all hospitality product categories,” said Mike Deitemeyer, President and CEO of Interstate. “Dave and I share a common focus on winning through our people.”
Advent International, one of the largest and most experienced global private equity investors, acquired a majority ownership stake in Aimbridge earlier this year and will assume majority ownership of the combined entity.
“Through this merger and under Advent’s ownership, Aimbridge and Interstate can build a platform that differentiates the combined company through optimizing owner value, top-notch talent and global expansion,” said Glenn Murphy, Chairman, Aimbridge.
“We have enjoyed our valuable partnership with Mike Deitemeyer and the Interstate team and appreciate their efforts in establishing Interstate as a global leader in the third-party hotel management sector,” said Ahmed I. Wahla, Partner at Kohlberg & Company, which has owned Interstate since 2016.
The transaction is subject to regulatory approval and customary closing conditions. It is expected to be completed by the end of 2019.
Goldman Sachs & Co. LLC and Moelis & Company LLC acted as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Interstate. Ropes & Gray LLP acted as legal advisor to Aimbridge.