Interstate Hotels & Resorts has assumed management of 65 premium-branded, select-service hotels owned by Summit Hotel Properties, a newly formed real estate investment trust 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.