Hotels & Resorts
Aimbridge Hospitality and Interstate Hotels & Resorts have entered into a definitive agreement to merge. As of June 30, Aimbridge managed 103,079 rooms across 834 properties and Interstate operated 78,905 rooms across 479 properties. Based on those numbers, the combined company’s managed portfolio will consist of 181,984 rooms across 1,313 properties.
Terms of the transaction were not disclosed. The transaction is subject to regulatory approval and customary closing conditions. It is expected to be completed by the end of 2019.
Global private equity investor Advent International acquired a majority ownership stake in Aimbridge earlier this year and will assume majority ownership of the combined entity.
When the merger is completed, Dave Johnson, co-founder/CEO of Aimbridge, will become CEO of the combined company. Michael Deitemeyer, president/CEO of Interstate, will become global president and oversee operations globally and corporate disciplines. The merged company will employ more than 60,000 people worldwide.
“Aimbridge is thrilled about the opportunity to join forces with Interstate to enable us to bring even more value to our hotel owners,” Johnson said. “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,” Deitemeyer said in a statement. “Dave and I share a common focus on winning through our people.”
“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,” Glenn Murphy, chairman of Aimbridge, said in a statement.
“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 Wahla, partner at Kohlberg & Company, which has owned Interstate since 2016.