Interstate Hotels & Resorts, one of the largest global hotel management companies, has acquired the management agreements of Rim Hospitality, which accounts for nearly 70 hotels and more than 10,600 rooms. The terms of the deal were not disclosed.
Rim's hotels are spread throughout California, New Mexico and Texas.
Interstate will create a Rim Hospitality Division with a dedicated team based out of Rim’s Newport Beach, Calif., headquarters to manage the acquired portfolio.
“Rim Hospitality brings a portfolio of high quality independent and branded, full- and select-service hotels, outstanding operating talent, and diverse client base to Interstate,” said Jim Abrahamson, CEO of Interstate. “We’re excited to work with the strong leadership and talent of Rim. Enhancing our domestic portfolio with a heavy West Coast focus, complimented by remarkable operations, development and finance professionals, we are confident we will continue to deliver exceptional service to guests and outstanding returns to owners.”
Rim's core executive leadership will remain post-acquisition, including Russ Cox, Mark LeBlanc and Jeff Virgil.
Russ Cox, who oversees all operations, sales and marketing and revenue management efforts for the divisional portfolio, will continue as EVP, reporting to Ted Knighton, Interstate’s president and COO; Mark LeBlanc will transition as the EVP of development, reporting directly to Ng; and Jeff Virgil will continue in a senior finance role.
Meanwhile, Mark Burden, president, CEO and managing partner of Rim, will continue to be heavily involved in an advisory capacity.
“Interstate is committed to strengthening our presence on the West Coast, enriching services and focusing on success for our owners and client base in the region,” said Leslie Ng, CIO of Interstate. “Maintaining and enhancing Rim’s leadership teams and executives for continuity and growth is an extremely important objective of Interstate.”
“We are excited about joining the leader of our industry and having access to the resources and experience Interstate possesses, while still maintaining our core business principle of personalized service to all of our owners, regardless of the size of their portfolio,” said Burden. “Our team of seasoned hospitality professionals will be aided by the advanced systems Interstate has in human resources, purchasing, finance and IT, enabling them to focus more on driving revenues and profits for our owners.”
For its part, Rim Hospitality celebrated 30 years of business last year with a rebrand, to "modernize its look and update its message."
One of the company's more recent additions was the 224-room Fullerton Marriott at California State University.
Meanwhile, prior to this news, Interstate's other large acquisition was overseas, purchasing Glasgow-based Chardon Management Ltd., an independent management company in the United Kingdom, which at the time elevated Interstate’s total U.K. portfolio to 47 hotels either open or under development.