Kohlberg & Co. acquires Interstate Hotels
Private equity firm Kohlberg & Co. LLC has acquired Interstate Hotels & Resorts, an Arlington-based company that provides third-party hotel management.
Kohlberg purchased Interstate Hotels from Thayer Lodging and Jin Jiang International Hotels, which purchased the company in 2010. An acquisition price was not disclosed.
“The partnership with Kohlberg will enhance the company's current management processes, with Interstate continuing to lead from a solid position, remaining focused on providing intuitive service to guests, and developing the best talent to deliver exceptional returns for owners,” Jim Abrahamson, Interstate's CEO, said in a statement.
In a statement, the company said it also would continue its merger and acquisition activities.
Following the acquisition, Interstate Hotels’ senior management will remain in place.
Interstate employs more than 30,000 people at 425 properties in the U.S. and nine other countries.
Moelis & Co. LLC served as financial adviser, and Morris, Manning and Martin LLP served as legal counsel to Interstate.
Jefferies LLC served as financial adviser, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Kohlberg. Antares Capital, Madison Capital, TIAA and MetLife are providing debt financing for the transaction.