Interstate Europe’s UK division, part of the leading global hotel management company, Interstate Hotels & Resorts, today (01.04.15) announced the signing of 18 management agreements for a portfolio of UK hotels owned by an affiliate of Cerberus Capital Management.
With these additions to its managed portfolio, Interstate continues to expand its regional presence and strengthen its offering, creating tailored management solutions to improve owners’ profitability. Based in Birmingham, Interstate’s UK division now comprises 59 hotels, including signed pipeline, throughout the United Kingdom.
“The UK continues to be a priority strategic growth area for Interstate, and it is gratifying to see our portfolio expand in the region through a new relationship with a world-class owner,” said Jim Abrahamson, chief executive officer of Interstate Hotels & Resorts. “Our formidable and owner-centric UK team – supported by Interstate’s global scale and experience – will successfully transition and operate these hotels, generating increased profitability and optimised asset value for our client.”
The 18-hotel portfolio comprises 2,443 guestrooms, consisting of Holiday Inn and Crowne Plaza branded hotels. Fifteen hotels will transition to Interstate management upon immediate effect, with three hotels transitioning in the next few months. Thirteen of the hotels also have Spirit & Health Fitness Clubs.
“As part of our strategic expansion, we’re building upon our global relationships, such as with highly regarded investor Cerberus Capital Management, whom we’ve known through their U.S.-based headquarters,” said Leslie Ng, chief investment officer of Interstate Hotels & Resorts. “We look forward to exploring other opportunities together in the UK and Europe.”
Robert Crook, Interstate’s managing director for the UK, said, “We are delighted to secure this agreement, which will take our operational and signed pipeline of hotels to 59 in the UK and will significantly increase our scale and resources. With these new hotels, Interstate is now one of the largest operators of IHG franchised assets in the UK, managing 40 IHG branded hotels, and raising our total rooms under management to more than 7,300.”
Spanning North America, the UK, Europe, Russia/CIS and China, Interstate Hotels & Resorts is a premier global hotel management company. The company’s comprehensive services are built on large-scale resources, delivered with the personalized and focused attention of a small company. With an owner-aligned organisational structure, experienced corporate support, and expansive industry and global knowledge, Interstate uses its 55 years of experience to contribute to each owner’s success.