U.S.-based global hotel management company Interstate Hotels & Resorts announced Wednesday that it's been acquired by New York private equity firm Kohlberg & Company LLC.
The transaction signals the start of a strategic partnership with the potential to improve Interstate's value.
The company said the acquisition will allow it to enhance its global relationships and access capital resources benefiting its current model of third-party management.
Interstate also said that it will continue its strategic merger and acquisition activities to support additional growth moving forward.
What's more, the company's senior management team will remain and retain their equity stakes.
"This transaction is validation of Interstate Hotels & Resorts' strategy, strength and leadership over the past five years," said CEO Jim Abrahamson in a statement. "The partnership with Kohlberg will enhance the Company's current management processes, with Interstate continuing to lead from a solid position.