Interstate Sells BridgeStreet Housing Subsidiary
JANUARY 29, 2006. Interstate Hotels & Resorts (NYSE: IHR), one of the nation's largest independent hotel management companies, today announced that it has sold its BridgeStreet Worldwide corporate housing subsidiary to an affiliate of Sorrento Asset Management, a Dublin, Ireland-based company for net proceeds of approximately $40.5 million. The company said that proceeds will be redeployed into investments in hotel real estate through wholly owned acquisitions and joint ventures.
"BridgeStreet has gone through a remarkable turnaround over the past two years," said Thomas F. Hewitt, chief executive officer. "Lee Curtis, president of Bridgestreet Worldwide, and his team have done an excellent job of managing their existing corporate apartment inventory and driving rates, resulting in significantly increased profits. At the same time, they expanded and entered key U.S. and international markets.
"However, corporate housing, while related, is no longer part of our core growth strategy," he said. "Now that we have completed the turnaround, we believe the timing is right for us to exit this business and monetize the value we have created. We plan to reinvest those proceeds into our core businesses.
"Sorrento already is well acquainted with BridgeStreet, which already manages corporate apartments for them. We believe this is an excellent fit and the sale represents a win-win situation for everyone," Hewitt added.
BridgeStreet Worldwide is one of the world's largest corporate housing providers and offers upscale, fully equipped, furnished apartments, townhouses and condominiums as an alternative to traditional hotel rooms, primarily for business travelers and relocating corporate executives who need lodging for more than 30 days. BridgeStreet and its network of Global Partners offer approximately 10,000 corporate apartments located in more than 100 MSAs throughout the United States and internationally. For more information about BridgeStreet Worldwide, visit the company's website: www.bridgestreet.com.
As of December 31, Interstate Hotels & Resorts operated 223 hospitality properties with more than 50,000 rooms in 39 states, the District of Columbia, Canada, and Russia. For more information about Interstate Hotels & Resorts, visit the company's Web site: www.ihrco.com.
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