Interstate Hotels & Resorts, a hotel real estate investor and management company, said Friday that it is being acquired by a joint-venture in a $307 million all cash deal.
Hotel Acquisition Co. is a joint venture between a private equity fund Thayer Hotel Investors and Shanghai Jin Jiang International Hotels Co.
Under the agreement, Hotel Acquisition Co. will acquire all the common stock and operating partnership units of Interstate for $2.25 per share in an all cash transaction. The price represents a premium of 77 percent over its closing stock price Thursday.
Interstate's board of directors has unanimously approved the deal and shareholders will be asked to vote on the proposed transaction at a special meeting, which has not been set yet.
The deal is expected to close in the first quarter of 2010.
Shares of Interstate rose 93 cents, more than 73 percent, to $2.20 in midday trading Friday.