The company will take over the management of the 81-room ibis budget Hotel in Derby and the 73-room ibis budget Hotel in Leicester.
“Securing our management for two attractive, centrally-located ibis budget hotels will add to Interstate’s UK portfolio of full and select service branded hotels, including some independent brands,” said Robert Crook, Interstate’s managing director for the UK.
“These management wins come in the wake of last month’s rebranding of the former Quality Hotel to Holiday Inn Express Edinburgh Airport following a multi-million pound investment and take our UK portfolio to 49 hotels under franchise agreements with many of the world’s leading hotel companies.”
UK expansion
Interstate now has franchise agreements with some of the UK's biggest hotel brands, including InterContinental Hotels Group, Hilton Worldwide, Accor, Wyndham and Best Western. It also manages a number of independent hotels.
The company plans to grow its UK portfolio to 100 over the next five years and last year acquired hotel development company Sanguine Hospitality Management, which has partnerships with some of the world’s biggest hotel brands and a close relationship with Marco Pierre White, who has restaurants at a number of hotels it manages.
Interstate also bought Glasgow-based Chardon Management, taking over its portfolio of 32 hotels, which are a mix of Holiday Inn, Holiday Inn Express and Ibis Styles, as well as independents.
Future outlook
Jim Abrahamson, chief executive officer of Interstate, said the company was confident in the outlook for the UK hotel management sector, and would continue to pursue further UK expansion in 2014.
“Transaction activity in these markets is growing and Interstate is looking forward to utilizing our expansive bench strength, exceptional executives and strong leadership team in the UK to further enhance hotel owner opportunities, producing strong results worldwide.”
Interstate, a wholly-owned subsidiary of a 50/50 joint venture between subsidiaries of Thayer Lodging Group and Jin Jiang Hotels, now manages 390 hotels across North America, Europe and Asia-Pacific.
It also has ownership interest in 32 hotels and agreements to manage a further 30 hotels under construction and development in these markets.