Cerberus Capital Management and Interstate Hotels & Resorts Sign Management Deal for 18 UK Hotels

"The U.K. 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 U.K. team – supported by Interstate's global scale and experience – will successfully transition and operate these hotels, generating increased profitability and optimized 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:

• 216-room Holiday Inn Gatwick London Airport
• 142-room Holiday Inn Farnborough
• 202-room Holiday Inn Reading South
• 188-room Holiday Inn Leicester
• 144-room Holiday Inn Hemel Hempstead
• 139-room Holiday Inn Aylesbury
• 130-room Holiday Inn Southampton
• 112-room Holiday Inn High Wycombe
• 101-room Holiday Inn Edinburgh City West
• 135-room Crowne Plaza Leeds
• 158-room Holiday Inn Coventry
• 107-room Holiday Inn London Bexley
• 125-room Holiday Inn Gloucester – Cheltenham
• 105-room Holiday Inn Maidstone – Sevenoaks
• 86-room Holiday Inn Basingstoke
• 124-room Holiday Inn Fareham (to be transitioned within the next few months)
• 100-room Holiday Inn Hull Marina (to be transitioned within the next few months)
• 129-room Holiday Inn Southampton – Eastleigh (to be transitioned within the next few months)

"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 U.K. and Europe."

Robert Crook, Interstate's managing director for the U.K., said, "We are delighted to secure this agreement, which will take our operational and signed pipeline of hotels to 59 in the U.K. 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 U.K., managing 40 IHG branded hotels, and raising our total rooms under management to more than 7,300."

Spanning North America, the U.K., 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 organizational structure, experienced corporate support and expansive industry and global knowledge, Interstate uses its 55 years of experience to contribute to each owner's success.

For more information regarding hotel management in Europe, please contact Senior Vice President, Acquisitions and Development-Europe, Aaron Greenman, at +32 490 43 15 72 or visit www.interstatehotels.co.uk. For more information about Interstate Hotels & Resorts worldwide, please visit www.interstatehotels.com.