Aimbridge Hospitality and Interstate Hotels & Resorts agreed to merge to form a third-party hotel management services company.
Private equity investor Advent International Corp., which bought a majority ownership stake in Aimbridge earlier in 2019, will take a majority ownership of the combined entity, which will manage more than 1,400 branded and independent properties in 49 states and 20 countries.
Aimbridge co-founder and CEO Dave Johnson will be CEO of the combined business, while Interstate President and CEO Michael Deitemeyer will become global president.
The merger is expected to be completed by the end of 2019.
Goldman Sachs & Co. LLC and Moelis & Co. LLC were financial advisers, while Paul Weiss Rifkind Wharton & Garrison LLP was legal adviser to Interstate. Ropes & Gray LLP was legal adviser to Aimbridge.
