Interstate Exchanges Leases and Management Contracts for Cash

WASHINGTON, DC-Honoring a previous deal structured under the REIT Modernization Act of 1999 Interstate Hotels & Resorts, the nation’s largest independent hotel management company formerly known as Meristar Hotels & Resorts, has turned over management operations of 33 hotels across the country to their owner, Raleigh, NC-based Winston Hotels. The transition will officially be in effect on July 1.

The REIT Modernization Act gives real estate investment trusts like Winston the right to own the leases on their own hotels. With that in mind, Interstate signed over the leases on 47 Winston properties to Winston Hotels on July 1 of last year, while holding on to the management duties on 33 of those 47 hotels. However, the act also gives Winston the opportunity to end the management contracts after one year and Winston is doing just that.