Sunstone is in the midst of an initial public offering that will render it a publicly traded REIT; that status dictates that the company turn over management of properties it owns to third-party managers. The portfolio, which accounts for 12,643 rooms across 16 states, consists primarily of Marriott, Intercontinental and Hilton brand properties.

"Sunstone's hotels match up well with our current portfolio," Interstate CEO Steve Jorns notes. "Most of the hotels are located in the western half of the country in markets where we currently do not have a significant presence. This transaction will give us added economies of scale in those markets, as well as a highly experienced operating infrastructure in place."