With the deal closed, the duo will be converting the 22 Exel Inns to various Wyndham Worldwide brands. Interstate invested a 10% equity interest in the hotels, a portion of which will be used to rebrand and reposition the hotels. Interstate will also manage the properties. The 2,397-key portfolio is spread throughout the Midwest, in Illinois, Iowa, Michigan, Minnesota, Wisconsin and Texas, along major interstates and close to major cities and submarkets. "We see this portfolio as a significant opportunity to add value through re-branding and repositioning," says Thomas Hewitt, CEO of Interstate.

This transaction brings to 25 the number of properties Interstate is managing for FFC Capital. Last month it took on the management of two Courtyard by Marriott hotels owned by FCC in New England: the Courtyard by Marriott Westborough, a 98-key property in the Westborough Technology Park, 20 miles west of Downtown Boston, and the 121-room Courtyard by Marriott Orange, located close to Yale University and Downtown New Haven. It also has nearly 4,000 sf of meeting space that can accommodate up 250 people. It also just signed an agreement with FFC Capital to manage the 202-room Courtyard by Marriott Marlborough in Boston, with 8,000 sf of meeting space.

This deal also doubles the number of hotels in which Interstate holds an ownership interest via a JV vehicle. Prior to this deal owned seven hotels and had a minority ownership interest 22 hotels and resorts via JV.