The deal means that Interstate will add Sanguine's 14 UK hotels to its European portfolio, bringing the total number of hotels managed and signed by the American company to 51 in the region.
Jim Abrahamson, chief executive of Interstate Hotels & Resorts, said the move gave the company a 'strong foothold' in the UK.
“It’s incredibly gratifying to see Interstate’s global footprint continue to grow, delivering on our overall expansion strategy,” he said. “As full U.K. operations join our established Interstate Europe platform in Russia and Continental Europe, we look forward to our alliance with Sanguine and their exceptional teams.
"This relationship strategically positions Interstate for abundant future growth and opportunities throughout the region, and our global operating experience paired with long-standing, beneficial relationships with top international brands promise a successful future between Interstate and Sanguine."
Sanguine Hospitality has developed partnerships with some of the world's biggest hotel brands since it was founded in 2006, namely InterContinental Hotels Group, Hilton Worldwide and Wyndham Worldwide. It also has a close relationship with Marco Pierre White who has restaurants at a number of the hotels it manages.
This year it will aim to complete three hotel developments - in Exeter, Sheffield and Birmingham and is finalising deals for projects in London, Manchester and Cardiff. It will also operate the Hilton hotel at Southampton's Ageas Bowl when it opens next year.
Sanguine Hospitality chairman Simon Matthews-Williams said the deal with Interstate would help continue the company's success.
“While we have enjoyed significant success through organic growth and a strong market reputation, our new relationship with Interstate puts us on an entirely new level and provides a platform to achieve step change growth,” he said. “From our initial meetings, it was clear that Interstate identified Sanguine as a progressive, successful and ambitious business. We are confident that this is the right move at the right time, not just for the business, but also for our excellent staff and loyal customers across our portfolio.”