The US-based global hotel management company, which bought up Sanguine Hospitality earlier this year, said the deal would mean it would grow its UK portfolio to 47 hotels either open or under development.
It will take on Chardon Management's current portfolio of 32 hotels, which are a mix of branded hotels such as Holiday Inn, Holiday Inn Express and Ibis Styles as well as some independents.
“With this acquisition, we believe Interstate is now the pre-eminent hotel management company in the UK and Irish markets, offering institutional and private investors a world class hotel management platform,” said Jim Abrahamson, chief executive officer of Interstate Hotels & Resorts.
“As our second U.K. acquisition this year, we can leverage Interstate’s on-the-ground operations and tangible experience in the country to successfully transition and operate this new portfolio, generating ultimate profitability for owners, and maximizing asset value.”
Robert Crook, Chardon Management's managing director will continue to lead Chardon's business for Interstate, reporting into Ken McLaren, Interstate's executive vice president of international operations, while chief executive Maurice Taylor, non-executive chairman Cesidio Di Ciacca and Nicola Taylor, currently marketing director, will remain with the business but in an advisory capacity.
Taylor told BigHospitality it was 'business as usual' at Chardon, but that the deal would enable the company to have more sway in securing more contracts in the future.
"Interstate is a recognised world leader bringing 50 years of industry experience, dynamic relationships with quality brands and international experience to the table," she said.
"Chardon’s relationship with Interstate ensures a really successful future, providing our staff, owners, investors, associates, and ultimately our guests with the best experience possible in the UK and Ireland hospitality industry.”
Leslie Ng, chief investment officer of Interstate Hotels & Resorts said with Chardon being 'one of the most esteemed' independent management companies in the UK it had been a top strategic choice for Interstate's expansion plans.
“We’re looking forward to managing this expanded portfolio with best-in-world experience, strong brand relationships and institutional-quality systems," he said.
Glasgow-based Chardon Management Ltd was formed in 1998 and has grown to manage 32 hotels and one health and fitness club. It will now join Interstate's business which, with its affiliates manages 387 hotels in North America, Europe and Asia-Pacific, including six wholly owned hotels, as well as its 47 in the UK.