Settlement Talks Continue Between Patriot American Hospitality and Marriott International

Strategic Insights -

Discussions between Patriot American Hospitality, Inc. (NYSE: PAH) and Marriott International, Inc. (NYSE: MAR) are ongoing to settle a litigation over a proposed merger between Patriot American and Interstate Hotels Company (NYSE: IHC). The United States District Court for the District of Maryland has postponed the start of trial, pending further notice from the parties regarding the status of their settlement negotiations. Patriot American and Interstate have expressed no assurance that a definitive settlement agreement will be reached. The parties will continue to prepare for trial unless a settlement is achieved.

Key Takeaways:

  • Patriot American Hospitality, Inc. (NYSE: PAH) and Interstate Hotels Company (NYSE: IHC) are in ongoing settlement talks with Marriott International, Inc. (NYSE: MAR) regarding a proposed merger.
  • The United States District Court for the District of Maryland has postponed the start of trial, pending further notice from the parties regarding the status of their settlement negotiations.
  • Patriot American and Interstate stressed that there can be no assurance that a definitive settlement agreement will be reached.
  • The parties will continue to prepare for trial unless a settlement is achieved.
  • Patriot American Hospitality, Inc. is the nation's second-largest hotel real estate investment trust (REIT) with a portfolio of 214 owned, managed, leased or franchised hotels.
  • Wyndham International, Inc. is a partner of Patriot American Hospitality, Inc. with a portfolio primarily comprised of upscale hotel and resort properties.
  • Interstate Hotels Company is the largest independent hotel management company in the United States, with a portfolio of 216 hotels as of April 1, 1998.

Statistics:

  • 214 hotels are owned, managed, leased or franchised by Patriot American Hospitality, Inc.
  • 50,000 rooms are comprised in the portfolio of Patriot American Hospitality, Inc.
  • 216 hotels are owned by Interstate Hotels Company as of April 1, 1998.
  • 43,395 rooms are comprised in the portfolio of Interstate Hotels Company as of April 1, 1998.
  • 42 hotels are owned or have a controlling interest in Interstate Hotels Company.

Sources:

  • Patriot American Hospitality, Inc.
  • Marriott International, Inc.
  • Wyndham International, Inc.
  • Interstate Hotels Company
  • United States District Court for the District of Maryland