$307 million float

Thayer Lodging Group and Jin Jiang International Holdings have got together to buy Interstate Hotels and Services for $307 million.

Interstate Hotels holders will get $2.25 a share, a 77% premium last week's closing price.

Interstate's lenders have approved the transaction and the forecast is that it will be finally sorted out during the first quarter of 2011.

Interstate Chairman and Chief Executive Thomas F. Hewitt said, "This is a very compelling offer at a significant premium. The hotel industry remains in deep recession, and we believe this transaction offers the highest and best value to our shareholders."

Interstate, which manages or has ownership interests in 232 hospitality properties in 37 states and several countries, said last month it saw its third-quarter loss widen.

Wall Street Journal reported Thayer Lodging is a privately held real-estate investment company while Jin Jiang is China's largest hotel group.