WASHINGTON, DC— Shareholders of MeriStar Hotels & Resorts here, as well as those of Pittsburgh, PA-based Interstate Hotels Corp. have approved the proposed merger of the two mega hotel-management companies. The completion of the merger is set to take place by the close of business today. As previously announced, the combined company will be named Interstate Hotels & Resorts and will be the nations largest independent hotel-management company, operating more than 86,000 rooms in more than 400 hotels, representing in excess of 30 franchise brands in North America and Europe. MeriStar stockholders also approved a one-for-five reverse stock split, to be implemented immediately following the merger completion. Following the implementation of said split, the 4.6 merger exchange ratio will result in Interstate stockholders receiving 0.92 of a share of the combined companys stock for each share of their existing Interstate stock. MeriStar stockholders will receive one share of the combined companys stock for every five of their MeriStar shares. Assuming the merger plays out as expected, Interstate Hotels & Resorts stock will begin trading on the New York Stock Exchange tomorrow under the symbol “IHR.” It was further reported that at a meeting yesterday, MeriStar stockholders approved all other proposals pursuant to this merger.
