In August 2000, a partnership led by Gencom, made a strategic $30 million investment in Interstate Hotels and Resorts. The investment was a combination of preferred equity and convertible debt, giving the partnership an effective 50% equity stake in the company. The capital infusion provided Interstate with much needed liquidity to grow and increase profitability.
In 2002, Interstate completed a reverse merger with Meristar Hotels and Resorts, creating the largest independent hotel management company in the world.
The new company had the Gencom partnership as its largest shareholder. During 2006-2007, the Gencom partnership successfully exited the investment.
Mr. Alibhai served as a member of Interstate's Board of Directors from October 2000 through April 2008.