Done Deals: Interstate Hotels & Resorts Signs Agreement to Manage Its First Cambria Suites

Wednesday, April 16, 2008

Interstate Hotels & Resorts Signs Agreement to Manage Its First Cambria Suites

ARLINGTON, Va., April 16, 2008—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent operator of full- and select-service hotels, today announced that it has signed an agreement to manage the to-be-built, 143-room Cambria Suites near Atlanta’s Hartsfield Jackson International Airport. (South Terminal photo at bottom left)

The hotel is being developed by CQ Capital Partners for Charania Hospitality Group, both subsidiaries of Charania Group of Companies, an independent global real estate fund based in Clarkston, Ga. Construction of the property is expected to begin next month, with a scheduled opening in the first quarter of 2009.

“This transaction introduces a dynamic new brand to our management portfolio, as well as a new owner,” said Thomas F. Hewitt, (photo at right) Interstate’s chief executive officer. “The Charania Group of Companies is a proven and experienced developer/owner, who has plans to build additional Cambria Suites product by Choice Hotels. We are exploring other projects with the Charania Group of Companies, primarily in the southeastern region of the U.S.”

The Cambria Suites brand is designed to take advantage of new trends in lodging, reflecting t

he expectations of guests who want to carry their lifestyle with them when they travel. The hotel will offer the latest technology surrounded by a sophisticated, contemporary design that is both stylish and comfortable.

“Cambria Suites is a new, upscale, select-service brand that plays to Interstate’s strengths in the select-service segment,” said Barkat Charania, (top right photo) chief executive officer of Charania Group of Companies.

“With their operating and marketing strengths and size advantages, we feel Interstate is the best qualified to help us optimize the returns of this new hotel brand. We are excited about the collaboration between our groups and look forward to building a long-standing relationship.”

The Cambria Suites Atlanta Airport is only the second LEED certified hotel in Georgia and is located within minutes of one of the world’s busiest airports, which currently is undergoing a $5.4 billion expansion, and the Georgia International Convention Center, adjacent to the airport. Metro Atlanta, with more than 125 million square feet of office space, ranks third in the nation among cities with the most Fortune 500 headquarters.

“This continues our strategy of broadening our ownership universe, which now includes more than 60 owners,” said Leslie Ng, Interstate chief investment officer. “We look forward to building on our relationship, both with Charania Group of Companies and the emerging Cambria Suites brand.”

About Charania Group of Companies

Charania Group of Companies is a global real estate fund that invests in its subsidiaries for the creation of a portfolio of sustainably designed and LEED certified real estate projects. The Charania Group of Companies family includes CQ Capital Partners, the development company; CQ Construction, the construction company

; B.C. Investments & Realty, the brokerage and asset management division; and Charania Hospitality Group, the hotel ownership entity.

Charania Group of Companies is led by Barkat Charania and Rahim Charania, who along with their team have more than 50 years of combined experience in global real estate acquisitions and development.

About Interstate

As of today, Interstate Hotels & Resorts has ownership interests in 54 hotels and resorts, including seven wholly owned assets. Together with these properties, the company and its affiliates manage a total of 217 hospitality properties with more than 45,000 rooms in 36 states, the District of Columbia, Russia, Mexico, Belgium, Canada and Ireland. Interstate Hotels & Resorts also has contracts to manage 16 to be built hospitality properties with approximately 3,800 rooms.

For more information about Interstate Hotels & Resorts, visit the company’s Web site: http://www.ihrco.com/.

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