Interstate Hotels & Resorts Reports First-Quarter 2009 Results

ARLINGTON, VA, May 6, 2009 /PRNewswire-FirstCall/ -- Interstate Hotels &Resorts (OTC Bulletin Board: IHRI), a leading hotel real estate investor and the nation's largest independent hotel management company, today reported operating results for the first quarter ended March 31, 2009.

(1) Total revenue excludes other revenue from managed properties (reimbursable costs).

(2) Adjusted EBITDA, Adjusted net loss and Adjusted diluted EPS are non-GAAP financial measures and should not be considered as an alternative to any measures of operating results under GAAP.

(3) Includes the company's share of adjusted EBITDA from investments in unconsolidated entities in the amounts of $1.2 million and $1.6 million in the first quarter of 2009 and 2008, respectively.

(4) The first quarter 2009 results include a $0.8 million charge for restructuring primarily related to severance costs as a part of the company's 2009 cost reduction program, and $8.9 million of tax expense relating to the company's global tax planning strategy. These charges are excluded from the calculation of Adjusted EBITDA, Adjusted net loss and Adjusted diluted EPS.

(5) The first quarter 2008 results include (i) a $2.4 million gain on the sale of the Doral Tesoro Hotel & Golf Club, and (ii) $1.1 million of write-offs of intangible assets related to the sale of certain hotels in 2008. Each of these items has been excluded from the calculation of Adjusted EBITDA, Adjusted net loss and Adjusted diluted EPS.

"The first quarter was an extremely difficult operating period, a trend that we anticipate will continue through most of 2009, and possibly into 2010," said Thomas F. Hewitt, (top right photo) chief executive officer. "While our visibility remains limited, we expect to see the decline in RevPAR begin to moderate in the second half of the year."

For a complete copy of the company's news release and its financials, please contact:

Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297, mailto:703-435-6297julie@dalygray.com