Interstate Hotels & Resorts Reports First-Quarter 2008 Results

ARLINGTON, Va., May 7, 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 reported operating results for the first quarter ended March 31, 2008.

(Thomas F. Hewitt, top left photo, is president and chief executive officer, at Interstate Hotels & Resorts.)

(For a detailed copy of the news release, please contact Carrie McIntyre, senior vice president and treasurer, 703 387 3320 or Julie Tullbane at Daly Gray Public Relations, 703 435 6293.)

Highlights for the first quarter include:

· Completed acquisition of four-hotel portfolio from The Blackstone Group for $209 million through our joint venture with Harte Holdings of Ireland;

· Formed joint venture with FFC Capital which then acquired 22 select-service hotels;

· Formed joint venture with JHM Hotels to operate and invest in hotel properties in India, signed first management contract in April 2008;

· Committed to invest $6.3 million in Duet India Hotels Limited, a U.K.-based, real estate investment fund dedicated solely to the investment of hotels in India;

· Recorded a gain of $2.4 million from the sale of a joint venture hotel. This gain is classified as a non-recurring item and has been excluded from Adjusted EBITDA, Adjusted net income, and Adjusted diluted EPS;

· Added a total of 34 management contracts, including those listed above.