ARLINGTON, Va., September 24, 2009 – Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced that its board of directors has adopted a tax benefit preservation plan designed to preserve the value of its substantial tax assets.
The purpose of the plan is to protect stockholder value by attempting to preserve the company’s ability to maximize available federal tax deductions that may be deemed built-in losses and to prevent a possible limitation on the company’s ability to use its net operating losses, capital losses and tax credit carryforwards (the “tax attributes”) to reduce potential future federal income tax obligations.
The company has experienced and continues to experience tax losses, and under the Internal Revenue Code and rules promulgated by the Internal Revenue Service, Interstate may “carry forward” these losses, as well as capital losses and tax credits, in certain circumstances to offset any current and future earnings with these items, as well as deductions deemed to be built-in losses, and thus reduce Interstate’s federal income tax liability, subject to certain requirements and restrictions.
Contact:: Carrie McIntyre; SVP, Treasurer, (703) 387-3320
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