Interstate Hotels & Resorts and Waramaug Hospitality LLC Complete Major Renovation and Conversion of Tampa, FL Hotel

 ARLINGTON, VA and TAMPA, FL, July 30, 2012 – Interstate Hotels & Resorts, the largest U.S.-based global hotel management company, today announced the completion of a $9 million comprehensive renovation of the former Crowne Plaza hotel and conversion to the Sheraton Tampa East Hotel (banquet room top left photo).

 The hotel was acquired last fall by a joint venture between Interstate Hotels & Resorts, Waramaug Hospitality LLC, and a private investment group.

 Interstate operates the Sheraton Tampa East Hotel under a long-term management agreement.  Waramaug Hospitality Asset Management LLC provided project and asset management for the renovation and conversion to the Sheraton brand.

“We have a great team that was able to renovate all areas of the hotel in a very short period of time,” said Jay Litt (lower right photo), asset manager for Waramaug Hospitality Asset Management LLC.

 “We wanted the conversion to be completed in time for the Republican National Convention this summer, and our team was able to finish the work with time to spare.” 

For hotel reservations, please visit www.sheratontampaeast.com or call (813) 623-6363.

For more information, visit www.interstatehotels.com.

Connect with Interstate at www.linkedin.com/company/interstate-hotels-resorts, www.facebook.com/InterstateHotels, and http://jobs.interstatehotels.com.

For a complete copy of the company’s news release, please contact:

Chris Daly, Jerry Daly

Daly Gray, Inc.

703-435-6293

Chris@Dalygray.com

Interstate Hotels & Resorts Signs Joint Venture Agreement with Jin Jiang Hotels to Manage Hotels in China

 ARLINGTON, VA—Interstate Hotels & Resorts, the nation’s largest independent hotel management company, has signed a joint venture agreement with Shanghai Jin Jiang International Hotels Company Limited (“Jin Jiang Hotels”), China’s leading hotel operator and developer, to create a platform to pioneer third-party hotel management in China.

The joint venture, called Interstate China Hotels & Resorts, has already entered into discussions with prospective clients.

Interstate China Hotels & Resorts will open an office in Shanghai and has begun a search for a chief executive officer to lead the joint venture.

“We will build a similar platform to ones we have successfully established in Moscow, Mexico and, most recently, India,” said Thomas F. Hewitt, (top right photo)  Interstate’s chairman and chief executive officer.

“We have already begun putting the infrastructure in place to support our planned growth in China, one of the most dynamic hotel markets in the world, and we continue to expand our existing third-party business in the Americas and Europe.”

Mr. Yu Minliang, chairman of Jin Jiang Hotels, noted, “We believe this will be a milestone in the development of the services sector in Shanghai and China. Interstate will be the first independent hotel management company in China, which will give it a competitive advantage over companies that follow in its footsteps. We expect the Sino/U.S. collaboration will be mutually beneficial to both parties.”

Shanghai Jin Jiang International Hotels (Group) Company Limited is one of the leading hotel operators and managers in China. The Group is licensed to use the well-regarded “Jin Jiang” and “Jin Jiang Inn” brands.

As of 31 December 2009, the Group operated and was developing 546 hotels, including star-rated hotels and Jin Jiang Inn budget hotels, providing close to 90,000 rooms in aggregate.

 With a solid home base in Shanghai and Beijing, the Group has also successfully spanned its hotel network across 137 cities and towns in 31 provinces, autonomous regions and municipalities throughout the PRC.

 In June 2009, the Group was ranked the 13th in the world in terms of number of rooms according to HOTELS Magazine, the official publication of the International Hotel & Restaurant Association. For information about Jin Jiang Hotels, visit the company’s website: http://www.jinjianghotels.com.cn/.

Contact:

Jerry Daly jerry@dalygray.com  or Carol McCune, (703) 435-6293,
Carrie McIntyre,  (703) 387-3320, carrie.mcintyre@ihrco.com

Interstate Stockholders Approve Merger with 50/50 Joint Venture Between Thayer Lodging Group and Jin Jiang Hotels

ARLINGTON, VA—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, announced that its stockholders approved, at a special meeting held today, the merger agreement by which Interstate will be acquired by Hotel Acquisition Company, LLC (“HAC”). HAC is a 50/50 joint venture between subsidiaries of Thayer Hotel Investors V-A LP, a private equity fund sponsored by Thayer Lodging Group (“Thayer Lodging”), and Shanghai Jin Jiang International Hotels (Group) Company Limited (“Jin Jiang Hotels”).

Thayer Lodging, founded in 1991, is a leading private equity sponsor that invests exclusively in the lodging sector. Jin Jiang Hotels is the world’s 13th largest hotel company in terms of number of rooms according to Hotels Magazine.

As previously announced on December 18, 2009, under the terms of the merger agreement, the outstanding shares of Interstate common stock will be acquired by HAC for $2.25 per share in cash.

Interstate expects to close the merger no later than March 18, 2010, subject to the satisfaction of various closing conditions of the parties pursuant to the terms of the merger agreement.

In connection with the merger, a request was submitted on behalf of Interstate to the New York Stock Exchange for withdrawal of the listing of its common stock. Interstate’s proposed delisting is contingent, among other conditions, on the closing of the merger. To effect the delisting, the New York Stock Exchange will file a Form 25 with the Securities and Exchange Commission.

Contacts:

Jerry Daly, Daly Gray, (703) 435-6293, jerry@dalygray.com
Carol McCune Carrie McIntyre, Media SVP, Treasurer, Interstate Hotels & Resorts, (703) 387-3320
carrie.mcintyre@ihrco.com

Interstate Hotels & Resorts Agrees to be Acquired by Joint Venture Between Thayer Lodging Group and Jin Jiang Hotels

ARLINGTON, VA—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company,  has signed a definitive merger agreement to be acquired by Hotel Acquisition Company, LLC, a 50/50 joint venture between subsidiaries of Thayer Hotel Investors V-A LP, a private equity fund sponsored by Thayer Lodging Group, and Shanghai Jin Jiang International Hotels (Group) Company Limited (“Jin Jiang Hotels”) in a transaction valued at approximately $307 million.

Under the agreement, Hotel Acquisition Company, LLC would acquire all of the outstanding common stock and operating partnership units of Interstate for $2.25 per share in an all cash transaction.

The price represents a premium of 77 percent over the Dec. 18  closing stock price. Interstate’s lenders have approved the transaction subject to certain pay downs at closing on its senior credit facility and on one of its non-recourse mortgage loans. The transaction is not contingent upon obtaining any additional financing.

Annapolis, Md.-based Thayer Lodging Group is a privately held real estate investment company focused on hospitality assets; Shanghai, China based Jin Jiang Hotels is a subsidiary of Jin Jiang International Holdings Company Limited, and is China’s largest hotel group.

Interstate’s board of directors has unanimously approved the merger agreement and has recommended approval of the transaction by Interstate’s stockholders. Stockholders will be asked to vote on the proposed transaction at a special meeting that will be held on a date to be announced. The merger is expected to close in the first quarter of 2010, pending stockholder approval and satisfaction or waiver of other customary closing conditions.

“Our priority, as always, is to maximize shareholder value,” said Thomas F. Hewitt, (top right photo)  Interstate’s chairman and chief executive officer. “This is a very compelling offer at a significant premium. The hotel industry remains in deep recession, and we believe this transaction offers the highest and best value to our shareholders.”

“Interstate offers a unique platform with in-depth industry expertise, international operations, and scope of experience gained over 50 years, along with a stellar reputation as a first-rate operator,” said Leland C. Pillsbury, (top left photo)  chief executive officer and co-chairman, Thayer Lodging Group.

Frederic V. Malek, (middle right photo) Thayer’s co-chairman added, “We look forward to working with Interstate’s management team and associates, their owners and partners as we build on the company’s impressive legacy of success.”

“Interstate has a global reputation as a world-class, independent hotel operator. This acquisition significantly accelerates our ability to expand internationally, giving us immediate access to a worldwide platform. We also expect to mutually benefit from our global relationships in the hospitality industry, making both Jin Jiang and Interstate stronger.” said Mr. Yu Minliang, Jin Jiang Hotels’ Chairman.

Barclays Capital served as financial advisor to Interstate, BofA Merrill Lynch served as financial advisor to Thayer, and UBS Investment Bank served as financial advisor to Jin Jiang Hotels. Paul Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor for Interstate. Hogan & Hartson LLP served as Thayer’s legal advisor and Baker & McKenzie LLP served as Jin Jiang Hotels’ legal advisor.

Contact:

Media-- Jerry Daly ,Carol McCune, Daly Gray, (703) 435-6293, jerry@dalygray.com
Carrie McIntyre, SVP, Treasurer, Interstate Hotels & Resorts, (703) 387-3320, rrie.mcintyre@ihrco.com

Interstate Hotels & Resorts Adds England to International Management Portfolio

ARLINGTON, VA—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company,  announced that Harte Holdings, on behalf of Argyll Hotel Group, has awarded management contracts for three hotels in London to Interstate, marking the operator’s entry into one of the world’s great hotel cities.

The upscale boutique hotels, all located in central London, include The Royal Park, (top left photo) The Cranley (middle right photo) and The Elizabeth bottom  left photo).

England is the latest addition to Interstate’s growing international portfolio, which also includes Russia, India, Mexico, Belgium, Canada, Ireland and Costa Rica.

Interstate also manages four other hotels in a joint venture with Harte Holdings. “It is particularly gratifying that the source of these contracts is an existing joint venture partner of ours,” said Thomas F. Hewitt, chairman and chief executive officer.

 “We teamed up with Harte Holdings in 2008 in a partnership that acquired a portfolio of four U.S. hotels, hotels that we manage for the JV.

" Over the past 18 months, we have achieved very competitive results at those properties in spite of the historic downturn in the economy and our industry.

"We consider these new contracts an expression of Harte’s continuing confidence in our ability to manage successfully in any economic climate.”

“In our first hotel joint venture in the U.S., Interstate has proven itself a strong partner and an extremely reliable and capable operator,” said Donal Kelleher, investment director of Harte Holdings.

"“They have done an excellent job of managing our JV properties, controlling costs and driving revenue under very challenging circumstances. We have the utmost confidence in their ability to adapt their proven management practices to international markets.”

Leslie Ng, Interstate’s chief investment officer, noted that Interstate Management Services will oversee management of the London properties out of the company’s regional office in Moscow. “England is the fourth European country where we manage a hotel and brings to 10 our total number of European contracts. We are working with Harte on a number of other European opportunities and look forward to growing our platform there.”

The other hotels managed by Interstate for its joint venture with Harte Holdings include the Sheraton Fraser Great Valley near Philadelphia; Sheraton Mahwah, N.J.; Latham Hotel Georgetown, Washington, D.C.; and the Hilton Lafayette, La. Including the three London hotels with 129 total rooms, the seven properties aggregate 1,021 rooms.

Contact: Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Best Western Bowery Hanbee Hotel Receives Director’s Award for Quality

NEW YORK, NY – The Best Western Bowery Hanbee Hotel  (centered photo below) in New York City has received the Best Western Director’s Award for outstanding achievement in quality standards.

The Director’s Award recognizes Best Western International hotels in North America that meet or exceed cleanliness and maintenance inspection scores of at least 950 points out of a possible 1,000. Hotels must also meet Best Western’s requirements for design and high guest satisfaction scores in order to qualify.

“The Best Western Bowery Hanbee Hotel is committed to providing quality accommodations for our guests,” said General Manager Raymond Sun. ”Our staff has worked very hard to achieve this level of excellence and we are delighted to receive this important symbol of distinction from Best Western.”

Newly built in 2008, the Best Western Bowery Hanbee Hotel is located at 231 Grand Street in the heart of downtown New York City. The hotel is ideally situated between Chinatown and Little Italy in Lower Manhattan, surrounded by some of the most vibrant New York City neighborhoods such as Tribeca, Soho and the Lower East Side.

 Abundant subway access is a few blocks from the hotel. City Hall, Battery Park (above centered photo) , Trinity Church and PACE University are within walking distance. All 102 guestrooms feature a modern, comfortable design with 32-inch flat panel TVs and high-speed Internet access. The 100% non-smoking hotel also offers complimentary continental breakfast, Wi-Fi in the lobby, and a fitness center.

The Best Western Bowery Hanbee Hotel is owned by Ben Wong, founder and principal owner of New York-based Wok and Roll Restaurants,(above centered  photo)  and operated by Interstate Hotels & Resorts, the nation’s largest independent hotel management company (http://www.ihrco.com/).

 For more information about the Best Western Bowery Hanbee Hotel in New York City, please visit www.bw-boweryhanbeehotel.com or call Best Western International toll-free (800) WESTERN.

Contact:

Raymond Sun, General Manager, Best Western Bowery Hanbee Hotel, (212) 925-1177 raymond.sun@ihrco.com,
http://www.bw-boweryhanbeehotel.com/

Interstate Hotels & Resorts Reports Third-Quarter 2009 Results

ARLINGTON, VA—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, reported operating results for the third quarter ended September 30, 2009. The company’s performance for the third quarter includes the following (in millions, except per share amounts):

Highlights for the third quarter and through today include:

• · Extended senior secured credit facility to March 2012;
• · Common stock resumed trading on the NYSE effective July 29, 2009;
• · Added 10 properties to third-party management portfolio, including first hotel in India, the new-build Four Points by Sheraton in Jaipur;
• · Secured mortgage financing for Westin Atlanta Airport;
• · Signed purchase and sale agreement to sell wholly owned Hilton Garden Inn Baton Rouge; IHR to retain management of hotel with new ownership.

For a complete copy of the company's news release and financials, please contact: Carrie McIntyre, SVP, Treasurer, (703) 387-3320

 

Interstate Hotels & Resorts, Inc. Adopts Tax Benefit Preservation Plan

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

Interstate Hotels & Resorts/JHM Hotels’ JV Management Co. to Open Four Points® by Sheraton in Jaipur, India

ARLINGTON, VA, Sept.r 21, 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 India-based joint venture management company, JHM Interstate Hotels India, will open its first managed hotel in India, the 115-room Four Points® by Sheraton Jaipur, (top right photo)  City Square, in October.

 It will be the second Four Points hotel to open in the country and the first project developed by Duet India Hotels Limited, a U.K.-based, real estate investment group dedicated solely to hotel investment and development in India. Interstate and JHM Hotels, its JV partner, have an equity interest in Duet, which provides JHM Interstate Hotels India the first opportunity to manage the hotels developed or acquired by Duet.

“With the opening of this hotel, we will add a sixth country outside of the United States, our first in the Asia Pacific region, to our management portfolio as we continue to extend our reach internationally,” said Thomas F. Hewitt, chairman and chief executive officer. “India remains one of the world’s fastest growing economies, with projected growth of 5 to 6 percent this year despite the global economic downturn.”

Jaipur (center photo)  is part of India’s Golden Triangle, along with Delhi and Agra, site of the Taj Mahal, and has long been a major tourist mecca. More recently, the city, which is the capital of the state Rajasthan, has become a hotbed of economic development activity, which is decreasing its reliance on leisure business alone and attracting growing numbers of business travelers with a need for lodging.

 In June, Jaipur opened a new international airport, dramatically improving domestic and international access to the city. “We believe the Four Points brand will appeal to both travel groups, with its exceptional amenities, comfortable and stylish decor and value pricing,” he added.

Contact:  Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Interstate Hotels & Resorts Reports Second-Quarter 2009 Results

ARLINGTON, VA, Aug. 5, 2009—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor ad the nation’s largest independent hotel management company, today reported operating results for the second quarter ended June 30, 2009.
Year-to-Date (YTD)

“I am very pleased with the significant progress we have made on our capital structure,” said Thomas F. Hewitt, (top right photo) chairman and chief executive officer.

“We extended our senior credit facility to March 2012 well in advance of its original expiration date. This, along with our successful appeal of the NYSE’s ruling to suspend the trading of our stock, has provided stability to our capital structure in an extremely volatile market.

“With these hurdles behind us, we continue to focus our efforts on growing our third party management business while preserving our capital and liquidity and maximizing profits.”

Hewitt added. “Despite the challenging operating climate and RevPAR declines in excess of 20 percent, we maintained our second quarter Adjusted EBITDA year over year, which is a result of the cost reduction initiatives we implemented in January.”


For a complete copy of the company's release and financials, please contact Carrie McIntyre, SVP, Treasurer, (703) 387-3320.

Interstate Hotels & Resorts Opens Crowne Plaza Milwaukee Airport

ARLINGTON, VA, July 29, 2009—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced the opening of the 194-room Crowne Plaza Milwaukee Airport, (top left photo) which recently completed a multi-million dollar renovation and brand conversion.

The former Ramada Inn and Conference Center is owned by Amana Hospitality, LLC, and will be managed by Interstate.

This is the third property Interstate has opened this summer, with 13 under-development properties remaining in the company’s management pipeline, most of which are scheduled to open in 2010.

“This is our first contract with this ownership group,” said Leslie Ng, Interstate’s chief investment officer. “Our vast experience and deep relationship with the brand are two factors which made us the manager of choice for this property."

“Milwaukee is the largest city in Wisconsin and a popular Midwest destination and desirable locale for meetings and banquets,” said Thomas F. Hewitt, (middle left photo) chairman and chief executive officer, Interstate.

“The Crowne Plaza Milwaukee Airport underwent a complete overhaul of all interior and exterior spaces to enhance the guest experience. The hotel’s proximity to the airport and its state-of-the-art facilities and amenities attract a wide following of both leisure and business travelers.”

The Crowne Plaza Milwaukee Airport is located at 6401 South 13th St., two-and-a-half miles from General Mitchell International Airport.

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

Contact: Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Interstate Hotels & Resorts Successfully Appeals NYSE Ruling

ARLINGTON, Va., July 27, 2009—Interstate Hotels & Resorts (OTC Bulletin Board: IHRI), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced that the company has successfully appealed a NYSE ruling in March under which Interstate’s stock was suspended from trading for failing to meet the minimum $15 million market capitalization requirement.



The NYSE has now determined that Interstate’s stock will resume trading on Wednesday, July 29 under its previous symbol IHR.


Interstate’s stock has been trading on the OTC market since March 12, during which time the company’s share price increased 185 percent and the company successfully extended its senior credit facility maturity.

The market capitalization is now well in excess of the $15 million minimum capitalization required for NYSE listing.

“We appreciate the NYSE’s consideration of the unprecedented market conditions and our rapid return to compliance with the minimum market cap requirement,” said Thomas F. Hewitt, Interstate’s chairman and chief executive officer. “We look forward to continuing our long-standing relationship with the NYSE.”

Contacts:

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

Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Interstate Hotels & Resorts Signs Contract to Manage Holiday Inn Laredo Civic Center in Texas

ARLINGTON, Va., July 20, 2009—Interstate Hotels & Resorts (OTC: IHRI), a leading hotel real estate investor and the nation’s largest independent management company, today announced that the company has signed an agreement to manage the Holiday Inn Laredo Civic Center (top left photo) in Texas.

The 203-room property is owned by BIA Acquisitions, a Texas-based limited partnership.

“This is a well-known landmark property located in one of the fastest growing cities in the U.S.,” said Thomas F. Hewitt, (bottom right photo) chairman and chief executive officer.

“This is our first contract with this owner, and we look forward to helping this unique property further expand its appeal to business and leisure travelers. We remain focused on our core management business and continue to see a steady pace of opportunities for new management contracts.”
Located at 800 Garden Street in downtown Laredo, the Holiday Inn Laredo Civic Center is centrally located and houses one of the finest restaurants in Laredo, the Terraza Verde Restaurant.

The 14-story, high-rise, full-service property is equipped with a business center and offers free wireless Internet access throughout the hotel. Other hotel amenities include a fitness facility and a cocktail lounge bar with live entertainment.

The Holiday Inn Laredo Civic Center features six meeting rooms, three of which convert into a grand ballroom, and can accommodate groups of up to 300 people.

Contact: Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Interstate Hotels & Resorts Extends Senior Credit Facility to March 2012

ARLINGTON, VA—Interstate Hotels & Resorts (OTC: IHRI), a leading hotel real estate investor and the nation’s largest independent management company, has extended the maturity of its senior credit facility to March 2012 by converting the facility’s outstanding balance of $161.2 million to a new term loan.

Banc of America Securities LLC was sole lead arranger and sole book runner and Bank of America, N.A. is the administrative agent.

“Bank of America did a tremendous job leading this credit facility amendment, and we really appreciate the continued support of all 10 of our credit facility lenders,” said Bruce Riggins, chief financial officer. “This credit facility extension provides us much greater flexibility to execute our business plan through the current recession and positions us to emerge a stronger company as the industry recovers. We expect to be in compliance with all financial covenants for 2009.”

Contact: Carrie McIntyre, SVP, Treasurer, (703) 387-3320

IHR Opens Lancaster County Convention Center and Lancaster Marriott at Penn Square in Pennsylvania

ARLINGTON, VA—Interstate Hotels & Resorts (OTC: IHRI), a leading hotel real estate investor and the nation’s largest independent management company, has opened the 299-room, full-service integrated Lancaster Marriott at Penn Square (bottom left photo) and Lancaster County Convention Center, (top right photo) comprising a combined 90,000 square feet of meeting space.

Interstate has been actively involved in the development of the project for more than a decade, including feasibility, construction oversight and devising marketing strategies to maximize the overall economic benefit for Lancaster County.

The $177-million hotel and convention center project is a joint venture of the Redevelopment Authority of the City of Lancaster, Lancaster County Convention Center Authority and private developer Penn Square Partners. Interstate operates both parts of the integrated facility.

“Lancaster County, with its rich history, old-world charm and unique tradition, is a major regional travel destination, and this all-new upscale hotel and convention center offers a compelling lodging alternative for both business and leisure travelers,” said Thomas F. Hewitt, (middle left photo) Interstate chairman and chief executive officer.

“With its central Pennsylvania location and more than 90,000 square feet of combined meeting space that can accommodate groups of up to 5,000, this state-of-the-art facility offers a convenient and affordable option for meeting planners throughout the Northeast.

" It also will be a magnet for the millions of visitors who come to enjoy the natural beauty and amenities of the Pennsylvania Dutch countryside.”

“Interstate’s proven track record with convention centers and hotels, along with its size advantage, in-depth knowledge of the region, and experience and relationship with Marriott made them a very compelling choice for our hotel management company selection," said Nevin Cooley, (middle right photo) chief executive officer of Penn Square General Corp.

“As the facility fully ramps up, it is expected to create 200 to 300 new jobs and attract more than 150,000 new visitors to Lancaster annually.”

Located at 25 South Queen Street in historic Penn Square, the combined facility features a unique architectural blend of the old and the new in an adaptive reuse of an historic landmark.

The 19-story Lancaster Marriott at Penn Square incorporates the 19th-century Beaux Arts façade of the landmark Watt & Shand department store and features a breathtaking lobby highlighted by grand cathedral ceilings and mahogany paneling.

All 299 guest rooms feature stunning views of downtown Lancaster, as well as 37-inch LCD high-def televisions and the industry’s only digital “plug & play” system that connects laptops to TVs.

The integrated facility features a spacious 46,500-square-foot exhibition space; 9,000 square-foot ballroom; and numerous smaller, finely appointed meeting spaces.

Wireless connectivity is available throughout the facility. Other hotel amenities include two on-site business centers; a fine dining restaurant/lounge with 100-seat dining room and private dining; lobby bar; indoor swimming pool and whirlpool tub; exercise room; and two spa treatment rooms.

“This represents one of the 16 management contracts we have signed for properties under development or construction,” said Leslie Ng, chief investment officer. “Our pipeline remains quite active as we continue to focus on expanding our third-party management contract business.”

CONTACTS:

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

http://twitter.com/dalygray

Carrie McIntyre, SVP, Treasurer, Interstate Hotels & Resorts, (703) 387-3320

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

The Sheraton Columbia Town Center Hotel is Reinvented Following Extensive $12M Transformation

COLUMBIA, MD – The Sheraton Columbia Town Center Hotel, (top right photo) wholly-owned and operated by Interstate Hotels & Resorts, announced the completion of a comprehensive $12 million renovation, with all 290-guest rooms and public spaces entirely transformed.

Exterior upgrades such as painting, entrance enhancements, and landscaping will be concluded this summer.

Inspired by serene lake views that are visible throughout the property, the hotel’s public spaces and guest rooms reflect the organic beauty found just outside its doors.

Accented with elements of natural wood, stacked stone and water, the design carries the tranquility of the outdoors throughout the lobby, public areas, meeting spaces and guest rooms.

Environmentally conscious upgrades to lighting, heating and cooling systems were also part of the property improvements, increasing energy efficiency throughout the hotel.

“We are delighted to share all these new elements with our guests,” said General Manager Orkun Aydin. “This hotel is unlike any other property in Columbia. The exceptional architectural and design features inspired by nature provide a higher level of style and atmosphere for our guests.

These renovations,” continued Aydin, “coupled with our already high service standards, completely transform the experience.”

All 290-newly revitalized guest rooms and suites feature the signature Sheraton Sweet Sleeper™ Bed, which boasts a multi-layered, lavishly plush custom designed bed, feather down pillows, crisp cotton sheets and signature blanket and duvet.

Other features include flat-screen LCD televisions, spacious work desks, ergonomic chairs, completely remodeled bathrooms with granite, wood and brushed nickel accents, Bliss® bath amenities, and in-room Starbucks® coffee and tea.

The property’s renaissance also includes a brand new fitness center with ergonomic flooring, new equipment with private flat-screen televisions on each cardio machine, superior ventilation, and vibrant colors. Guests can mix, mingle and meet in the Lobby Lounge, serving light fare among panoramic lake views. The signature lakeside Waterside Restaurant features a private dining room and exceptional cuisine for breakfast, lunch, dinner, and a popular Sunday brunch.

CONTACTS:

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

Orkun Aydin, General Manager, Sheraton Columbia Town Center Hotel, (410) 730-3900 / Orkun.Aydin@ihrco.com

Interstate Hotels & Resorts Receives Credit Facility Waiver

ARLINGTON, VA, Mar. 31, 2009—Interstate Hotels & Resorts (OTC: IHRI), a leading hotel real estate investor and the nation’s largest independent management company, today announced that the company had received a waiver through June 30 related to the requirement under its senior credit facility to maintain listing on the New York Stock Exchange.

The NYSE suspended trading of Interstate’s stock on March 12 after the company failed to meet the minimum $15 million market capitalization requirement.

Trading of the company’s stock has transitioned to the OTC market and the NYSE listing continues pending the appeal process.

“We appreciate the continued support from our bank group and have begun discussions regarding extending the facility’s March 2010 maturity,” said Bruce Riggins, chief financial officer. “Our goal is to have an amendment completed prior to June 30.”

As part of the waiver agreement, the interest rate on the credit facility was increased 75 basis points to LIBOR plus 350 basis points.

In addition, the company paid a 50 basis point fee to consenting lenders, and the facility size was permanently reduced to $173.3 million from $198.0 million.

The new facility size provides for $10 million of borrowing capacity, of which $6 million is available through June 30, in addition to cash on hand. The company does not expect to draw on the facility during the waiver period.

Contact: Bruce Riggins, Chief Financial Officer, (703) 387-3344

Interstate Hotels & Resorts’ CEO Thomas F. Hewitt Named Chairman

ARLINGTON, VA—Interstate Hotels & Resorts (OTC: IHRI), a leading hotel real estate investor and the nation’s largest independent management company, today announced that Thomas F. Hewitt, (top right photo) chief executive officer, has been named chairman of the board.

He will succeed Paul W. Whetsell, (bottom left photo) who will step down as chairman and as a member of the board of directors, effective March 31.

“This transition is part of our regular succession planning that we’ve been working on for some time,” Whetsell said. “Tom has a long and distinguished career with Interstate and is the natural choice to continue to lead the company as chairman and chief executive officer. As CEO, he has compiled an impressive record over the past four years as we have grown and diversified the company.”

“As a founder of CapStar Hotel Company, one of our predecessor companies, Paul’s vision and entrepreneurial spirit were instrumental in the formation and growth of our company,” Hewitt noted. “He remains a strong supporter and significant shareholder of Interstate.”

Interstate Hotels & Resorts has ownership interests in 57 hotels and resorts, including seven wholly owned assets.

Together with these properties, the company and its affiliates manage a total of 225 hospitality properties with more than 46,000 rooms in 37 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 4,000 rooms.

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

Contact: Bruce Riggins, Chief Financial Officer, (703) 387-3344

Interstate Hotels & Resorts Receives Notice of Suspension of Trading from NYSE

ARLINGTON, VA—Interstate Hotels & Resorts (NYSE: IHR, to be traded over the counter under the ticker symbol IHRI), a leading hotel real estate investor and the nation’s largest independent hotel management company, has received notice from the New York Stock Exchange (trading floor, middle left photo) that its common stock, under the ticker symbol IHR, will be suspended from trading prior to the market opening on March 12, 2009.

According to the March 5, 2009 notice from the NYSE, the suspension is occurring because Interstate did not meet the continued listing standard requiring maintenance of a minimum $15 million market capitalization over a consecutive 30 trading day period.

The company had previously announced on December 2, 2008, that it had failed to maintain the continued listing standard which requires a $1.00 minimum average closing price over a consecutive 30 trading day period.

While the $1.00 minimum average requirement allows for a company to have a six-month cure period, there is no such period available for a failure to meet the minimum market capitalization requirement.

The company will seek an appeal of the delisting determination as permitted by the NYSE though there are only limited solutions available.

The company has not yet been notified as to the timing of the appeal process. Until the appeal is heard, Interstate will remain listed, but will not trade, on the NYSE.

The company’s senior secured credit facility agreement requires that the company be listed on the NYSE.

KPMG LLP, the company’s external auditor, has notified the Audit Committee and management that since Interstate’s potential delisting from the NYSE creates a credit facility covenant issue, which, if not resolved, could result in acceleration of the credit facility debt, its auditor report on the consolidated financial statements for the year ended December 31, 2008 will include an explanatory paragraph related to the uncertainty of the company’s ability to continue as a going concern.

The company’s credit facility also includes a covenant requiring an audit opinion without exception.

The company is in active discussions with its credit facility lenders to receive a waiver through June 30, 2009, related to the covenant requiring listing on the NYSE as well as the covenant dealing with audit opinions.

While there can be no assurances that the company can obtain the waiver, a waiver of these covenants only requires a 51 percent vote by the credit facility lenders.

Thomas F. Hewitt, (top right photo) the company’s chief executive officer, stated that, “Interstate is working quickly to resolve these technical defaults by the end of March so that it can focus its attention on an extension of the credit facility, which the company is working to obtain prior to June 30, 2009.”

Bruce A. Riggins, chief financial officer of the company, noted that, “These technical issues relating to our credit facility do not impact the individual mortgage notes on our three wholly owned hotels.”

As notification from the NYSE was received only very recently, the company is continuing to evaluate the disclosures to be included in management’s discussion and analysis and the consolidated financial statements and related notes thereto to be included in its Annual Report on Form 10-K.

The company intends to file for a 15-day extension to allow it to file its Annual Report on Form 10-K with the Securities and Exchange Commission not later than March 31, 2009.

Interstate Hotels & Resorts has ownership interests in 57 hotels and resorts, including seven wholly owned assets. Together with these properties, the company and its affiliates manage a total of 225 hospitality properties with more than 46,000 rooms in 37 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 4,000 rooms.

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

Contact: Bruce Riggins, Chief Financial Officer, (703) 387-3344