Interstate Hotels & Resorts Selected to Manage Upscale Portfolio of 22

    Business Editors/Travel Editors

    ARLINGTON, Va.--(BUSINESS WIRE)--March 24, 2005--Interstate Hotels & Resorts (NYSE: IHR), the nation's largest independent hotel management company, today announced that it has signed management agreements to operate 22 upscale hotels recently acquired by a partnership consisting of a private investment fund managed by Goldman Sachs and affiliates of Highgate Holdings.
    "This is a first-rate portfolio of stabilized properties and upscale brands," said Thomas F. Hewitt, Interstate CEO. "We anticipate a seamless transition into the Interstate organization and expect the change to be essentially transparent at the property level to our guests and employees. We look forward to establishing a long-term relationship with Goldman Sachs and to further opportunities to work with them."
    "We, along with our partner Highgate Holdings, are excited to have purchased this collection of assets from Wyndham," said Jonathan Langer, managing director of Goldman Sachs. "We look forward to working with Interstate to leverage off of their extensive experience in managing upscale, full-service hotels."
    The portfolio includes 14 Wyndhams, two Hiltons, three Doubletrees, one Radisson and two independent hotels, aggregating 5,895 rooms, located in 12 states and the District of Columbia. The 22 contracts bring to 330 the number of hotels managed by Interstate.
    The partnership has allocated $75 million to fund renovations across the portfolio, ranging from replacing soft goods in the guestrooms to upgrading technology.

    The 22 hotels are:

Hotel Name Location Number of Rooms ---------------------------------------------------------------------- Wyndham Andover Andover, Mass. 293 ---------------------------------------------------------------------- Wyndham Arlington - DFW Airport Arlington, Texas 310 ---------------------------------------------------------------------- Wyndham Commerce Commerce, Calif. 201 ---------------------------------------------------------------------- Wyndham Dallas Market Center Dallas, Texas 227 ---------------------------------------------------------------------- Wyndham DC City Center Washington, D.C. 352 ---------------------------------------------------------------------- Wyndham Las Colinas Las Colinas, Calif. 168 ---------------------------------------------------------------------- Wyndham Harrisburg-Hershey Harrisburg, Pa. 348 ---------------------------------------------------------------------- Wyndham Indianapolis Indianapolis, Ind. 171 ---------------------------------------------------------------------- Wyndham Newark Airport Newark, N.J. 396 ---------------------------------------------------------------------- Wyndham Pittsburgh Airport Pittsburgh, Pa. 314 ---------------------------------------------------------------------- Wyndham Syracuse Syracuse, N.Y. 250 ---------------------------------------------------------------------- Wyndham Westborough Westborough, Mass. 223 ---------------------------------------------------------------------- Wyndham Westshore Tampa, Fla. 322 ---------------------------------------------------------------------- Wyndham Grand Bay Coconut Grove Miami, Fla. 177 ---------------------------------------------------------------------- Hilton Newark Gateway Newark, N.J. 253 ---------------------------------------------------------------------- Hilton Cleveland South Cleveland, Ohio 191 ---------------------------------------------------------------------- Denver South Hotel Englewood, Co. 305 ---------------------------------------------------------------------- Doubletree Hotel Tallahassee Tallahassee, Fla. 287 ---------------------------------------------------------------------- Doubletree Hotel Minneapolis Park Place Minneapolis, Minn. 297 ---------------------------------------------------------------------- Doubletree Club Chicago O'Hare Airport Des Plaines, Ill. 246 ---------------------------------------------------------------------- Radisson Houston Town & Country Houston, Texas 173 ---------------------------------------------------------------------- Houston Northwest Inn Houston, Texas 193 ---------------------------------------------------------------------- Total rooms: 5,895 ----------------------------------------------------------------------

    Interstate Hotels & Resorts operates more than 330 hospitality properties with approximately 73,000 rooms in 41 states, the District of Columbia, Canada, Russia, and Portugal. BridgeStreet Corporate Housing Worldwide, an Interstate Hotels & Resorts' subsidiary, is one of the world's largest corporate housing providers. BridgeStreet and its network of Global Partners offer more than 8,700 corporate apartments located in 91 MSAs throughout the United States and internationally. For more information about Interstate Hotels & Resorts, visit the company's Web site: www.ihrco.com.

    This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, about Interstate Hotels & Resorts, including those statements regarding future operating results and the timing and composition of revenues, among others, and statements containing words such as "expects," "believes" or "will," which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including changes in the national economy, economic conditions generally and the real estate market specifically, the threat of future terrorist attacks, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, supply and demand for lodging facilities in our current and proposed market areas, and the company's ability to manage integration and growth. Additional risks are discussed in Interstate Hotels & Resorts' filings with the Securities and Exchange Commission, including Interstate Hotels & Resorts annual report on Form 10-K for the year ended December 31, 2004.

--30--MW/ny*

CONTACT: Interstate Hotels & Resorts Melissa Thompson, 703-387-3377

KEYWORD: VIRGINIA INDUSTRY KEYWORD: TRAVEL MARKETING AGREEMENTS SOURCE: Interstate Hotels & Resorts

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