IHR Interstate Hotels & Resorts,

Interstate Hotels & Resorts (NYSE: IHR), the nation's largest independent hotel management company, today announced two key management appointments for the Residence Inn Manhattan/Times Square, currently under construction at the corner of 39th St. and 6th Ave. Daniel Fevre, currently general manager of the Courtyard by Marriott Times Square South, has been named area general manager and will take on the additional position of general manager of the Residence Inn. James McCabe has been named director of sales for the Residence Inn. The new 36-floor, 357-suite property, owned by New York-based MG Hotel LLC, is slated to open in November. Interstate will manage the hotel under a long-term contract. "With this being the first extended-stay Residence Inn by Marriott in New York City, we named a GM and DOS with the kind of relevant experience that will help this hotel reach its full potential," said Tom Bardenett, executive vice president of operations, Crossroads Hospitality, a division of Interstate Hotels & Resorts. "In addition to a proven track record and strong leadership skills, both have experience with Marriott or the Residence Inn brand, both have worked in Manhattan and know the market well, and both have worked during a construction phase or a renovation. When it is fully ramped up, we expect this hotel to assume a leadership role in this market, particularly among those travelers who typically stay for five days or longer." Daniel Fevre Daniel Fevre takes the Residence Inn management reins with more than two decades of leadership experience in the hospitality industry. Under his guidance as general manager of the nearby Courtyard by Marriott Times Square South, the hotel has ranked consistently among the top three properties in the Courtyard system, in terms of occupancy, average daily rate and revenue per available room (RevPAR) during his seven-year tenure. The property also has won Marriott's Gold Award for guest satisfaction twice, and Fevre is a two-time recipient of the Courtyard Leadership Award. Fevre, who has been with Interstate since 1996, previously served as general manager at a number of Marriott and Holiday Inn properties in California, all of which experienced dramatic increases in occupancy, RevPAR and customer satisfaction under his leadership. A native of Paris, France, Fevre began his career as a chef in Paris and later in Southern California. In 1981 he was named executive chef for Holiday Inns, Inc., and worked his way up through the F&B department, ultimately serving as F&B director of four Holiday Inn hotels, including the 650-room Holiday Inn Crowne Plaza at Los Angeles International Airport. James McCabe The new director of sales, James McCabe, has more than 15 years' experience in hospitality industry sales and joins the new Residence Inn from the Flatotel in New York, where he served as director of sales since 2002. Working with a sales team he assembled and led, he secured the hotel's position in more than 25 corporate hotel programs, increased group bookings by more than $1.3 million and increased revenues from new corporate accounts by $1.7 million. During a previous stint as senior sales manager at the Flatotel, McCabe successfully oversaw efforts to reposition the hotel from a tour and travel focus to corporate transient during a major renovation. He also held sales positions at The Time Hotel and the Empire Hotel/Ian Schrager Hotels, both in Manhattan. Previously, he was general manager of the Residence Inn in White Plains, N.Y. and director of sales and marketing at the Residence Inn in Plainview, N.Y. Interstate Hotels & Resorts operates more than 300 hospitality properties with nearly 72,000 rooms in 41 states, the District of Columbia, Canada, and Russia. BridgeStreet 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 the volatility of the national economy, economic conditions generally and the hotel and real estate markets specifically, the aftermath of the war with Iraq, international and geopolitical difficulties or health concerns, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, weather conditions or natural disasters, 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.