IHR Interstate Hotels & Resorts,

ARLINGTON, Va., Oct. 10 /PRNewswire-FirstCall/ -- Interstate Hotels & Resorts (NYSE:IHR), the nation's largest independent hotel management company, today announced that it has signed a long-term contract with JSC Sadko Hotel to manage the landmark, 275-room Hilton Moscow Leningradskaya in Moscow, Russia. It is the fourth property that the company manages in Moscow and the sixth hotel Interstate has under management agreement in Europe. The property, the first hotel to carry the Hilton brand in Russia, currently is closed undergoing a major refurbishment and will re-open in mid- 2007. The Hilton Moscow Leningradskaya is one of seven famous 'Stalin' towers that visually define the Moscow skyline. Originally constructed in 1954, the Hilton Moscow Leningradskaya will retain many of its historic architectural features as part of the refurbishment. "This will be a magnificent hotel when completely renovated, and we expect it to rapidly become a market leader," said Henry L. (Hank) Ciaffone, president of international operations and development at Interstate. "We have global expertise and a growing portfolio in Europe, including the recent signing of our first property in Ireland and the soon-to-open Marriott Ghent in Belgium. With our previous experience managing three properties in Moscow, we have first-hand knowledge of this market most operators cannot match. Combined with our strength in North America, we believe we can deliver superior returns for our owner through our economies of scale, marketing expertise and proprietary operating programs. We are aggressively seeking additional growth opportunities in Europe for both branded and independent hotels." About Interstate As of September 30, Interstate Hotels & Resorts operated 232 hospitality properties with more than 52,000 rooms in 40 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 10,000 corporate apartments located in more than 100 MSAs throughout the United States and internationally. For more information about Interstate Hotels & Resorts, visit the company's Web site: http://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, although not all forward- looking statements will contain such words. 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, changes in business and leisure travel patterns or levels, fuel cost, economic conditions generally and the hotel and real estate markets specifically, international and geopolitical instability, health concerns, threatened or actual terrorist attacks, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, weather conditions or natural disasters, changes in 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, 2005. Contact: Carrie McIntyre SVP, Treasurer (703) 387-3320 DATASOURCE: Interstate Hotels & Resorts CONTACT: Carrie McIntyre, SVP, Treasurer, of Interstate Hotels & Resorts, +1-703-387-3320 Web site: http://www.ihrco.com/

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