IHR Interstate Hotels & Resorts,

ARLINGTON, Va., Feb. 9 /PRNewswire-FirstCall/ -- Interstate Hotels & Resorts (NYSE:IHR), one of the nation's largest independent hotel management companies, today announced that it has closed on the acquisition of the 297- room Hilton Houston Westchase hotel in Texas for $50.5 million, or $170,000 per key, from affiliates of The Blackstone Group. This marks Interstate's fifth wholly owned property. Interstate financed the acquisition with a $32.8 million, non-recourse mortgage loan with UBS Real Estate Securities Inc. The variable rate loan has an initial term of three years, with two, one-year extensions. As of January 31, 2007 Interstate Hotels & Resorts operated 223 hospitality properties with more than 50,000 rooms in 38 states, the District of Columbia, Canada, and Russia. 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. 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 war in 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 as amended for the year ended December 31, 2005. Contact: Jerry Daly, Carol McCune Carrie McIntyre Daly Gray Public Relations SVP, Treasurer (703) 435-6293 (703) 387-3320 DATASOURCE: Interstate Hotels & Resorts CONTACT: Jerry Daly or Carol McCune of Daly Gray Public Relations, +1-703-435-6293, for Interstate Hotels & Resorts; or Carrie McIntyre, SVP, Treasurer of Interstate Hotels & Resorts, +1-703-387-3320 Web site: http://www.ihrco.com/

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