Interstate Hotels & Resorts Strengthens International Presence in Moscow

ARLINGTON, Virginia, February 15 /PRNewswire/ --

- Opens Branch Office, Names Executive Team

Interstate Hotels & Resorts (NYSE: IHR), one of the nation's largest independent hotel management companies, today announced that the company has further strengthened its international presence with the opening of a branch office in Moscow, Russia, and the appointment of three senior executives to be based there. The announcement comes on the heels of news that the company recently signed its fifth hotel management contract in Moscow.

Kenneth McLaren was named executive vice president of Interstate Management Services, Inc. and will oversee operations of the local hotels, with all general managers reporting directly to him. Irina Kulagina, new vice president sales and marketing, will also be responsible for new business development. As vice president-director of projects, Mikhail Rodionov will oversee the capital project process for the company's Moscow hotels, as well as assist during the renovation/construction of new hotels.

"These three hospitality executives add significant bench strength to our international management team and together bring more than three decades of relevant industry experience in property and project operations and marketing," said Thomas F. Hewitt, chief executive officer of Interstate Hotels & Resorts. "We recently announced our fifth management contract in Moscow and have an active pipeline for future growth. Our new office and executive team will give us greater operational strength and allow us to achieve strong economies of scale. We also have enhanced our ability to source additional new contracts and/or development and acquisition opportunities, both in Russia and throughout Europe."

"All three executives have strong, proven track records in this region and are very familiar with the Moscow hotel market," said Henry L. (Hank) Ciaffone, president of international operations and development at Interstate. "In addition to overseeing hotel operations, Ken also will also be directly responsible for the Marriott Hotels area sales and marketing office, the area human resources department and the area purchasing department. Ken, Irina and Mikhail all will report directly to me."

Kenneth McLaren

Ken McLaren originally joined the Moscow Marriott Grand Hotel in 2003 as general manager, where he was responsible for directing a major renovation. During his tenure there, he achieved among the highest guest satisfaction scores in the Marriott system, and in 2005 was named the Marriott Franchise General Manager of the Year. He previously served as general manager of the Malta Hilton, the Dubai Hilton, the Abuja, Nigeria Hilton and a number of other similar positions during a 16-year career at Hilton.

He graduated from the College of Technology in Glasgow where he majored in hotel management and gained a postgraduate diploma in Human Resources Management.

Irina Kulagina

Irina Kulagina began her career at the Tverskaya Hotel in 1997 as director of sales. At the time, this hotel was branded a Colony Hotel. In 1998, she joined the Marriott Royal Aurora Hotel as director of sales.

In December 1999, Kulagina was appointed senior area director of corporate sales and, later, area director of sales and marketing for the three Moscow Marriott hotels.

She graduated from the Moscow Linguistic University and speaks fluent English and German.

Mikhail Rodionov

Mikhail Rodionov joined the Moscow Marriott Hotels in 1998 as assistant to the area director of engineering. He was appointed assistant area director of purchasing in 2000 and area director of purchasing in 2003.

Rodionov is a graduate of the Moscow Linguistic University.

About Interstate

As of January 31, 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, 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 +1-703-387-3320

Web site: http://www.ihrco.com