WASHINGTON, DC/HORSHAM, Pa.; October 16, 2003 � Interstate Hotels & Resorts (NYSE:IHR), the nation�s largest independent hotel management company, today announced that it has entered into a partnership with LRA Worldwide to design and implement a company-wide brand and quality assurance initiative. 

�This is a very important program for our company,� commented Eric DeStefano, Interstate�s senior vice president of brand assurance & rooms and related. �As the result of the 2002 merger between Interstate Hotels and MeriStar Hotels & Resorts, we now operate and are responsible for a vast lodging portfolio, with more than 380 hospitality properties, and nearly 82,000 rooms in 44 states, the District of Columbia, Canada and Russia. Our objective is to provide our guests with hospitality experiences that consistently meet and exceed their expectations, which will drive loyalty to our properties. This goal requires that we closely monitor and enhance product quality and guest service delivery throughout our portfolio. The program we have jointly developed with LRA Worldwide, called IQP (Interstate Quality Process), encompasses a rigorous inspection and assessment of all key elements of our lodging properties. We are pleased to be partnering with LRA on this important project, as LRA has played a key role in helping a number of leading hospitality and travel companies around the world deliver `world-class´ levels of quality, customer satisfaction and loyalty.�

�IQP will be implemented at all of Interstate�s independent hotels, as well as certain branded hotels based upon other performance criteria and benchmarks,� commented Stan Lashner, COO of LRA Worldwide. Interstate�s IQP program will help ensure excellence in product and service delivery throughout the Interstate portfolio. Every element that influences a guest�s satisfaction with an Interstate property will be carefully inspected and measured as part of this process. In addition, hotel staff will benefit from the training and development opportunities created by a regular inspection and feedback process,�  said Lashner.

Interstate Hotels & Resorts operates approximately 380 hospitality properties with nearly 82,000 rooms in 44 states, the District of Columbia, Canada and Russia, including 55 properties managed by Flagstone Hospitality Management, a subsidiary of Interstate Hotels & Resorts. BridgeStreet Corporate Housing Worldwide, an Interstate Hotels & Resorts subsidiary, is one of the world's largest corporate housing providers, offering upscale, fully furnished corporate housing throughout the United States, Canada, the United Kingdom, France and 39 additional countries through its network partners. For more information about Interstate Hotels & Resorts, visit the company's Web site: www.ihrco.com. 

LRA Worldwide provides performance management and measurement solutions to the hospitality, gaming, food service, sports and entertainment, travel and transportation industries. The Company�s proprietary business solution combines proven market research methods, sector-based operations expertise and change management techniques to help companies and brands eliminate performance gaps, engineer exceptional customer experiences and enhance customer satisfaction and retention. Consulting services focus on performance assessment, knowledge management and change management/implementation. Measurement services include customer satisfaction research, employee engagement and quality assurance services. For more information, visit the company�s Web site at www.lraworldwide.com.