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Interstate Hotels & Resorts Agrees to Manage 54 Hotels Owned by Sunstone Hotels and Its Affiliates Following Completion of Sunstone IPO
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ARLINGTON, Va., August 19, 2004 – Interstate Hotels & Resorts (NYSE: IHR), the nation’s largest independent hotel management company, today announced that it has signed an agreement to manage 54 hotels currently owned by affiliates of Sunstone Hotel Investors, LLC, a privately held hotel ownership group based in San Clemente, Calif.  The current Sunstone hotel management team will transfer to Interstate, but will remain at their existing offices and will continue to oversee management of the hotels.  No changes are planned at the property level, and the transition will be essentially transparent to current Sunstone hotel employees. 

The transaction will close, and is contingent on, the concurrent completion of an initial public offering (IPO) by Sunstone Hotel Investors, Inc., which is currently in registration with the Securities and Exchange Commission.  Sunstone Hotel Investors will be a publicly traded real estate investment trust (REIT), which requires that its owned properties be managed by third party operators.  Concurrent with the IPO, Interstate will enter into new long-term management contracts, which include both base and incentive management fees, as well as certain termination rights, with the hotels. 

“Sunstone’s hotels match up well with our current portfolio,” said Steve Jorns, Interstate’s chief executive officer.  “Most of the hotels are located in the western half of the country in markets where we currently do not have a significant presence.  This transaction will give us added economies of scale in those markets, as well as a highly experienced operating infrastructure in place.” 

The 54 hotels, with 12,643 rooms and located in 16 states, are primarily premium-branded full-service properties.  The hotels include: 24 Marriott-branded hotels, 16 Intercontinental-branded hotels, eight Hilton-branded hotels and three independent hotels.  When combined with Interstate’s current managed hotel portfolio, Interstate will operate approximately 320 hotels. 
 

Sunstones Hotel Listing

Courtyard by Marriott - Fresno, CA 
Courtyard by Marriott - Los Angeles, CA
Courtyard by Marriott - Lynnwood, WA
Courtyard by Marriott - Oxnard, CA
Courtyard by Marriott - Riverside, CA
Courtyard by Marriott - San Diego Old Town, CA
Courtyard by Marriott - Santa Fe, NM
Crowne Plaza - Grand Rapids, MI 
Doubletree Guest Suites Minneapolis - Minneapolis, MN 
Doubletree Nashville - Nashville, TN
Embassy Suites - Chicago, IL
Embassy Suites LAX North - Los Angeles, CA 
Executive Suites by Kahler - Rochester, MN 
Four Points Hotel by Sheraton - Silverthorne, CO 
Hawthorn Suites - Kent, WA
Hawthorn Suites - Sacramento, CA 
Hilton - Carson Civic Plaza, CA 
Hilton Del Mar - Del Mar, CA 
Hilton Garden Inn - Lake Oswego, OR
Hilton Long Island-Huntington - Huntington, NY 
Holiday Inn - Airport, Boise, ID
Holiday Inn - Anchorage, AK 
Holiday Inn - Craig, CO 
Holiday Inn - Flagstaff, AZ 
Holiday Inn - Mission Valley Stadium, San Diego, CA
Holiday Inn - Provo, UT 
Holiday Inn - Rochester Downtown, MN 
Holiday Inn - Walk of Fame, Hollywood, CA 
Holiday Inn Express - San Diego Old Town, CA 
Holiday Inn Harbor View - San Diego, CA 
Holiday Inn Hotel & Suites - Mesa, AZ 
Holiday Inn Hotel & Suites - Price, UT 
Holiday Inn Select - Renton, WA 
JW Marriott Denver - Cherry Creek, CO 
Kahler Grand Hotel - Rochester, MN 
Marriott - City Center Portland, OR 
Marriott - Ogden, UT
Marriott - Ontario, CA
Marriott - Park City, UT 
Marriott - Provo, UT
Marriott - Pueblo at Convention Center, CO 
Marriott - Riverside, CA 
Marriott - University Park, Salt Lake City, UT 
Marriott - Utah Valley Conference Center Provo, UT UT
Marriott at Mayo Clinic - Rochester, MN 
Marriott Hotel & Spa - Napa Valley, CA 
Marriott Houston North at Greenspoint - Houston, TX
Ogden Eccles Conference Center  Ogden  UT
Radisson Fort Magruder Hotel & Conference Center - Williamsburg, VA
Radisson Hotel Englewood - Englewood, NJ 
Residence Inn - Manhattan Beach, CA 
Residence Inn by Marriott - Beverly Hills, CA 
Residence Inn by Marriott - Oxnard, CA 
Residence Inn by Marriott - Sacramento, CA 
Residence Inn Rochester Downtown - Rochester, MN 
San Marcos Resort & Conference Center - Chandler, AZ 
Sheraton - City Centre, Salt Lake City, UT 
Sheraton - Concord, CA 
Wyndham Greenspoint - Houston, TX 

Interstate Hotels & Resorts operates approximately 270 hospitality properties with more than 60,000 rooms in 40 states, the District of Columbia, Canada, Russia, and Portugal.  BridgeStreet Corporate Housing Worldwide, an Interstate Hotels & Resorts’ subsidiary, is one of the world’s largest corporate housing providers. 

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. 

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Contact:
Melissa Thompson
Vice President, Corporate Communications
Interstate Hotels & Resorts
(703) 387-3377
www.ihrco.com

 
Also See: Sunstone Hotel Investors, LLC Opens $9 million Residence Inn Rochester Mayo Clinic; Fifth Sunstone Hotel Property in Rochester, Minnesota / July 2004
Sunstone Hotel Investors LLC and Tarsadia Hotels Expanding by Going After Weaker Hotels in Key Markets / Sandi Cain / June 2003
Sunstone Hotels Opens the 196-room JW Marriott Denver at Cherry Creek / June 2004


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