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Interstate Hotels & Resorts Acquires 10.9% Equity
Interest in The Statehouse Inn in Boise, Idaho
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ARLINGTON, Va., June 22, 2006—Interstate Hotels & Resorts (NYSE: IHR), the nation’s largest independent hotel management company, today announced that it has acquired for $500,000, a 10.9 percent equity interest in The Statehouse Inn in downtown Boise, Idaho.  Interstate purchased its ownership interest from Cameron S-Sixteen Hospitality LLC, a joint venture between Boise-based Cameron Investments, a real estate holding, development and private equity placement company, and S-Sixteen Limited Partnership.  Interstate has managed the 112-room property since March 1.  

“We have a long-term relationship with S-Sixteen, for whom we manage one other hotel in Boise,” said Thomas F. Hewitt, chief executive officer.  “Our acquisition of an equity interest is part of our previously announced strategy to diversify our earnings base through hotel ownership, either wholly owned, in joint ventures or as a sliver investment.  It also reflects our confidence in our joint venture partners and the long-term potential of this property.

“This is a well-located hotel with a great reputation, in a strong, secondary market, with easy access to the convention center, the state capital, and the city’s key demand generators,” he added.  “An extensive, $3 million renovation is planned that will reposition the hotel and restaurant as an urban boutique hospitality property.  Downtown Boise has been undergoing a renaissance, and this renovation will allow us to take full advantage of the increased activity.”  

Rick Clark, principal of Cameron Investments, noted that The Statehouse Inn is an attractive addition to Cameron’s real estate holdings, now valued in excess of $100 million.  “This is Cameron’s first entry in the hospitality market and the joint venture’s third acquisition in the Treasure Valley.  With Interstate as manager, we gain a number of advantages, including their size and attendant economies of scale and operating synergies, as well their previous management experience in the Boise market.”  

Located at 981 Grove St., in downtown Boise and featuring panoramic views of the city and the Boise Valley, the hotel is conveniently located near Boise’s major attractions, including the convention center, the capitol building and BoDo, downtown Boise’s new entertainment district.  The former Eighth Street Marketplace includes a nine-screen movie theater, restaurants, a hotel, offices and retail stores. Located in the heart of the cultural district south of Front Street, this private development also includes warehouses converted into shops, offices, performance spaces and restaurants.  

As of May 31, Interstate Hotels & Resorts operated 264 hospitality properties with nearly 60,000 rooms in 41 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 9,800 corporate apartments located in more than 95 MSAs throughout the United States and internationally.  For more information about Interstate Hotels & Resorts, visit the company’s Web site: 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.  

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Contact:

Interstate Hotels & Resorts
www.ihrco.com

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Also See: Developer David Hale and Hotelier Elizabeth Tullis Renovating the 48 unit GuestLodge Motel in Boise, Idaho; Spending $2 million for Retro Theme and New Name - The Modern Hotel / April 2006
Doubletree Hotel Boise Downtown Reflagged to WestCoast Hotel Boise Downtown / April 2002

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