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Interstate Hotels Completes Sale of the Hilton Garden Inn Baton Rouge Airport
to Fairwood Capital for $10.6 million

 

 Proceeds Used to Pay Down Amended Senior Credit Facility
 
 
ARLINGTON, VA, November 18, 2009 — Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced completion of the sale of the Hilton Garden Inn Baton Rouge Airport to an opportunity fund managed by Fairwood Capital, LLC, for $10.6 million.  Proceeds from the sale will be used to pay down the company’s amended senior credit facility that matures in March 2012.  Interstate will continue to manage the hotel for the new ownership group.  

“With this sale, the mortgage financing we recently obtained on our newly renovated Westin Atlanta and operating cash flow, we have paid down $35 million of the $40 million required by March 2011 under terms of the new senior credit facility we secured in July,” said Bruce Riggins, chief financial officer.  
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Hilton Garden Inn Baton Rouge Airport 
3330 Harding Boulevard, Baton Rouge, Louisiana
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About Fairwood Capital
With offices in Memphis, Tenn. and New York, NY., Fairwood Capital, LLC is a real estate investment firm that invests exclusively in hospitality-related real estate with a focus on premium-branded select service, extended stay and full service hotels.  The company was founded by Robert M. Solmson, the former CEO and chairman of RFS Hotel Investors (RFS), and Richard Reiss, Jr., chairman of Georgica Advisors and a former RFS board member.  The company pursues a disciplined acquisition strategy and seeks to diversify its portfolio by brand, geographic location and market segment.

About Interstate Hotels & Resorts
Interstate Hotels & Resorts, Inc. has ownership interests in 55 hotels and resorts, including six wholly owned assets.  Together with these properties, the company and its affiliates manage a total of 228 hospitality properties with more than 46,000 rooms in 37 states, the District of Columbia, Russia, India, Mexico, Belgium, Canada and Ireland.  Interstate Hotels & Resorts also has contracts to manage 13 to be built hospitality properties with approximately 3,000 rooms.  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.  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, the company’s ability to maximize available federal tax deductions and utilize net tax attributes in future periods, 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 for the year ended December 31, 2008.
 

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Contact: 

Carrie McIntyre
SVP, Treasurer
(703) 387-3320
 
 

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Also See: Interstate Hotels & Resorts Acquires the 131-room Hilton Garden Inn in Baton Rouge, La. for $14.4 million, $110,000 per key / June 2006
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