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ARLINGTON, Va. (Jan. 13, 2005) -- Interstate Hotels & Resorts (NYSE:IHR), today announced that it has been selected to manage two Marriott-branded hotels, currently under construction, for G. Holdings Corporation, a New York City-based real estate development company founded by Harry Gross. The 357-suite Residence Inn by Marriott Manhattan - Times Square is scheduled to open in November 2005 and will be the first upscale, branded extended-stay hotel in the city. The 150-room Marriott Ghent in Belgium has recently broken ground and is expected to open in mid-2006. During the development phase, Interstate will handle all of the pre-opening activities, including marketing, staffing and training, for both properties. "This brings to four the number of properties we manage for G. Holdings," said Steve Jorns, Interstate chief executive officer. "We also manage the Courtyard by Marriott - Times Square South and the Courtyard by Marriott - JFK Airport. We believe the selection of Interstate to manage these new properties underscores G. Holdings' confidence in our ability to deliver a better top and bottom line at major urban properties and to cost-effectively manage the important pre-opening activities. Our owners also benefit from the significant economies of scale and operating synergies afforded by our size and international distribution." "Interstate brings a lot to the table operationally," said Harry Gross, G. Holdings CEO. "Besides their considerable experience managing nearly 300 hotels in the United States, they also have compiled a successful international track record, operating properties in Russia, Portugal and Canada. They are one of only a handful of companies that have such global expertise, which benefits our properties as we continue to grow." Residence Inn Manhattan - Times Square Located at the corner of 39th Street and 6th Avenue, the 36-story Residence Inn by Marriott Manhattan - Times Square will be located in what will be known as Bryant Park Tower and will cater to business and leisure travelers on an extended stay -- typically five or more nights -- in New York City. The hotel will feature 357 fully equipped, studio suites, each with a separate living room area and other home-like amenities. Hotel amenities will include complimentary breakfast buffet, complimentary evening social hour (Mon.-Thurs.), complimentary grocery shopping service, free high-speed Internet access, daily housekeeping, lounge with pool table, and 2,500 square feet of flexible meeting space with three executive boardrooms. Marriott Ghent, Belgium Located in the heart of the Medieval City of Ghent, Belgium's fourth-largest city, the 149-room Marriott Ghent fronts onto one of the city's many canals and will retain portions of four 15th century townhouses as part of its structure, with the new hotel built behind them. Among the hotel's amenities will be a lobby lounge, a bar and casual restaurant, a fitness center, a business center, 24-hour room service, and in-room mini-bars. The surrounding area includes retail outlets, offices and such nearby tourist attractions as the Design Museum of Ghent; St. Bavo's Cathedral, built in the 15th century; Six Flags Belgium in Brussels; canoeing; and biking trails. About Interstate Hotels & Resorts Interstate Hotels & Resorts operates more than 300 hospitality properties with nearly 70,000 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. BridgeStreet and its network of Global Partners offer more than 8,700 corporate apartments located in 91 MSAs throughout the United States and internationally.