"Interstate is a leading operator of premier properties and we believe they will build upon the accomplishments of our prior manager and raise the Claremont to new levels of success," said Thomas J. Hutchison III, Chief Executive Officer of CNL Hotels & Resorts. "We are pleased with the opportunity to further our longstanding relationship with an experienced operator in Interstate, who has demonstrated a successful track record with destination resorts."

Beyond the 24 properties managed for CNL Hotels & Resorts, additional notable properties that are currently managed by Interstate Hotels & Resorts include: South Seas Resort in Captiva Island, Fla., The Charles Hotel in Harvard Square in Cambridge, Mass., The Muse in New York, N.Y., The Bishop's Lodge Resort & Spa in Santa Fe, N.M., and Laguna Cliffs Marriott Resort & Spa in Dana Point, Calif.

"We have an extensive background in the San Francisco market and currently operate five other hotels there," said Thomas F. Hewitt, Interstate's chief executive officer. "We believe we can add immediate value to this property through our proprietary operating and marketing programs and high guest- oriented service philosophy. We look forward to the opportunity to enhance this historic hotel's results and to further build on our relationship with CNL."

Proclaimed by architect Frank Lloyd Wright as "one of the few hotels in the world with warmth, character and charm," the Claremont Resort & Spa has presided over the Berkeley hills above San Francisco Bay since 1915. Inspired by Mediterranean villas and grand Victorian seaside residences, the hotel is surrounded by 22 acres of impeccably landscaped grounds. In addition to 279 rooms and suites, this urban resort offers 25,000 square feet of function space incorporating two ballrooms and stunning skyline views. Other key features include an acclaimed 20,000-square-foot spa, two swimming pools, 10 tennis courts and California cuisine at Jordan's, the East Bay's only Four Diamond restaurant.

A number of capital improvements at the Claremont Resort & Spa are planned, including exterior painting, pool deck improvements, meeting space renovations and enhanced bedding packages.

About CNL Hotels & Resorts, Inc.
CNL Hotels & Resorts, Inc. owns one of the most distinctive portfolios in the lodging industry. With a focus on luxury resorts and upper-upscale properties, the company has nearly $6 billion in total assets with 100 hotels and resorts across North America that operate under independent brands and corporate brands such as Marriott, Hilton and Hyatt. For more information, please visit http://www.cnlhotels.com.

About Interstate Hotels & Resorts
Interstate Hotels & Resorts operates more than 300 hospitality properties with nearly 72,000 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 8,700 corporate apartments located in 91 MSAs throughout the United States and internationally. For more information about Interstate Hotels & Resorts, visit the company's Web site: http://www.ihrco.com.

This press release contains "forward-looking statements," within the meaning of the federal securities laws and regulations, about Interstate Hotels & Resorts and CNL Hotels & Resorts, Inc. 

CNL Hotels & Resorts, Inc.
http://www.cnlhotels.com