The venture�s first executed contract is for a 124-room, under construction hotel located in Vizag (Visakhapatnam), India, a coastal city in the state of Andhra Pradesh on India�s eastern shore.  Interstate is in the process of securing a major U.S. brand for the hotel and expects to announce an affiliation shortly.  The hotel, owned by Vishnupriya Hotels Resorts Private Limited, broke ground in July 2007 and is expected to open in the fourth quarter of 2008.  

�This contract marks our official entry into India�s fast-growing lodging market and establishes JHM Interstate Hotels India as one of the first independent, international hotel management companies to be located there,� said Thomas F. Hewitt, chief executive officer of Interstate. �This five-star, business-class hotel is typical of the properties the partnership seeks.  It is situated in an upscale neighborhood of Vizag, which has the largest port in India.  It is strategically located between Kolkata and Chennai and is one of the fastest growing cities in the world, according to a recent United Nations study.  We look forward to expanding our relationship with Vishnupriya Hotels Resorts, which is exploring additional hotel opportunities.� 

�We sourced the hotel through our strategic partner, JNB Hotels and Resorts Private Limited, a subsidiary of JNB LLC, a U.S.-based real estate investment group with strong ties to India.  JNB has developed a robust pipeline of hotel management opportunities throughout the country for us,� said Leslie Ng, Interstate chief investment officer.  �The joint venture also is actively sourcing other management opportunities throughout key markets in India.�

Located at 10-28-3, Uplands, Waltair Main Road, Visakhapatnam, India, the upscale, full-service hotel is nestled among the hills of the Eastern Ghats and faces the Bay of Bengal to the east.  The property features panoramic ocean and city views and includes three restaurants, a spa/gym and two presidential suites.  The hotel is being designed by D.M. Upasni, a prominent India based architect specializing in the hospitality industry with significant experience throughout the world.  His unique approach to the Vizag project combines an architecturally distinctive design and the natural beauty of the site in a property destined to become a new landmark in Vizag. 

About JHM Interstate Hotels India

JHM Interstate Hotels India is a joint venture partnership between JHM Hotels and Interstate Hotels & Resorts, Inc, formed to operate and invest in hotels in India.  JHM Hotels, a premier lodging company based in Greenville S.C., with offices in Mumbai and Surat, India, has developed, acquired, owned and operated hotels throughout the United States for more than 34 years.  The company currently owns and operates 30 U.S. hotels with more than 5,000 guestrooms and has over 1,500 additional rooms under development/construction, operating under such well-known brands as Marriott, Hilton, Starwood and Hyatt.  For more information about JHM Hotels, visit the company�s Web site:  www.jhmhotels.com.

As of March 31, 2008, Interstate Hotels & Resorts has ownership interests in 54 hotels and resorts, including seven wholly owned assets.  Together with these properties, the company and its affiliates manage a total of 217 hospitality properties with approximately 45,000 rooms in 36 states, the District of Columbia, Russia, Mexico, Belgium, Canada and Ireland.  Interstate Hotels & Resorts also has contracts to manage 17 to be built hospitality properties with approximately 4,000 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, 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, 2007.

Carrie McIntyre
SVP, Treasurer
(703) 387-3320