News for the Hospitality Executive
Interstate Hotels & Resorts to Manage Crowne Plaza
New Orleans International Airport;
Former Holiday Inn Select Kenner to be Reflagged Following $26 Million Renovation
ARLINGTON, Va., May 29, 2008 — Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent operator of full- and select-service hotels, today announced that it has signed an agreement to manage the 292-room Crowne Plaza New Orleans Airport in Kenner, La. The former Holiday Inn Select Kenner, which has been closed since Hurricane Katrina, has been undergoing a major, $26 million renovation, and is scheduled to reopen this October as the Crowne Plaza New Orleans Airport.
“The addition of this management contract to our portfolio continues the upward trend in new contracts we’ve seen for the past few quarters,” said Thomas F. Hewitt, chief executive officer. “It is also our fourth New Orleans property with MCC Real Estate and Development, LLC, a major New Orleans-based hotel investor. This demonstrates their confidence in Interstate’s ability as their hotel operator of choice.
“New Orleans continues to show encouraging signs of recovery, and we are optimistic about the area’s continued economic renaissance,” Hewitt added. “The hotel’s exceptional location less than a mile from the New Orleans International Airport, coupled with the complete renovation of its guest rooms and public space, will enable the property to quickly assume a prominent position among its peers in the marketplace.”
Located at 2829 Williams Boulevard, Kenner, La. the hotel is a half-mile from the airport and within a mile of the Ponchartrain Convention Center, a flexible, multi-purpose event venue with more than 61,000 square feet of meeting space. The multi-million renovation will touch virtually every area of the hotel, including all guestrooms and all public areas. Approximately 7,000 square feet of new ballroom space will be created, bringing the total meeting space to 12,000 square feet. The restaurant space is being totally revamped with a new full-service restaurant that will serve local cuisine made with fresh, indigenous products. Other upgrades include a new outdoor pool area and a state-of-the-art fitness center.
“One of our most reliable sources of new management contracts is current owners, and our ability to deliver results has been instrumental in helping us build a successful relationship with this ownership group,” said Leslie Ng, chief investment officer.
“As an operator, Interstate offers so many advantages, including their size and experience with the complete spectrum of hotel types,” said Joe Jaeger, a partner in the hotel’s ownership group. “They have produced excellent results for us under challenging circumstances, and we look forward to further expanding our relationship.”
As of today, 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 over 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.
|Also See:||Interstate Hotels & Resorts Signs Agreement to Manage the 218 room Bourbon Orleans in New Orleans / January 2008|
|Noble Investment Group Acquires Former Wyndham Metairie Hotel in New Orleans, La.; Hotel to Re-Flag as Sheraton Brand Following Multi-Million Dollar Upgrade / May 2006|