Interstate Hotels & Resorts Adds England to International Management Portfolio

Harte Holdings Names Interstate to Manage Three Upscale Boutique Hotels in London

ARLINGTON, Virginia, December 9 - Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate
investor and the nation's largest independent hotel management company, today
announced that Harte Holdings, on behalf of Argyll Hotel Group, has awarded
management contracts for three hotels in London to Interstate, marking the
operator's entry into one of the world's great hotel cities. The upscale
boutique hotels, all located in central London, include The Royal Park, The
Cranley and The Elizabeth. England is the latest addition to Interstate's
growing international portfolio, which also includes Russia, India, Mexico,
Belgium, Canada, Ireland and Costa Rica.

Interstate also manages four other hotels in a joint venture with Harte
Holdings. "It is particularly gratifying that the source of these contracts
is an existing joint venture partner of ours," said Thomas F. Hewitt,
chairman and chief executive officer. "We teamed up with Harte Holdings in
2008 in a partnership that acquired a portfolio of four U.S. hotels, hotels
that we manage for the JV. Over the past 18 months, we have achieved very
competitive results at those properties in spite of the historic downturn in
the economy and our industry. We consider these new contracts an expression
of Harte's continuing confidence in our ability to manage successfully in any
economic climate."

"In our first hotel joint venture in the U.S., Interstate has proven
itself a strong partner and an extremely reliable and capable operator," said
Donal Kelleher, investment director of Harte Holdings. "They have done an
excellent job of managing our JV properties, controlling costs and driving
revenue under very challenging circumstances. We have the utmost confidence
in their ability to adapt their proven management practices to international
markets."

Leslie Ng, Interstate's chief investment officer, noted that Interstate
Management Services will oversee management of the London properties out of
the company's regional office in Moscow. "England is the fourth European
country where we manage a hotel and brings to 10 our total number of European
contracts. We are working with Harte on a number of other European
opportunities and look forward to growing our platform there."

The other hotels managed by Interstate for its joint venture with Harte
Holdings include the Sheraton Fraser Great Valley near Philadelphia; Sheraton
Mahwah, N.J.; Latham Hotel Georgetown, Washington, D.C.; and the Hilton
Lafayette, La. Including the three London hotels with 129 total rooms, the
seven properties aggregate 1,021 rooms.

About Harte Holdings

Harte Holdings is an Irish-based investment and development company which
owns a wide variety of real estate projects in the United Kingdom, Ireland,
mainland Europe and the U.S., with a portfolio consisting primarily of
hotels, residential, commercial and retail assets in these areas.

About Interstate Hotels & Resorts

Interstate Hotels & Resorts, Inc. and its affiliates manages and/or has
ownership interests in a total of 232 hospitality properties with more than
46,000 rooms in 37 states, the District of Columbia, Russia, India, Mexico,
Belgium, Canada, Ireland and England. The company has ownership interests in
56 of those properties, including six wholly owned assets. Interstate Hotels
& Resorts also has contracts to manage 13 to be built hospitality properties
with approximately 3,000 rooms which includes the company's entre into new
markets such as Costa Rica. 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.

    Contact:
    Carrie McIntyre
    SVP, Treasurer
    +1-703-387-3320

Carrie McIntyre, SVP, Treasurer, +1-703-387-3320