Interstate Hotels & Resorts Forms Strategic Alliance with International Hotel Investments Ltd (IHI Ltd)

Relationship to Establish Platform for Expansion in Europe

ARLINGTON, Virginia, April 21, 2010 - Interstate Hotels & Resorts, the United States' largest independent hotel
management company, today announced that it has formed a strategic alliance
with IHI Ltd, an affiliate of Harte Holdings, to operate and selectively
invest in hotels in Europe. Interstate already manages six hotels for
affiliates of Harte Holdings in the U.S. and Europe, four of which are owned
by a joint venture between the two organizations. The new alliance will
expand Interstate's third-party hotel management platform throughout the EU.

"We have been a pioneer in third-party hotel management in Europe, and
with 12 hotels under contract there, we have the size and scale to support
additional expansion," said Thomas F. Hewitt, chairman and chief executive
officer. "In the near future, we intend to open a European office to oversee
our growing European portfolio, which will be similar in scope and
responsibility to our international offices in Moscow, Mexico, and most
recently, India."

Hewitt noted that the strength of Interstate's international management
platform comes from its reliance on local partners with strong ties to the
region. "IHI Ltd is a highly regarded European company, with considerable
experience in the industry. With their strong local relationships, cultural
expertise and depth of industry knowledge, they will identify suitable
assets, source capital, structure transactions and asset manage. Our emphasis
will be on third-party management opportunities, and, when appropriate, we
may co-invest with owners and developers. We already are working on several
possible development projects sourced by IHI Ltd that Interstate will
manage."

In December 2009, the Argyll Hotel Group, an affiliate of Harte Holdings,
selected Interstate to manage two upscale boutique hotels in downtown London,
increasing the number of its Interstate-managed properties to six. "Our
relationship with Interstate has proven mutually rewarding over the years,
and we know them to be a strong and capable operator," said Donal Kelleher,
director of IHI Ltd. "This alliance underscores our confidence in their
ability to continue to successfully adapt their proven management practices
to international markets."

"We believe this alliance significantly enhances our ability to source
additional new contracts and/or development and acquisition opportunities
throughout Europe," said Leslie Ng, Interstate's chief investment officer.
"In addition to our self-generated pipeline, we see significant management
opportunities arising as top-quality brands like Marriott, Starwood, Hilton
and IHG, with whom we have had long and positive relationships, continue to
announce plans to step up the pace of their international expansion."

About IHI Ltd

IHI Ltd is a European-based hotel asset management company which is
connected with a wide variety of real estate projects across mainland Europe
and the U.S., consisting primarily of hotels, residential, commercial and
retail assets in these areas. The board of IHI Ltd has significant experience
in this area.

About Interstate Hotels & Resorts, Inc.

Interstate Hotels & Resorts, Inc, a wholly owned subsidiary of a 50/50
joint venture between subsidiaries of Thayer Lodging and Jin Jiang, is the
United States' largest independent hotel management company based on revenue
managed. Interstate has operated hotels in Europe for over a decade and is
committed to additional expansion throughout the European Union. In 2008,
Interstate established a hotel management platform in India and recently
announced the establishment of a joint venture to create a platform to
pioneer third party hotel management in China. The company and its affiliates
manage and/or have ownership interests in a over 225 properties with nearly
46,000 rooms in the United States, Russia, India, Mexico, Belgium, Canada,
Ireland and England. The company has ownership interests in 56 of those
properties, including six wholly owned assets. For more information about
Interstate Hotels & Resorts, visit the company's Web site:
www.ihrco.com

    Contact:
    Jerry Daly, Carol McCune         Carrie McIntyre
    Media                            SVP, Treasurer
    Daly Gray                        Interstate Hotels & Resorts
    +1-703-435-6293                  +1-703-387-3320
    jerry@dalygray.com               carrie.mcintyre@ihrco.com

Media: Jerry Daly, jerry at dalygray.com or Carol McCune, +1-703-435-6293, both of Daly Gray, or Carrie McIntyre, SVP, Treasurer of Interstate Hotels & Resorts, +1-703-387-3320, carrie.mcintyre at ihrco.com