Second Management Contract with Owner, Pinnacle Hotels SAN CLEMENTE, Calif., Aug. 3 /PRNewswire/ -- Sunstone Hospitality Management (SHM), a division of the nation's largest independent management company, Interstate Hotels & Resorts (NYSE:IHR), today announced that it has entered into a contract to manage the 149-room, full-service Doubletree Hotel Austin-University Area in the state's capital city. The hotel is owned by San Diego-based Pinnacle Hotels USA. It is the second property SHM will manage for Pinnacle. The six-story hotel recently completed a multi-million renovation that touched nearly every aspect of the property, including upgrades to all guestrooms, public spaces and meeting space. "The hotel is in excellent physical condition and in a great location, directly across the street from the University of Texas campus and the Frank Erwin Center, the premier Austin venue for public and private events," said John Elston, SHM's executive vice president. "It also is convenient to the city's top attractions, key landmarks, shopping and major employers. Austin is the nation's second fastest growing metro area, and we believe this well-situated, amenity-rich property will appeal to growing numbers of both business and leisure travelers." "This is our second property with Pinnacle, for whom we also manage the Riverside Marriott in California, and we believe this contract underscores their confidence in our ability to deliver solid results in challenging economic times." "SHM is a proven commodity with us, a major advantage in today's uncertain market," said Dr. Barry Lall, president of Pinnacle Hotels USA. "In addition to their experience managing in a variety of economic climates, they have all the tools and the resources for this full-service, well-located property to reach its maximum operating potential." Located at 1617 IH-35 North, the full-service property features 149 newly renovated guestrooms, complimentary high-speed Internet access throughout the hotel, a bar and grill, 24-hour newly renovated fitness center with Precor equipment, outdoor swimming pool, 4,500 square feet of newly renovated meeting space, including two boardrooms; and full-service in-house A/V and business center services. Guestrooms feature Doubletree's signature Sweet Dreams bedding, 37-inch flat-screen TVs, spacious work desk and ergonomic chair, and two phones with data ports and voicemail and wireless high-speed Internet service. About Pinnacle Hotels USA Founded in 1998, Pinnacle Hotels USA develops, acquires and owns a diversified portfolio of hotels in the premium-branded, upscale full-service and select-service segments. In addition to the Doubletree Austin-University Area, the company's properties are under such well-regarded brands as Marriott, Hilton Garden Inn, Courtyard by Marriott, LaQuinta and Days Inn. Additional information about the company may be found at http://www.pinnaclehotelsusa.com/. About Interstate Hotels & Resorts Interstate Hotels & Resorts has ownership interests in 56 hotels and resorts, including seven wholly owned assets. Together with these properties, the company and its affiliates manage a total of 224 hospitality properties with nearly 46,000 rooms in 37 states, the District of Columbia, Russia, Mexico, Belgium, Canada and Ireland. Interstate Hotels & Resorts also has contracts to manage 13 to be built hospitality properties with approximately 3,250 rooms. For more information about Interstate Hotels & Resorts, visit the company's Web site: http://www.ihrco.com/. About SHM Sunstone Hospitality Management (SHM) is based in San Clemente, Calif. The company operates 27 hotels, 12 of which are located in California. SHM operates 8 Hilton family of brands properties, aggregating more than 2,454 rooms. Additional information about SHM may be found at http://www.shmhotels.com/. For information about the Doubletree Hotel Austin-University Area or to make reservations please call 512.479.4000 or visit http://www.austindoubletreehotel.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, 2008. DATASOURCE: Sunstone Hospitality Management CONTACT: Mikii Rathmann of Sunstone Hospitality Management, +1-949-369-4233, Web Site: http://www.shmhotels.com/

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