Interstate Hotels & Resorts Signs Agreement to Manage Bourbon Orleans in New Orleans

Interstate Hotels & Resorts Signs Agreement to Manage Bourbon Orleans in New
Orleans

ARLINGTON, Va., Jan. 22 /PRNewswire-FirstCall/ -- 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 historic Bourbon
Orleans hotel, in the heart of New Orleans' French Quarter. It is the third
hotel Interstate manages in the Crescent City, all owned by a local group of
hotel developers. Interstate is in discussions with the same group of
investors regarding management of a fourth hotel expected to open this fall.
Located at 717 Orleans at the corner of Bourbon Street, the 218-room
Bourbon Orleans is situated directly behind the landmark St. Louis Cathedral,
offering easy access to the city's most celebrated attractions, including
Royal Street and its upscale shopping, the always entertaining Jackson Square,
the Cafe du Monde and the diversions and nightlife of Bourbon Street. Built
in 1817 and opened as the opulent New Orleans Ballroom, the property catered
to the city's love of dancing and balls, and was adjacent to the Orleans
Theater, where French Opera was established in America. The facility was
purchased in 1881 by the Sisters of the Holy Family and served as a school for
more than 80 years. In 1964, the property was sold to hotel interests. The
Bourbon Orleans of today combines the elegance of a European boutique hotel
with the modern amenities demanded by today's guests.
"The Bourbon Orleans is a New Orleans treasure and a favorite with
visitors seeking a connection to the city's rich history and Southern charm,"
said Thomas F. Hewitt, Interstate's chief executive officer. "This unique,
historic hotel is a strong contributor to this market as the city continues to
recover and return to pre-Katrina levels.
"We are delighted to add a third locally owned New Orleans hotel to our
portfolio and build on our previous relationship with this group of owners,"
he added. "We consider the offer of additional hotels from our current owners
as a major compliment, and we look forward to delivering the same superior
level of service we have provided in the past."
"Interstate has delivered outstanding results for us to date, and we look
forward to expanding our relationship with them through the Bourbon," said
Joseph A. Jaeger, Jr., managing member of St. Ann Lodging, LLC. "Their
expertise with historic hotels and urban destination markets, together with
their proprietary operating systems and marketing expertise, makes them a
strong choice as manager. We believe the property will generate strong
returns and be a significant player in the city's comeback."
Each of the Bourbon Orleans' spacious guestrooms exhibits its own charm
and grace, with features like Chippendale and Queen Anne furnishings, pillow
top mattresses and private balconies with views of the hotel gardens, the
French Quarter or the city, combined with such modern amenities as large work
desks and ergonomic chairs, high-speed Internet access, mini bars and room
safes.
The hotel features 6,000 square feet of flexible event space, anchored by
the elegant, 2,700 square-foot Orleans Ballroom, which can accommodate groups
of up to 350. The hotel also offers some of the French Quarter's most notable
cuisine at its three restaurants: Paillard's, the hotel's new Southern fusion
restaurant; Vieux Dieux Brew, a smaller, more intimate venue in the hotel's
lobby; and Napoleon's Itch, an after-hours lounge that is quickly becoming the
hottest addition to the dynamic nightlife of the French Quarter.
About St. Ann Lodging, LLC
The principals of St. Ann Lodging, LLC, Joseph A. Jaeger, Jr. and Paul H.
Flower are native New Orleanians committed to the recovery of New Orleans and
the further strengthening of the New Orleans hospitality industry. The
members of St. Ann Lodging own a total of seven hotels in the New Orleans
market.
About Interstate
As of December 31, 2007, Interstate Hotels & Resorts owned seven hotels
and had a minority ownership interest through separate joint ventures in 22
hotels and resorts. Together with these properties, the company and its
affiliates manage a total of 192 hospitality properties with nearly 43,000
rooms in 36 states, the District of Columbia, Belgium, Canada, Ireland, Mexico
and Russia. Interstate Hotels & Resorts also has contracts to manage 16
hospitality properties with approximately 4,500 rooms currently under
construction. 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, 2006.
Contact:
Carrie McIntyre
SVP, Treasurer
(703) 387-3320

SOURCE Interstate Hotels & Resorts

Carrie McIntyre, SVP, Treasurer, +1-703-387-3320, for Interstate Hotels &
Resorts