Interstate Hotels & Resorts Selected to Manage The Yorktowne Hotel in Pennsylvania

"This is an upscale boutique property in a historic area, near Gettysburg, Hershey and Amish country, that has great regional appeal and draws from a number of nearby urban areas, including Baltimore, Harrisburg and Philadelphia," said Steve Jorns, chief executive officer of Interstate. "As a Historic Hotel of America, it has special appeal for those looking for a unique lodging experience that combines the best of the old and the new. As one of eight hotels we manage in Eastern Pennsylvania, we will be able to take advantage of operating synergies and economies of scale. We expect to build on this elegant property's reputation as one of the region's finest."

Located at 48 East Market Street, The Yorktowne Hotel is situated in the historic section of downtown York, near the recently renovated Strand Capital Performing Arts Center. Steeped in Revolutionary War history, York's numerous historical local attractions appeal to a broad cross-section of visitors. Approximately 1.5 miles west of Interstate 83, York also is home to a number of major companies, including Susquehanna Pfaltzgraff, The Wolf Organization, Wellspan Health, Harley Davidson Motor Company, York International, and Dentsply International.

Built in 1925, the 11-story Renaissance Revival-style hotel combines old-world charm with all the modern conveniences of a first-class hotel. The hotel features 20-foot-high ceilings, ornate brass and crystal chandeliers, wood-paneled rooms and wall-sized mirrors. The 122 oversized guest rooms, including 27 suites, are tastefully appointed with period furnishings, floral prints and tile baths. All rooms include in-room coffee pot, hair dryer, complimentary snack tray and a morning newspaper.

Among the numerous hotel amenities are 10,000 square feet of meeting space, two restaurants (including the only four-diamond restaurant in York County) and a parking garage. Additional services include a professional fitness center, a business center, late night sandwich menu, van service and free valet parking.

"Interstate's successful track record with upscale boutique hotels and high-end restaurants made them a compelling choice as manager," said John Finlayson, vice president, finance & administration for Susquehanna Pfaltzgraff Co. "We believe that Interstate's expertise in management and marketing will not only benefit our hotel, but tourism for the city, as well."

Interstate Hotels & Resorts operates more than 300 hospitality properties with nearly 70,000 rooms in 40 states, the District of Columbia, Canada, Russia, and Portugal. BridgeStreet Corporate Housing Worldwide, an Interstate Hotels & Resorts' subsidiary, is one of the world's largest corporate housing providers. BridgeStreet and its network of Global Partners offer more than 8,700 corporate apartments located in 91 MSAs throughout the United States and internationally. For more information about Interstate Hotels & Resorts, visit the company's Web site: .

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 changes in the national economy, economic conditions generally and the real estate market specifically, the threat of future terrorist attacks, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, 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, 2003.