Interstate Hotels & Resorts (NYSE: IHR), the nation`s largest independent hotel management company, today announced that its board of directors has authorized the repurchase of up to $5 million of its shares, representing approximately 6 percent of outstanding common shares and equivalents based on the current stock price. Purchases would be made from time to time in the open market or privately negotiated transactions.
“The company believes its shares are attractively priced at current levels, trading at approximately five times 2003 projected EBITDA,” said John Emery, president and chief operating officer. “The stock repurchase program, which will be accretive to earnings per share, reflects management`s confidence in the company`s long-term prospects.” Emery added that the program will be funded primarily from free cash flow.
Interstate Hotels & Resorts operates more than 400 hospitality properties with approximately 86,000 rooms in 45 states, the District of Columbia, Canada and Russia, including 55 properties managed by Flagstone Hospitality Management, a subsidiary of Interstate Hotels & Resorts. BridgeStreet Corporate Housing Worldwide, an Interstate Hotels & Resorts subsidiary, is one of the world`s largest corporate housing providers, offering upscale, fully furnished corporate housing throughout the United States, Canada, the United Kingdom, France and 39 additional countries through its network partners.
For more information about Interstate Hotels & Resorts, visit the company`s Web site: www.ihrco.com.