Interstate to Manage New Hotels

ARLINGTON, Va.—July 24, 2003—Interstate Hotels & Resorts (NYSE: IHR), the nation`s largest independent hotel management company, today announced that it had been selected by two developers to manage hotel properties in New York and Connecticut.
Chelsea Grand, LLC, a New York City real estate developer, named Interstate to manage its new Four Points by Sheraton, currently under construction in the Chelsea section of Manhattan, and PRA Development and Management Corp. selected Interstate as manager of a new, 150-room Hilton Garden Inn in Glastonbury, Conn., currently under construction and scheduled to open in September 2003.
Located in Manhattan on 25th Street between 6th and 7th Avenues, the full-service, 18-story Four Points by Sheraton will feature 158 guest rooms, including two suites, and a wide range of amenities and services at an affordable price, including an on-site restaurant, business services center, swimming pool, fitness center, room service and 400 square feet of meeting space.
“Chelsea is an attractive Midtown neighborhood that is surrounded by a variety of strong demand generators,” said John Emery, president and chief operating officer of Interstate. “The new Four Points by Sheraton—the first in Manhattan—meets a growing demand for quality, full-service hotels in New York City at a mid-scale price. The brand enjoys high guest satisfaction and growing name recognition. As a Starwood brand, guests also are entitled to all the benefits of the Starwood Preferred Guest program.”
Emery noted that Interstate has a long history with this ownership group. “We manage hotels for them in New York City and Philadelphia, and we look forward to expanding on that relationship,” he added. “We also have strong ties with Sheraton as manager of 22 other Sheraton hotels.”
“Based on our five-plus year relationship with Interstate and their proven track record and experience with Sheraton, we believe they are most qualified to successfully operate this property,” said John Lam, principal, Chelsea Grand, LLC. “Interstate brings marketing expertise and operating systems that will help us stabilize the property quickly and build a solid guest base.”
“Business and leisure travelers alike will be drawn to this property,” said Hung Luk, principal. “Business travelers recently named Four Points the `top mid-price with food and beverage` brand in Business Travel News` annual Top U.S. Hotel Chain Survey. Leisure travelers will love the neighborhood with its abundance of theaters, art galleries, museums, excellent restaurants and outstanding shopping.”
The Four Points by Sheraton Manhattan is located at 160 West 25th Street, New York, N.Y., (212) 627-1888, and is expected to open in October 2003. For reservations, call (888) 625-5144 or visit the hotel`s Web site: www.fourpoints.com.
Chelsea Grand, LLC is one of many hotel projects developed by the investment group headed by John Lam and Hung Luk. The group, known as the Majestic Group, is based out of New York City. In the past five years, the group has developed more than 10 hotels, primarily in New York. The Majestic Group has four additional sites ready for development starting in the latter part of the year.
The six-story, 150-room Hilton Garden Inn-Glastonbury, Conn., currently under construction, is being developed by Joseph Pacitti and PRA Development, a Philadelphia-based real estate development, construction and project management organization. The hotel is part of Somerset Square, a premier mixed-use development in greater Hartford that comprises six office buildings, two retail complexes with upscale retailers and several restaurants. Located in Glastonbury, Conn., a suburb of Hartford, the project is near the confluence of Routes 2 and 3, with easy access to major interstates (I-91 and I-84) and downtown Hartford.
Guest room amenities include an oversized work desk, two-line telephones, high-speed Internet access, microwave, refrigerator and coffee maker, swimming pool, whirlpool, fitness center, 24-hour business center and 24-hour convenience store. The hotel also features 3,400 square feet of meeting space.
“The Hartford area is a fast-growing market, which has experienced strong demand for lodging in good times and bad,” Emery said. “This is our first contract with PRA, which has developed more than $250 million of commercial real estate, and we look forward to building a mutually beneficial relationship.”
“As a hotel operator, IHR offers a number of advantages, including its in-depth experience marketing and managing select-service hotels,” said Joseph Pacitti, PRA president. “We`re confident that these advantages, along with all the operating and purchasing benefits of their size, will enable IHR to take this property quickly to a leadership position in Hartford.”
PRA Development and Management Corporation is a fully integrated real estate development, construction and project management organization headed by Pacitti, a 40-year real estate development veteran.
Interstate Hotels & Resorts operates more than 340 hospitality properties with nearly 76,000 rooms in 44 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.
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