ARLINGTON, Va., April 29 /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 its joint venture management company, JHM Interstate Hotels
India, has signed a contract to manage its first property in India. The 50-50
joint venture was formed between Interstate and JHM Hotels, one of the largest
independent developers and owners of hotels in the U.S., to operate and
selectively invest in hotels in India. The joint venture was announced in late
February 2008.
The venture's first executed contract is for a 124-room, under
construction hotel located in Vizag (Visakhapatnam), India, a coastal city in
the state of Andhra Pradesh on India's eastern shore. Interstate is in the
process of securing a major U.S. brand for the hotel and expects to announce
an affiliation shortly. The hotel, owned by Vishnupriya Hotels Resorts Private
Limited, broke ground in July 2007 and is expected to open in the fourth
quarter of 2008.
"This contract marks our official entry into India's fast-growing lodging
market and establishes JHM Interstate Hotels India as one of the first
independent, international hotel management companies to be located there,"
said Thomas F. Hewitt, chief executive officer of Interstate. "This five-star,
business-class hotel is typical of the properties the partnership seeks. It is
situated in an upscale neighborhood of Vizag, which has the largest port in
India. It is strategically located between Kolkata and Chennai and is one of
the fastest growing cities in the world, according to a recent United Nations
study. We look forward to expanding our relationship with Vishnupriya Hotels
Resorts, which is exploring additional hotel opportunities."
"We sourced the hotel through our strategic partner, JNB Hotels and
Resorts Private Limited, a subsidiary of JNB LLC, a U.S.-based real estate
investment group with strong ties to India. JNB has developed a robust
pipeline of hotel management opportunities throughout the country for us,"
said Leslie Ng, Interstate chief investment officer. "The joint venture also
is actively sourcing other management opportunities throughout key markets in
India."
Located at 10-28-3, Uplands, Waltair Main Road, Visakhapatnam, India, the
upscale, full-service hotel is nestled among the hills of the Eastern Ghats
and faces the Bay of Bengal to the east. The property features panoramic ocean
and city views and includes three restaurants, a spa/gym and two presidential
suites. The hotel is being designed by D.M. Upasni, a prominent India based
architect specializing in the hospitality industry with significant experience
throughout the world. His unique approach to the Vizag project combines an
architecturally distinctive design and the natural beauty of the site in a
property destined to become a new landmark in Vizag.
About JHM Interstate Hotels India
JHM Interstate Hotels India is a joint venture partnership between JHM
Hotels and Interstate Hotels & Resorts, Inc, formed to operate and invest in
hotels in India.
JHM Hotels, a premier lodging company based in Greenville S.C., with
offices in Mumbai and Surat, India, has developed, acquired, owned and
operated hotels throughout the United States for more than 34 years. The
company currently owns and operates 30 U.S. hotels with more than 5,000
guestrooms and has over 1,500 additional rooms under development/construction,
operating under such well-known brands as Marriott, Hilton, Starwood and
Hyatt. For more information about JHM Hotels, visit the company's Web site:
www.jhmhotels.com.
As of March 31, 2008, Interstate Hotels & Resorts has ownership interests
in 54 hotels and resorts, including seven wholly owned assets. Together with
these properties, the company and its affiliates manage a total of 217
hospitality properties with approximately 45,000 rooms in 36 states, the
District of Columbia, Russia, Mexico, Belgium, Canada and Ireland. Interstate
Hotels & Resorts also has contracts to manage 17 to be built hospitality
properties with approximately 4,000 rooms. 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, 2007.
Contact:
Carrie McIntyre
SVP, Treasurer
(703) 387-3320
SOURCE Interstate Hotels & Resorts