Four-Star Condo Hotel Project Has Begun Pre-Construction Sales Process

ARLINGTON, Va., Jan. 26 /PRNewswire-FirstCall/ -- Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation's largest independent management company, today announced that it has entered into a long-term contract to manage a to-be-developed, world-class luxury condo hotel resort and beach club in Manuel Antonio, Costa Rica. The project by Space Source Inc., owner and developer, is called Jade Condo Hotel Residences and Beach Club and will consist of 190 condo hotel residences coupled with 50 villas for sale. Construction is expected to begin this spring with a projected 2010 opening. The project will be managed by Interstate's Latin American affiliate, IHR de Mexico, and marks the company's entree into the vibrant Costa Rican market.

'The expansion of our international portfolio continues to be an important priority for us,' said Thomas F. Hewitt, Interstate's chief executive officer. 'With the formation of our Mexico-based management platform, we established a solid foundation for expanding our presence in Mexico and Latin America, regions where we see significant opportunities for growth. Space Source is a dynamic and innovative owner/developer, and we look forward to building on our relationship with them.'

'Costa Rica is ranked as one of the top five tourist destinations in the world, and the eco-friendly area of Manuel Antonio offers an incredible setting for this project,' said Leslie Ng, Interstate's chief investment officer. 'The property is adjacent to a botanical garden and wildlife refuge, a mile away from the world-renowned Manuel Antonio National Park, and is surrounded by abundant wildlife and tropical rain forests. The town of Manuel Antonio offers quality dining and entertainment venues, and the area with all its natural assets appeals to families, couples and eco-tourists.'

The $70 million resort project is being developed by Space Source Inc. of Grand Rapids, Mich. Interstate also operates the Crowne Plaza Charlotte, N.C. for Space Source. 'Interstate was a compelling choice for a number of reasons,' said Ken Long, Space Source vice president of acquisitions.