|ARLINGTON, Va., February 23, 2006-BridgeStreet Worldwide, a leading international provider of corporate housing to business and leisure travelers and a subsidiary of Interstate Hotels & Resorts (NYSE: IHR), today announced that the company has acquired Chicago-based Twelve Oaks Corporate Housing for an undisclosed amount. The acquisition includes the assumption of all leases related to Twelve Oaks' 14 furnished apartment complexes in and around the Chicagoland area, as well as the purchase of all of Twelve Oaks' furniture and equipment. The transaction adds approximately 300 furnished apartment units to BridgeStreet's local inventory, nearly doubling the company's presence in the Chicago market.
"Twelve Oaks is a pioneer in corporate housing in Chicago, providing outstanding product and service quality, and we plan to build on its well-deserved reputation," said Lee Curtis, president of BridgeStreet Worldwide. "Combined with our global marketing and proprietary operating systems, we foresee a number of synergies through this acquisition.
"First of all, this transaction allows us to expand and diversify our portfolio in this key market, which is an important business and leisure destination for us. Ensuring that our clients have options throughout downtown and the surrounding suburbs is important. The addition of the 14 Twelve Oaks locations makes it easier for our global accounts/clients to find exactly the area they are seeking for long-term accommodations. Additional floor plans and features mean greater choice in accommodations. We believe that adding Twelve Oaks to our inventory significantly enhances our product.
"Acquisitions represent an additional growth avenue for BridgeStreet, one which we intend to pursue selectively and opportunistically to ensure the consistent delivery of high product and service quality levels for which BridgeStreet is known," he added. "Our ultimate objective is to continue expanding our location options for our clients through our own product and through our Global Partners program."
"BridgeStreet and Twelve Oaks are an outstanding match," remarked Kevin Killoren, regional manager for BridgeStreet. "We look forward to combining the talented staff of Twelve Oaks and our four-time CAMME award-winning team into a single corporate housing powerhouse." Twelve Oaks staff will transfer over to BridgeStreet; Michael Sparks, Twelve Oaks' president, will leave the organization to pursue other interests.
BridgeStreet Worldwide is one of the world's largest corporate housing and serviced apartment providers. BridgeStreet and its network of Global Partners offer corporate apartments located in over 90 MSAs throughout the United States and internationally. BridgeStreet properties meet uncompromising standards of quality, comfort and service. For more information about the company and to learn more about how BridgeStreet Is Making Corporate Housing Easy, visit www.bridgestreet.com or call 1-800-BSTREET.
This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, about BridgeStreet, a wholly owned subsidiary of 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, 2004.