exhibit 99. 1 interstate hotels & resorts acquires hilton hotel in arlington, texas accelerates existing blackstone termination fees arlington, va., october 19, 2006 — interstate hotels & resorts ( nyse : ihr ), the nation ’ s largest independent hotel management company, today announced that it has acquired the 308 - room hilton hotel in arlington, texas from alcor holdings, llc, an affiliate of the blackstone group ( blackstone ) for $ 36. 3 million, or $ 118, 000 per key. it is the company ’ s fourth wholly owned hotel acquisition since early 2005. following completion of the acquisition, interstate plans to invest $ 2. 3 million of renovation capital over the next one to two years at the property, which will include the refurbishment of two - and - a - half guestroom floors not completed during a recent renovation program by prior ownership. in conjunction with the acquisition, interstate closed on a $ 24. 7 million, non - recourse mortgage loan with ubs real estate securities, inc. the variable rate loan has an interest rate of libor plus 135 basis points and has an initial term of three years, with two, one - year extensions. in connection with interstate ’ s acquisition of this hotel, blackstone agreed to accelerate, on a present value basis, the remaining $ 14. 5 million payment of termination fees for hotels where blackstone terminated its management agreement with interstate on or before october 1, 2006. these termination fees will be recorded in the third quarter of 2006. of the total $ 14. 5 million, $ 1. 8 million had been included in the company ’ s previously issued guidance for full - year 2006 and was projected to be recorded in the fourth quarter. the remaining $ 12. 7 million was projected to be recorded in 2007 and beyond. interstate continues to manage 39 hotels for blackstone. “ this is a very unique transaction that allows us to acquire a great property that we currently manage at a very competitive price, using management termination fees as currency, ” said thomas hewitt, chief executive officer of interstate hotels & resorts. “ the property is a high - quality, full - service hotel in very good physical condition in a high - growth area of dallas with minimal new supply anticipated for at least the next three years. the hotel has experienced double - digit revpar growth over the last two years. although it will be difficult to continue that trend, we do expect solid revpar growth to continue, especially considering the new