1059341--3/17/2008--INTERSTATE_HOTELS_&_RESORTS

related topics

{loan, real, estate}

{investment, property, distribution}

{condition, economic, financial}

{acquisition, growth, future}

{cost, contract, operation}

{cost, regulation, environmental}

{personnel, key, retain}

We encounter industry-related and other risks related to our investments in and ownership of hotels and other real estate that could adversely impact its value to us. Changes in ownership of managed hotels could adversely affect the retention of our existing hotel management agreements. A high percentage of the hotels we manage are upscale hotels so we may be particularly susceptible to an economic downturn, which could have a material adverse effect on our results of operation and financial condition. If we are unable to identify additional appropriate real estate acquisition or development opportunities and to arrange the financing necessary to complete these acquisitions or developments, our continued growth could be impaired. The illiquidity of real estate investments and the lack of alternative uses of hotel properties could significantly limit our ability to respond to adverse changes in the performance of our properties and harm our financial condition. The insurance market has been adversely affected. Third-party hotel owners are not required to use the ancillary services we provide, which reduces the revenue we would otherwise receive from them. Costs of compliance with environmental laws could adversely affect operating results. Aspects of hotel, resort, conference center, and restaurant operations are subject to governmental regulation, and changes in regulations may have significant adverse effects on our business. If we fail to retain our executive officers and key personnel, our business could be harmed. A deficit in working capital may reduce funds available to us for expansion of our business.

Full 10-K form ▸

1059341--3/17/2008--INTERSTATE_HOTELS_&_RESORTS_INC