Interstate Hotels & Resorts (IHR) 8-K Regulation FD Disclosure

Exhibit 99.2

Interstate Hotels & Resorts, Inc.
Reconciliations of Non-GAAP Financial Measures
(Unaudited, in thousands except per share amounts)

	2004			2005			2006
	(actual)			(actual)			(forecast)
Net income (loss)	$	(5,663	)	$	12,877		$	11,800
Adjustments:
Depreciation and amortization		9,199			9,141			10,300
Interest expense, net		7,600			9,283			7,800
Discontinued operations, net		252			1,417			—
Income tax expense (benefit)		(994	)		7,327			8,200
EBITDA		10,394			40,045			38,100
Restructuring charges		4,741			2,043			—
Asset impairments and other write-offs		11,807			5,583			8,600
Gain on sale of investments and extinguishment of debt		—			(7,203	)		—
Equity in (earnings) losses of affiliates		1,056			(3,492	)		1,100
Minority interest expense (benefit)		(45	)		173			200
Other		(55	)		—			—
Adjusted EBITDA	$	27,898		$	37,149		$	48,000

	2004			2005			2006
	(actual)			(actual)			(forecast)
Net income (loss)	$	(5,663	)	$	12,877		$	11,800
Adjustments:
Restructuring charges		4,741			2,043			—
Asset impairments and other write-offs		11,807			5,583			8,600
Gain on sale of investments and extinguishment of debt		—			(7,203	)		—
Deferred financing costs write-off		—			1,847			—
Equity interest in the gain on sale of Hilton San Diego		—			(4,202	)		—
Equity interest in the loss on sale of Wyndham Milwaukee		—			395			—
Equity in the write-off of deferred financing costs		—			295			—
Equity interest in the gain on sale of Residence Inn Houston					(1,107	)		—
Other		(55	)		—			—
Minority interest		(149	)		39			—
Income tax rate adjustment		(1,360	)		3,265			(3,500	)
Adjusted net income	$	9,321		$	13,832		$	16,900
Adjusted diluted earnings per share	$	0.30		$	0.45		$	0.54

Note:

These amounts reconcile the Non-GAAP Financial measures summarized in the Financial Highlights section of the investor package. For a full disclosure on the use of Non-GAAP Financial measures please see the fourth quarter earnings release furnished to the SEC on February 22, 2006 and first-quarter earnings release furnished to the SEC on May 3, 2006.