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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                             Current Report Pursuant
                          to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



Date of Report (Date of earliest event reported)   OCTOBER 13, 2000
                                                 -------------------------------

                          INTERSTATE HOTELS CORPORATION
- --------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


                                    MARYLAND
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                 (State or Other Jurisdiction of Incorporation)


                  0-26805                         75-2767215
       ------------------------     ------------------------------------
       (Commission File Number)     (I.R.S. Employer Identification No.)


      FOSTER PLAZA TEN, 680 ANDERSEN DRIVE, PITTSBURGH, PENNSYLVANIA 15220
- --------------------------------------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)


                                 (412) 937-0600
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              (Registrant's Telephone Number, Including Area Code)

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ITEM 5.           OTHER EVENTS.

                  Attached as an exhibit hereto is a copy of a press release
issued by Interstate Hotels Corporation on October 13, 2000 reiterating the
Interstate Board's rejection of the Shaner Proposal and support of the Lehman
group investment. All exhibits are incorporated herein by reference.

ITEM 7.           FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
                  INFORMATION AND EXHIBITS.

         (c)      Exhibits.

                  The following exhibits are filed herewith:

                  99.1     Press Release dated October 13, 2000.





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                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.



                                   INTERSTATE HOTELS CORPORATION


                                   By: /s/ J. William Richardson
                                       -----------------------------------------
                                       J. William Richardson
                                       Vice Chairman and Chief Financial Officer


Date: October 13, 2000



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                                  EXHIBIT INDEX

         Exhibit
         Number                    Description
         ------                    -----------

         99.1                      Press Release dated October 13, 2000