Lexington Hotel Undergoing Renovation

Renovation is Preparation for Conversion to a Hilton Brand

. January 29, 2009

LEXINGTON, KY, January 29, 2009 - Lexington Downtown Hotel & Conference Center, a Hilton Affiliate Hotel, announced today that it will undergo an anticipated $13 million renovation to update and modernize its 367 guestrooms and public spaces in preparation for its conversion to a Hilton brand hotel. The extensive revamping of the hotel is scheduled to begin this spring and is expected to be completed by the end of 2009. Lexington Downtown Hotel & Conference Center (the former Radisson Plaza Hotel Lexington) will remain open during its renovation.

As a Hilton Affiliate Hotel, guests staying at Lexington Downtown Hotel & Conference Center will now experience enhanced service and comfort. Additionally, hotel guests have the opportunity to participate in the Hilton Honors guest reward program, allowing guests to earn hotel points and airline miles for the same stay at more than 2,700 hotels worldwide.

Influenced by Kentucky's scenic landscape and equestrian heritage, the design concept for the hotel's public spaces, guestrooms, restaurant, grand ballroom and meeting rooms incorporates regional motifs. Developed by Atlanta firm Design Continuum, Inc., the updated interiors will feature a vibrant color palette inspired by regional country scenery. Rich shades of red, green, blue and gold will be found throughout the 22-story hotel's interior as a modern take on traditional Kentucky design.

A joint venture between Madison W Properties and Interstate Hotels & Resorts (NYSE: IHR), the hotel is connected via a skywalk to Lexington Center, central Kentucky's premiere sports and entertainment complex that includes Rupp Arena, Lexington Convention Center and The Shops at Lexington Square.

"Lexington Downtown Hotel & Conference Center is one of the most significant hotels in the city," said Peter C. Lewis, president and chief investment officer of Madison W Properties. "The renovation will ensure that the hotel remains the leading destination for discerning leisure, business and convention travelers and continues to be a popular venue for meetings, social events and weddings. Guests will truly enjoy an enhanced experience that will exceed their expectations for style and comfort."

"The upcoming renovation of the Lexington Downtown Hotel & Convention Center could not be better timed," said Lexington Convention and Visitors Bureau President David Lord. "The city's downtown is in the midst of a major rebirth and renewing the hotel will play a vital role in this process. The remodeling of one of Lexington's prominent hotels will help make the city much more competitive for regional and small national meetings and conventions."

The Lobby

From the moment guests enter the hotel, they will experience an elegant Kentucky theme that reflects the commonwealth's history and culture. The lobby will feature new registration desks made out of handsome mahogany wood that include brushed nickel accents and polished white quartz countertops. Two large wall treatments made out of woven cherry wood will be installed that will add visual interest to the space.

"We are working on commissioning local artists for the most visible areas of the lobby," added Lewis. "We are finalizing plans to install a dramatic fountain, similar to the one in Triangle Park, as we want to create a clear association with the surrounding area. Above the fountain we are contemplating a 40-foot high sculpture that would be a collage of running wild horses."

Guestrooms

The hotel's guest accommodations will be updated with a sophisticated new look that will include designer selected linens and window treatments, furniture and furnishings, wall coverings and carpeting and enhanced bathrooms. Continuing the Kentucky theme into the guestrooms, white headboards have been chosen that are reminiscent of picket fences found throughout the commonwealth. Calming greens and blues will be used throughout the rooms to provide each guest with a more enjoyable and relaxing experience. Large flat panel LCD televisions will be installed to modernize each guestroom.

The guest bathrooms have been designed to be urbane and bright and will showcase a crisp clean d'ecor. Classic furniture-style vanities with a golden wood tone and blue-green granite countertops will be the focal point of the new bathrooms. The selected wall coverings feature a simple scroll pattern that has a tranquil metallic quality. Neutral colored stone-like porcelain tiles have been selected for the flooring and showers and a mixture of brushed and polished chrome fixtures will be used throughout each bathroom.

Each guestroom is expected to be furnished with the Hilton Serenity Collection(R) of amenities, which includes the Pacific Coast(R) down duvet, Super Topper mattress pads and top-quality linens and pillows. Anticipated standard amenities include the Hilton Serenity Bath Collection, featuring the exclusive Crabtree and Evelyn line of La Source(R) bath products; a Cuisinart(R) dual-cup, single brew coffeemaker and Lavazza(R) coffee; the easy-to-set Hilton Family alarm clock with MP3 player connectivity and high-speed Internet wireless access.

Suites

The hotel's four suites are scheduled to be expanded and redesigned into three distinct living areas to provide formality and elegance to each space. A luxurious color palette of gold, red and teal has been selected and will be integrated into the fabrics, furnishings and carpeting used in the spacious suites. Furniture including plush sofas, arm chairs and chaise lounges and large dining room tables, end tables and executive desks made out of mahogany will complement the rich color scheme. The suites' master bathrooms are designed as an extension of the bedrooms and will feature glass mosaic wall tiles, a water closet and walk-in shower. Each suite will also include an additional 1/2 bath, two flat panel LCD televisions and upgraded wood tiles in the foyer.

Caf'e on the Park

Caf'e on the Park, located on the main floor of the hotel offering exceptional American cuisine and fine wines, will undergo a comprehensive renovation as well that will feature a bright color palette, relocated main entrance and new furniture and furnishings. Showcasing spectacular views of Triangle Park's illuminated fountains through floor-to-ceiling windows, the upscale yet informal restaurant will be a contemporary twist on the hotel's Kentucky theme. Floral patterns on fabrics and carpeting, wood beams at raised soffits and sky blue accent colors will intermix to create a park-like ambience.

Grand Ballroom and Meeting Rooms

Lexington Downtown Hotel & Conference Center is the preeminent venue for business meetings, conventions, conferences and special events for groups ranging from 10 to 1,000 guests. Featuring more than 16,000 square feet of event space, the hotel's Grand Ballroom and numerous meeting rooms will be refurbished and modernized. Custom-made chandeliers and wall sconces and traditional wall covering will be installed in the 6,850-square foot Grand Ballroom.

Lexington Downtown Hotel & Conference Center is a 22-story hotel featuring 367 guestrooms centrally located in the heart of Lexington's financial district. The 290,362-square foot hotel includes more than 16,000 square feet of diverse meeting and event space, the Caf'e on the Park restaurant, fitness center, indoor swimming pool and spa and business center. Lexington Downtown Hotel & Conference Center is just steps from renowned Lexington Center, central Kentucky's premiere sports and entertainment complex that includes Rupp Arena, Lexington Convention Center and The Shops at Lexington Square. Located at 369 West Vine St., Lexington, KY 40507, the hotel will undergo an extensive renovation in 2009 to enhance nearly every aspect of the property. Lexington Downtown Hotel & Conference Center is operated by Interstate Hotels & Resorts, the nation's largest independent hotel management company. For more information about Interstate Hotels & Resorts, visit the company's website: www.ihrco.com. To make a reservation contact Hilton Reservations Worldwide at 1.800.445.8667 or at hilton.com.

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