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Exhibit 99
REPORT OF INDEPENDENT ACCOUNTANTS
To the Stockholders and Board of Directors of Interstate Hotels Corporation:
We have audited the accompanying consolidated balance sheets of Interstate
Hotels Corporation (together with its subsidiaries and predecessors, the
"Company"), as described in Note 1 of the consolidated financial statements, as
of December 31, 1999 and 1998, and the related consolidated statements of
operations, stockholders' equity and cash flows for the year ended December 31,
1999, for the period from January 1, 1998 to June 1, 1998, for the period from
June 2, 1998 to December 31, 1998 and for the year ended December 31, 1997, in
conformity with accounting principles generally accepted in the United States.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
As discussed in Note 1, the Company was not a separate legal entity prior
to June 18, 1999. The accompanying consolidated financial statements have been
prepared for the purpose of complying with the rules and regulations of the
Securities and Exchange Commission and are not intended to be a complete
presentation of the consolidated financial statements of Interstate Hotels
Company or its affiliates.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position of
the Company as of December 31, 1999 and 1998, and the consolidated results of
its operations, stockholders' equity and cash flows for the year ended December
31, 1999, for the period from January 1, 1998 to June 1, 1998, for the period
from June 2, 1998 to December 31, 1998 and for the year ended December 31, 1997,
in conformity with accounting principles generally accepted in the United
States.
As discussed in Note 5, the Company adopted the provisions of Emerging
Issues Task Force Issue 97-14 effective September 30, 1998.
/s/ PRICEWATERHOUSECOOPERS LLP
600 Grant Street
Pittsburgh, Pennsylvania
February 16, 2000
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