Interstate Hotels & Resorts boosts 2008 earnings forecast

ARLINGTON, Va.—Interstate Hotels & Resorts Inc., a hotel management company, lifted its full-year profit outlook Wednesday, but narrowed its revenue per available room growth forecast.

The company now anticipates 2008 earnings between $11.3 million and $13.3 million, or 35 cents to 41 cents per share. It previously forecast net income in a range of $9.8 million to $12.2 million, or 30 cents to 38 cents per share.

Adjusted earnings are expected between $10.5 million and $12.4 million, or 32 cents to 38 cents per share.

Analysts surveyed by Thomson Financial predict a profit of 32 cents per share. Estimates typically exclude one-time items.

Interstate now forecasts revenue per available room growth between 3 percent and 5 percent, slightly below its prior outlook for growth between 3 percent and 6 percent.

Revenue per available room, also known as revpar, is a key gauge of a hotel company's performance.