"There were primarily two reasons for the move," Daly Gray's Jerry Daly tells GlobeSt.com. Daly Gray is Interstate's public relations firm. "One reason is location," he says. "The new building is located close to a Metro stop, whereas the current headquarters is not. And it's also close to one of Interstate's hotels, which they can then use as training facilities, as well as to host guests that come into the area. And the second reason was pricing. They're moving from 33,000 sf to nearly 70,000-sf."

Interstate became the biggest independent hotel management concern when it was created by the merging of MeriStar Hotels & Resorts and Interstate Hotels last summer. As a result of the move, four corporate offices in DC, Cleveland, Orlando and Pittsburgh will be consolidated and housed in one space. Relocation is expected to take place by summer's end 2003.