<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-05-28</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001059341</issuerCik>
        <issuerName>INTERSTATE HOTELS &amp; RESORTS INC</issuerName>
        <issuerTradingSymbol>IHR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001123542</rptOwnerCik>
            <rptOwnerName>CGLH PARTNERS I LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O LEHMAN BROTHERS HOLDINGS INC</rptOwnerStreet1>
            <rptOwnerStreet2>745 SEVENTH AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265546</rptOwnerCik>
            <rptOwnerName>LEFTON DONALD E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3250 MARY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 500</rptOwnerStreet2>
            <rptOwnerCity>MIAMI</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33133</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265542</rptOwnerCik>
            <rptOwnerName>MK/CG GP LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3250 MARY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 500</rptOwnerStreet2>
            <rptOwnerCity>MIAMI</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33133</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265549</rptOwnerCik>
            <rptOwnerName>MK/CG LP LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3250 MARY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 500</rptOwnerStreet2>
            <rptOwnerCity>MIAMI</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33133</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265543</rptOwnerCik>
            <rptOwnerName>CG INTERSTATE ASSOCIATES LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3250 MARY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 500</rptOwnerStreet2>
            <rptOwnerCity>MIAMI</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33133</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265544</rptOwnerCik>
            <rptOwnerName>CONTINENTAL GENCOM HOLDINGS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3250 MARY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 500</rptOwnerStreet2>
            <rptOwnerCity>MIAMI</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33133</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265545</rptOwnerCik>
            <rptOwnerName>DEL IHC LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3250 MARY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 500</rptOwnerStreet2>
            <rptOwnerCity>MIAMI</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33133</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265605</rptOwnerCik>
            <rptOwnerName>KFP INTERSTATE ASSOCIATES LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>545 E. JOHN CARPENTER FREEWAY</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1400</rptOwnerStreet2>
            <rptOwnerCity>IRVING</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>75062</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265607</rptOwnerCik>
            <rptOwnerName>KFP INTERSTATE LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>545 E. JOHN CARPENTER FREEWAY</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1400</rptOwnerStreet2>
            <rptOwnerCity>IRVING</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>75062</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001265603</rptOwnerCik>
            <rptOwnerName>KFP HOLDINGS LTD</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>545 E. JOHN CARPENTER FREEWAY</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1400</rptOwnerStreet2>
            <rptOwnerCity>IRVING</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>75062</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Director's Stock Option (right to buy)</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.35</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-05-28</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-05-28</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>5000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>5000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Director's Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.35</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-05-28</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-05-28</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>5000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>5000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See</value>
                    <footnoteId id="F4"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Filed by CGLH Partners I LP as Designated Filer. Please see attached Joint Filer Information. Due to the electronic system's
limitation of 10 Reporting Persons per joint filing, this statement is being filed in triplicate.</footnote>
        <footnote id="F2">The options vest with respect to 1/3 of the shares covered on each of the first, second and third anniversaries of the grant
date.</footnote>
        <footnote id="F3">Represents options to purchase shares of the Issuer's Common Stock granted to Mr. Joseph J. Flannery as a Director of the
Issuer as disclosed on a Form 4 filed on or about the date hereof by Mr. Flannery. Mr. Flannery is a Managing Director of
Lehman Brothers Inc. (&quot;LBI&quot;), which is a wholly-owned subsidiary of Reporting Person Lehman Brothers Holdings Inc. (&quot;LBHI&quot;).
Pursuant to Mr. Flannery's employment with LBI, LB Interstate LP LLC, a wholly-owned subsidiary of LBHI, is the beneficial
owner of the options granted to Mr. Flannery reported herein. The Reporting Persons disclaim beneficial ownership of these
securities except to the extent of their respective pecuniary interests therein, if any.</footnote>
        <footnote id="F4">Represents options to purchase shares of the Issuer's Common Stock granted to Mr. Raymond C. Mikulich as a Director of the
Issuer as disclosed on a Form 4 filed on or about the date hereof by Mr. Mikulich. Mr. Mikulich is a Managing Director of
Lehman Brothers Inc. (&quot;LBI&quot;), which is a wholly-owned subsidiary of Reporting Person Lehman Brothers Holdings Inc. (&quot;LBHI&quot;).
Pursuant to Mr. Mikulich's employment with LBI, LB Interstate LP LLC, a wholly-owned subsidiary of LBHI, is the beneficial
owner of the options granted to Mr. Mikulich reported herein. The Reporting Persons disclaim beneficial ownership of these
securities except to the extent of their respective pecuniary interests therein, if any.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Donald E. Lefton</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Donald E. Lefton as Authorized Signatory of MK/CG GP LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Donald E. Lefton as Authorized Signatory of MK/CG LP LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Donald E. Lefton as Authorized Signatory of CG Interstate Associates LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Donald E. Lefton as Authorized Signatory of Continental Gencom Holdings, LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Donald E. Lefton as Authorized Signatory of DEL-IHC, LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Jaffer Khimji as Authorized Signatory of KFP Interstate Associates, LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Jaffer Khimji as Authorized Signatory of KFP Interstate, LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Jaffer Khimji as Authorized Signatory of KFP Holdings, LLC</signatureName>
        <signatureDate>2004-06-02</signatureDate>
    </ownerSignature>
</ownershipDocument>

