------------------------------ OMB APPROVAL ------------------------------ OMB Number 3235-0362 Expires: PENDING Estimated average burden hours per response ....... 0.5 ------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 5 ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 [ ] Check this box if no longer subject of Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). Form 3 Holdings Reported Form 4 Transactions Reported ================================================================================ 1. Name and Address of Reporting Person Kanders Alan -------------------------------------------------------------------------------- (Last) (First) (Middle) C/o - Lehman Brothers Holdings Inc. 200 Vesey Street 12th Floor -------------------------------------------------------------------------------- (Street) New York NY 10285 -------------------------------------------------------------------------------- (City) (State) (Zip) ================================================================================ 2. Issuer Name AND Ticker or Trading Symbol Interstate Hotels Corporation (IHCO) ================================================================================ 3. IRS Identification Number of Reporting Person, if an entity (Voluntary) ================================================================================ 4. Statement for Month/Year December 31, 2001 ================================================================================ 5. If Amendment, Date of Original (Month/Year) ================================================================================ 6. Relationship of Reporting Person to Issuer (Check all applicable) [ X ] Director [ ] 10% Owner [ ] Officer (give title below) [ ] Other (specify below) -------------------------------------------------------------------- ================================================================================ 7. Individual or Joint/Group Reporting (check applicable line) [ X ] Form Filed by One Reporting Person [ ] Form Filed by More than One Reporting Person ================================================================================ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned ================================================================================

5. 6. 4. Amount of Owner- Security Acquired (A) or Securities ship Disposed of (D) Beneficially Form: 7. (Instr. 3, 4 and 5) Owned at End Direct Nature of 2. 3. ----------------------------- of Issuer's (D) or Indirect 1. Transaction Transaction (A) Fiscal Year Indirect Beneficial Title of Security Date Code Amount or Price (Instr. 3 (I) Ownership (Instr. 3) (mm/dd/yy) (Instr. 8) (D) & 4) (Instr.4) (Instr. 4) ------------------------------------------------------------------------------------------------------------------------------------ By Class A Common Stock, par value daughter $.01 per share 10/9/01 L 1,000 A 1.51 2000 I (1) ------------------------------------------------------------------------------------------------------------------------------------ Class A Common Stock, par value $.01 per share 10/9/01 L 2,000 A 1.51 7000 D ------------------------------------------------------------------------------------------------------------------------------------ Class A Common Stock, par value $.01 per share 5,778,646 I (2) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================

(1) These shares are held in trust for the benefit of the reporting person's daughter. (2) Represents the indirect beneficial ownership interest of Lehman Brothers Holdings Inc. in shares of the issuer's Class A Common Stock. The reporting person serves in a managerial capacity at Lehman Brothers Holdings Inc. The reporting person disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein, if any. FORM 5 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ================================================================================

Explanation of Responses: /s/ Alan Kanders 1/14/02 --------------------------------------------- ----------------------- **Signature of Reporting Person Date Alan Kanders ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.

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