Does editing applicationhost.config file restarts IIS? I want to edit the applicationhost.config on the production server.
No, changing the file itself doesn't cause an AppDomain recycle like editing web.config or machine.config does.
However, some settings, like application pool defaults, global settings or http modules will cause an AppDomain recycle.
Just adding settings in location tags to the bottom or doing general settings won't cause an AppDomain recycle. All site specific changes will, at the most, impact the one site only.