Arlington Hospitality, Inc. Announces First Quarter 2002 Earnings Results

Arlington Hospitality, Inc. (Nasdaq/NM:
HOST) today announced its earnings results for the first quarter ended March 31, 2002. Net loss for the
quarter was ($757,752), or ($0.15) per diluted share, compared to net loss of ($620,118), or ($0.13) per
diluted share during the first quarter of 2001. Revenues for the quarter decreased 7.8%, to $17.9 million
during the first quarter of 2002, from $19.5 million during the first quarter of 2001. Net income plus
depreciation and amortization increased 12.9% to $565,938 during the first quarter of 2002, compared to
$501,228 during the first quarter of 2001. Historically, the Company?s revenues are lower in the first
quarter due to the seasonality of the Company?s business. The fluctuations in operating results were
primarily due to the Company developing hotels for a third party and a minority-owned entity during the
first quarter of 2002, and the sale of two AmeriHost Inn hotels in 2002 versus the sale of four during
2001.
Michael P. Holtz, President and Chief Executive Officer, commented, “We are cautiously optimistic
about the remainder of 2002 as the economy continues to show signs of recovery. Although the lodging
industry in general continues to suffer from depressed occupancy levels compared to last year, the
Company?s AmeriHost Inn hotels have performed fairly well. Both corporate and leisure travel segments
appear to be improving. “Same Room Revenue Per Available Room (ioRevPARll) for the three months
ended March 31, 2002 for the AmeriHost Inn hotels operated by the Company increased 4.1%. “The
AmeriHost Inn hotel provides a tremendous value, offering many of the amenities found at higher priced
hotels. This value is seen at all of the Company?s AmeriHost Inn hotels since each one offers the exact
same amenity package, including an indoor pool area with a hot tub, whirlpool suites, an exercise room,
and expanded complimentary continental breakfast.”
Two AmeriHost Inn hotels operated by the Company were sold during the first quarter of 2002. The
Company also began construction on one AmeriHost Inn & Suites hotel, and opened two AmeriHost Inn
hotels during the first quarter of 2002. Holtz continued, ioThe level of interest we have seen from
potential buyers of AmeriHost Inn hotels has increased somewhat since the fourth quarter of 2001. In
addition to the hotels sold in the first quarter, the Company has two additional hotels under contract for
sale, with anticipated closings in the second quarter of 2002.lr In addition to the profits from the sale of
the two hotels during the first quarter, the Company also received incentive fees from the Cendant
arrangement as a result of these sales.
After a lengthy review process by the village of Arlington Heights, Illinois, the Company has recently
received approval from the planning department to build an AmeriHost Inn & Suites hotel adjacent to the
Company?s headquarters. Holtz continued, “The new 4-story AmeriHost Inn & Suites prototype will fit
in well with the Arlington Heights market. Having a hotel next to the corporate office will provide
numerous benefits to the Company including meeting room availability, employee training opportunities,
and convenient lodging for employees and associates when in town on business. In addition, investors
and potential hotel buyers can easily see the design and high degree of quality of the AmeriHost Inn &
Suites prototype while visiting the corporate office.” The Company expects to break ground on the hotel
during the summer of 2002, with the opening anticipated in the spring of 2003.
Arlington Hospitality, Inc. is a hotel management and development company that builds and manages
mid-priced hotels. As of March 31, 2002, Arlington Hospitality, Inc. owns or manages 78 properties in
16 states, including 66 AmeriHost Inn hotels, for a total of 5,807 rooms, with four additional AmeriHost
Inn & Suites hotels under construction. Each hotel offers an amenity package not often found in other
mid-priced hotels.
——-