Arlington Hospitality, Inc. (Nasdaq/NM:
HOST) today announced its earnings results for the second quarter ended June 30, 2002. Net income for
the quarter was $234,068, or $0.05 per diluted share, compared to net income of $152,596, or $0.03 per
diluted share in 2001. Revenues increased 21.7%, to $20.6 million in the second quarter of 2002, from
$17.0 million in 2001. Net income plus depreciation and amortization was up 26.1%, to $1.6 million
during the second quarter of 2002, compared to $1.3 million during the second quarter of 2001.
For the six months ended June 30, 2002, the net loss was ($523,684), compared to a net loss of
($467,522) during the six months ended June 30, 2001. During the first six months of 2002, the
Company reported a gain from the sale of property and equipment of $327,076, compared to $590,445
during the first six months of 2001. Revenues for the first six months increased 5.9%, to $38.6 million
during 2002, from $36.4 million during 2001. Net income plus depreciation and amortization was up
22.4% to $2.2 million during the first six months of 2002, compared to $1.8 million during the first six
months of 2001.
Same room Revenue Per Available Room (“RevPAR”) for the three months ended June 30, 2002 for all
AmeriHost Inn hotels managed by the Company increased 5.3%. Michael P. Holtz, President and Chief
Executive Officer commented, “The significant 8.6% increase in same room occupancy achieved during
the first half of 2002, was primarily the result of the increase in demand from leisure travelers. This
increase was partially offset by a decrease of $1.93 in average daily rate. The objective is to maximize
revenue opportunity, and our strategies to achieve this goal seem to be working. In fact, RevPAR for the
overall hotel industry decreased 7.9%. Our hotel operations segment continues to show strong signs of
improvement over 2001 as the gross operating profit for the same room AmeriHost Inn hotels increased
by $1.2 million during the first six months of 2002, compared to 2001.”
During the last twelve months, the Company sold seven AmeriHost Inn hotels, opened five newly
constructed AmeriHost Inn hotels (including one which was built for an operator who was referred to the
Company by Cendant Corporation, the franchisor of the AmeriHost Inn brand), and acquired the
remaining ownership interest from its joint venture partners in one AmeriHost Inn hotel. Holtz continued,
“Our development segment continues to experience a significant slowdown, both in terms of new hotel
development for third parties and the sale of hotels. We believe that this is a direct result of the current economic environment and the difficulty of hotel developers and buyers to obtain suitable financing. We
are confident that as the financing market returns to the hotel industry, this segment will again contribute
strong earnings and cash flow for your Company.”
During the second quarter of 2002, the Company sold one AmeriHost Inn hotel located in Waverly, Iowa,
and opened one AmeriHost Inn hotel in Moses Lake, Washington which was built for a franchisee of
Cendant. The Company currently has four AmeriHost Inn & Suites hotels under construction. These
hotels are located in Redding, California; DeWitt, Michigan; Willows, California; and Maumee, Ohio.
The Company anticipates starting construction on additional AmeriHost Inn hotels in Columbus, Ohio
and Weed, California before the end of this year.
The Company has several additional hotel projects in various stages of development and intends to begin
construction on a total of 4-6 hotels during 2002. Currently, the Company owns and operates 66
AmeriHost Inn hotels, in addition to the hotels under construction and development.
Arlington Hospitality, Inc. is a hotel management and development company that builds and manages
mid-priced hotels. As of June 30, 2002, Arlington Hospitality, Inc. owns or manages 77 properties in 17
states, including 65 AmeriHost Inn hotels, for a total of 5,747 rooms, with four additional AmeriHost Inn
& Suites hotels under construction. Each hotel offers an amenity package not often found in other mid-priced
hotels.
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