Arlington Hospitality, Inc. (Nasdaq/NM:
HOST) today announced December 2002 and full year 2002 Same Room RevPAR (revenue per available
room) results for the AmeriHost Inn hotels in which the Company has an ownership interest. These
results include all AmeriHost Inn hotels which have been open for at least thirteen full months during the
period presented. Arlington Hospitality, Inc. is the largest owner and operator of AmeriHost Inn hotels in
the United States. Cendant Corporation (NYSE: CD) is the franchisor of the AmeriHost Inn brand.
Jerry H. Herman, President and CEO, commented, “Same Room RevPAR for the Company’s AmeriHost
Inn hotels increased 3.7% for the year, significantly outpacing the overall lodging industry and the limited
service sector. According to Smith Travel Research, RevPAR declined 0.9% for the mid-scale without
food & beverage segment of the lodging industry through November 2002. Same Room RevPAR for the
Company’s AmeriHost Inn hotels decreased 0.8% during the fourth quarter of 2002 as both corporate and
leisure business remained soft.”
Arlington Hospitality sells existing AmeriHost Inn hotels, as well as other branded hotels, as part of its
hotel development strategy. These hotels are wholly owned by the Company, leased or owned by a joint
venture in which the Company is a partner. The Company typically facilitates the sale of hotels owned by
joint ventures and landlords.
The results for the year include the sale of four wholly owned AmeriHost Inn hotels, including two
during the fourth quarter of 2002, the sale of two AmeriHost Inn hotels by non-controlled joint ventures,
including one during the fourth quarter of 2002, the sale of one leased AmeriHost Inn hotel, and the sale
of one other brand hotel during the fourth quarter by a non-controlled joint venture. The Company
expects the sales that closed during the fourth quarter 2002 to generate fourth quarter 2002 revenue of approximately $5.2 million, net pretax income of approximately $550,000, the reduction of debt of
approximately $4.6 million, and the repayment of approximately $1.9 million in loans receivable from
joint ventures in connection with the hotel sales. The Company anticipates an adjustment during the
fourth quarter of 2002 of approximately $400,000 to net realizable value on its investment in a non-AmeriHost
Inn hotel currently under contract for sale.
In addition, the Company currently has five AmeriHost Inn hotels and two other branded hotels under
contract for sale, including hotels owned by joint ventures. These sales are expected to close during the
next six months. The revenue and profit/loss from the sale of hotels, as well as the reduction of debt will
be reported in the Company’s financial statements as of the date the sale transactions close. One of the
AmeriHost Inn hotels currently under contract for sale is expected to generate pretax income of
approximately $1.5 million. Although the Company has these hotels under contract for sale, with
nonrefundable cash deposits in certain cases, certain conditions to closing remain and there can be no
assurance that these sales will be consummated as anticipated.
The sale of AmeriHost Inn hotels allows the Company to realize a development incentive fee from its
agreement with Cendant Corporation in addition to any profits realized from the sale. The Company also
benefits from a long term royalty sharing agreement with Cendant from each AmeriHost Inn hotel not
owned by the Company that is in the franchise system. The above-mentioned anticipated results from
these sales do not include any of these fees and payments from Cendant. For a complete listing of all
hotels for sale by the Company, please visit our web site at www.hotelsforsaleonline.com, or contact
David Harjung via email at [email protected] or by phone at (847)228-5401 ext. 347.
The forecasted amounts of revenue and pretax income described above relate solely to closed or pending
sales activities. Such forecasted amounts from closed or pending sales could differ from the final
amounts included in the Company’s applicable quarterly and annual financial statements when issued.
Furthermore, such forecasted amounts do not represent guidance on, or forecasts of, the results of the
Company’s entire consolidated operations, which are reported on a quarterly basis.
Arlington Hospitality also provides turnkey hotel development services for new construction hotel
projects, including AmeriHost Inn hotels as well as other hotel brands. During the year ended December
31, 2002, the Company opened two newly constructed AmeriHost Inn hotels for its own account, opened
one AmeriHost Inn hotel for a non-controlled joint venture, and completed construction of one
AmeriHost Inn hotel for an unaffiliated third party. During the year ended December 31, 2002, the
Company began construction on two AmeriHost Inn hotels for its own account, and began construction
on one AmeriHost Inn hotel for a non-controlled joint venture. Currently, the Company has four
AmeriHost Inn hotels under construction, including three wholly owned hotels and one joint venture.
These hotels are expected to open during the next six months. For more information regarding turnkey
development services contact Paul Eskenazi via email at [email protected] or by phone at
(847)228-5401 ext. 312.
From time to time, the Company may utilize cash to purchase its own common stock. Currently, the
Board of Directors has authorized the Company to buy back, at any time and without notice, up to
1,000,000 shares of it own common stock under certain conditions.
Arlington Hospitality, Inc. is a publicly traded hotel management and development company that builds,
manages and sells mid-priced hotels throughout the United States, primarily under the AmeriHost Inn
brand. Arlington Hospitality, Inc. owns or manages 72 properties in 17 states, including 62 AmeriHost
Inn hotels, and 10 other branded hotels, for a total of 5,283 rooms, with four additional AmeriHost Inn &
Suites hotels under construction. Each hotel offers an amenity package not often found in other mid-priced
hotels. For additional information on the company, please visit our web site at
Arlington Hospitality, Inc. (Nasdaq/NM: