Arlington Hospitality, Inc. (Nasdaq/NM:
HOST) today announced January 2003 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, “We are extremely pleased to announce the opening of
two newly constructed AmeriHost Inn hotels located in Willows, California and DeWitt, Michigan.
Despite the continuing challenges in the lodging industry, our Company has built nine newly constructed
AmeriHost Inn hotels during the past two years.” Same Room RevPAR for the Company’s AmeriHost
Inn hotels decreased 3.2% to $22.71 for the month of January 2003 compared to January 2002, as
occupancy decreased 1.4% to 42.2% and average daily rate decreased 1.8% to $53.79. Herman
commented, “These results are reflective of the industry-wide trend of reduced corporate travel and the
concerns over the economy and the possibility of war in Iraq.” For the year ended December 31, 2002,
Smith Travel Research reported a (0.6%) decrease in RevPAR for the mid-scale without food & beverage
segment of the lodging industry, versus a 3.7% increase for the Company’s AmeriHost Inn hotels.
Herman continued, “In this difficult time for hotels and the overall economy, the strong performance of
our AmeriHost Inn hotels in 2002 is a tribute to the strength of our Company’s employees and hotel
product.”
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. Arlington sold two wholly owned AmeriHost Inn hotels during January and
February 2003, including the AmeriHost Inn hotel in Willows, California which was built by the
Company and opened on January 31, 2003. The Company expects these sales to generate first quarter
2003 revenue of approximately $6.5 million, and the reduction of debt of approximately $4.2 million.
The Company currently has three 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
previously disclosed AmeriHost Inn hotels currently under contract for sale is expected to generate pretax
income of approximately $1.3 million, as adjusted, including the gain recognized from an insurance
settlement of approximately $300,000 in the fourth quarter of 2002. 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 January 2003, the
Company opened two newly constructed AmeriHost Inn hotels for its own account, one in Willows,
California which was subsequently sold, and one in DeWitt, Michigan. Currently, the Company has two
AmeriHost Inn hotels under construction, including one wholly owned hotel and one joint venture. These
hotels are expected to open during the next six months. The Company also has several additional hotel
projects in various stages of the pre-construction development process. 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 5,296 rooms, with two 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
www.arlingtonhospitality.com.
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