ARLINGTON HEIGHTS, Ill.—-Aug. 13, 2003—Ê Company Also Announces Sale of AmeriHost Inn in Fontana, California —Arlington Hospitality, Inc. (Nasdaq/NM: HOST), a hotel development and management company, today announced that it has named Stephen Miller to the new position of senior vice president-real estate/business development to head up the company`s accelerated hotel development program. Concurrently, the company announced the sale of the 80-room AmeriHost Inn hotel in Fontana, California.
Miller`s appointment comes on the heels of the company`s recently announced plan to target its hotel development program at 10 to 15 new AmeriHost Inn hotels per year, primarily through joint ventures, and to dispose of some 25 to 30 owned hotels over the next two years. He will be responsible for all aspects of the company`s development, acquisition and disposition activities.
“Steve Miller is a 20-year veteran of the hospitality industry and is well regarded for his deal-making and capital markets expertise,” said Jerry H. Herman, Arlington Hospitality`s chief executive officer. “Over the last two decades, Steve has played a leadership role in the development, acquisition, investment and disposition of more than 150 hotel transactions, experience that will prove extremely valuable in his new position.”
Prior to joining Arlington, Miller was executive vice president of development and acquisition for Carlson Hotels Worldwide, parent of Radisson and Country Inn & Suites. Previously, he served in executive level positions at Wyndham International, ultimately as the company`s vice president-senior development officer, responsible for acquisitions, site selection and dispositions of the Wyndham and Wyndham Garden brands.
Fontana AmeriHost Inn Sale - Separately, the company announced that it has sold a wholly owned AmeriHost Inn hotel in Fontana, Calif. Over the past four years, Arlington has been the lead developer and owner in bringing eight AmeriHost Inns to California. The Fontana property is the seventh hotel sold by Arlington in the state. Although terms of the sale were not disclosed, the company said that the proceeds of the sale paid off mortgage debt in the amount of approximately $3.1 million and that the company expects to include the results of the sale in its third quarter 2003 financial statements. Arlington remains committed to doing additional AmeriHost Inn hotels in both northern and southern California.
The Fontana property will remain an AmeriHost Inn hotel as the buyer has executed a franchise agreement with AmeriHost Franchise Systems, Inc., a subsidiary of Cendant Corporation (NYSE: CD), the brand`s franchisor. In addition to the proceeds from the sale, Arlington will receive continuing cash flow related to the hotel from Cendant as a result of the franchise royalty-sharing agreement executed in connection with Arlington`s sale of the AmeriHost Inn brand name and franchising rights to Cendant in September 2000.
Year to date in 2003, Arlington Hospitality, Inc. has sold four wholly owned AmeriHost Inn hotels, resulting in net hotel sales revenues of approximately $13.6 million, and the reduction of mortgage debt of approximately $8.7 million. In addition, during this same period, Arlington facilitated the sale of two hotels owned by joint ventures, one AmeriHost Inn and the other a non-AmeriHost Inn hotel. Currently, the company has five hotels under contract for sale, which are expected to close within the next six months. However, certain conditions to closing remain, and there can be no assurance that these transactions will be consummated as anticipated.
Hotel Sales Information - The national hotel brokerage firm of Thompson Calhoun Fair (TCF) has been engaged to market most of the hotels Arlington intends to sell as part of its business plan. Based in Atlanta, TCF specializes in the mid-tier segment and has sold more than 300 hotels in more than 35 states with an aggregate value in excess of $3 billion. Information on Arlington`s hotels for sale and on TCF can be found on the Internet at www.tcfhotels.com, or by calling Mark Fair at 404-995-8970.
In addition, Arlington Hospitality provides turnkey hotel development services for new construction hotel projects, including AmeriHost Inn hotels as well as other hotel brands. For more information regarding turnkey development services, as well as information on all of Arlington`s hotels, contact Steve Miller via email at [email protected] or by phone at (847) 228-5401 ext. 312.
Arlington Hospitality, Inc. is a hotel management and development company that builds, manages and sells mid-priced hotels throughout the United States, primarily under the AmeriHost Inn brand, which currently has approximately 100 hotels nationwide. As of today, Arlington Hospitality, Inc. owns or manages 70 properties in 17 states, including 61 AmeriHost Inn hotels, for a total of 5,144 rooms, with additional AmeriHost Inn & Suites under development. Each hotel offers an amenity package not often found in other mid-priced hotels. For more information about the company, please visit the company`s web site at www.arlingtonhospitality.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that are not historical, including statements regarding management`s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should,” and “could.” There are numerous risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including, without limitation, risks relating to the development and operation of hotels, the timing, consummation and final terms of hotel sales, the availability of capital to finance growth, geopolitical events, competition and the historical cyclicality of the lodging industry. All forward-looking statements included in this press release are based on information available at the time of the release, and Arlington Hospitality assumes no obligation to update any forward-looking statement.