Arlington Hospitality, Inc. (Nasdaq:HOST), a hotel development and management company, today announced October 2003 operating results for 55 AmeriHost Inn hotels in which the company has, or had, an ownership interest and which have been opened at least 13 months, as of October 31, 2003. In addition, early in November the company sold a wholly owned AmeriHost Inn hotel located in Parkersburg South, W. Va., and a joint venture in which the company is a partner sold a Days Inn hotel located in New Philadelphia, Ohio.
Arlington is the nation`s largest owner and franchisee of AmeriHost Inn hotels, operating 57 AmeriHost Inn hotels. Cendant Corporation (NYSE:CD) is the franchisor of the AmeriHost Inn brand, a mid-market, limited service hotel brand with 103 properties located in 22 states and Canada.
Operating Results
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Same-room revenue per available room (RevPAR) in October 2003 increased 1.1 percent to $34.17, compared to October 2002. Occupancy increased 0.5 percent to 59.2 percent, and average daily rate (ADR) increased slightly to $57.73. These same-room statistics include the operation of AmeriHost Inn hotels that were open during both periods presented.
According to Smith Travel Research, preliminary results for October 2003 indicate that RevPAR for the midscale without food and beverage segment of the lodging industry will be up between 1 and 3 percent, compared to October 2002. “October was one of our strongest months of the year thus far, on a same-room revenue basis. We are encouraged by the positive growth, and we continue to carefully monitor trends in our corporate business travel and our Internet rate and revenue maximization programs,” said Jerry H. Herman, president and chief executive officer.
Hotel Development
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Thus far in 2003, Arlington Hospitality has completed construction and opened three wholly owned AmeriHost Inn hotels and one AmeriHost Inn hotel for a joint venture in which the company is a minority partner. Currently, the company has one 79-room AmeriHost Inn hotel under construction in Weirton, W.Va., for a joint venture in which the company has a minority ownership interest. In addition, the company has several other projects in the pre-construction development stage, including a site near Columbus, Ohio`s airport, a site in Lansing, Michigan, and several sites in California.
For more information regarding joint venture opportunities, turnkey development services, as well as information on all of the company`s hotels, contact Stephen Miller via email at [email protected], or by telephone at 847-228-5401, ext. 312.
Hotel Asset Sales
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As previously announced, in July 2003 the company implemented a plan for the disposition of 25 to 30 hotels, expected to be completed over a two-year period, in order to reduce debt, increase cash flow, accelerate fees from the company`s relationship with Cendant, and provide capital for future hotel development.
Arlington has engaged the brokerage firm of Thompson Calhoun Fair to assist in the sale of most of these hotels. Information on Arlington`s hotels being brokered for sale by Thompson Calhoun Fair can be found at www.tcfhotels.com, or by calling Mark Fair at 404-995-8970.
Hotel Asset Sales
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As previously announced, in July 2003 the company implemented a plan for the disposition of 25 to 30 hotels, expected to be completed over a two-year period, in order to reduce debt, increase cash flow, accelerate fees from the company`s relationship with Cendant, and provide capital for future hotel development.
Arlington has engaged the brokerage firm of Thompson Calhoun Fair to assist in the sale of most of these hotels. Information on Arlington`s hotels being brokered for sale by Thompson Calhoun Fair can be found at www.tcfhotels.com, or by calling Mark Fair at 404-995-8970.
As previously announced, on October 2, 2003, the company sold a wholly owned AmeriHost Inn hotel located in Kenton, Ohio, in addition to the two properties sold in November, bringing to three the number of hotels sold since the close of the third quarter. The mortgage debt from these three hotels in the amount of approximately $4.1 million was paid off upon the sale of these hotels. The company will include the results of these sales in its fourth quarter 2003 financial statements.
Year to date, including these sales, the company has sold eight wholly owned AmeriHost Inn hotels generating net hotel sales proceeds of approximately $22.9 million. In addition, the company facilitated the sale of three hotels owned by joint ventures in which the company was a partner, including one AmeriHost Inn and two non-AmeriHost Inn hotels. As a result of the sale of the eight wholly owned hotels and the sale of two hotels owned by joint ventures which were consolidated in the company`s financial statements, the company has reduced its mortgage debt by approximately $16.5 million.
Currently, the company has two hotels under contract for sale, which are expected to be consummated within the next six months. When the company has hotels under contract for sale, even 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 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 during the quarter in which the sale transactions close. Furthermore, the amounts described above from sales transactions do not represent guidance on, or forecasts of, the results of the company`s entire consolidated operations, which are reported on a quarterly basis.
About Arlington Hospitality

Arlington Hospitality, Inc. is a hotel development and management company that builds, operates and sells mid-market hotels, primarily the AmeriHost Inn brand. Currently, Arlington Hospitality, Inc. owns or manages 64 properties in 17 states, including 57 AmeriHost Inn hotels, for a total of 4,655 rooms, with additional AmeriHost Inn & Suites hotels under development. The AmeriHost Inn brand is a mid-market, limited service hotel brand with 103 properties located in 22 states and Canada.
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