EXHIBIT 99.1
[AH LOGO]
ARLINGTON HOSPITALITY, INC.
2355 South Arlington Heights Road - Suite 400 - Arlington Heights, IL 60005
847-228-5400 Fax: 847-228-5409 www.arlingtonhospitality.com
For Immediate Release
CONTACT: MEDIA CONTACT:
James B. Dale, Chief Financial Officer Jerry Daly or Carol McCune
847-228-5401 x 361 703-435-6293
jimdale@arlingtonhospitality.com jerry@dalygray.com
ARLINGTON HOSPITALITY, INC. ANNOUNCES EXTENSION OF TEMPORARY LETTER AGREEMENT
ARLINGTON HEIGHTS, Ill., June 8, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
an extension of its temporary letter agreement with PMC Commercial Trust ("PMC")
(AMEX: PCC), the landlord of 21 AmeriHost Inn hotels operated by the company. In
addition, the company continues to pursue a permanent restructuring of these
leases.
The terms of a temporary letter agreement between the company and PMC
deferred approximately $264,000 in base rent for the months of March, April and
May 2004, and allowed the company to utilize $200,000 of its security deposit to
partially fund the rent payments. The repayment of the deferred rent and the
security deposit was to begin on June 1, 2004. The company and PMC agreed that
these terms would be extended through June 30, 2004, including the additional
deferral of approximately $85,000 in base rent for the month of June, and that
the repayments to PMC will begin July 1, 2004 over a four-month period in equal
monthly installments.
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Arlington Hospitality
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The company has been working closely with PMC in negotiating the terms
of a master lease restructuring, and anticipates documenting the contemplated
restructuring with PMC in a written agreement prior to the expiration of the
temporary letter agreement, as revised. However, there can be no assurances that
the leases will be restructured on terms and conditions acceptable to the
company and its subsidiary, if at all, or that a restructuring will improve
operations and cash flow, or provide for the sale of the hotels to third-party
operators.
ABOUT ARLINGTON HOSPITALITY
Arlington Hospitality, Inc. is a hotel development and management
company that builds, operates and sells mid-market hotels. Arlington is the
nation's largest owner and franchisee of AmeriHost Inn hotels, a 104-property
mid-market, limited-service hotel brand owned and presently franchised in 22
states and Canada by Cendant Corporation (NYSE: CD). Currently, Arlington
Hospitality, Inc. owns or manages 61 properties in 15 states, including 54
AmeriHost Inn hotels, for a total of 4,468 rooms, with additional AmeriHost Inn
& Suites hotels under development.
This press release may contain forward-looking statements.
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. For a discussion of these factors,
see the Company's report on Form 10-K for the year ended December 31, 2003and
report on Form 10-Q for the three months ended March 31, 2004 under the section
headed "Management's Discussion and Analysis of Financial Condition and Results
of Operations - Risk Factors."
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