EXHIBIT 99.1

[ARLINGTON HOSPITALITY, INC. 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. ENGAGES FINANCIAL AND STRATEGIC ADVISOR


         ARLINGTON HEIGHTS, Ill., July 15, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
that Houlihan Lokey Howard & Zukin is providing investment banking services in
connection with reviewing Arlington's business plan and related strategies for
the purpose of assisting Arlington in optimally structuring and obtaining new
debt or equity financing as needed. However, there can be no assurance as to the
availability and form of such financing, and whether this financing will be on
terms acceptable to the company.

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 106-property
mid-market, limited-service hotel brand owned and presently franchised in 20
states and Canada by Cendant Corporation (NYSE: CD). Currently, Arlington
Hospitality, Inc. owns or manages 58 properties in 15 states, including 52
AmeriHost Inn hotels, for a total of 4,221 rooms, with additional AmeriHost Inn
& Suites hotels under development.


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Arlington Hospitality
Page 2

         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, 2003 and
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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