EXHIBIT 99.1
[ARLINGTON HOSPITALITY, INC. LETTERHEAD]
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 JULY 2004 RESULTS,
EXTENSION OF TEMPORARY AGREEMENT
ARLINGTON HEIGHTS, Ill., August 9, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
July 2004 same-room operating results for the AmeriHost Inn hotels in which the
company has an ownership interest, and the sale of one hotel. In addition, the
company 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.
JULY RESULTS
Same-room revenue per available room (RevPAR) in July 2004 increased
1.5 percent to $40.61, compared to July 2003. Occupancy decreased 0.7 percent to
67.4 percent, while average daily rate (ADR) increased 2.3 percent to $60.29.
The July 2004 same-room results include 51 AmeriHost Inn hotels, which have been
opened for at least 13 months.
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One Month Seven Months Twelve Months
Ended Ended Ended
July 31 July 31 July 31
------- ------- -------
Occupancy - 2004 67.4% 56.9% 56.4%
Occupancy - 2003 67.9% 56.0% 55.8%
Increase (decrease) (0.7%) 1.6% 1.1%
Average Daily Rate - 2004 $60.29 $57.19 $57.36
Average Daily Rate - 2003 $58.96 $56.53 $56.89
Increase (decrease) 2.3% 1.2% 0.8%
RevPAR - 2004 $40.61 $32.55 $32.36
RevPAR - 2003 $40.03 $31.64 $31.72
Increase (decrease) 1.5% 3.4% 2.3%
According to Smith Travel Research, preliminary results for July 2004
indicate that RevPAR for the midscale without food and beverage segment of the
lodging industry improved between 3 percent and 5 percent, compared to July
2003.
SALES/DEVELOPMENT ACTIVITY
The company sold one wholly owned non-AmeriHost Inn hotel in July 2004.
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.
Year to date, including this sale, the company has sold six wholly
owned AmeriHost Inn hotels, one wholly owned non-AmeriHost Inn hotel, and
facilitated the sale of one non-AmeriHost Inn hotel owned by a joint venture.
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The company currently has five 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 sales and development activities set forth above do not represent
guidance on, or forecasts of, the results of the company's entire consolidated
operations, which are reported on a quarterly basis.
For more information regarding Arlington's hotels for sale and
development opportunities either on a joint venture or turnkey basis, contact
Stephen Miller, Senior Vice President - Real Estate and Business Development via
email at stevem@arlingtonhospitality.com, or by telephone at (847) 228-5401,
ext. 312.
EXTENSION OF TEMPORARY LETTER AGREEMENT
The terms of a temporary letter agreement between the company and PMC
deferred approximately $434,000 in base rent for the months of March through
July 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 August 1, 2004. The company and PMC recently
agreed that these terms would be extended through August 31, 2004, however there
was no additional deferral of a portion of the base rent for the month of
August, and that the repayments to PMC will begin September 1, 2004 over a
four-month period in equal monthly installments.
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The company continues to work closely with PMC in negotiating the terms
of a master lease restructuring. 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 105-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 57 properties in 15 states, including 52
AmeriHost Inn hotels, for a total of 4,157 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, 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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