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 SEPTEMBER 2004 RESULTS
BREAKS GROUND ON NEW HOTEL CONSTRUCTION IN LANSING, MICHIGAN
ARLINGTON HEIGHTS, Ill., October 12, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
September 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 September.
In addition, the company began construction on an 82-room AmeriHost Inn & Suites
hotel in Lansing, Mich., for a joint venture in which the company is a partner.
This hotel utilizes the company's latest prototype and is the first hotel to
begin construction under the new strategic business plan, which focuses on
building larger hotels in secondary markets.
SEPTEMBER RESULTS
Same-room revenue per available room (RevPAR) in September 2004
increased 5.9 percent to $35.20, compared to September 2003. Occupancy increased
4.7 percent to 59.8 percent, while average daily rate (ADR) increased 1.1
percent to $58.87. The September 2004 same-room results include 48 AmeriHost Inn
hotels, which have been opened for at least 13 months. The increase in RevPAR
was due in part to the timing of the Labor Day holiday weekend. In 2003, this
holiday weekend was in August, and in 2004, this weekend was in September.
- more -
Arlington Hospitality
Page 2
<Table>
<Caption>
One Month Three Months Nine Months Twelve Months
Ended Ended Ended Ended
September 30 September 30 September 30 September 30
------------ ------------ ------------ ------------
Occupancy - 2004 59.8% 63.7% 57.9% 56.2%
Occupancy - 2003 57.1% 64.0% 57.2% 55.6%
Increase (decrease) 4.7% (0.5%) 1.2% 1.1%
Average Daily Rate - 2004 $58.87 $59.88 $57.73 $57.44
Average Daily Rate - 2003 $58.22 $59.26 $57.18 $56.94
Increase (decrease) 1.1% 1.0% 1.0% 0.9%
RevPAR - 2004 $35.20 $38.13 $33.42 $32.31
RevPAR - 2003 $33.23 $37.95 $32.72 $31.69
Increase (decrease) 5.9% 0.5% 2.6% 2.3%
</Table>
According to Smith Travel Research, preliminary results for September
2004 indicate that RevPAR for the midscale without food and beverage segment of
the lodging industry increased 11 percent to 13 percent, compared to September
2003. Most of the company's hotels are concentrated in the Midwest, including
Ohio, Michigan and Illinois, where the lodging industry is recovering at a much
slower rate than the rest of the country, according to Smith Travel Research.
SALES ACTIVITY
The company sold one wholly owned non-AmeriHost Inn hotel in September
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. For the third quarter, the
company sold two wholly owned AmeriHost Inn hotels and two wholly owned
non-AmeriHost Inn hotels. In addition, one leased AmeriHost Inn hotel was sold
by the landlord during the third quarter of 2004. The lease for this hotel was
simultaneously terminated upon the closing of the sale.
- more -
Arlington Hospitality
Page 3
Year to date, including these sales, the company has sold eight wholly
owned AmeriHost Inn hotels, sold two wholly owned non-AmeriHost Inn hotels,
facilitated the sale of one non-AmeriHost Inn hotel owned by a joint venture,
and facilitated the sale of one leased AmeriHost Inn hotel on behalf of the
landlord.
The company currently has five hotels under contract for sale,
including one leased hotel, 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.
HOTEL DEVELOPMENT ACTIVITY
Arlington Hospitality also provides turnkey hotel development services
for new construction hotel projects, including AmeriHost Inn hotels.
During September, the company broke ground on an AmeriHost Inn & Suites
hotel in Lansing, Mich. for a joint venture in which it is a partner. The
three-story hotel will feature 82 guest rooms, including 11 suites. This newest
prototype, designed for secondary and larger markets, features an expanded
meeting room, a two-story lobby, an indoor swimming pool area with a whirlpool
spa and exercise facilities, and a dedicated breakfast room. Guests will also
enjoy high-speed Internet access, a business center, and a sundry shop.
Jerry H. Herman, president and CEO commented, "The Lansing project
represents the cornerstone of our strategic growth plan to develop larger hotels
in secondary markets for joint ventures. The Lansing market is ideally suited
for our new prototype design and will set the example for future hotel
development projects for Arlington Hospitality and its joint venture
- more -
Arlington Hospitality
Page 4
partners. This hotel will contain approximately 35 percent more guest rooms than
most of the company's existing AmeriHost Inn hotels, with significantly enhanced
public areas. The new design elements are critical as we focus on larger
markets."
The lead investor in this development is Hyatt Johnson Ventures, LLC.
Project and long-term mortgage financing is being provided by Irwin Union Bank
and Northpointe Bank, both local to the Lansing area. Urban 2000 Corp., and its
principals H. Andrew Torchia and Richard A. D'Onofrio, who were Arlington
Hospitality's original founders, also performed consulting services in
connection with the formation and capitalization of the joint venture. Since
Urban 2000 and its principals are significant shareholders of the company, the
terms of the consulting services were reviewed and approved by the company's
Governance/Nominating Committee. Arlington Hospitality has been contracted to
construct and manage the day-to-day operations of the new AmeriHost Inn & Suites
for the joint venture.
The company has several other projects in the pre-construction
development stage. 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.
- more -
Arlington Hospitality
Page 5
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 53 properties in 15 states, including 49
AmeriHost Inn hotels, for a total of 3,836 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,
report on Form 10-Q for the three months ended March 31, 2004, and report on
Form 10-Q for the three and six months ended June 30, 2004, under the section
headed "Management's Discussion and Analysis of Financial Condition and Results
of Operations - Risk Factors."
- 30 -