[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. ANNOUNCES OCTOBER 2004 RESULTS
SELLS AMERIHOST INN IN COLUMBIA CITY, INDIANA
ARLINGTON HEIGHTS, Ill., November 19, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
October 2004 same-room operating results for the AmeriHost Inn hotels in which
the company has an ownership interest, and the sale of the AmeriHost Inn hotel
in Columbia City, Ind. The company also has sold its ownership interest in a
Days Inn hotel joint venture in November.
OCTOBER RESULTS
Same-room revenue per available room (RevPAR) in October 2004 increased
2.6 percent to $35.80, compared to October 2003. Occupancy decreased 1.2 percent
to 59.1 percent, while average daily rate (ADR) increased 3.8 percent to $60.59.
The October 2004 same-room results include 47 AmeriHost Inn hotels, which have
been opened for at least 13 months.
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One Month Ten Months Twelve Months
Ended Ended Ended
October 31 October 31 October 31
---------- ---------- ----------
Occupancy -- 2004 59.1% 58.0% 56.2%
Occupancy -- 2003 59.8% 57.5% 55.7%
Increase (decrease) (1.2%) 0.9% 0.9%
Average Daily Rate -- 2004 $60.59 $58.00 $57.67
Average Daily Rate -- 2003 $58.35 $57.30 $57.02
Increase (decrease) 3.8% 1.2% 1.1%
RevPAR -- 2004 $35.80 $33.65 $32.41
RevPAR -- 2003 $34.90 $32.92 $31.75
Increase (decrease) 2.6% 2.6% 2.4%
According to Smith Travel Research, preliminary results for October
2004 indicate that RevPAR for the midscale without food and beverage segment of
the lodging industry increased 6 percent to 8 percent, compared to October 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 AmeriHost Inn hotel in October 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. In addition, in November the company sold
its ownership interest in a joint venture which owned a Days Inn hotel.
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Year to date, including these sales, the company has divested 14
hotels. The company has sold nine 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, facilitated the sale of one leased AmeriHost
Inn hotel on behalf of PMC Commercial Trust (AMEX: PCC), the landlord, and sold
its ownership interest in a non-AmeriHost Inn joint venture.
The company currently has eight hotels under contract for sale,
including three leased hotels, 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 the third quarter, the company broke ground on an AmeriHost Inn
& Suites hotel in Lansing, Mich. for a joint venture in which it is a partner.
The company has also secured debt and equity financing commitments for an
87-room AmeriHost Inn & Suites at the Columbus, Ohio airport, and expects to
begin construction in the near future, pending finalizing all closing
conditions. Arlington Hospitality has been contracted to construct new AmeriHost
Inn & Suites for these joint ventures.
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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.
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 51 properties in 15 states, including 48
AmeriHost Inn hotels, for a total of 3,672 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,
reports on Form 10-Q for the periods ended March 31, 2004, June 30, 2004,and
September 30, 2004 under the section headed "Management's Discussion and
Analysis of Financial Condition and Results of Operations -- Risk Factors."
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