EXHIBIT 99.1
[ARLINGTON HOSPITALITY, INC. LOGO]
For Immediate Release
CONTACT: MEDIA CONTACT:
James B. Dale, Chief Financial Officer Jerry Daly or Carol McCune
847-228-5401 x361 703-435-6293
jimdale@arlingtonhospitality.com jerry@dalygray.com
ARLINGTON HOSPITALITY, INC. ANNOUNCES NOVEMBER 2004 RESULTS
FACILITATES SALE OF AMERIHOST INN HOTEL IN SMYRNA, GEORGIA;
MOVING TO QUARTERLY UPDATE SCHEDULE AS COST-SAVINGS MEASURE
ARLINGTON HEIGHTS, Ill., December 21, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
November 2004 same-room operating results for the AmeriHost Inn hotels in which
the company has an ownership interest. In addition, in December the company
facilitated the sale of the AmeriHost Inn hotel in Smyrna, Ga., which had been
leased from PMC Commercial Trust (AMEX: PCC) and operated by the company.
Starting in 2005, as a cost-savings measure, the company will reduce the
frequency of these updates from monthly to quarterly.
NOVEMBER RESULTS
Same-room revenue per available room (RevPAR) in November 2004
decreased 2.5 percent to $33.23, compared to November 2003. Occupancy decreased
2.1 percent to 50.5 percent, while average daily rate (ADR) decreased 0.3
percent to $56.63. The November 2004 same-room results include 47 AmeriHost Inn
hotels, which have been opened for at least 13 months.
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One Month Two Months Eleven Months Twelve Months
Ended Ended Ended Ended
November 30 November 30 November 30 November 30
----------- ----------- ------------- -------------
Occupancy - 2004 50.5% 54.8% 57.4% 56.2%
Occupancy - 2003 51.6% 55.8% 57.0% 55.8%
Increase (decrease) (2.1%) (1.8%) 0.7% 0.7%
Average Daily Rate - 2004 $56.63 $58.80 $57.90 $57.68
Average Daily Rate - 2003 $56.78 $57.63 $57.26 $57.05
Increase (decrease) (0.3%) 2.0% 1.1% 1.1%
RevPAR - 2004 $28.57 $32.25 $33.23 $32.43
RevPAR - 2003 $29.29 $32.14 $32.62 $31.81
Increase (decrease) (2.5%) 0.3% 2.2% 2.2%
According to Smith Travel Research, preliminary results for November
2004 indicate that RevPAR for the midscale without food and beverage segment of
the lodging industry increased 8 percent to 10 percent, compared to November
2003. Most of the company's hotels are located 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 facilitated the sale of one leased AmeriHost Inn hotel in
December 2004. The impact of the sale of this hotel, and the related lease
termination, will be reported in the company's financial statements during the
quarter in which the sale transaction closes. Year to date, including this
disposition, the company has divested 15 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 two leased AmeriHost Inn hotels on behalf of
PMC, the landlord, and sold its ownership interest in a non-AmeriHost Inn joint
venture.
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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
The company continues its construction of an AmeriHost Inn & Suites
hotel in Lansing, Mich. for a joint venture in which it is a partner. In
addition, the company expects to close on the debt and equity financing for an
87-room AmeriHost Inn & Suites at the Columbus, Ohio airport in the next 90
days, pending final entitlements and site work required by the seller, at which
time Arlington will commence construction.
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
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AmeriHost Inn hotels, a 107-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 50 properties
in 15 states, including 47 AmeriHost Inn hotels, for a total of 3,612 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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