Exhibit 99.1

   American Retirement Corporation Signs Joint Venture Agreement to
                       Develop Denver Community

    NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 9, 2005--American
Retirement Corporation (NYSE:ACR) ("ARC" or the "Company"), a leading
national provider of senior living housing and care, today announced
that it has entered into an agreement with Denver Lowry Senior
Housing, LLC, an affiliate of an institutional real estate investor,
to jointly fund the development of a rental Continuing Care Retirement
Community in Denver. The community, The Heritage Club of Lowry, will
have 134 independent living units, 31 assisted living units, and 60
skilled nursing beds.
    The joint venture entity will be owned 20% by ARC and 80% by
Denver Lowry Senior Housing, LLC. The total development cost of the
project is estimated to be approximately $38 million and GMAC
Commercial Mortgage Corporation has agreed to provide $25.5 million of
debt financing for the project. The remainder of the development cost
will be funded by proportional capital contributions from the members
of the joint venture entity. ARC will act as the developer of the
project and manage the community pursuant to a long-term management
agreement.
    "This community will be a strong addition to our current network
of seven senior housing communities in the Denver area," said Bill
Sheriff, Chairman, President and CEO of the Company. "Denver is an
extremely attractive market with strong demographics and
socio-economic composition. This is a great location with good
visibility and several active adult communities nearby."
    Mr. Sheriff added, "We are developing this project using a joint
venture structure with low leverage. The joint venture structure
allows us to limit our cash investment and to reduce risk to our
financial statements. By combining the economic streams of development
fees, management fees and the minority interest of partial ownership,
we feel the structure will provide a strong return on capital to our
shareholders. We expect to begin construction this month."
    The Company will file a Form 8-K with the SEC which provides
further information concerning the transaction.

    Company Profile

    American Retirement Corporation is a national senior living and
health care services provider offering a broad range of care and
services to seniors, including independent living, assisted living,
skilled nursing and Alzheimer's care. Established in 1978, the Company
believes that it is a leader in the operation and management of senior
living communities, including independent living communities,
continuing care retirement communities, free-standing assisted living
communities, and the development of specialized care programs for
residents with Alzheimer's and other forms of dementia. The Company's
operating philosophy is to enhance the lives of seniors by striving to
provide the highest quality of care and services in well-operated
communities designed to improve and protect the quality of life,
independence, personal freedom, privacy, spirit, and dignity of its
residents. The Company currently operates 76 senior living communities
in 19 states, with an aggregate unit capacity of approximately 14,300
units and resident capacity of approximately 16,000. The Company owns
27 communities (including 9 communities in joint ventures), leases 43
communities, and manages 6 communities pursuant to management
agreements. Approximately 83% of the Company's revenues come from
private pay sources.

    Safe Harbor Statement

    Statements contained in this press release and statements made by
or on behalf of ARC relating hereto may be deemed to constitute
forward-looking information made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include all statements that are not
historical statements of fact and those regarding the intent, belief
or expectations of the Company or its management, including, without
limitation, all statements regarding the Company's expectations
concerning the development of the project and the project's effect on
the Company's financial performance. These forward-looking statements
may be affected by certain risks and uncertainties, including without
limitation the following: (i) our ability to successfully complete the
development of the project and integrate the community into our
operations, (ii) the risk that the joint venture entity will incur
operating deficits which we will be required to fund, (iii) the risk
that we will be unable to improve our results of operations, increase
cash flow and reduce expenses, (iv) the risks associated with adverse
market conditions of the senior housing industry and the United States
economy in general, (v) the risk associated with our significant debt
and lease obligations, and (vi) the risk factors described in our
Annual Report on Form 10-K/A for the year ended December 31, 2004
under the caption "Risk Factors" and in our other filings with the
SEC. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the Company's actual
results could differ materially from such forward-looking statements.
The Company does not undertake any obligation to publicly release any
revisions to any forward-looking statements contained herein to
reflect events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events.

    CONTACT: American Retirement Corporation
             Ross C. Roadman, 615-376-2412