Arlington Hospitality, Inc. Announces Sale of AmeriHost Inn Newark, Ohio.

Business Editors

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--March 14, 2003

Arlington Hospitality, Inc. (Nasdaq/NM: HOST) today announced the sale of an AmeriHost Inn hotel located in Newark, Ohio by a joint venture in which it has a minority ownership interest.

The 72-room property will remain an AmeriHost Inn hotel as the buyer has executed a franchise agreement with AmeriHost Franchise Systems, Inc., a subsidiary of Cendant Corporation (NYSE: CD). Terms of this sale were not disclosed. The company expects to include the results of the sale in its first quarter 2003 financial statements.

It is the third hotel sold by the company in the 2003 first quarter as part of Arlington Hospitality's continuing program to develop and sell AmeriHost Inn-branded hotels. The company has an additional two AmeriHost Inn hotels and two non-core, non-AmeriHost hotels under sales contract and two hotels currently under construction. "The AmeriHost Inn brand is well received by individual owners as well as investment groups," said Jerry Herman, Arlington Hospitality president. "We are seeing excellent interest by investors in our properties for sale and are actively engaged in negotiations on a number of fronts. We also are looking at new development opportunities in both secondary and tertiary markets."

In addition to its share of the proceeds from the sale, the company will receive continuing cash flow related to this hotel from Cendant pursuant to the franchise royalty sharing agreement executed in connection with the sale of the AmeriHost Inn brand name and franchising rights by the company to Cendant in September 2000.

Arlington Hospitality continues to reshape its hotel portfolio and use the proceeds to pay down debt and to finance development of new AmeriHost Inn hotels, primarily through joint ventures. A complete listing of all hotels for sale by the company is available at the company's Web site www.hotelsforsaleonline.com. Interested parties may contact David Harjung via email at [e-mail] or by telephone at [phone], ext. 347. In addition, Arlington Hospitality provides turnkey hotel development services for new construction hotel projects, including AmeriHost Inn hotels and other hotel brands. For more information regarding turnkey development services contact Paul Eskenazi via email at [e-mail] or by telephone at [phone], ext. 312.

Arlington Hospitality, Inc. is a hotel, development and management company that builds, operates and sells mid-market hotels, primarily the AmeriHost Inn brand. Arlington Hospitality, Inc. currently owns or manages 71 properties in 17 states, including 61 AmeriHost Inn hotels, for a total of 5,209 rooms, with two additional AmeriHost Inn & Suites hotels under construction. The AmeriHost Inn brand is a mid-market limited service hotel brand, created by Arlington in 1989 and sold to Cendant Corporation in 2000. The brand has approximately 100 properties located in 20 states. Additional information about Arlington Hospitality is available on company's web site www.arlingtonhospitality.com.

The statements appearing in this press release can be construed as forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including without limitation, risks relating to the development and operation of hotels, the timing, consummation and final terms of hotel sales, the availability of capital to finance growth, geopolitical events, competition and the historical cyclicality of the lodging industry.