Arlington Hospitality, Inc. Announces Sale of Ramada Inn Middletown, Ohio.

Business Editors

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Dec. 23, 2002

Arlington Hospitality, Inc. (Nasdaq/NM:HOST) today announced the sale of a Ramada Inn hotel located in Middletown, Ohio by a joint venture in which it has a significant ownership interest. The Company received approximately $1.6 million in connection with the sale, which was then used primarily for the reduction of corporate debt. The Company monetized its joint venture interest as part of its overall strategic plan which, among other things, calls for divesting ownership in its non-AmeriHost hotels. The Company now has ten non-AmeriHost Inn hotels, all of which are for sale. The Company expects to include the results of the sale in its fourth quarter 2002 financial statements.

Arlington Hospitality sells existing AmeriHost Inn hotels, as well as other branded hotels, as part of its hotel development strategy. For a complete listing of all hotels for sale by the Company, please visit our web site at www.hotelsforsaleonline.com, or contact David Harjung via email at [e-mail] or by phone at [phone] ext. 347. In addition, Arlington Hospitality provides turnkey hotel development services for new construction hotel projects, including AmeriHost Inn hotels as well as other hotel brands. For more information regarding turnkey development services contact Paul Eskenazi via email at [e-mail] or by phone at [phone] ext. 312.

Arlington Hospitality, Inc. is a publicly traded hotel management and development company that builds, manages and sells mid-priced hotels throughout the United States, primarily under the AmeriHost Inn brand, a trademark owned by Cendant Corporation. Currently, Arlington Hospitality, Inc. owns or manages 72 properties in 17 states, including 62 AmeriHost Inn hotels and 10 other branded hotels, for a total of 5,283 rooms, with four additional AmeriHost Inn & Suites hotels under construction. Each hotel offers an amenity package not often found in other mid-priced hotels. For additional information on the company, please visit our web site at 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 availability of capital to finance growth, and the historical cyclicality of the lodging industry.