Arlington Hospitality, Inc. Announces Same-Room Revenue, Hotel Development Activity for May 2003.Business Editors/Real Estate Writers ARLINGTON HEIGHTS Arlington Heights, village (1990 pop. 75,460), Cook county, NE Ill., a residential suburb of Chicago; founded 1836, inc. 1887. Its manufactures include machinery, drugs and medical equipment, and metal fabrication. Arlington Park racetrack is there. , Ill.--(BUSINESS WIRE)--June 18, 2003 Company's AmeriHost Inn Hotels Outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. Prior Year and Industry Results Arlington Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. Hospitality, Inc. (Nasdaq:HOST) today announced May 2003 same-room revenue per available room (RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. ) results for the 62 AmeriHost Inn hotels in which the company has an ownership interest. AmeriHost Inn is a mid-market, limited service hotel brand with approximately 100 properties located in 20 states. Arlington Hospitality, a hotel development and management company, owns and operates 62 AmeriHost Inn hotels, and is the nation's largest owner and operator of the brand. Cendant Cendant Corporation was a New York-based provider of business and consumer services, primarily within the real estate and travel industries. Although the company was based out of New York City, the majority of Cendant's headquarters employees were located in Parsippany-Troy Hills, Corporation (NYSE NYSE See: New York Stock Exchange :CD) is the franchisor of the AmeriHost Inn brand. Results are stated for those hotels, which have been open for at least 13 months during the period presented. Same-room RevPAR for the company's AmeriHost Inn hotels increased 2.6 percent to $35.07 for the month of May 2003, compared to May 2002. Occupancy increased 2.4 percent to 60.3 percent, while average daily rate (ADR ADR - Astra Digital Radio ) increased 0.3 percent to $58.16. These results compare to a Smith Travel Research preliminary forecast of a flat to 2 percent decrease in RevPAR for May 2003 for the mid-scale without food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. segment. "Our AmeriHost Inn hotels began to realize some firmness in room demand during the month of May as the uncertainties related to the war in Iraq subsided," said Jerry H. Herman, Arlington Hospitality chief executive officer. "In particular, our AmeriHost Inn hotels experienced increased demand from leisure travelers, and we saw preliminary strengthening of demand in many markets. The significant improvement over last year's results marks a very positive trend which we hope will continue." Arlington's AmeriHost Inn hotels continued to outperform their segment and the industry as a whole. Herman noted, "Our mid-market without food and beverage segment, and the lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a industry in general, continues to experience declines in RevPAR, primarily due to the ongoing sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. and resulting fall-off in business travel. We remain very aggressive in our marketing strategies, which are delivering the improvements. Another positive is that, for the 12 months ended May 31, 2003, our AmeriHost Inn hotels achieved nearly a 2 percent increase in same-room RevPAR, again, significantly better than our segment and the overall industry."
Arlington Hospitality's AmeriHost Inn May 2003 Results(a)
One Month Five Months Twelve Months
Ended Ended Ended
May 31, 2003 May 31, 2003 May 31, 2003
------------ ------------ ------------
Occupancy - current
period 60.3% 53.4% 58.4%
Occupancy - prior
period 58.9% 53.3% 56.6%
Increase (decrease) 2.4% 0.2% 3.2%
Average Daily Rate
- current period $58.16 $55.90 $57.19
Average Daily Rate
- prior period $57.97 $56.19 $57.93
Increase (decrease) 0.3 % (0.5%) (1.3%)
RevPAR - current
period $35.07 $29.87 $33.41
RevPAR - prior
period $34.14 $29.94 $32.78
Increase (decrease) 2.6% (0.4%) 1.9%
(a) Results are presented on a "same-room" basis, and include the
company's AmeriHost Inn hotels which have been open for at least 13
months during the period presented.
Hotel Sales As part of its hotel development strategy, Arlington Hospitality opportunistically sells existing AmeriHost Inn hotels, as well as other branded hotels it has built. These properties are wholly owned by the company, leased or are owned by a joint venture in which the company is a partner. The company typically facilitates the sale of hotels owned by joint ventures and landlords. Thus far, the second quarter of 2003 includes the sale of one non-AmeriHost Inn hotel owned by a joint venture. Year to date through May 31, Arlington has completed the sale of two wholly owned AmeriHost Inn hotels and facilitated the sale of one AmeriHost Inn hotel owned by a joint venture and the one non-AmeriHost Inn hotel owned by a joint venture. The sale of the two wholly owned properties generated gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. proceeds of approximately $6.5 million, of which approximately $4.2 million was used to reduce debt. In addition, as recently announced, the sale of the non-AmeriHost hotel by a joint venture resulted in the reduction of debt of approximately $925,000 since this was a consolidated joint venture included in the company's financial statements. The company currently has five hotels (four AmeriHost Inn properties and one other branded hotel) under contract for sale, including hotels owned by joint ventures. These transactions are expected to be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. during the next six months. 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 as of the date the sale transactions close. Although the company has these hotels under contract for sale, with nonrefundable Nonrefundable Not permitted, under the terms of an indenture, to be refundable. cash deposits in certain cases, certain conditions to closing remain, and there can be no assurance that these sales will be consummated as anticipated. The sale of AmeriHost Inn hotels wholly owned by Arlington Hospitality or in which the company has an ownership interest allows the company to realize a development incentive fee from its agreement with Cendant, in addition to any profits realized from the sale. The company also benefits from a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. royalty sharing agreement with Cendant for each AmeriHost Inn hotel not owned by the company that is in the franchise system. The above-mentioned anticipated results from hotel sales do not include any of these fees and payments from Cendant. For a complete listing of all hotels for sale by the company, please visit the web site www.hotelsforsaleonline.com, or contact Leon Vainikos via email at leonv@arlingtonhospitality.com or by telephone at (847) 228-5401, ext. 334. The amount of revenue and debt reduction described above relates solely to closed or pending sales activities. Any forecasted amounts from closed or pending sales could differ from the final amounts included in the company's applicable quarterly and annual financial statements when issued. Furthermore, such forecasted amounts do not represent guidance on, or forecasts of, the results of the company's entire consolidated operations, which are reported on a quarterly basis. Consistent with the company's recent public filings, the company is exploring a strategy of selling its nine non-AmeriHost Inn hotels along with 25 to 35 AmeriHost Inn hotels over the next two years. The company has selected a national hotel broker and is negotiating a written agreement for the broker to represent the company in the implementation of this strategy. Management has begun to perform extensive financial and market analysis with the assistance of the national broker, and, in certain cases, an outside consultant to identify the AmeriHost Inn hotels to be marketed for sale. In addition, in determining which hotels are to be marketed for sale, management will be evaluating the impact on the company's cash flow, operations, and financial position post sale, including any impact under Statement of Financial Accounting Standard No. 144, "Accounting for the Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. or Disposal of Long-Lived Assets." The results of this hotel analysis and of an evaluation of the long-term effect on the company may have a significant effect on the quantity and timing of the hotels to be sold. If implemented, the company expects this strategy will reduce debt and generate cash to pursue development and other strategic objectives as well as increase the economic benefits of the company's transaction with Cendant. In addition, certain of the hotels to be sold historically have operated at a deficit, and the successful sale of these properties is expected to eliminate future their anticipated deficits. There can be no assurances that any sales will be consummated or, if consummated, when and on what terms. The company expects to determine the feasibility and means to best implement its strategy and identify which hotels to initially market for sale in the next 30 days. Hotel Development Arlington Hospitality also provides turnkey See turnkey system. hotel development services for new construction hotel projects, including AmeriHost Inn hotels, as well as other hotel brands. To date in 2003, the company has opened two newly constructed AmeriHost Inn hotels for its own account and one newly constructed AmeriHost Inn hotel for a joint venture in which the company is a partner. Currently, the company has one wholly owned AmeriHost Inn hotel under construction. This hotel is expected to open in late June or early July 2003. The company also has several additional hotel projects in various stages of the pre-construction development process. For more information regarding turnkey development services, contact Jerry Herman Jerry Herman (born Gerald Herman on July 10, 1931 in New York City) is an American composer/lyricist of the Broadway musical theater. He composed the scores for the hit Broadway musicals Hello, Dolly!, Mame, and La Cage aux Folles. via email at jerryh@arlingtonhospitality.com or by telephone at (847) 228-5401, ext. 309. From time to time, the company may utilize cash to purchase its own common stock. Currently, the Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the company to buy back, at any time and without notice, up to 1,000,000 shares of its own common stock under certain conditions. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , the company has not purchased any shares under this authorization The right or permission to use a system resource; the process of granting access. See access control. . Arlington Hospitality, Inc. is a hotel development and management company that builds, operates and sells mid-market hotels, primarily the AmeriHost Inn brand. Currently, Arlington Hospitality, Inc. owns or manages 71 properties in 17 states, including 62 AmeriHost Inn hotels, for a total of 5,200 rooms, with one additional AmeriHost Inn & Suites hotel under construction. The AmeriHost Inn brand is a mid-market, limited service hotel brand with approximately 100 properties located in 20 states. The statements appearing in this press release can be construed as forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development and operation of hotels, the timing, consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. and final terms of hotel sales, the availability of capital to finance growth, geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. events, competition and the historical cyclicality of the lodging industry. |
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