Arlington Hospitality, Inc. Announces Same-Room Revenue, June 2003 Hotel Development Activity.Business Editors 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)--July 23, 2003 Five Hotels Sold and Four New AmeriHost Inn Hotels Opened Year to Date in 2003 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/NM: HOST) , a hotel development and management company, today announced June 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 58 AmeriHost Inn hotels in which the company has an ownership interest and which have been opened at least 13 months. AmeriHost Inn is a mid-market, limited service hotel brand with approximately 100 properties located in 20 states. Arlington Hospitality is the nation's largest owner and operator of the brand and owns and operates 62 AmeriHost Inn hotels. Cendant Corporation (NYSE NYSE See: New York Stock Exchange : CD) is the franchisor of the AmeriHost Inn brand. Same-room RevPAR for the company's AmeriHost Inn hotels decreased 4.4 percent to $38.19 for the month of June 2003, compared to June 2002. Occupancy decreased 3.4 percent to 65.2 percent, while average daily rate (ADR ADR - Astra Digital Radio ) decreased 1.0 percent to $58.59. These results compare to a preliminary forecast of flat to 2 percent decrease in RevPAR for June 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 by Smith Travel Research. For the three months ended June 30, 2003, same-room RevPAR for the company's AmeriHost Inn hotels decreased 1.1 percent, compared to a 2.1 percent estimated decrease for the midscale without food and beverage segment for the 2003 second quarter by Smith Travel Research. "Our AmeriHost Inn hotels performed extremely well over the past 18 months, compared to other brands in our market segment. However, the strong corporate business pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their we experienced in May did not continue at the same pace in June, which resulted in lower than expected results for the month," said Jerry H. Herman, Arlington Hospitality's chief executive officer. "Nonetheless, leisure travel continued to uptrend uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in . As we look toward the remainder of the year, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about achieving positive results in same-room RevPAR, compared to our segment of the hotel industry." Rick Gerhart, senior vice president of hotel operations, commented, "Business travel remains difficult to forecast, but we are working aggressively to generate the kind of occupancy from this segment that we have achieved with our strong leisure travel business. We recently launched a major new sales and marketing campaign that combines the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , revenue management, and a number of other sales initiatives to further drive occupancies. For the 12 months ended June 30, 2003, our AmeriHost Inn hotels achieved nearly a 1 percent increase in same-room RevPAR, significantly better than the overall industry."
Arlington Hospitality's AmeriHost Inn June 2003 Results(a)
One Month Three Months Six Months Twelve Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2003 2003 2003 2003
---------- ------------ ----------- ------------
Occupancy -
current period 65.2% 60.9% 55.4% 58.0%
Occupancy -
prior period 67.5% 61.3% 55.6% 56.8%
Increase (decrease) (3.4%) (0.7%) (0.4%) 2.1%
Average Daily Rate -
current period $58.59 $57.65 $56.42 $57.14
Average Daily Rate -
prior period $59.17 $57.86 $56.79 $57.76
Increase (decrease) (1.0%) (0.4%) (0.7%) (1.1%)
RevPAR -
current period $38.19 $35.11 $31.23 $33.11
RevPAR -
prior period $39.92 $35.46 $31.58 $32.80
Increase (decrease) (4.4%) (1.1%) (1.2%) 0.9%
(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 sells existing AmeriHost Inn hotels, as well as other branded hotels, subject to satisfaction of the company's sale and investment parameters for each hotel marketed for sale. As recently announced, the company has implemented a strategy to sell six non-AmeriHost Inn hotels along with 20 to 25 AmeriHost Inn hotels over the next two years. The company has engaged Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. Calhoun Fair, a national hotel broker, to market most of the hotels to be sold as part of this plan. The company expects this strategy will reduce debt and generate cash to pursue development and other strategic objectives, as well as accelerate the economic benefits of the company's agreement with Cendant Corporation. There can be no assurances that any sales will 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. or as to the timing or terms of any consummated sales. To date, all sales of AmeriHost Inn hotels wholly owned by Arlington Hospitality, or in which the company has an ownership interest, have been made to new or existing AmeriHost Inn franchisees. Such sales allow the company to realize a development incentive fee from its agreement with Cendant for each hotel sold that remains as an AmeriHost Inn franchised hotel, 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 anticipated results from hotel sales discussed below do not include any of these fees and payments from Cendant. Year to date through June 30, Arlington has completed the sale of three 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 three 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 $9.0 million, of which approximately $5.6 million was used to reduce mortgage debt. In addition, the sale of the non-AmeriHost hotel by a joint venture resulted in mortgage debt reduction of approximately $925,000 since this was a consolidated joint venture included in the company's financial statements. The company currently has five AmeriHost Inn hotels under contract for sale, including hotels owned by joint ventures. These transactions are expected to be consummated 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 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. Information on Arlington's hotels being brokered for sale by Thompson Calhoun Fair can be found at www.tcfhotels.com, or by calling Mark Fair at 404-995-8970. For a complete listing of all hotels held by the company, please contact Leon Vainikos via email at leonv@arlingtonhospitality.com or by telephone at (847) 228-5401,ext. 334. Hotel Development Arlington Hospitality also provides turnkey See turnkey system. hotel development services for new construction hotel projects, including AmeriHost Inn hotels. To date in 2003, the company has opened three 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. 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. Other Matters 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 it own common stock under certain conditions. Year to 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. . About Arlington Hospitality 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 5,224 rooms, with additional AmeriHost Inn & Suites hotels under development. The AmeriHost Inn brand is a mid-market, limited service hotel brand with approximately 100 properties located in 20 states. This press release may contain 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 and Section 21E of the Securities Exchange Act of 1934. 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 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 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. All forward-looking statements included in this press release are based on information available at the time of the release, and Arlington Hospitality assumes no obligation to update any forward-looking statement. |
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