Arlington Hospitality, Inc. Sells Amerihost Inn in Zanesville, Ohio.

Business Editors/Travel Writers

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--July 1, 2003

Arlington Hospitality, Inc. (Nasdaq/NM: HOST) today announced the sale of its wholly owned AmeriHost Inn hotel located in Zanesville, Ohio. The hotel 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). The terms of this sale were not disclosed; however, the company has paid off mortgage debt in the amount of approximately $1.4 million with proceeds from the sale of this hotel. The company expects to include the results of the sale in its second quarter 2003 financial statements.

In addition to 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.

Year to date in 2003, Arlington Hospitality, Inc. has sold three wholly owned AmeriHost Inn hotels, facilitated the sale of one AmeriHost Inn hotel owned by a joint venture, and facilitated the sale of a non-AmeriHost Inn hotel owned by a joint venture. Arlington Hospitality sells existing AmeriHost Inn hotels in which the company has an ownership interest as part of its hotel development strategy to free up cash and deleverage through the disposition of nonstrategic

assets, and to increase its development and acquisition efforts toward more strategic assets. For a complete listing of all hotels for sale by the company, please visit our web site at www.hotelsforsaleonline.com, or contact Leon Vainikos via email at [e-mail] or by phone at [phone] ext. 334.

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 Jerry Herman via email at [e-mail] or by phone at [phone] ext. 309.

Arlington Hospitality, Inc. is a hotel management and development company that builds, manages and sells mid-priced hotels throughout the United States, primarily under the AmeriHost Inn brand. As of today, Arlington Hospitality, Inc. owns or manages 72 properties in 17 states, including 62 AmeriHost Inn hotels, for a total of 5,329 rooms, with additional AmeriHost Inn & Suites under development. Each hotel offers an amenity package not often found in other mid-priced hotels. For more information about 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 timing, consummation and final terms of hotel sales, the availability of capital to finance growth, geopolitical events, and the historical cyclicality of the lodging industry.