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John Q. Hammons Hotels Decision to Increase Sales
and Marketing Budgets Played Significant Role
in Q1 Success

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Company Reports Stellar Q1 ’04 Financials Including Impressive Occupancy, 
Average Daily Rate, and Revenue Per Available Room

SPRINGFIELD, Mo. – May 11, 2004 – Springfield, Mo.-based John Q. Hammons Hotels, Inc. (AMEX: JQH) continues to exhibit industry-leading financial results, as reflected in its Q1’04 financials reported yesterday.  The company’s stellar financial performance extends its track record of outperforming the hotel industry for 12 consecutive quarters in occupancy, average daily rate (ADR), and revenue per available room (RevPAR).  John Q. Hammons Hotels is the nation’s leading independent builder, developer, owner and manager of upscale full-service hotels, resorts and suites. 

Financial Highlights

In Q1 ’04, the John Q. Hammons Hotels portfolio of 60 properties secured 65.5 percent occupancy, nearly 9 percent over the industry’s 56.8 percent.  The company achieved an ADR of $101.29, surpassing the industry’s $86.89 by more than $14.  In RevPAR, John Q. Hammons Hotels scored $66.33, nearly $17 above the industry average of $49.37.  The company’s hotels also tend to be top performers among the brand systems in which they operate, such as Embassy Suites Hotel, Marriott and Holiday Inn.

John Q. Hammons Hotels’ total revenues were $114.4 million in Q1 ’04, representing an increase of 3.9 percent over the same period last year.  Regarding earnings per share (EPS), the company reported a 400 percent increase, including minority interest reallocation.  EPS was $0.85, up from $0.04.  Overall EBITDA was $33.3 million, up 8.5 percent compared to the same quarter in ’03.  EBITDA margins increased to 29.1 percent.

“Our impressive financial performance is grounded in our focused attention on consistently delivering a high quality product that exceeds guest expectations and brand standards,” said Mr. John Q. Hammons, founder, chairman and chief executive officer of John Q. Hammons Hotels, Inc.  “To sustain our exceptional track record, we will continue to focus on maintaining operating performance, cash generation and debt reduction.”

According to Lou Weckstein, president of John Q. Hammons Hotels, the company’s decision to increase sales and marketing budgets also played a significant role in its Q1 success, while solidly positioning the company for taking advantage of the travel rebound in future quarters.

“During the challenging economic times, we tightened our belt as other hotel companies did; however, we increased our sales and marketing budget allocations and placed emphasis on company-wide sales training,” Weckstein said.  “This wise investment further strengthened our position with the key business generators, which is reflected in our increases in corporate group and corporate transient business.”

Publicly traded on the American Stock Exchange (AMEX: JQH), Springfield, Mo.-based John Q. Hammons Hotels, Inc. is the nation’s leading independent builder, developer, owner and manager of upscale, full-service hotels, resorts and suites, including: Embassy Suites Hotel, Renaissance, Marriott, Radisson, Residence Inn, Homewood Suites, Holiday Inn and Courtyard by Marriott brands.  

Hotel industry statistics provided by Smith Travel Research.

  
Contact:
Scott Tarwater 
  John Q. Hammons Hotels, Inc. 
417-864-4300
scott.tarwater@jqh.com

 
Also See: Two John Q. Hammons Hotels General Managers, Bill Maguire and Jay Johnson, Receive Awards From Marriott International / April 2004
John Pasley, GM of the Renaissance Oklahoma City Hotel, Named “Outstanding General Manager of the Year” by the Oklahoma Hotel and Lodging Association / February 2004


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