John Q. Hammons Hotels, Inc. Reports 2nd Qtr Occupancy was 64.9%, Down 2.8% from the 1997 2nd Qtr / ADR Up 12.9% / Aug 1998

Hotel Online Special Report

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John Q. Hammons Hotels, Inc. Reports 2nd Qtr Occupancy was 64.9%, down 2.8% from the 1997 2nd Qtr - ADR Up 12.9% Hotel Operting Data

SPRINGFIELD, Mo., Aug. 11, 1998 - John Q. Hammons Hotels, Inc. (NYSE: JQH) today reported total earnings before interest expense, taxes, depreciation and amortization (EBITDA) of $24.1 million for the second quarter ended July 3, 1998, compared to 1997 second quarter EBITDA of $24.2 million. Total revenue for the quarter increased to $81.8 million, up 7.3% from $76.2 million in the 1997 second quarter.

On May 11, 1998 the Company opened World Golf Resort Convention Center in St. Augustine, Florida. The opening marked the sixteenth hotel the Company has developed in less than three years. The Company expects to open two additional hotels during the remainder of 1998. These two hotels are Capitol Plaza Hotel in Topeka, Kansas; and Embassy Suites Hotel in Portland, Oregon.

The Company's average room rate for the quarter was $91.78, up 12.9% compared to the 1997 second quarter average room rate of $81.26. In comparison, average room rate for the hotel industry was $78.30 in the second quarter, up 4.7% from the 1997 second quarter. The Company's occupancy for the quarter was 64.9%, down 2.8 percentage points from the 1997 second quarter. Occupancy for the hotel industry was 67.5%, down 0.7 percentage point from the 1997 second quarter. The Company's Revenue Per Available Room (RevPAR) was $59.56 in the 1998 second quarter, up 8.4% from $54.97 in the 1997 second quarter. RevPAR for the hotel industry was $52.87, up 4.0% from the 1997 second quarter.

The Company recorded an EBITDA of $46.3 million for the first six months of 1998 exceeding the same period in 1997 by 2.9%. The Company's occupancy for six months was 63.1%, down 2.4 percentage points from the previous year. Average room rate of $91.00 grew by $10.30, a 12.8% increase. Similarly, RevPAR of $57.44 also improved by $4.61 from the six month period in 1997.

John Q. Hammons, Chairman and Chief Executive Officer said, "The EBITDA results for the second quarter are ahead of our expectations. Our movement toward upscale and upper scale hotels is driving our RevPAR and we are most encouraged to see it growing at more than twice the pace of the industry's RevPAR growth rate in the second quarter. Also, in absolute terms, we achieved a 12.7% RevPAR premium to the industry. With fewer hotels being constructed in the upscale and upper scale price segments, we believe these segments will be the place to be in the future. The new hotels added (eight) since the beginning of 1997 while adding revenues to the Company will also add strong incremental EBITDA in the future. These properties are on track with our
expectations and will stabilize over the next two years."

Basic and diluted earnings (loss) per share in the second quarter was a $0.06 loss, compared to a $0.26 profit in the 1997 second quarter. The EPS loss was driven by fixed charges associated with the Company's seven new hotels opened in 1997 and the 1998 second quarter.

At the end of the 1998 second quarter the Company had six new projects under construction -- Capitol Plaza Hotel adjacent to the City Convention Center in Topeka Kansas; Embassy Suites at the International Airport in Portland, Oregon; Hampton Inn Suites Hotel adjacent to the Mesquite Championship Rodeo Arena in Mesquite, Texas; Radisson Plaza Hotel adjacent to the PGA TOUR Tournament Players Club at Heron Bay in Coral Springs, Florida; Embassy Suites Hotel at the Dallas-Fort Worth Airport connected to the Bass Pro Shop in Grapevine, Texas; and a Marriott Renaissance hotel in Charlotte, North Carolina.

The Company currently owns and manages 45 Hotels, including four managed hotels, with 11,090 rooms in 20 states. The new hotels under construction will add 1,463 suites and rooms which represent an increase of 13.1% to the Company's Portfolio.

**Hotel Operating Data**
JOHN Q. HAMMONS HOTELS, INC.
	Three Months Ended		YTD
	July 3 1998	July 2 1997	1998	1997
Mature Hotels:
Occupancy	66.9%	68.3%	64.3%	65.8%
Average Daily Rate	$87.06	$79.86	$86.57	$79.72
RevPAR	$58.24	$54.54	$55.66	$52.45
New Hotels (a)
Occupancy	55.9%	54.4%	57.1%	54.6%
Average Daily Rate	$116.67	$119.39	$116.27	$116.56
RevPAR	$65.22	$64.94	$66.40	$63.62
Total Owned Hotels
Occupancy	64.9%	67.7%	63.1%	65.5%
Average Room Rate	$91.78	$81.26	$91.00	$80.70
RevPAR	$59.56	$54.97	$57.44	$52.83

(a) New Hotels include: Omaha Embassy Suites; Branson Chateau; Cary Embassy Suites; Charleston Embassy Suites; Kansas City Homewood; Little Rock Embassy Suites; Tampa Bay Embassy Suites; World Golf Village NOTE: Certain matters discussed within this press release are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although John Q. Hammons Hotels believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These uncertainties are more fully described in the Company's filings with the Securities and Exchange Commission.

A focal point of activity within the World Golf Village is the largest combination hotel and conference center between Atlanta and Orlando.
Operated by John Q. Hammons Hotels, Inc., the World Golf Village Resort Hotel features a striking 10-story atrium, 300 guest rooms with the capability to expand, and access to hundreds more rooms located in the villas throughout the Village.

The adjoining St. Johns County Convention Center is equipped with 80,000 square feet of meeting space and a 30,000 square foot grand ballroom. Not only can corporate groups take advantage of the convention center's exceptional meeting facilities and the hotel's many amenities, but they also have access to the Village's distinctive shops and restaurants, exciting venues such as the Hall of Fame and IMAX theater, and world class golf.

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Contact: Ken Weber, Chief Financial Officer of John Q. Hammons Hotels, Inc., 417-864-4300