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Reduces Seasonal Net Loss by 46% |
ARLINGTON HEIGHTS, ILLINOIS, May 7, 2001 � Amerihost Properties, Inc.
dba Arlington Hospitality, Inc. (Nasdaq/NM: HOST) today announced its earnings
results for the first quarter ended March 31, 2001. Net loss for
the quarter was ($620,118), or ($0.13) per diluted share, compared to a
net loss of ($904,080), or ($0.18) per diluted share in 2000. Net
income plus depreciation was $501,228 during the first quarter of 2001,
increasing 151% from $199,744 for the first quarter of 2000. Revenues
for the first quarter increased 22.7%, to $19.5 million in the first quarter
of 2001 (including $5.8 million from the sale of hotels), from $15.9 million
in 2000.
The net loss for the first quarter of 2001 was the result of the seasonality of the Company�s business, partially offset by fees and profits recognized in connection with the sale of hotels. Michael P. Holtz, President and Chief Executive Officer commented, �The Company is executing its strategy to build and sell hotels. During the first quarter of 2001, the Company sold four AmeriHost Inn hotels, realizing gains from the sale of these hotels, as well as transactional incentive fees from Cendant Corporation. As previously announced, we have formed a long-term relationship with Cendant, the world�s largest hotel franchiser, with the goal of expanding the AmeriHost Inn brand together. The Company is highly focused on developing new AmeriHost Inn hotels as well as selling AmeriHost Inn hotels, in order to maximize the value inherent in the Cendant relationship.� In conjunction with the Cendant transaction, the Company has begun doing business as Arlington Hospitality, Inc. and intends to legally change to this name, subject to shareholder approval at its next shareholder meeting scheduled for May 24, 2001. The Company�s NASDAQ symbol will remain unchanged: HOST. Currently, the Company has five AmeriHost Inn & Suites hotels under construction. These hotels are located in Lomira, Wisconsin; Pella, Iowa; Dowagiac, Michigan; Fontana, California; and Howell, Michigan. The Company has several additional hotel projects in various stages of development and intends to begin construction on an additional 5 - 8 hotels during 2001. Currently, the Company owns and operates 68 AmeriHost Inn hotels, in addition to the hotels under construction and development. Same Room Revenue Per Available Room (�RevPAR�) for the first quarter
ended March 31, 2001 for the AmeriHost Inn hotel brand was relatively flat.
Holtz continued, �We have been focused on increasing our average daily
rate in many of our markets, with the objective of maintaining occupancy.
Increases in average daily rate will generally have a direct positive impact
on our operating results. We have also been focused on controlling
our costs. However, our hotel operational results were negatively
impacted by significant increases in utility costs at many of our hotels
during the first quarter of 2001.�
Amerihost Properties, Inc. dba Arlington Hospitality, Inc. is a hotel management and development company that builds and manages mid-priced hotels. Currently, Arlington Hospitality, Inc. owns or manages 79 properties in 17 states, including 68 AmeriHost Inn hotels, for a total of 5,767 rooms, with five additional AmeriHost Inn & Suites hotels under construction. Each hotel offers an amenity package not often found in other mid-priced hotels. In addition, every AmeriHost Inn hotel is �three-diamond� rated by AAA. 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 availability of capital to finance growth, and the historical cyclicality of the lodging industry.
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James B. Dale Chief Financial Officer 847-228-5401 x 361 [email protected] |
Also See | Amerihost Properties Changes Name to Arlington Hospitality; Due to Sale of the AmeriHost Inn® Hotel Brand Name and Franchising Rights to Cendant Corporation / Oct 2000 |