Three Months Ended    Twelve Months Ended
                             Jan. 2,    Jan. 3,    Jan. 2,    Jan. 3,
                               2004       2003       2004       2003
                           -------------------------------------------
REVENUES:
   Rooms                     $60,476    $64,555   $267,502   $270,534
   Food and beverage          30,777     33,472    113,402    117,810
   Meeting room rental,
    related party
    management fee and
    other                     12,347     13,854     50,341     52,036
                           ---------- ---------- ---------- ----------
       Total revenues        103,600    111,881    431,245    440,380

OPERATING EXPENSES:
   Direct operating costs
    and expenses:
       Rooms                  16,749     17,418     67,444     68,917
       Food and beverage      23,032     25,239     87,079     91,310
       Other                     623        734      2,722      3,179

   General, administrative,
    sales and management
    expenses                  32,562     34,124    137,202    136,866

   Repairs and maintenance     4,688      4,875     18,321     18,387

   Asset impairment            9,700          -      9,700          -

   Depreciation and
    amortization              13,838     14,911     51,723     54,202
                           ---------- ---------- ---------- ----------

       Total operating
        costs                101,192     97,301    374,191    372,861
                           ---------- ---------- ---------- ----------

INCOME FROM OPERATIONS         2,408     14,580     57,054     67,519

OTHER INCOME (EXPENSE):
   Other income                    -          -        175          -
   Interest income               124        262        602      1,018
   Interest expense and
    amortization of
    deferred financing fees  (17,210)   (18,574)   (69,827)   (71,989)
   Extinguishment of debt
    costs                       (456)       (28)      (774)    (7,411)
                           ---------- ---------- ---------- ----------

LOSS BEFORE MINORITY INTEREST
 AND PROVISION FOR INCOME
 TAXES                       (15,134)    (3,760)   (12,770)   (10,863)
   Minority interest in
    losses of partnership      7,654      2,856      5,859      8,252
                           ---------- ---------- ---------- ----------

LOSS BEFORE PROVISION FOR
 INCOME TAXES                 (7,480)      (904)    (6,911)    (2,611)
   Provision for income
    taxes                        (30)       (30)      (150)      (150)
                           ---------- ---------- ---------- ----------

NET LOSS ALLOCABLE TO THE
 COMPANY                     $(7,510)     $(934)   $(7,061)   $(2,761)
                           ========== ========== ========== ==========

BASIC LOSS PER SHARE:
   Net loss allocable to
    Company                   $(1.47)    $(0.18)    $(1.39)    $(0.54)
                           ========== ========== ========== ==========

WEIGHTED AVERAGE SHARES
 OUTSTANDING               5,102,979  5,083,829  5,092,829  5,081,285
                           ========== ========== ========== ==========

See Notes to Consolidated Financial Statements

-0-

                     JOHN Q. HAMMONS HOTELS, INC.
                             AND COMPANIES
  (Amounts in thousands except earnings per share and operating data)

                               Three Months Ended  Twelve Months Ended
                                Jan. 2,   Jan. 3,   Jan. 2,   Jan. 3,
                                  2004      2003      2004      2003
                               --------- --------- --------- ---------
Reconciliation of Net Loss to
 EBITDA:
Net loss                        ($7,510)    ($934)  ($7,061)  ($2,761)
Provision for income taxes           30        30       150       150
Minority interest in losses of
 partnership                     (7,654)   (2,856)   (5,859)   (8,252)
Extinguishment of debt costs        456        28       774     7,411
Interest expense and
 amortization of deferred
 financing fees                  17,210    18,574    69,827    71,989
Interest income                    (124)     (262)     (602)   (1,018)
Other income                          -         -      (175)        -
Depreciation and amortization    13,838    14,911    51,723    54,202
                               --------- --------- --------- ---------
EBITDA (a)                      $16,246   $29,491  $108,777  $121,721
                               ========= ========= ========= =========

EBITDA Margin (% of Total
 Revenue)                          15.7%     26.4%     25.2%     27.6%

(a) EBITDA is defined as income before interest income and expense,
income tax expense, depreciation and amortization, minority interest,
extinguishment of debt costs and other income. Management considers
EBITDA to be one measure of operating performance for the Company
before debt service that provides a relevant basis for comparison, and
EBITDA is presented to assist investors in analyzing the performance
of the Company. This information should not be considered as an
alternative to any measure of performance as promulgated under
accounting principles generally accepted in the United States, nor
should it be considered as an indicator of the overall financial
performance of the Company. The Company's calculation of EBITDA may be
different from the calculation used by other companies and, therefore,
comparability may be limited.

Three Months Ended  Twelve Months Ended
                                Jan. 2,   Jan. 3,   Jan. 2,   Jan. 3,
                                  2004      2003      2004      2003
                               --------- --------- --------- ---------
Total Owned Hotels:
Occupancy                          58.4%     57.8%     63.5%     63.8%
Average Room Rate                $97.87    $97.95    $99.50    $98.31
RevPAR (Room Revenue per
 available room)                 $57.15    $56.62    $63.19    $62.68
 

                                 Jan. 2,   Jan. 3,  Dec. 28,
                                   2004      2003     2001
                               -----------------------------
Selected Balance Sheet Data
------------------------------
Current Assets                  $54,022   $52,020   $60,673

Total Assets                   $822,183  $859,972  $881,724

Current Liabilities Excluding
 Debt                           $41,043   $40,789   $45,072

Current Portion of Long-Term
 Debt                            $7,423   $13,683   $38,862

Total Long-Term Debt Including
 Current Portion               $781,072  $806,342  $813,007

Total Cash and Equivalents,
 Restricted Cash and
Marketable Securities           $61,222   $50,368   $55,674

Net Debt                       $719,850  $755,974  $757,333