On August 18, 1998 the Company opened Capitol Plaza in Topeka, Kan. and followed with the opening of the Embassy Suites at Portland, Oregon Airport on September 30, 1998. These openings marked the 17th and 18th hotels the Company has developed in less than four years. In 1998, the Company opened four hotels. On December 31, 1998, the Company sold the Holiday Inn Fresno (Calif.) Centre Plaza Hotel for $16.6 million resulting in a recorded gain of $8.0 million. 

The Company's average room rate for the quarter was $91.61, up 8.9 percent compared to the 1997 fourth quarter average room rate of $84.10. In comparison, average room rate for the industry was $78.49 in the fourth quarter, up 4.0 percent from the 1997 fourth quarter. The Company's occupancy for the quarter was 56.2 percent, up 1.3 percentage points from the 1997 fourth quarter. Occupancy for the hotel industry was 58.5 percent, down 0.3 percentage points from the 1997 fourth quarter. The Company's Revenue Per Available Room (RevPAR) was $51.49 in the 1998 fourth quarter, up 11.6 percent from $46.13 in the 1997 fourth quarter. RevPAR for the hotel industry was $45.95, up 3.5 percent from the 1997 fourth quarter. 

John Q. Hammons, Chairman and Chief Executive Officer said, "The Operating results for the fourth quarter and 1998 continue to reflect strong performance of our first class hotels in market driven locations. We are encouraged to report that our results continue to be above the industry's pace. The strength of strong brands, new hotels and outstanding property management will continue to grow the value of the portfolio today and in the future." 

The Company recorded EBITDA of $95.0 million for the 12 months of 1998, compared to $87.9 million exceeding the same period in 1997. Total revenue for the 12 months increased to $326.1 million, up 7.9 percent from $302.3 million in the 1997 12 months. 

The Company's average room rate for the 12 months was $91.38, up 10.9 percent compared to the 1997 12-month average room rate of $82.38. In comparison, average room rate for the hotel industry was $78.62 in the 12 months, up 4.4 percent from the 1997 12 months. The Company's occupancy for the 12 months was 62.1 percent, down 0.8 percentage points from the 1997 12 months. Occupancy for the hotel industry was 64.0 percent, down 0.8 percentage points from the 1997 12 months. The Company's Revenue Per Available Room (RevPAR) was $56.79 for the 1998 12 months, up 9.6 percent from $51.84 in the 1997 12 months. RevPAR for the hotel industry was $50.29, up 3.6 percent from the 1997 12 months. 

Basic and diluted earnings per share in the fourth quarter were a $0.20 profit, compared to a $0.09 profit in the 1997 fourth quarter. Excluding the gain on the sale of Holiday Inn Fresno Centre Plaza, loss per share in the fourth quarter was $(0.17). Basic and diluted earnings (loss) per share for the 12 months of 1998 was a $(0.10) loss, compared to a $0.38 profit for the same period in 1997. Excluding the gain on the sale of the Holiday Inn Fresno Centre Plaza, loss per share for the 12 months was $(0.47). The EPS loss was driven by fixed charges associated with the Company's 10 new hotels opened in 1997 and through the fourth quarter of 1998. 

Brand Performance 

The Company's 13 Embassy Suites branded hotels generated a $68.72 RevPAR in the fourth quarter, up 2.8 percent from the 1997 fourth quarter, while EBITDA increased by $2.7 million, up 42.3 percent.  For the 12-month period, RevPAR increased by 1.0 percent from the previous year while EBITDA improved by $10.2 million, up 42.7 percent.  The variance in RevPAR and significant improvement in EBITDA reflect the opening of four new Embassy Suites within the last 12-month period that are continuing to mature and stabilize. 

The Company's 16 Holiday Inn branded hotels generated a $41.07 RevPAR in the fourth quarter, up 10.2 percent from the 1997 fourth quarter, while EBITDA decreased by $0.2 million. A decrease of approximately $1.3 million EBITDA can be attributed to the six properties sold in February 1998. For the 12-month period, RevPAR improved by 7.9 percent from the previous year while EBITDA decreased $5.4 million. A decrease of approximately $5.7 million of EBITDA can be attributed to the six properties sold in February 1998. 

At the end of the 1998 fourth quarter the Company had six projects under construction -- 

• Hampton Inn Suites Hotel adjacent to the Mesquite Championship Rodeo Arena in Mesquite, Texas; 
• Radisson Resort Hotel adjacent to the PGA TOUR Tournament Players Club at Heron Bay in Coral Springs, Fla.; 
• Embassy Suites Outdoor World at DFW International Airport in Grapevine, Texas; 
• a Marriott Renaissance Suites hotel in Charlotte, N.C.; 
• a Marriott Renaissance Oklahoma City Hotel Downtown Oklahoma City; 
• and an Embassy Suites in North Charleston, S.C. 

The Company currently owns and manages 47 hotels, including five managed hotels, with 11,499 rooms in 21 states. The new hotels under development will add 1,576 rooms, which represent an increase of 13.2 percent to the Company's Portfolio. The Company, in keeping with its earlier announcements, is not planning any further development of new properties beyond the six currently under development for the foreseeable future. 
 

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.