Arlington Hospitality, Inc. (Nasdaq/NM:HOST), a hotel development and management company, announced October 2004 same-room operating results for the AmeriHost Inn hotels in which the company has an ownership interest, and the sale of the AmeriHost Inn hotel in Columbia City, Ind. The company also has sold its ownership interest in a Days Inn hotel joint venture in November.
October Results
Same-room revenue per available room (RevPAR) in October 2004 increased 2.6 percent to $35.80, compared to October 2003. Occupancy decreased 1.2 percent to 59.1 percent, while average daily rate (ADR) increased 3.8 percent to $60.59. The October 2004 same-room results include 47 AmeriHost Inn hotels, which have been opened for at least 13 months.
One Ten Twelve
Month Months Months
Ended Ended Ended
October October October
31 31 31
--------- --------- ---------
Occupancy - 2004 59.1% 58.0% 56.2%
Occupancy - 2003 59.8% 57.5% 55.7%
Increase (decrease) (1.2%) 0.9% 0.9%
Average Daily Rate - 2004 $60.59 $58.00 $57.67
Average Daily Rate - 2003 $58.35 $57.30 $57.02
Increase (decrease) 3.8% 1.2% 1.1%
RevPAR - 2004 $35.80 $33.65 $32.41
RevPAR - 2003 $34.90 $32.92 $31.75
Increase (decrease) 2.6% 2.6% 2.4%
According to Smith Travel Research, preliminary results for October 2004 indicate that RevPAR for the midscale without food and beverage segment of the lodging industry increased 6 percent to 8 percent, compared to October 2003. Most of the company's hotels are concentrated in the Midwest, including Ohio, Michigan and Illinois, where the lodging industry is recovering at a much slower rate than the rest of the country, according to Smith Travel Research.
Sales Activity
The company sold one wholly owned AmeriHost Inn hotel in October 2004. The revenue and profit/loss from the sale of hotels, as well as the reduction of debt, will be reported in the company's financial statements during the quarter in which the sale transactions close. In addition, in November the company sold its ownership interest in a joint venture which owned a Days Inn hotel.
Year to date, including these sales, the company has divested 14 hotels. The company has sold nine wholly owned AmeriHost Inn hotels, sold two wholly owned non-AmeriHost Inn hotels, facilitated the sale of one non-AmeriHost Inn hotel owned by a joint venture, facilitated the sale of one leased AmeriHost Inn hotel on behalf of PMC Commercial Trust (AMEX:PCC), the landlord, and sold its ownership interest in a non-AmeriHost Inn joint venture.
The company currently has eight hotels under contract for sale, including three leased hotels, which are expected to be consummated within the next six months. When the company has hotels under contract for sale, even with nonrefundable cash deposits in certain cases, certain conditions to closing remain, and there can be no assurance that these sales will be consummated as anticipated.
Hotel Development Activity
Arlington Hospitality also provides turnkey hotel development services for new construction hotel projects, including AmeriHost Inn hotels.
During the third quarter, the company broke ground on an AmeriHost Inn & Suites hotel in Lansing, Mich. for a joint venture in which it is a partner. The company has also secured debt and equity financing commitments for an 87-room AmeriHost Inn & Suites at the Columbus, Ohio airport, and expects to begin construction in the near future, pending finalizing all closing conditions. Arlington Hospitality has been contracted to construct new AmeriHost Inn & Suites for these joint ventures.
The company has several other projects in the pre-construction development stage. The sales and development activities set forth above do not represent guidance on, or forecasts of, the results of the company's entire consolidated operations, which are reported on a quarterly basis.
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