ARLINGTON HEIGHTS, Ill March 14, 2003 Arlington Hospitality, Inc. (Nasdaq/NM: HOST) today announced the sale of an AmeriHost Inn hotel located in Newark, Ohio by a joint venture in which it has a minority ownership interest.
The 72-room property will remain an AmeriHost Inn hotel as the buyer has executed a franchise agreement with AmeriHost Franchise Systems, Inc., a subsidiary of Cendant Corporation (NYSE: CD). Terms of this sale were not disclosed. The company expects to include the results of the sale in its first quarter 2003 financial statements.
It is the third hotel sold by the company in the 2003 first quarter as part of Arlington Hospitality's continuing program to develop and sell AmeriHost Inn-branded hotels. The company has an additional two AmeriHost Inn hotels and two non-core, non-AmeriHost hotels under sales contract and two hotels currently under construction. "The AmeriHost Inn brand is well received by individual owners as well as investment groups," said Jerry Herman, Arlington Hospitality president. "We are seeing excellent interest by investors in our properties for sale and are actively engaged in negotiations on a number of fronts. We also are looking at new development opportunities in both secondary and tertiary markets."
In addition to its share of the proceeds from the sale, the company will receive continuing cash flow related to this hotel from Cendant pursuant to the franchise royalty sharing agreement executed in connection with the sale of the AmeriHost Inn brand name and franchising rights by the company to Cendant in September 2000.
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