Arlington Hospitality Inc

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International Guild of Hospitality & Restaurant Managers

2355 S. Arlington Heights Rd., Suite 400
Arlington Heights , IL 60005

Phone: (847) 228-5400
Fax: (847) 228-5409

www.arlingtonhospitality.com

Arlington Hospitality Inc. ( Arlington ) is engaged in the development and construction of AmeriHost Inn hotels, and the ownership, operation and management of both AmeriHost Inn hotels and other hotels. The AmeriHost Inn brand was created by the Company to provide for the consistent, cost-effective development and operation of mid-price hotels in various markets. All AmeriHost Inn hotels designed and developed by the Company were constructed using a standard 60- to 120-room, interior corridor and indoor pool prototype design, and are located in tertiary and secondary markets. The Company has also designed three- and four-story AmeriHost Inn & Suites prototypes for larger markets. The Company sold the AmeriHost Inn and AmeriHost Inn & Suites brand names and franchising rights to Cendant Corporation in September 2000.

As of December 31, 2001 , Arlington owned, operated, or managed 78 hotels located in 16 states. Of these hotels, 66 hotels are operated or managed under the AmeriHost Inn brand. Of the 78 hotels, the Company owns a 100% or majority ownership or leasehold interest in 62 hotels and a minority equity interest, ranging from 1% to 37.2%, in 14 hotels. Of the 76 hotels in which the Company has an ownership interest, 66 are AmeriHost Inn hotels and ten are other brands, which in most cases were acquired, renovated and repositioned in their respective marketplaces between 1987 and 1993. Unaffiliated third parties also operated 19 AmeriHost Inn hotels under franchise agreements with Cendant as of December 31, 2001 , which were previously owned and operated by the Company. The other brand hotels are franchised through Days Inn, Howard Johnson Express, Holiday Inn and Ramada Inn. The Company also managed two non-AmeriHost Inn hotels at December 31, 2001 for unaffiliated third parties. As of December 31, 2001, five additional AmeriHost Inn hotels were under construction, three of which are 100% owned by the Company, one of which is minority owned, and one being built for a third party.

For new construction projects, the Company offers turnkey development services, having the in-house expertise to manage a project from inception through completion, including market research, site selection, architectural services, the securing of financing and construction management The Company offers complete operational and financial management services, including sales, marketing, quality control, training, purchasing and accounting. Arlington provides employee leasing services to hotels in which it has a minority ownership interest, and to hotels owned by unaffiliated third parties but managed by the Company.

All of the Company's AmeriHost Inn hotels are operated pursuant to 20-year franchise agreements with Cendant. Pursuant to these agreements, the Company has access to the reservation system, marketing plans and trademarks. The franchise agreements require the Company to maintain both the quality and condition of the hotel, as well as specific operating procedures.

The Company's AmeriHost Inn hotels have been designed and constructed using a two- or three-story prototype, featuring 60 to 120 rooms, interior corridors and an indoor pool area. The AmeriHost Inn hotel's amenities and services include an indoor pool, whirlpool, exercise room, meeting room and extensive exterior lighting for added security. The standard AmeriHost Inn guest room features an electronic card-key lock, in-room safe, in-room coffee maker, telephone with data port for personal computer, a work area and a 25" color television with premium cable service or movies on demand. In addition, each AmeriHost Inn hotel typically includes two to 12 whirlpool suites that, in addition to the standard amenities, include in-room whirlpools, microwave ovens, compact refrigerators and an expanded sitting area. AmeriHost Inn hotels do not contain food and beverage facilities normally associated with full-service hotels. Food service for hotel guests is generally available from adjacent or nearby freestanding restaurants, which are independently owned and operated.

The Company targets smaller communities in tertiary and secondary markets with established demand generators such as major traffic arteries, office complexes, industrial parks, shopping malls, colleges and universities or tourist attractions, as the principal location for the development and construction of AmeriHost Inn hotels. An AmeriHost Inn hotel is typically positioned to attract both business and leisure travelers seeking consistent amenities and quality rooms at reasonable rates, generally ranging from $50 to $80 per night.

Arlington's non-AmeriHost Inn hotels were primarily acquired by the Company through joint ventures prior to 1993. In addition, the Company acquired one other brand hotel in the fourth quarter of 2001. The other hotels have been owned, operated and managed by the Company independently, or as part of a national franchise system such as Days Inn, Howard Johnson Express, Holiday Inn, and Ramada Inn.

At December 31, 2001, the Company had franchise agreements with AmeriHost Inn Franchise Systems, Inc., Days Inn of America, Inc., Howard Johnson's Franchise Systems, Inc., Holiday Inns, Inc., Holiday Inns Franchising, Inc. and Ramada Franchise Systems, Inc.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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