While occupancy dipped a full percentage point to 50.5%, revenueper available room was off 2.5% to $28.57, Arlington Hospitalityreports. The company notes Smith Travel Research reports RevPAR atsimilar properties that do not offer food and beverage service wasup more than 8% across the US. However, Smith Travel Research notesthe recovery in the hotel market has lagged in the Midwest, wheremost of Arlington Hospitality's 47 AmeriHost Inn hotels arelocated.

In addition to searching for a replacement for president andchief executive officer Jerry H. Herman, who is resigning at theend of the year, the company was appealing its de-listing and waspreparing a compliance plan for Nasdaq's staff. "Presently, thecompany believes it satisfies the requirements for listing on thismarket," company officials say in a Securities and ExchangeCommission filing. "There can be no assurance that the Nasdaq staffwill accept the company's plan to achieve compliance with themarketplace rules, or that the company will satisfy therequirements for continued listing on the Nasdaq NationalMarket."

Arlington Hospitality also was involved in the sale of anAmeriHost Inn it leases from PMC Commercial Trust in Smyrna, GA,one of 15 properties it has sold in 2004. The company reports ithas another eight hotels under contract, which are expected toclose within the next six months.