Allied Hotel Properties Announces Second Quarter 2001 Financial Results

Allied Hotel Properties Inc. (“Allied”, stock symbol AHP) has reported its financial results for the six months ended June 30, 2001.

Revenues were $35.7 million and gross profit was $18.5 million for the six months ending June 30, 2001, decreasing by 2% from $36.5 million and 3% from $19.1 million, respectively, from the prior year period. Operating income of $0.7 million was reported for the six month period, a decrease of 35% from $1.0 million for the same period in 2000. The hospitality industry is historically cyclical, with average daily rates for the second quarter exceeding those in the first quarter. As a result, the second quarter of the year generated operating income of $2.2 million, compared to $2.9 million for the second quarter of 2000. Lower levels of business travel as a result of the decline in the high-tech sector contributed to the decrease in operating income in the current year. In addition the Greater Vancouver market, where five of the Company’s properties are located, has experienced reduced vacation travel this summer compared to previous years.

Net loss for the six month period was $4.1 million (4? per share), a decrease of 15% compared to $4.8 million (4? per share) for the first six months of 2000. For the second quarter the net loss was $0.5 million, down from $1.4 million for the second quarter of 2000. Lower interest expense was primarily responsible for the decreased loss.

Allied is a growth oriented hotel ownership and management company with hotel properties in Greater Vancouver, Edmonton and Toronto. Its hotel portfolio currently consists of: Crowne Plaza Hotel Georgia, Crowne Plaza Chateau Lacombe, Crowne Plaza Toronto Don Valley Hotel, Delta Vancouver Suites, Delta Pacific Resort & Conference Centre, Delta Vancouver Airport and Holiday Inn Vancouver Downtown Hotel. Interested parties can find further information at www.alliedhotels.com.

On behalf of the Board of Directors:
Mr. Ronald G. Erdman
President and Chief Executive Officer
For more information please contact:
Allied Hotel Properties Inc.
Tel: (604) 689-9318
Fax: (604) 689-9332
e-mail: info@alliedhotels.com

THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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