ARLINGTON HEIGHTS, IL— Arlington Hospitality said it has entered into a series of agreements with its outgoing CEO, Michael Holtz, “designed to result in a smooth transition of the company’s leadership, a mutually beneficial severance settlement, and the profitable disposition of two of its AmeriHost properties.” The Company has agreed to pay Holtz one year’s base salary of $325,000 plus approximately $58,000 in fringe benefits for a one-year period in accordance with the terms of his employment agreement, contingent upon the sale of two hotels (an 89-room hotel in Vicksburg, MS, and a 64-room hotel in Freeport, IL) to Holtz for the aggregate amount of approximately $5.2 million, plus a contingent participation in the appreciation of the property values over certain specified amounts during the next five years, which may be prepaid by Holtz for $340,000 under certain circumstances. The board said it also has also unanimously elected Kenneth. Fell one of the Companys largest shareholders, as chairman of the board-elect, with chairmanship responsibilities effective upon the earlier of the hiring of a new CEO or closing of the settlement agreements. The board has also appointed James. Dale, its CFO, to serve as prospective interim CEO of the Company, if needed, upon the closing of the Settlement Agreements until a new CEO has been hired. Arlington Hospitality is a publicly traded hotel management and development company that builds, manages and sells mid-priced hotels throughout the United States, primarily under the AmeriHost brand, a trademark owned by Cendant. Currently, Arlington Hospitality owns or manages 76 properties in 17 states, including 65 AmeriHost Inn hotels, for a total of 5,629 rooms, with four additional AmeriHost Inn & Suites hotels under construction.
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