Alliance Hospitality Surpasses Industry Expectations with Fiscal Performance Released In 2011 Financial Results

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Portfolio of Alliance Hospitality managed hotels surpasses results of competitors with 19.8 percent higher growth in revenue per available room for the year and exceeds U.S. Average RevPAR Growth by 18.3 percent.

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Throughout 2011 we remained focused on our financial goals, and that commitment propelled us ahead of our competition.

Alliance Hospitality, a Raleigh, North Carolina, based hospitality management company, today released operating results for 2011. Ryan Gosdin, Vice President of Sales & Marketing commented, “Throughout 2011 we remained focused on our financial goals, and that commitment propelled us ahead of our competition. Our dedication to providing superior customer service and developing the most knowledgeable and productive hospitality professionals also enabled us to generate higher cash flows, allowing us to reward our investment partners with increased financial returns.”

According to data released by Smith Travel Research, Alliance Hospitality managed hotels reported annual growth in revenue per available room of 9.7 percent in 2011. Hotels in the competitive market achieved revenue per available room growth of only 8.1 percent, and the total U.S. hotel market reported revenue per available room growth of 8.2 percent. The Alliance Hospitality portfolio of managed hotels reported 69.1 percent occupancy for 2011, representing 7.1 percent more rooms sold compared to 2010. Hotels in the competitive market reported 66.6 percent occupancy for 2011, a growth of only 3.6 percent. The total U.S. market reported occupancy growth of 4.3 percent to finish 2011 at 60.1 percent occupancy.

Although Alliance Hospitality portfolio hotels operated 7.1 percent more rooms in 2011 generating 9.7 percent higher revenues, a focus on variable expense reduction resulted in a growth of gross operating profit of 10.1 percent. Renegotiation of other fixed expenses in 2011 also realized significant savings for the portfolio. These factors contributed to 76 percent surplus of net income compared to 2010.

In October 2011, Alliance Hospitality was honored at the IHG Americas Investors & Leadership Conference in Las Vegas, when presented with the prestigious Torchbearer Award for the second year in a row for the performance of Holiday Inn & Suites Green Bay Stadium. The Torchbearer Award recognizes hotels that achieve the highest level of excellence in all aspects of operation, from quality to customer service. The Holiday Inn portfolio of Alliance Hospitality reported aggregate growth of competitive market share or RevPAR Index of 9.3 percent in 2011, resulting in year over year growth of guestroom revenue of 17.5 percent.

Remarking on the 2011 financial performance of the Alliance Hospitality portfolio of hotels, Rolf Tweeten, President and CEO said, “In 2011 we saw further improvement to the challenging operating environment that the hospitality industry has experienced with the most recent economic downturn. As the economy and demand improved, the Alliance Hospitality portfolio expanded its lead against competing hotels as part of our company-wide initiative focused on improving productivity and profitability in order to deliver greater value to our guests and stronger returns for our investors. Alliance Hospitality continues to be very successful in adding new clients, both personal and institutional; and we continue to invest in additional resources, people, and technology for our organization to consistently deliver the exceptional financial results and superior service level our clients expect as Alliance Hospitality continues to grow.

About Alliance Hospitality
Alliance Hospitality is an innovative next-generation hospitality management company, headquartered in Raleigh, North Carolina. Alliance was founded in 2003 to manage lodging assets for institutional investment groups, individual owners and lenders. Alliance Hospitality provides value by developing the highest caliber hospitality professionals, and through implementing proprietary tools and unique processes to create a comprehensive hospitality management system. The Alliance portfolio of full-service, extended stay, all-suite, and select service hotels includes hotels operating under agreements with Marriott, Hilton, IHG, Carlson, Wyndham, Choice, and Starwood as well as Independent hotels.

This press release contains "forward-looking statements" that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding Alliance Hospitality's strategic plans and future guidance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

2012 Alliance Hospitality Mgt. LLC. All rights reserved.

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Ryan Gosdin
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