JQH John Q. Hammons Hotels

NEW YORK, Sept. 7 /PRNewswire/ -- JQH Finance, LLC announced today that, in connection with the pending merger between its affiliate and John Q. Hammons Hotels, Inc. (AMEX:JQH), it has determined the tender offer yield for its tender offer for all of the outstanding $499.0 million principal amount of Series B 8-7/8% First Mortgage Notes due 2012 (CUSIP No. 40862PAC1) issued by John Q. Hammons Hotels, L.P. and John Q. Hammons Hotels Finance Corporation III (the "Issuers"), affiliates of John Q. Hammons Hotels, Inc. In connection with the tender offer, JQH Finance, LLC is also soliciting consents from the holders of the notes to approve certain proposed amendments to the indenture under which the notes were issued. The tender offer yield for the notes tendered and purchased will be 4.358%, which was determined as of 2:00 p.m., New York City time, on September 7, 2005 by reference to a fixed spread of 0.50% over the yield to maturity based on the bid side price of the 3.125% U.S. Treasury Note due May 15, 2007. Assuming a settlement date of September 27, 2005, consideration for each $1,000 principal amount of notes validly tendered and not validly withdrawn prior to 5:00 p.m., New York City time, on September 9, 2005, unless extended (the "Consent Time") will be $1,111.74 (the "Total Consideration"), which includes a consent payment of $30. The remaining pricing terms, and other details regarding the tender offer and consent solicitation, are set forth in detail in the Offer to Purchase and Consent Solicitation Statement dated August 26, 2005 and related documents (the "Offer Materials"). Holders who validly tender notes after the Consent Time but prior to 10:00 a.m., New York City time, on September 26, 2005, unless extended (the "Expiration Time"), will be eligible to receive the tender offer consideration, which is equal to the Total Consideration less the consent payment. Payment for all notes purchased will be made promptly after the Expiration Time. Tendered notes may be withdrawn and related consents may be revoked at any time prior to the execution by the Issuers and Wachovia Bank, National Association, as trustee for holders of the Notes, of a supplemental indenture implementing the proposed amendments to the indenture. Goldman, Sachs & Co. has been appointed as dealer manager and solicitation agent for the tender offer and consent solicitation. Global Bondholder Services Corporation has been appointed the information agent and depositary for the tender offer and consent solicitation. The Offer Materials may be obtained by contacting Global Bondholder Services Corporation, 65 Broadway - Suite 74, New York, New York 10006, Attention: Corporate Actions (telephone: 866-873-6300). Information concerning the terms and conditions of the tender offer and consent solicitation may be obtained by contacting Goldman, Sachs & Co., Credit Liability Management Group, 85 Broad Street, 29th Floor, New York, New York, 10004 (telephone: 800-828-3182). This press release is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to the Series B 8-7/8% First Mortgage Notes. The tender offer and consent solicitation is being made solely by the Offer to Purchase and Consent Solicitation Statement dated August 26, 2005. In addition, this press release is neither an offer to purchase nor a solicitation of an offer to sell any other securities, including John Q. Hammons Hotels, Inc. common stock. Safe Harbor Statements The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although JQH Finance, LLC believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. DATASOURCE: JQH Finance, LLC CONTACT: Bill Wallace, +1-212-836-8556, for JQH Finance, LLC

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