If this turns true, maybe we can petition the new owners to reconsider the Bricktown hotel development into something nicer.

John Q. Hammons Hotels confirms it has approved transaction agreement from Investor Group, Hammons
Posted: Wednesday, May 25, 2005


John Q. Hammons Hotels, Inc. confirmed today that a special committee of its board of directors has approved an agreement to be entered into between an investor group wishing to purchase the hotel group and its principal stockholder, John Q. Hammons.

The Hammons group owns both the Renaissance and Courtyard by Marriott hotels in downtown Oklahoma City and is expected to build a third hotel in Bricktown later this year. The hotel is rumored to be another Marriott brand hotel, Residence Inn.

Hammons officials indicated in a prepared release issued late this morning that the agreement between the investor group, which they declined to name, and Mr. Hammons describes the various arrangements proposed to be entered into between these parties in connection with the investor group's proposed acquisition of the company.

Either the investor group or Mr. Hammons may terminate the transaction agreement if, on or before June 2, 2005, the parties have not signed definitive agreements for each of the arrangements described in the transaction agreement, the release said.

Hammons Hotels board of directors is allowing the parties until June 30, or the termination of the transaction agreement, to finalize these agreements.

The Hammons news release also indicated the investor group also reconfirmed their offer to acquire the company's Class A shares for $24 per share and that the group acknowledged that Hammons' Special Committee has reserved the right to recommend to the board that any merger be subject to the approval of a majority of the Class A stockholders, as well as Mr. Hammons and his affiliated entities.

A copy of the transaction agreement has been furnished to the Securities and Exchange Commission as an exhibit to a Form 8-K submitted today by the company.

Commenting on the transaction agreement, the chairman of the Special Committee, David Sullivan, said, "We are pleased that the investor group and Mr. Hammons have reached agreement on the basic terms of their proposed transactions. Given the complexity of the various arrangements to be entered into between them, we believe this represents meaningful progress. However, there remains no assurance that the investor group and Mr. Hammons ultimately will reach agreement on these arrangements."

John Q. Hammons Hotels wns 46 hotels located in 20 states, containing 11,370 guest rooms or suites, and manages 14 additional hotels located in seven states containing 3,158 guest rooms or suites. The majority of the 60 hotels operate under the Embassy Suites, Holiday Inn and Marriott trade names.