John Q. Hammons Hotels L.P. announces private offering of First Mortgage Notes

Business Wire, Sept 19, 1995

SPRINGFIELD, Mo.--(BUSINESS WIRE)--Sept. 19, 1995--John Q. Hammons Hotels L.P. (the company), of which John Q. Hammons Hotels Inc. (NYSE:JQH) is general partner, and its wholly owned subsidiary, John Q. Hammons Hotels Finance Corporation II, Tuesday announced that they propose to make a Rule 144A private offering of $85 million of First Mortgage Notes due 2005 (the notes).

The notes will be secured by eight of the company's hotels not currently pledged to secure the company's outstanding 8 7/8 percent First Mortgage Notes and will rank pari passu in right of payment to all existing and future senior indebtedness of the company and senior in right of payment to all subordinated indebtedness of the company.

The company intends to use the net proceeds of the private offering to repay outstanding indebtedness and to finance development of new hotels.

The notes will not be registered under the Securities Act of 1933 and may not be offered or sold except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

The notes will be offered only to "Qualified Institutional Buyers" (as defined in Rule 144A under the Securities Act) in reliance on the exemption from the registration requirements provided by Rule 144A, and to a limited number of other institutional "Accredited Investors" (as defined in Rule 501(A)(1), (2), (3) or (7) under Securities Act).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes.

CONTACT: John Q. Hammons Hotels Inc., Springfield

Mel J. Volmert, 417/864-4300