8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



         Date of Report (Date of earliest event reported) July 16, 2003



                           Arlington Hospitality, Inc.
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             (Exact Name of Registrant as Specified in Its Charter)


                                    Delaware
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                 (State or Other Jurisdiction of Incorporation)

         0-15291                                       36-3312434
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  (Commission File Number)                 (IRS Employer Identification Number)




2355 South Arlington Heights Road, Suite 400, Arlington Heights, Illinois  60005
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               (Address of principal executive offices)               (Zip Code)

        Registrant's Telephone Number, Including Area Code (847) 228-5400

                                       N/A
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          (Former Name or Former Address, if Changed Since Last Report)




ITEM 5.  OTHER EVENTS.

         On July 16, 2003, Arlington Hospitality, Inc. issued a press release
announcing a corporate restructuring. A copy of the press release is attached to
this current report on Form 8-K as Exhibit 99.1.


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ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)    EXHIBITS

99.1   Press Release of Arlington Hospitality, Inc. dated July 16, 2003
       Regarding Corporate Restructuring.


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                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

DATE:  July 16, 2003

                                          ARLINGTON HOSPITALITY, INC.


                                          By:  /s/ James B. Dale
                                               ------------------------------
                                               James B. Dale
                                               Senior Vice President and
                                               Chief Financial Officer



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EX-99.1

                                              EXHIBIT 99.1


For Immediate Release
CONTACT:                                             MEDIA CONTACT:
James B. Dale, Chief Financial Officer               Jerry Daly or Carol McCune
847-228-5401, x361                                   703-435-6293
jimdale@arlingtonhospitality.com                     jerry@dalygray.com


         ARLINGTON HOSPITALITY, INC. ANNOUNCES CORPORATE RESTRUCTURING


         ARLINGTON HEIGHTS, Ill., July 16, 2003--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company and the nation's
largest franchisee of AmeriHost Inn hotels, today announced a corporate
restructuring in connection with the company's previously announced new
growth-oriented business plan.

         As part of the plan, the company confirmed plans to sell 25 to 30 of
its hotels over the next two years and to use the proceeds to accelerate its
hotel development program of AmeriHost Inn hotels, primarily in joint venture
arrangements. In anticipation of this shift toward accelerating hotel
development and reducing hotel ownership:

         o  The company will reduce its corporate and regional operations staff
            by 13 people, or approximately 20 percent. This move is expected to
            result in annual savings of approximately $580,000 in labor and
            related costs. The company expects these savings will be partially
            offset by the addition of certain key positions as described below.

         o  The company has not replaced several corporate positions which had
            been vacated as a result of normal attrition during the last three
            months, saving the company approximately $165,000 annually in
            payroll and related costs. In addition, the company has not filled
            several positions which had been budgeted for in 2003.



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Arlington Hospitality
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         o  The restructuring will include a reduction in the size of the
            company's corporate office space needs. Arlington, which owns the
            building that houses its corporate offices, plans to re-lease the
            vacated space.

         The company expects to incur non-recurring restructuring charges of
approximately $140,000 over the next six months, which will be accounted for in
accordance with Financial Accounting Standards Board Statements No. 112 and No.
146.

         According to Arlington's president and chief operating officer, Jerry
H. Herman, the company concurrently is building its development team to help
execute the new business plan. "We are conducting an executive search for four
experienced executives to support our new development initiatives, including a
senior vice president of business development, senior vice president of
construction, vice president of finance/corporate controller and senior
financial/market analyst. When hired, these executives will bring additional
depth and knowledge in hotel development, acquisitions and capital markets."

         The company has engaged HVS Executive Search, and its president, Keith
Kefgen (kkefgen@hvsinternational.com), to assist in the search process. "We
anticipate announcing our expanded team shortly," Herman said.

         "As we shift to a development mode and reduce our existing hotel
portfolio, we are changing the composition of our staff to reflect our future
direction, which we believe will better position Arlington for growth," he
added. "Over the next six months, we will reduce our existing corporate staff,
primarily in hotel management and accounting, to levels that better


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Arlington Hospitality
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correspond with our smaller portfolio. We have put into place a comprehensive
separation package, including an out-placement program, to assist our associates
in transitioning to new career opportunities."

ABOUT ARLINGTON HOSPITALITY, INC.

         Arlington Hospitality, Inc. is a hotel development and management
company that builds, operates and sells mid-market hotels, primarily the
AmeriHost Inn brand. Currently, Arlington Hospitality, Inc. owns or manages 71
properties in 17 states, including 62 AmeriHost Inn hotels, for a total of 5,224
rooms, with additional AmeriHost Inn & Suites hotels under development. The
AmeriHost Inn brand is a mid-market, limited service hotel brand with
approximately 100 properties located in 20 states. Cendant Corporation (NYSE:
CD) is the franchisor of the AmeriHost Inn brand.

         This press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are statements that
are not historical, including statements regarding management's intentions,
beliefs, expectations, representations, plans or predictions of the future, and
are typically identified by words such as "believe," "expect," "anticipate,"
"intend," "estimate," "may," "will," "should," and "could." There are numerous
risks and uncertainties that could cause actual results to differ materially
from those set forth in the forward-looking statements including, without
limitation, risks relating to the development and operation of hotels, the
timing, consummation and final terms of hotel sales, the availability of capital
to finance growth, geopolitical events, competition and the historical
cyclicality of the lodging industry. All forward-looking statements included in
this press release are based on information available at the time of the
release, and Arlington Hospitality assumes no obligation to update any
forward-looking statement.

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