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) May 4, 2004



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


                                    Delaware
                 (State or Other Jurisdiction of Incorporation)

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


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





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

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





ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.

         On May 4, 2004, Arlington Hospitality, Inc. (the "Company") issued a
press release announcing the renewal of its line of credit and the extension of
its temporary agreement with the landlord of 21 of its hotel properties. A copy
of the Company's press release is attached to this current report on Form 8-K as
Exhibit 99.1.

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.

(c)      EXHIBITS

99.1     Press Release of Arlington Hospitality, Inc. dated May 4, 2004
         Announcing Line of Credit Renewal and Extension of Temporary Agreement
         with Landlord.

                                   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:  May 4, 2004

                                        Arlington Hospitality, Inc.
                                        (Registrant)

                                        By:  /s/ Jerry H. Herman
                                           ------------------------------------
                                             Jerry H. Herman
                                             Chief Executive Officer

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

EX-99.1

                                                                    EXHIBIT 99.1


(AH LOGO)

       ARLINGTON HOSPITALITY, INC.
       2355 South Arlington Heights Road-Suite 400-Arlington Heights, IL 60005
       847-228-5400  Fax: 847-228-5409  www.arlingtonhospitality.com


For Immediate Release
CONTACT:                                          MEDIA CONTACT:
James B. Dale, Chief Financial Officer            Jerry Daly or Carol McCune
847-228-5401 x 361                                703-435-6293
jimdale@arlingtonhospitality.com                  jerry@dalygray.com


          ARLINGTON HOSPITALITY, INC. ANNOUNCES LINE OF CREDIT RENEWAL;
                TEMPORARY AGREEMENT WITH HOTEL LANDLORD EXTENDED


    ARLINGTON HEIGHTS, Ill., May 4, 2004--Arlington Hospitality, Inc.
(Nasdaq/NM: HOST), a hotel development and management company, today announced
the renewal of its operating line of credit with LaSalle Bank N.A., and the
extension of the temporary letter agreement with the landlord of 21 AmeriHost
Inn hotels operated by the company.

CORPORATE LINE-OF-CREDIT

    The company's operating line-of-credit has historically been a one-year
facility requiring annual renewals or replacement. On April 30, 2004, the
company renewed its operating line-of-credit facility with LaSalle Bank N.A.,
for a one-year period maturing April 30, 2005. The renewed facility has a
maximum availability of $4.0 million, and bears interest at the fixed rate of 10
percent per annum. The maximum availability on this facility is scheduled to
step-down to $3.5 million on February 28, 2005. The renewed line-of-credit
facility contains covenants consistent with the prior facility. As part of the
renewal, the lender waived any covenant violations that existed as of December
31, 2003.

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Arlington Hospitality
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TEMPORARY AGREEMENT WITH PMC COMMERCIAL TRUST

    The company remains in discussions with PMC Commercial Trust (PMC) (AMEX:
PCC), regarding 21 AmeriHost Inn hotels owned by PMC, which are leased and
operated by a wholly-owned subsidiary of the company. The company seeks to
restructure the lease agreements in order to improve operating results and cash
flow with respect to these hotels, and to agree on a plan that would transfer
these hotels to other operators through the sale of the properties.

    On March 12, 2004 the company, through the wholly-owned subsidiary, entered
into a temporary letter agreement with PMC, which expired on April 30, 2004. The
temporary letter agreement (i) provided for reduced base rent payments for the
months of March and April 2004, from approximately $445,000 per month to
$360,000 per month, with the reductions deferred until the expiration of the
temporary agreement, and (ii) allowed the company's subsidiary to utilize
$200,000 of its existing security deposit to partially fund these base rent
payments.

    On April 30, 2004, the temporary letter agreement was revised to extend its
terms for one month, which reduced the base rent payable on May 1, 2004, from
approximately $445,000 to approximately $360,000, which payment was timely made
by the company. Additionally, the deferred portion of the March, April and May
2004 rent (approximately $264,000), plus the $200,000 needed to restore the
security deposit to its March 12, 2004 balance, will be payable to PMC in four
equal monthly installments beginning June 1, 2004.

    The temporary letter agreement also provides for the gathering and sharing
of certain hotel and financial information regarding the company's operations.
While the objective is to


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Arlington Hospitality
Page 3

reach an agreement prior to the expiration of the temporary letter agreement (as
revised), there can be no assurance that the leases will be restructured on
terms and conditions acceptable to the company and its subsidiary, if at all, or
that a restructuring will improve operations and cash flow, or provide for the
sale of the hotels to third party operators.

ABOUT ARLINGTON HOSPITALITY

    Arlington Hospitality, Inc. is a hotel development and management company
that builds, operates and sells mid-market hotels. Arlington is the nation's
largest owner and franchisee of AmeriHost Inn hotels, a 104-property mid-market,
limited-service hotel brand owned and presently franchised in 22 states and
Canada by Cendant Corporation (NYSE: CD). Currently, Arlington Hospitality, Inc.
owns or manages 63 properties in 15 states, including 56 AmeriHost Inn hotels,
for a total of 4,590 rooms, with additional AmeriHost Inn & Suites hotels under
development.

    This press release may contain forward-looking statements. 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. For a discussion of these factors, see the Company's
report on Form 10-K for the year ended December 31, 2003 under the section
headed "Management's Discussion and Analysis of Financial Condition and Results
of Operations - Risk Factors."