Mr. John Q. Hammons to Develop a Major Hotel in Lawrence, Kan.

Mr. John Q. Hammons today announced he has entered into
negotiations to develop a major hotel in Lawrence, Kan. The property
will be equipped with more than 200 rooms and approximately 40,000
square feet of flexible meeting space. Construction of the hotel is
slated to begin in 2006, and the property will be owned by Mr. John Q.
Hammons and managed by Springfield, Mo.-based John Q. Hammons Hotels,
LLC (AMEX:JQH), the nation's leading independent builder, developer,
owner and manager of upscale, full-service hotels, resorts and suites.
   The new hotel will be strategically located at the intersection of
6th and 7th streets and New Hampshire and Rhode Island streets, which
is one mile from Interstate 70, and also serving the Lawrence area is
U.S. Highway 59 and K-10. Adjacent to the University of Kansas, the
property will provide easy access to the campus and prominent local
sports complexes such as the University of Kansas' Allen Field House
and Memorial Stadium.
   "We've been interested in the Lawrence area for many years, and
are focused on bringing a quality, upscale hotel to this region," said
Mr. John Q. Hammons, founder, chairman and chief executive officer of
John Q. Hammons Hotels, LLC. "We are particularly impressed with the
strength of Lawrence's downtown area, and we know that this
development will compliment the economic growth of the city nicely,
while providing a destination for visitors and residents for years to
come."