SecProbe.io

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<TYPE>LETTER
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<FILENAME>filename1.txt
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Mail Stop 4561
      July 7, 2005

Mr. James B. Dale
Chief Financial Officer
Arlington Hospitality, Inc.
2355 South Arlington Heights Road, Suite 400
Arlington Heights, Illinois 60005

	Re:	Arlington Hospitality, Inc.
		Form 10-K for the year ended December 31, 2004
		Filed March 31, 2005
		File No. 0-15291

Dear Mr. Dale:

      We have reviewed your response letter dated June 27, 2005
and
have the following additional comments.  In our comments, we ask
you
to provide us with supplemental information so we may better
understand your disclosure.  After reviewing this information, we
may
or may not raise additional comments.

      Please understand that the purpose of our review process is
to
assist you in your compliance with the applicable disclosure
requirements and to enhance the overall disclosure in your filing.
We look forward to working with you in these respects.  We welcome
any questions you may have about our comments or on any other
aspect
of our review.  Feel free to call us at the telephone numbers
listed
at the end of this letter.

Note 12  Sale of Hotels and Plan for Future Hotel Dispositions,
page
F-29

1. We note your response to our previous comment number two.  You
state that you did not pay higher rent to PMC and in your previous
response dated May 27, 2005 on comment two you state that the
obligation to pay PMC the difference between the assigned value
and
the net sale proceeds was contingent since the Company had the
option
to pay higher rent rather then pay the Assigned Value shortfall
and
this contingency resulted in the leases to continue to be
accounted
for as operating leases.  Please explain how this contingency was
evaluated in determining whether or not the leases were capital or
operating leases given you did not pay higher rent.

Note 14 - Commitments, Contingencies and Other Matters, page F-33:

2. We have reviewed the scheduled provided by you in response to
our
previous comment number three.  Please explain to us when the
deferred gain of $5.2 million will be recognized into income.

      Please respond to the comments included in this letter
within
ten business days.  If you have any questions, you may contact
Thomas
Flinn, Staff Accountant, at (202) 551-3469 or the undersigned at
(202) 551-3498 if you have questions.

      							Sincerely,

      							Linda Van Doorn
Senior Assistant Chief Accountant

Mr. James Dale
Arlington Hospitality, Inc.
July 7, 2005
Page 1

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