<PAGE>

                                   FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

(Mark One)

[x]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR
         15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 29, 2000

                                      OR

[_]      TRANSITION REPORT PURSUANT TO SECTION 13 OR
         15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from __________________ to ___________________

Commission File number 1-13486


                         John Q. Hammons Hotels, Inc.
            (Exact name of registrant as specified in its charter)


                Delaware                                      43-1695093
(State or other jurisdiction of incorporation                (IRS Employer
            or organization)                               Identification No.)


                          300 John Q. Hammons Parkway
                                   Suite 900
                             Springfield, MO 65806
                   (Address of principal executive offices)
                                  (Zip Code)

                                (417) 864-4300
             (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes    X          No
     -----      ------

Number of shares of Registrant's Class A Common Stock outstanding as of November
6, 2000: 5,125,875
<PAGE>

PART I - FINANCIAL INFORMATION
         Item 1.  Financial Statements

                         JOHN Q. HAMMONS HOTELS, INC.
                                 AND COMPANIES
                          CONSOLIDATED BALANCE SHEETS
                                (000's omitted)

<TABLE>
<CAPTION>
                                    ASSETS

                                                                           September 29, 2000           December 31, 1999
                                                                           ------------------           -----------------
                                                                              (Unaudited)                   (Audited)
<S>                                                                        <C>                          <C>
CURRENT ASSETS:

    Cash and equivalents                                                   $       34,311               $     49,727

    Marketable securities                                                          12,691                      4,982

    Receivables:
      Trade, less allowance for doubtful accounts of $226                          13,679                     11,677
      Construction reimbursements and other                                         1,607                      2,370
      Management fees                                                                 149                         63


    Inventories                                                                     1,392                      1,349

    Prepaid expenses and other                                                        500                      1,699
                                                                           --------------               ------------

      Total current assets                                                         64,329                     71,867


PROPERTY AND EQUIPMENT, at cost:
    Land and improvements                                                          57,077                     55,818
    Buildings and improvements                                                    736,387                    683,462
    Furniture, fixture and equipment                                              287,353                    270,146
    Construction in progress                                                        9,999                     53,462
                                                                           --------------               ------------

                                                                                1,090,816                  1,062,888

    Less-accumulated depreciation and amortization                               (259,674)                  (227,411)
                                                                           --------------               ------------

                                                                                  831,142                    835,477

DEFERRED FINANCING COSTS, FRANCHISE FEES AND OTHER, net                            26,099                     26,968
                                                                           --------------               ------------

TOTAL ASSETS                                                               $      921,570               $    934,312
                                                                           ==============               ============
</TABLE>

                See Notes to Consolidated Financial Statements

                                       2
<PAGE>

                         JOHN Q. HAMMONS HOTELS, INC.
                                 AND COMPANIES
                          CONSOLIDATED BALANCE SHEETS
                      (000's omitted, except share data)
                            LIABILITIES AND EQUITY

<TABLE>
<CAPTION>
                                                                                     September 29, 2000      December 31, 1999
                                                                                     ------------------      -----------------
                                                                                         (Unaudited)              (Audited)
<S>                                                                                  <C>                     <C>
LIABILITIES:

    Current portion of long-term debt                                                $       14,167          $       16,569

    Accounts payable                                                                          5,315                  11,877

    Accrued expenses:
      Payroll and related benefits                                                            7,400                   7,720
      Sales and property taxes                                                               16,706                  10,368
      Insurance                                                                               4,288                   7,576
      Interest                                                                                3,503                  12,873
      Utilities, franchise fees and other                                                     7,819                   6,546
                                                                                     --------------          --------------
        Total current liabilities                                                            59,198                  73,529

    Long-term debt                                                                          824,222                 812,274
    Other obligations and deferred revenue                                                    1,976                   9,403
                                                                                     --------------          --------------
        Total liabilities                                                                   885,396                 895,206
                                                                                     --------------          --------------
COMMITMENTS AND CONTINGENCIES

MINORITY INTEREST OF HOLDERS OF LIMITED
    PARTNER UNITS                                                                            24,485                  25,251

STOCKHOLDERS' EQUITY:
    Preferred stock, $.01 par value, 2,000,000 shares
      authorized, none outstanding                                                                -                       -
    Class A common stock, $.01 par value, 40,000,000 shares authorized in 2000
      and 1999, 6,042,000 shares issued at September 29, 2000 and December 31,
      1999, and 4,943,175 and 5,308,120 outstanding at September 29, 2000 and
      December 31, 1999, respectively                                                            60                      60
    Class B common stock, $.01 par value, 1,000,000 shares authorized, 294,100
      shares issued and outstanding in 2000 and 1999                                              3                       3
    Paid-in capital                                                                          96,373                  96,373
    Retained deficit, net                                                                   (80,007)                (79,584)
    Treasury Stock, at cost:  1,098,825 shares and 733,880 shares at September
      29, 2000, and December 31, 1999, respectively                                          (4,740)                 (2,997)
                                                                                     --------------          --------------

TOTAL EQUITY                                                                                 11,689                  13,855
                                                                                     --------------          --------------

TOTAL LIABILITIES AND EQUITY                                                         $      921,570          $      934,312
                                                                                     ==============          ==============
</TABLE>

                See Notes to Consolidated Financial Statements

                                       3
<PAGE>

                         JOHN Q. HAMMONS HOTELS, INC.
                                 AND COMPANIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                      (000's omitted, except share data)

<TABLE>
<CAPTION>
                                                                       Three Months Ended               Nine Months Ended
                                                                  Sept. 29, 2000  Oct. 1, 1999    Sept. 29, 2000    Oct. 1, 1999
                                                                  --------------  ------------    --------------    ------------
                                                                    (Unaudited)    (Unaudited)      (Unaudited)      (Unaudited)
<S>                                                               <C>             <C>             <C>               <C>
REVENUES:
    Rooms                                                         $    70,421     $   61,132      $   204,851       $   174,599
    Food and beverage                                                  26,568         21,802           85,812            70,001
    Meeting room rental and other                                       7,359          6,272           22,688            18,654
                                                                  -----------     ----------      -----------       -----------
      Total revenues                                                  104,348         89,206          313,351           263,254

OPERATING EXPENSES:
    Direct operating costs and expenses
      Rooms                                                            17,914         15,829           51,278            44,386
      Food and Beverage                                                18,567         16,321           57,546            49,428
      Other                                                             1,002            907            2,862             2,764

    General, administrative and sales expenses                         32,146         27,638           94,785            79,532

    Repairs and maintenance                                             4,183          3,784           12,600            11,115

    Depreciation and amortization                                      13,620         11,913           39,826            33,751
                                                                  -----------     ----------      -----------       -----------
      Total operating costs                                            87,432         76,392          258,897           220,976
                                                                  -----------     ----------      -----------       -----------

INCOME FROM OPERATIONS                                                 16,916         12,814           54,454            42,278

OTHER INCOME (EXPENSE):
    Gain on property disposition                                            -              -                -             2,365
    Interest income                                                       723          1,083            1,914             2,476
    Interest expense and amortization of deferred financing
      fees                                                            (19,338)       (17,489)         (57,437)          (48,404)
                                                                  -----------     ----------      -----------       -----------
LOSS BEFORE MINORITY INTEREST, PROVISION FOR
    INCOME TAXES, EXTRAORDINARY ITEM AND CUMULATIVE
    EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE                           (1,699)        (3,592)          (1,069)           (1,285)
    Minority interest in losses of partnership                          1,218          2,575              766               921
                                                                  -----------     ----------      -----------       -----------

LOSS BEFORE PROVISION FOR INCOME TAXES,
    EXTRAORDINARY ITEM AND CUMULATIVE EFFECT OF CHANGE IN
    ACCOUNTING PRINCIPLE                                                 (481)        (1,017)            (303)             (364)
    Provision for income taxes                                            (30)           (30)            (120)             (120)
                                                                  -----------     ----------      -----------       -----------

LOSS BEFORE EXTRAORDINARY ITEM AND CUMULATIVE
    EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE                             (511)        (1,047)            (423)             (484)
    Extraordinary Item:  Cost of extinguishment of debt,
      net of applicable tax benefit                                         -              -                -                (5)
                                                                  -----------     ----------      -----------       -----------

LOSS BEFORE CUMULATIVE EFFECT OF CHANGE IN
    ACCOUNTING PRINCIPLE                                                 (511)        (1,047)            (423)             (489)
    Cumulative Effect of Change in Accounting Principle, net
      of applicable tax benefit                                             -              -                -              (515)
                                                                  -----------     ----------      -----------       -----------

NET LOSS                                                          $      (511)    $   (1,047)     $    (1,004)      $    (1,004)
                                                                  ===========     ==========      ===========       ===========

BASIC AND DILUTED LOSS PER SHARE:
    Loss before Extraordinary Item and Cumulative Effect
      of Change in Accounting Principle                           $     (0.10)    $    (0.17)     $     (0.08)      $     (0.08)
    Extraordinary Item                                                      -              -                -                 -
    Cumulative Effect of Change in Accounting Principle                     -              -                -             (0.08)
                                                                  -----------     ----------      -----------       -----------
    Net Loss Allocable to Company                                 $               $               $                 $
                                                                        (0.10)         (0.17)           (0.08)            (0.16)
                                                                  ===========     ==========      ===========       ===========

WEIGHTED AVERAGE SHARES OUTSTANDING                                 5,271,002      6,029,958        5,418,851         6,145,325
                                                                  ===========     ==========      ===========       ===========
</TABLE>

                See Notes to Consolidated Financial Statements

                                       4
<PAGE>

                         JOHN Q. HAMMONS HOTELS, INC.
                                 AND COMPANIES
            CONSOLIDATED STATEMENTS OF CHANGES IN MINORITY INTEREST
                           AND STOCKHOLDERS' EQUITY
                                (000's omitted)

<TABLE>
<CAPTION>
                                                                        STOCKHOLDERS' EQUITY
                                                                        --------------------

                                                        Class A      Class B                 Company
                                          Minority      Common       Common     Paid in      Retained    Treasury
                                          Interest      Stock        Stock      Capital      Deficit       Stock       Total
                                         ---------     --------    ---------   ---------    ---------    --------     --------
<S>                                      <C>           <C>         <C>         <C>          <C>          <C>          <C>
BALANCE, December 31, 1999
(audited)                                $  25,251     $     60    $       3   $  96,373    $ (79,584)   $ (2,997)    $ 13,855
Net loss allocable to the Company                -            -            -           -         (423)          -         (423)

Minority interest in losses of
   partnership                                (766)           -            -           -            -           -            -
Treasury stock purchased                         -            -            -           -            -      (1,743)      (1,743)
                                        ----------     --------    ---------   ---------    ---------    --------     --------
BALANCE, September 29, 2000
(unaudited)                             $   24,485     $     60    $       3   $  96,373    $ (80,007)   $ (4,740)    $ 11,689
                                        ==========     ========    =========   =========    =========    ========     ========
</TABLE>

                See Notes to Consolidated Financial Statements

                                       5
<PAGE>

                         JOHN Q. HAMMONS HOTELS, INC.
                                 AND COMPANIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (000's omitted)

<TABLE>
<CAPTION>
                                                                                              Nine Months Ended
                                                                                     September 29, 2000    October 1, 1999
                                                                                       (unaudited)           (unaudited)
<S>                                                                                  <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                                             $             (423)   $        (1,004)
Adjustment to reconcile net income to cash provided
by operating activities
        Minority interest in losses of partnership                                                 (766)              (921)
        Depreciation, amortization and loan cost amortization                                    41,656             35,178
        Extraordinary item                                                                            -                  5
        Cumulative effect of change in accounting principle                                           -                515
        Gain on sale of property and equipment                                                        -             (2,365)

Changes in certain assets and liabilities
        Receivables                                                                                (465)             2,027
        Inventories                                                                                 (43)                51
        Prepaid expenses and other                                                                  339                760
        Accounts payable                                                                         (6,562)            (4,869)
        Accrued expenses                                                                         (5,367)            (1,665)
        Other obligations and deferred revenue                                                   (7,427)            (1,208)
                                                                                     ------------------    ---------------
              Net cash provided by operating activities                                          20,942             26,504
                                                                                     ------------------    ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
        Additions to property and equipment, net                                                (35,321)           (96,396)
        Proceeds form disposition of hotels                                                           -              6,500
        Restricted cash and receivable remaining from property dispositions                           -             (7,425)

        Franchise fees and other                                                                 (1,131)            (3,028)
        (Purchase) sale of marketable securities, net                                            (7,709)            (6,378)
                                                                                     ------------------    ---------------
              Net cash used in investing activities                                             (44,161)          (106,727)
                                                                                     ------------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
        Proceeds from borrowings                                                                 24,441             83,191
        Repayments of debt                                                                      (14,895)           (17,709)
        Distributions                                                                                 -             (2,936)
        Purchase of treasury stock                                                               (1,743)            (1,713)
                                                                                     ------------------    ---------------
              Net cash provided by financing activities                                           7,803             60,833
                                                                                     ------------------    ---------------
              Decrease in cash and equivalents                                                  (15,416)           (19,390)

CASH AND EQUIVALENTS, beginning of period                                                        49,727             46,233
                                                                                     ------------------    ---------------
CASH AND EQUIVALENTS, end of period                                                  $           34,311    $        26,843
                                                                                     ==================    ===============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID FOR INTEREST, net of amounts capitalized                                   $           64,602    $        51,727
                                                                                     ==================    ===============
</TABLE>

                See Notes to Consolidated Financial Statements

                                       6
<PAGE>

                  JOHN Q. HAMMONS HOTELS, INC. AND COMPANIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  (unaudited)

1.   ENTITY MATTERS

The accompanying consolidated financial statements include the accounts of John
Q. Hammons Hotels, Inc. and John Q. Hammons Hotels, L.P. and subsidiaries
(collectively the Company or, as the context may require, John Q. Hammons
Hotels, Inc. only).

The Company was formed in September 1994 and had no operations or assets prior
to its initial public offering of Class A common stock in November 1994.
Immediately prior to the initial public offering, Mr. John Q. Hammons (JQH)
contributed approximately $5 million in cash to the Company in exchange for
294,100 shares of Class B common stock (which represents approximately 72% of
the voting control of the Company). The Company contributed the approximate $96
million of net proceeds from the Class A and Class B common stock offerings to
John Q. Hammons Hotels, L.P. (the "Partnership") in exchange for a 28.31%
general partnership interest.

All significant balances and transactions between the entities and properties
have been eliminated.

2.   GENERAL

The accompanying unaudited interim financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
for reporting on Form 10-Q. Accordingly, certain information and footnotes
required by generally accepted accounting principles (GAAP) for complete
financial statements have been omitted. These interim statements should be read
in conjunction with the financial statements and notes thereto included in the
Company's Form 10-K for the fiscal year ended December 31, 1999 which included
financial statements for the fiscal years ended December 31, 1999; January 1,
1999; and January 2, 1998.

The information contained herein reflects all normal and recurring adjustments
which, in the opinion of management, are necessary for a fair presentation of
the results of operations and financial position for the interim periods.

The Company considers all operating cash accounts and money market investments
with an original maturity of three months or less to be cash equivalents.
Marketable securities consist of available-for-sale commercial paper and
governmental agency obligations which mature or will be available for use in
operations in 2000. These securities are valued at current market value, which
approximates cost.

The provision for income taxes was determined using an effective income tax rate
of approximately 5% to provide for estimated state, local, and franchise taxes.

                                       7
<PAGE>

3.   EARNINGS PER SHARE

In 1997, the Company adopted Statement of Financial Accounting Standards No. 128
"Earnings per Share" (SFAS 128). In accordance with SFAS 128, basic earnings per
share are computed by dividing net income by the weighted average number of
common shares outstanding during the year. Diluted earnings per share are
computed similar to basic except the denominator is increased to include the
number of additional common shares that would have been outstanding if dilutive
potential common shares had been issued.

Since there are no dilutive securities, basic and diluted income per share are
identical; thus, a reconciliation of the numerator and denominator is not
necessary.

During the nine months ended September 29, 2000, the Company purchased 375,200
shares for approximately $1.7 million. Since the inception of its stock
repurchase program in 1999, the Company has acquired a total of 1,119,400 shares
at an average price of $4.32. The Board of Directors has authorized total
purchases of treasury shares in 2000 of $3.0 million dollars.

Basic and diluted loss per share before extraordinary item and cumulative effect
of change in accounting principle was $0.08 for the nine months ended September
29, 2000, and $0.08 for the nine months ended October 1, 1999, and was $0.10 for
the three months ended September 29, 2000, and $0.17 for the three months ended
October 1, 1999. The basic and diluted loss per share impact of the
extraordinary item and the cumulative effect of the change in accounting
principle was $0.08 for the nine months ended October 1, 1999. Basic and diluted
loss per share was $0.08 for the nine-month 2000 period and $0.16 for the
nine-month 1999 period. The nine-month period ended October 1, 1999, included an
$0.11 gain related to the sale of a hotel in June 1999.

4.   NEW ACCOUNTING PRONOUNCEMENTS

In April 1998, the American Institute of Certified Public Accountants released
Statement of Position (SOP) 98-5 "Reporting on the Costs of Start-Up
Activities," which requires costs of start-up activities, including pre-opening
expenses, to be expensed as incurred. The Company's past practice was to defer
these expenses until a hotel commenced operations, at which time the costs,
other than advertising costs that are expensed upon opening, were amortized over
a one-year period. The Company adopted the provisions of this statement in the
first quarter of fiscal 1999; and, as a result, cumulative unamortized
pre-opening costs of $0.5 million were charged to expense, net of $1.3 million
of minority interest.

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("SFAS 133"). SFAS 133 establishes accounting and
reporting standards requiring that every derivative instrument (including
certain derivative instruments embedded in other contracts) be recorded in the
balance sheet as either an asset or liability measured at its fair value. In
June 1999, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 137, "Accounting for Derivative Instruments
and Hedging Activities-Deferral of the Effective Date of FASB Statement No. 133"
("SFAS 137"). SFAS 137 amends SFAS 133's effective date. SFAS 137 states the
statement is effective for all fiscal quarters of all fiscal years beginning
after June 15, 2000. Upon adoption of this statement, the

                                       8
<PAGE>

Company anticipates no impact on its reported consolidated financial position,
results of operations, cash flows or related disclosures.

5.   PROPERTY DISPOSITIONS

Effective June 16, 1999, the Company sold the Holiday Inn Express Hotel and
Conference Center in Joliet, Illinois, to an unrelated party for $6.5 million,
resulting in a gain of approximately $2.4 million. This hotel served as
collateral under the 1994 first mortgage notes. The Company provided replacement
collateral of equivalent value in accordance with the indenture provisions.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

General. For purposes of this discussion, the Company classifies new hotels (New
Hotels) as those hotels opened during the current year and the prior year, and
defines all other hotels as mature hotels (Mature Hotels).

The Company announced on September 11, 1998, that it was ceasing new development
activity except for the hotels under construction. The Company opened the last
two hotels under construction in the first quarter of 2000, and currently has no
hotels under construction.

Although the Company is not developing new hotels, Mr. John Q. Hammons is
personally developing several new projects which the Company plans to manage,
including a Renaissance Hotel in Richardson, Texas; an Embassy Suites Hotel in
Franklin, Tennessee; and a Marriott Residence Inn in Springfield, Missouri. Two
other managed hotels opened recently, the Marriott Courtyard in Springfield,
Missouri, opened April 10, 2000, and the Embassy Suites Hotel in Lincoln,
Nebraska, opened May 1, 2000.

The Company's past development activity limits its ability to grow per share
income in the near term. Fixed charges for New Hotels (such as depreciation and
amortization expense and interest expense) exceed New Hotel operating cash flow
in the first one to three years of operations. As New Hotels mature, the Company
believes, based on past experience, that the operating expenses for these hotels
will decrease as a percentage of revenues, although there can be no assurance
that this will occur.

Results of Operations - Three-Month Period

The following discussion and analysis addresses results of operations for the
three-month periods ended September 29, 2000 (the "2000 Quarter") and October 1,
1999 (the "1999 Quarter").

For the 2000 Quarter, the Company's total earnings before interest expense,
taxes, depreciation and amortization (EBITDA) were $30.5 million, an increase of
23.5% compared to the 1999 Quarter EBITDA of $24.7 million. The Mature Hotels'
EBITDA was $24.2 million in the 2000 Quarter, up 7.1% from $22.6 million in the
1999 Quarter primarily due to four hotels moving to the Mature Hotels category
from the New Hotels category. Those four

                                       9
<PAGE>

hotels, Portland Embassy Suites, St. Augustine World Golf Village, Tampa Embassy
Suites, and Topeka Capitol Plaza, provided $1.2 million of EBITDA in the 2000
Quarter. As a percentage of total revenues, EBITDA related to the Mature Hotels
(excluding the hotels sold) decreased to 27.2% in the 2000 Quarter from 29.1% in
the 1999 Quarter due primarily to the operating results of World Golf Village.
The New Hotels' EBITDA for the 2000 Quarter was $3.0 million compared to $(0.7)
million in the 1999 Quarter. This increase was due primarily to the strong
performance of the New Hotels, especially the Embassy Suites at Dallas-Fort
Worth Airport.

Total revenues for the 2000 Quarter were $104.3 million, an increase of $15.1
million, or 17.0%, compared to the 1999 Quarter, primarily as a result of the
continued growth of the New Hotels, including the hotels opened late in 1999 and
early 2000. The Company's Mature Hotels generated total revenues of $89.2
million in the 2000 Quarter, an increase of $11.7 million, or 15.1% compared to
the 1999 Quarter. The Company's New Hotels generated total revenues of $14.4
million during the 2000 Quarter compared to $10.9 million in the 1999 Quarter.
There are six New Hotels in the 2000 Quarter, compared to seven New Hotels in
the 1999 Quarter.

Rooms revenues increased $9.3 million, or 15.2%, from the 1999 Quarter, but
decreased slightly as a percentage of total revenues, to 67.5% from 68.5%. The
dollar increase was primarily due to increased rooms revenues from the New
Hotels, and an accompanying increase in the Company's average room rate to
$98.30, a 3.9% increase compared to the 1999 Quarter average room rate of
$94.64. In comparison, the average room rate for the hotel industry was $85.40
in the 2000 Quarter, up 5.4% from the 1999 Quarter. The increased average room
rate was supplemented by a 1.3 percentage point increase in the Company's
occupancy for the 2000 Quarter to 67.7%. Occupancy for the hotel industry was
69.7%, up 0.3 percentage points from the 1999 Quarter. The Company's Revenue Per
Available Room (RevPAR) was $66.52 in the 2000 Quarter, up 5.8% from $62.86 in
the 1999 Quarter. RevPAR for the hotel industry was $59.53, up 5.7% from the
1999 Quarter.

Food and beverage revenues increased $4.8 million, or 21.9%, compared to the
1999 Quarter, and increased slightly as a percentage of total revenues, to 25.5%
from 24.4% in the 1999 Quarter. Sales at the New Hotels with full food and
beverage services along with menu pricing adjustments accounted for
substantially all of the increase in food and beverage revenues.

Meeting room rental and other revenues increased $1.1 million, or 17.3%, from
the 1999 Quarter, and increased slightly as a percentage of revenues to 7.1%
from 7.0%. The majority of the dollar increase was a result of revenues from the
New Hotels as well as increased meeting and convention business in some of the
Mature Hotels.

Rooms operating expenses increased $2.1 million, or 13.2%, compared to the 1999
Quarter, but decreased slightly as a percentage of rooms revenues to 25.4% from
25.9%. The dollar increase related primarily to expenses for New Hotels. For the
Mature Hotels, excluding the one hotel sold in 1999, rooms operating expenses as
a percentage of rooms revenues were 25.1% in the 2000 Quarter, compared to 23.9%
in the 1999 Quarter.

                                       10
<PAGE>

Food and beverage operating expenses increased $2.2 million, or 13.8%, compared
to the 1999 Quarter, but decreased as a percentage of food and beverage
revenues, to 69.9% from 74.9%. The dollar increase was attributable to expenses
associated with food and beverage revenues at the New Hotels. Profit margins
improved due to reductions in both food costs and labor costs, as a percentage
of food and beverage revenues.

Other operating expenses increased by 10.5%, compared to the 1999 Quarter, but
decreased as a percentage of meeting room rental and other revenues, to 13.6%
from 14.5%.

General, administrative and sales expenses increased $4.5 million, or 16.3%,
over the 1999 Quarter, but decreased slightly as a percentage of revenues to
30.8% from 31.0%. The dollar increase was primarily attributable to the greater
number of hotels in the 2000 Quarter.

Repairs and maintenance expenses increased $0.4 million, or 10.5%, compared to
the 1999 Quarter, but decreased slightly as a percentage of revenues, to 4.0%
from 4.2% in the 1999 Quarter. The dollar increase related to the net increase
in number of hotels and rooms in 2000 compared to 1999.

Depreciation and amortization expenses increased $1.7 million, or 14.3%,
compared to the 1999 Quarter, but decreased slightly as a percentage of revenues
to 13.1% from 13.4%. The dollar increase related to the hotels opened in late
1999 and early 2000.

Income from operations increased $4.1 million, or 32.0%, compared to the 1999
Quarter. Expenses, particularly direct operating expenses, increased less
rapidly than revenues, and the Company began to realize increased benefits from
the maturing hotels.

Other expense, net increased $2.2 million, or 13.5%, from the 1999 Quarter, as
the result of increased net interest expense related to the New Hotels.

Loss before minority interest, provision for income taxes, extraordinary item
and cumulative effect of change in accounting principle was $1.7 million in the
2000 Quarter, compared to $3.6 million in the 1999 Quarter.

Basic and diluted loss per share was $0.10 in the 2000 Quarter and $0.17 in the
1999 Quarter.

Results of Operations - Nine-Month Period

The following discussion addresses results of operations for the nine-month
periods ended September 29, 2000 (the "2000 Nine Months") and October 1, 1999
(the "1999 Nine Months").

For the 2000 Nine Months, the Company's total EBITDA was $94.3 million, a 24.0%
increase compared to the 1999 Nine Months EBITDA of $76.0 million. The Mature
Hotels' EBITDA was $76.0 million in the 2000 Nine Months, up $8.9 million from
the 1999 Nine Months, primarily due to four hotels moving to the Mature Hotels
category from the New Hotels category. These four hotels that were included in
New Hotels in 1999 and in Mature Hotels in 2000 provided $5.4 million of EBITDA
in the 2000 Nine Months.

                                       11
<PAGE>

Total revenues increased to $313.4 million in the 2000 Nine Months from $263.3
million in the 1999 Nine Months, an increase of $50.1 million or 19.0%. The
increase is primarily attributed to the continued growth of both New Hotels and
Mature Hotels.

Rooms revenues increased to $204.9 million in the 2000 Nine Months from $174.6
million in the 1999 Nine Months, an increase of $30.3 million or 17.3% as a
result of increases in average room rates and total number of available rooms.
Rooms revenues as a percentage of total revenues decreased slightly, to 65.4%,
compared to 66.3% in the 1999 Nine Months. The Company's average room rate
increased to $98.36 in the 2000 Nine Months from $94.93 in the 1999 Nine Months,
an increase of $3.43 or 3.6%. Occupancy increased to 66.0% in the 2000 Nine
Months from 64.1% in the 1999 Nine Months, an increase of 1.9 percentage points.

Food and beverage revenues increased to $85.8 million in the 2000 Nine Months
from $70.0 million in the 1999 Nine Months, an increase of $15.8 million or
22.6%, and increased as a percentage of total revenues to 27.4% from 26.6% in
the 1999 Nine Months. The increase was attributable primarily to sales at the
New Hotels and menu pricing adjustments.

Meeting room rental and other revenues increased to $22.7 million in the 2000
Nine Months from $18.7 million in the 1999 Nine Months, an increase of $4.0
million or 21.6%. Meeting room rental and other revenues also increased slightly
as a percentage of total revenues to 7.2% from 7.1% in the 1999 Nine Months. The
majority of the increase was the result of revenues from the New Hotels.

Rooms operating expenses increased to $51.3 million in the 2000 Nine Months from
$44.4 million in the 1999 Nine Months, an increase of $6.9 million or 15.5%, but
decreased slightly as a percentage of rooms revenue to 25.0% from 25.4% in the
1999 Nine Months. The dollar increase related to the additional hotels opened in
late 1999 and early 2000.

Food and beverage operating expenses increased to $57.5 million in the 2000 Nine
Months from $49.4 million in the 1999 Nine Months, an increase of $8.1 million
or 16.4%. These expenses decreased as a percentage of food and beverage revenues
in the 2000 Nine Months to 67.1%, from 70.6% in the 1999 Nine Months. Profit
margins improved due to reductions in both food costs and labor costs, as a
percentage of food and beverage revenues.

Other operating expenses increased to $2.9 million in the 2000 Nine Months, a
3.5% increase, but declined as a percentage of meeting room rental and other
income, to 12.6% in the 2000 Nine Months from 14.8% in the 1999 Nine Months.

General, administrative and sales expenses increased to $94.8 million in the
2000 Nine Months from $79.5 million in the 1999 Nine Months, an increase of
$15.3 million or 19.2%, and remained stable as a percentage of total revenues at
30.2%. The dollar increase in these expenses was primarily the result of a
greater number of hotels in the 2000 Nine Month period.

Repairs and maintenance expenses increased to $12.6 million in the 2000 Nine
Months from $11.1 million in the 1999 Nine Months, an increase of $1.5 million
or 13.4%, but decreased as a percentage of total revenues, to 4.0% from 4.2%.
The increase was a result of the increase in the total number of hotels open and
rooms available.

                                       12
<PAGE>

Depreciation and amortization expenses increased to $39.8 million in the 2000
Nine Months from $33.8 million in the 1999 Nine Months, an increase of $6.0
million or 18.0%, but decreased slightly as a percentage of total revenues to
12.7% from 12.8% in the 1999 Nine Months. The dollar increase related to the
hotels opened in late 1999 and early 2000.

Income from operations was $54.5 million in the 2000 Nine Months compared to
$42.3 million in the 1999 Nine Months, an increase of $12.2 million or 28.8%. As
a percentage of revenue, income from operations increased to 17.4% in the 2000
Nine Months compared to 16.1% in the 1999 Nine Months. The increase was due to
increased revenues coupled with controls of operating expenses.

Other expense, net increased to $55.5 million in the 2000 Nine Months from $43.6
million in the 1999 Nine Months, an increase of $11.9 million or 27.5%. As a
percentage of total revenues, other expense, net, increased to 17.7% from 16.6%
in the 1999 Nine Months. The increase reflected a $2.4 million gain on property
disposition in the 1999 Nine Months, and increased net interest expense in the
2000 Nine Months related to the New Hotels.

Loss before minority interest, provision for income taxes, extraordinary item
and cumulative effect of change in accounting principle was $1.1 million in the
2000 Nine Months, compared to $1.3 million in the 1999 Nine Months.

Basic and diluted loss per share in the 2000 Nine Months was $0.08, compared to
$ 0.16 for the 1999 Nine Months. The results of the 1999 Nine Months included an
approximate $0.11 gain on the sale of a hotel in June 1999 and an $0.08 per
share charge as the result of the change in accounting principle described above
in Note 4 of the Notes to Consolidated Financial Statements.

Liquidity and Capital Resources

In general, the Company has financed its operations through internal cash flow,
loans from financial institutions, the issuance of public debt and equity, and
the issuance of industrial revenue bonds. The Company's principal uses of cash
are to pay operating expenses, to service debt, to fund capital expenditures,
and to make Partnership distributions to fund some of the taxes allocable to the
partners.

At September 29, 2000, the Company had $34.3 million of cash and equivalents and
$12.7 million of marketable securities, compared to $49.7 million and $5.0
million, respectively, at the end of 1999. These amounts are available for
working capital requirements of the Company.

Net cash provided by operating activities was $20.9 million for the 2000 Nine
Months compared to $26.5 million for the 1999 Nine Months. The decrease is
primarily attributable to the reduction of other obligations, predominantly
construction-related payables and the buy-out of several years of self-insurance
reserves.

At September 29, 2000, total debt was $838.4 million compared with $828.8
million at the end of 1999. The increase is attributable to newly-opened hotels.
The current portion of long-term

                                       13
<PAGE>

debt was $14.2 million, compared to $16.6 million at the end of 1999. The
Company incurred net capital expenditures of approximately $35.3 million during
the 2000 Nine Months and $96.4 million during the 1999 Nine Months. Of the $35.3
million incurred during the 2000 Nine Months, approximately $17.0 million was
for capital improvements on existing hotel properties, and approximately $18.3
million was for development of new hotels. During the remainder of 2000, the
Company expects capital expenditures to total approximately $3.0 million.

As of September 29, 2000, the Company had no hotels under construction, while at
October 1, 1999, the Company had three hotels under construction. Based upon
current plans relating to capital expenditures, the Company anticipates that its
capital resources will be adequate to satisfy its 2000 capital requirements for
the currently planned projects and normal recurring capital improvement.

Forward-Looking Statements

NOTE: In addition to historical information, this document contains certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements typically, but not exclusively,
are identified by the inclusion of phrases such as "the Company believes," "the
Company plans," "the Company intends," and other phrases of similar meaning.
These forward-looking statements involve risks and uncertainties and are based
on current expectations. Consequently, actual results could differ materially
from the expectations expressed in the forward-looking statements. Among the
various factors that could cause actual results to differ include a downturn in
the economy (either regionally or nationwide) affecting overall hotel occupancy
rates, or revenues at New Hotels not reaching expected levels as quickly as
planned as the result of competitive factors.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Company is exposed to changes in interest rates primarily as a result of its
investing and financing activities. Investing activity includes operating cash
accounts and investments with an original maturity of three months or less, and
certain balances of various money market and common bank accounts. The financing
activities of the Company are comprised of long-term fixed- and variable-rate
debt obligations utilized to fund business operations and maintain liquidity.
The following table presents the principal cash repayments and related weighted
average interest rates by maturity date for the Company's long-term fixed and
variable-rate debt obligations as of September 29, 2000:

                                       14
<PAGE>

<TABLE>
<CAPTION>
                                                                           Expected Maturity Date
                                                                                (in millions)
                                                                                                    There-              Fair
                                                2000(d)    2001     2002       2003       2004      after     Total     Value
                                                                                                                         (e)
<S>                                     <C>    <C>        <C>      <C>        <C>        <C>       <C>       <C>       <C>
Long-Term Debt                          (a)

 $300 Million 1/st/ Mortgage Notes             $     -    $   -    $    -    $     -     $  300    $     -   $  300    $  313
    Average interest rate               (b)        8.9%     8.9%      8.9%       8.9%       8.9%       8.9%     8.9%

 $90 Million 1/st/ Mortgage Notes              $     -    $   -    $    -    $     -     $    -     $   90   $   90    $   94
    Average interest rate               (b)        9.8%     9.8%      9.8%       9.8%       9.8%       9.8%     9.8%

 Other fixed-rate debt obligations             $    13    $   7    $   32    $    38     $    6     $  219   $  315    $  315
    Average interest rate               (b)        8.2%     8.4%      8.7%       8.1%       8.4%       8.6%     8.5%

 Other variable-rate debt obligations          $     1    $  48    $    1    $    17     $   29     $   37   $  133    $  133
    Average interest rate               (c)        9.3%     9.3%      9.3%       9.3%       9.3%       9.3%     9.3%
</TABLE>

     (a)  Includes amounts reflected as long-term debt due within one year.

     (b)  For the long-term fixed rate debt obligations, the weighted average
          interest rate is based on the stated rate of the debt that is maturing
          in the year reported. The weighted average interest rate excludes the
          effect of the amortization of deferred financing costs.

     (c)  For the long-term variable rate debt obligations, the weighted average
          interest rate assumes no changes in interest rates and is based on the
          variable rate of the debt, as of September 29, 2000, that is maturing
          in the year reported. The weighted average interest rate excludes the
          effect of the amortization of deferred financing costs

     (d)  The 2000 balances include actual and projected principal repayments
          and weighted average interest rates for the year.

     (e)  The fair values of long-term debt obligations approximate their
          respective historical carrying amounts except with respect to the $300
          million 1st Mortgage Notes and the $90 million 1st Mortgage Notes. The
          fair value of the first mortgage note issues is estimated by obtaining
          quotes from brokers.

     PART II. OTHER INFORMATION AND SIGNATURES

     Item 1. Legal Proceedings

                   Not Applicable

     Item 2. Changes in Securities and Use of Proceeds

                   Not Applicable

                                       15
<PAGE>

     Item 3. Defaults Upon Senior Securities

                   Not Applicable

     Item 4. Submission of Matters to a Vote of Securities Holders.

     Item 5. Other Information

                   Not Applicable

     Item 6. Exhibits and Reports on Form 8-K

        (a)  Exhibits

             See Exhibit Index incorporated by reference.

        (b)  Reports on Form 8-K

             No reports on Form 8-K have been filed during the quarter for which
             this report is filed.

                                       16
<PAGE>

                                  SIGNATURES

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

                                 JOHN Q. HAMMONS HOTELS, INC.


                                 By:     /s/ John Q. Hammons
                                         --------------------------------------
                                         John Q. Hammons
                                         Chairman, Founder, and
                                         Chief Executive Officer

                                 By:     /s/ Paul E. Muellner
                                         --------------------------------------
                                         Paul E. Muellner
                                         Vice President, Corporate Controller
                                         (Principal Financial Officer)

Dated:  November 10, 2000

                                       17
<PAGE>

                                 Exhibit Index
                                 -------------

27    Financial Data Schedule

                                       18