<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 March 30, 2001

                                      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 May 10,
2001: 4,770,689
<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

                                                                     March 30, 2001   December 29, 2000
                                                                     --------------   -----------------
                                                                       (Unaudited)        (Audited)
<S>                                                                  <C>              <C>
CURRENT ASSETS:

   Cash and equivalents                                                $    41,265       $     45,554
   Marketable securities                                                     6,572              3,617

   Receivables:
     Trade, less allowance for doubtful accounts of $231                    16,044             11,606
     Construction reimbursements, pending insurance claims and other         2,680              2,438
     Management fees                                                           154                101
   Inventories                                                               1,444              1,496
   Prepaid expenses and other                                                1,781              2,396
                                                                       -----------       ------------
     Total current assets                                                   69,940             67,208

PROPERTY AND EQUIPMENT, at cost:
   Land and improvements                                                    58,236             58,229
   Buildings and improvements                                              740,464            740,618
   Furniture, fixture and equipment                                        299,006            297,946
   Construction in progress                                                    988                 --
                                                                       -----------       ------------
                                                                         1,098,694          1,096,793
   Less-accumulated depreciation and amortization                         (286,944)          (273,535)
                                                                       -----------       ------------
                                                                           811,750            823,258

DEFERRED FINANCING COSTS, FRANCHISE FEES AND OTHER, net                     31,511             30,418
                                                                       -----------       ------------
TOTAL ASSETS                                                           $   913,201       $    920,884
                                                                       ===========       ============
</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)


<TABLE>
<CAPTION>
                                    LIABILITIES AND EQUITY

                                                                                    March 30, 2001        December 29, 2000
                                                                                    --------------        -----------------
                                                                                      (Unaudited)              (Audited)

<S>                                                                                 <C>                   <C>
LIABILITIES:
   Current portion of long-term debt                                                   $  56,535                $  56,258

   Accounts payable                                                                        4,319                    5,990

   Accrued expenses:
     Payroll and related benefits                                                          6,174                    9,077
     Sales and property taxes                                                             12,366                   11,642
     Insurance                                                                             2,386                    2,292
     Interest                                                                              8,113                   12,639
     Utilities, franchise fees and other                                                   7,371                    6,747
                                                                                       ---------                ---------
        Total current liabilities                                                         97,264                  104,645

   Long-term debt                                                                        778,368                  780,449
   Other obligations and deferred revenue                                                  2,606                    2,033
                                                                                       ---------                ---------
        Total liabilities                                                                878,238                  887,127
                                                                                       ---------                ---------
COMMITMENTS AND CONTINGENCIES

MINORITY INTEREST OF HOLDERS OF LIMITED
   PARTNER UNITS                                                                          24,454                   23,515

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
     2001 and 2000, 6,042,000 shares issued at March 30, 2001 and December 29,
     2000, and 4,770,689 and 4,770,419 outstanding at March 30, 2001, and
     December 29, 2000, respectively                                                          60                       60
   Class B common stock, $.01 par value, 1,000,000 shares
     authorized, 294,100 shares issued and outstanding in 2001 and 2000                        3                        3
   Paid-in capital                                                                        96,373                   96,373
   Retained deficit, net                                                                 (80,153)                 (80,420)
   Treasury Stock, at cost: 1,271,311 shares and 1,271,581 shares at March 30, 2001,
     and December 29, 2000, respectively                                                  (5,774)                  (5,774)
                                                                                       ---------                ---------
TOTAL EQUITY                                                                              10,509                   10,242
                                                                                       ---------                ---------
TOTAL LIABILITIES AND EQUITY                                                           $ 913,201                $ 920,884
                                                                                       =========                =========
</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
                                                                         March 30, 2001    March 31, 2000
                                                                         --------------    --------------
                                                                           (Unaudited)       (Unaudited)
<S>                                                                      <C>               <C>
REVENUES:
   Rooms                                                                   $    69,940       $    63,273
   Food and beverage                                                            31,668            28,620
   Meeting room rental and other                                                13,701            12,231
                                                                           -----------       -----------
     Total revenues                                                            115,309           104,124

OPERATING EXPENSES:
   Direct operating costs and expenses
     Rooms                                                                      17,206            16,117
     Food and Beverage                                                          24,761            23,797
     Other                                                                         864               892

   General, administrative and sales expenses                                   35,074            31,018

   Repairs and maintenance                                                       4,371             4,061

   Depreciation and amortization                                                13,548            12,826
                                                                           -----------       -----------

     Total operating costs                                                      95,824            88,711
                                                                           -----------       -----------

INCOME FROM OPERATIONS                                                          19,485            15,413

OTHER INCOME (EXPENSE):
   Interest income                                                                 641               381
   Interest expense and amortization of deferred financing fees                (18,890)          (18,366)
                                                                           -----------       -----------

INCOME (LOSS) BEFORE MINORITY INTEREST AND PROVISION FOR
   INCOME TAXES                                                                  1,236            (2,572)
   Minority interest in (earnings) loss of partnership                            (939)            1,844
                                                                           -----------       -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES                                    297              (728)
   Provision for income taxes                                                      (30)              (30)
                                                                           -----------       -----------

NET INCOME (LOSS)                                                          $       267       $      (758)
                                                                           ===========       ===========

BASIC AND DILUTED INCOME (LOSS) PER SHARE:
   Net Income (Loss) Allocable to Company                                  $      0.05       $     (0.14)
                                                                           ===========       ===========
WEIGHTED AVERAGE SHARES OUTSTANDING                                          5,064,564         5,525,760
                                                                           ===========       ===========
</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 29, 2000 (audited)       $ 23,515        $ 60          $   3    $ 96,373     $ (80,420)   $ (5,774)   $ 10,242
Net income allocable to the Company               -           -              -           -           267           -         267
Minority interest in earnings of
   partnership                                  939           -              -           -             -           -           -
                                           --------        ----          -----    --------     ---------    --------    --------
BALANCE, March 30, 2001 (unaudited)        $ 24,454        $ 60          $   3    $ 96,373     $ (80,153)   $ (5,774)   $ 10,509
                                           ========        ====          =====    ========     =========    ========    ========
</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>
                                                                            Three months ended
                                                                    March 30, 2001      March 31, 2000
                                                                    --------------      --------------
                                                                      (unaudited)          (unaudited)
<S>                                                                 <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                                     $    267             $   (758)
Adjustment to reconcile net income (loss) to cash provided
by operating activities
   Minority interest in earnings (losses) of partnership                   939               (1,844)
   Depreciation, amortization and loan cost amortization                14,100               13,389
Changes in certain assets and liabilities
   Receivables                                                          (4,733)              (3,609)
   Inventories                                                              52                  (17)
   Prepaid expenses and other                                              615                  419
   Accounts payable                                                     (1,671)              (7,101)
   Accrued expenses                                                     (5,987)              (5,118)
   Other obligations and deferred revenue                                  573               (6,187)
                                                                      --------             --------
     Net cash provided by (used in) operating activities                 4,155              (10,826)
                                                                      --------             --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Additions to property and equipment, net                             (1,870)             (18,208)
   Franchise fees and other                                             (1,815)                (208)
   (Purchase) sale of marketable securities, net                        (2,955)                 (99)
                                                                      --------             --------
     Net cash used in investing activities                              (6,640)             (18,515)
                                                                      --------             --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from borrowings                                                 --               21,480
   Repayments of debt                                                   (1,804)              (1,602)
   Purchase of treasury stock                                               --                 (483)
                                                                      --------             --------
     Net cash (used in) provided by financing activities                (1,804)              19,395
                                                                      --------             --------
     Decrease in cash and equivalents                                   (4,289)              (9,946)

CASH AND EQUIVALENTS, beginning of period                               45,554               49,727
                                                                      --------             --------
CASH AND EQUIVALENTS, end of period                                   $ 41,265             $ 39,781
                                                                      ========             ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID FOR INTEREST, net of amounts capitalized                    $ 22,879             $ 22,591
                                                                      ========             ========
</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 represented 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 approximately
28% general partnership interest. Effective December 30, 2000, the Company
exchanged 1,271,311 general partnership units for funds advanced by the
Partnership to the Company to repurchase its common stock. The number of general
partnership units exchanged is equivalent to the number of shares repurchased,
as outlined by the partnership agreement. As a result, JQH's limited partnership
interest currently is approximately 76% while the Company's general partnership
interest is approximately 24%.

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 the accounting principles generally accepted in the United States
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 29, 2000
which included financial statements for the fiscal years ended December 29,
2000, December 31, 1999 and January 1, 1999.

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

                                       7
<PAGE>

will be available for use in operations in 2001. 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.

3.   EARNINGS (LOSS) PER SHARE

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 material dilutive securities, basic and diluted income and
loss per share are identical, thus a reconciliation of the numerator and
denominator is not necessary. Basic and diluted income per share was $0.05 for
the three months ended March 30, 2001, compared to a loss of $0.14 per share for
the three months ended March 31, 2000.

During 2000, the Company purchased 547,956 shares of Class A common stock for
approximately $2.8 million. During the 2001 period, the Company purchased no
shares.

4.   NEW ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("SFAS No. 133"). SFAS No. 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. This
statement requires that changes in the derivative's fair value be recognized
currently in earnings, unless specific hedge accounting criteria are met. The
Company adopted this statement in the fourth quarter of fiscal 2000 with no
impact on its reported consolidated financial position, results of operation,
cash flow or related disclosures.

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 then 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. Hammons has personally
developed two projects that opened during 2000 including an Embassy Suites Hotel
in Lincoln, Nebraska

                                       8
<PAGE>

(opened May 1, 2000) and the Marriott Courtyard in Springfield, Missouri (opened
April 10, 2000). In addition, Mr. Hammons has three hotels under development
which will open during 2001 including a Renaissance Hotel in Richardson, Texas
(opening May, 2001), an Embassy Suites Hotel in Nashville, Tennessee (Franklin,
opening August, 2001), and a Residence Inn in Springfield, Missouri (opening
September, 2001). All of these properties will be managed by the Company.

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. The following discussion and analysis addresses results
of operations for the three month periods ended March 30, 2001 (the "2001
Quarter") and March 31, 2000 (the "2000 Quarter").

For the 2001 Quarter, the Company's total earnings before interest expense,
taxes, depreciation and amortization (EBITDA) were $33.0 million, a 17.0%
increase over the 2000 Quarter EBITDA of $28.2 million. As a percentage of total
revenues, EBITDA increased to 28.6% in the 2001 Quarter from 27.1% in the 2000
Quarter, primarily as a result of an increase in occupancy percentage, average
daily rate and rooms revenue per available room over the 2000 quarter as
discussed below. The Mature Hotels' EBITDA was $28.9 million in the 2001
Quarter, up 29.0% from $24.6 million in the 2000 Quarter. As a percentage of
total revenues, EBITDA related to the Mature Hotels decreased to 26.8% in the
2001 Quarter from 27.2% in the 2000 Quarter. The New Hotels' EBITDA for the 2001
Quarter was $1.7 million compared to $1.3 million in the 2000 Quarter. In the
2001 Quarter, the Company had two New Hotels, compared to six New Hotels in the
2000 Quarter. The 2000 Quarter results include $0.5 million in preopening
expenses related to two hotels then under construction.

Total revenues for the 2001 Quarter were $115.3 million, an increase of $11.2
million, or 10.7%, compared to the 2000 Quarter, primarily as a result of the
continued growth of the Mature Hotels and the hotels opened during 2000. The
Company's Mature Hotels generated total revenues of $107.9 million in the 2001
Quarter, an increase of $17.3 million, or 19.1%, compared to the 2000 Quarter.
The Company's two New Hotels generated total revenues of $6.7 million during the
2001 Quarter compared to $13.0 million from the six New Hotels in the 2000
Quarter.

Rooms revenues increased $6.7 million, or 10.5%, from the 2000 Quarter, but as a
percentage of total revenues fell to 60.7% from 60.8%. The dollar increase was
primarily due to an increase in the Company's average room rate to $103.68, a
5.4% increase compared to the 2000 Quarter average room rate of $98.35, and a
1.7 percentage point increase in the Company's occupancy for the 2001 Quarter to
63.7%. In comparison, the average room rate for the hotel industry was $89.26 in
the 2001 Quarter, up 4.8% from the 2000 Quarter. Occupancy for the hotel
industry was 59.1% which was the same as the 2000 Quarter. The Company's Revenue
Per Available Room (RevPAR) was $66.07 in the 2001 Quarter, up 8.4%

                                       9
<PAGE>

from $60.96 in the 2000 Quarter. RevPAR for the hotel industry was $52.75, up
4.8% from the 2000 Quarter.

Food and beverage revenues increased $3.0 million, or 10.6%, compared to the
2000 Quarter, and remained constant as a percentage of total revenues at 27.5%.
The increased dollar amount was the result of higher occupancy and the increased
number of hotels.

Meeting room rental and other revenues increased $1.5 million, or 12.0%, from
the 2000 Quarter as the result of increased use of convention facilities, and
increased slightly as a percentage of revenues, to 11.9% from 11.7%.

Rooms operating expenses increased $1.1 million, or 6.8%, compared to the 2000
Quarter, but decreased as a percentage of rooms revenues to 24.6% from 25.4%.
The dollar increase was attributable to higher labor cost and expenses directly
related to increased occupied rooms over the 2000 Quarter.

Food and beverage operating expenses increased $1.0 million, or 4.1%, compared
to the 2000 Quarter, but decreased as a percentage of food and beverage revenues
to 78.2% from 83.1%. The dollar increase was attributable to greater labor and
food costs associated with increased food and beverage sales.

Other operating expenses remained constant compared to the 2000 Quarter and
decreased as a percentage of meeting room rental and other revenues, to 6.3%
from 7.3%.

General, administrative and sales expenses increased $4.1 million, or 13.1%,
over the 2000 Quarter, and increased as a percentage of total revenues to 30.4%
from 29.8%. The dollar increase was primarily attributable to increases in
utility costs and guest loyalty programs.

Repairs and maintenance expenses increased $0.3 million, or 7.6%, compared to
the 2000 Quarter and decreased slightly as a percentage of revenues to 3.8% from
3.9% in the 2000 Quarter.

Depreciation and amortization expenses increased $0.7 million, or 5.6%, compared
to the 2000 Quarter, but decreased as a percentage of revenues to 11.7% from
12.3%. The dollar increase is primarily attributable to the two New Hotels
opened in 2000.

Income from operations increased $4.1 million, or 26.4%, compared to the 2000
Quarter, and increased as a percentage of revenues, to 16.9% from 14.8% in the
2000 Quarter.

Interest expense and amortization of deferred financing fees increased slightly,
by $0.5 million, or 2.9%, from the 2000 Quarter, but decreased as a percentage
of total revenues to 16.4% from 17.6%.

Income (loss) before minority interest, and provision for income taxes, was $1.2
million of income compared to a $2.6 million loss in the 2000 Quarter, a change
of $3.8 million. This

                                       10
<PAGE>

increase is attributable to a higher occupancy percentage and RevPAR, as well as
improved operating margins in rooms and food and beverage departments over the
2000 Quarter.

Basic and diluted income (loss) per share in the 2001 Quarter was $0.05 of
income, compared to a $0.14 loss in the 2000 Quarter.

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 permitted partnership distributions to fund some of the taxes allocable
to the partners.

At March 30, 2001, the Company had $41.3 million of cash and equivalents and
$6.6 million of marketable securities, compared to $45.6 million and $3.6
million, respectively, at the end of 2000. The cash and equivalents are
available for working capital requirements of the Company.

Operating activities provided the Company with $4.2 million for the 2001 Quarter
compared to using $10.8 million for the 2000 Quarter. This change is
attributable to the reduction of construction and other payables related to the
two hotels opened in the 2000 Quarter.

At March 30, 2001, total debt was $834.9 million compared with $836.7 million at
the end of 2000. The decrease is attributable to completion of new hotel
development in 2000 and scheduled reduction of principal on existing debt. The
current portion of long-term debt was $56.5 million, compared with $56.3 million
at the end of 2000. The Company intends to refinance or enter into extensions
for approximately $47.0 million of debt maturing in 2001. The Company incurred
net capital expenditures of approximately $1.9 million during the 2001 Quarter
and $18.2 million during the 2000 Quarter. During the remainder of 2001, the
Company expects capital expenditures to total approximately $20 million.

During fisca1 2000, the Company initiated claims against certain of its
construction service providers as well as with its insurance carrier. These
requests for recoveries result from moisture-related problems at certain of the
Company's hotel properties. To date, the various contractors have attempted to
correct these problems at essentially no direct cost to the Company. Through
March 30, 2001, the Company has incurred $4.9 million of repair costs related to
the underlying problems. Management and its legal counsel are of the opinion
that it is remote that the Company would be unsuccessful in realizing the claims
pending for costs incurred resulting from these problems. Accordingly, pending
cost reimbursements are included as a component of current assets in the
accompanying balance sheets, while the costs anticipated to be recovered through
insurance have been deferred and are included as a component of deferred
financing costs, franchise costs, franchise fees and other. Adjustments to these
pending receivables or deferred costs, as applicable, will be recorded in the
period in which the facts and circumstances which give rise to the adjustments
become known.

Based upon current plans relating to capital expenditures, the Company
anticipates that its capital resources will be adequate to satisfy its 2001
capital requirements.

                                       11
<PAGE>

NOTE: In addition to historical information, this document contains certain
forward-looking statements within the meaning of the Private Securities
Litigation 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 March 30, 2001.


                            Expected Maturity Date
                                 (in millions)


<TABLE>
<CAPTION>
                                                                                                                       Fair
                                                                                                 There-               Value
                                                 2001(d)      2002      2003    2004      2005   After      Total      (e)
<S>                                         <C>              <C>       <C>      <C>      <C>     <C>        <C>       <C>
Long-Term Debt                             (a)
$300 Million 1/st/ Mortgage Notes                $    -      $   -     $  -     $300     $  -    $   -      $ 300     $ 296
Average interest rate                      (b)      8.9%       8.9%     8.9%     8.9%                         8.9%
$90 Million 1/st/ Mortgage Notes Average         $    -      $   -     $  -     $  -     $ 90    $   -      $  90     $  88
interest rate                              (b)      9.8%       9.8%     9.8%     9.8%     9.8%                9.8%
Other fixed-rate debt obligations                $    8    $    32     $ 39     $  7     $  8    $ 217      $ 311     $ 311
Average interest rate                      (b)      8.3%       8.6%     8.1%     8.4%     8.4%     8.6%       8.5%
Other variable-rate debt obligations             $   49    $     1     $ 17     $ 29     $  1    $  37      $ 134     $ 134
Average interest rate                      (c)      8.1%       8.1%     8.1%     8.1%     8.1%     8.1%       8.1%
</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 March 30, 2001,
               that is maturing in the year reported. The weighted average
               interest rate excludes the effect of the amortization of deferred
               financing costs.

         (d)   The 2001 balances include actual and projected principal payments
               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.

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<PAGE>

PART II.  OTHER INFORMATION AND SIGNATURES

Item 1.  Legal Proceedings

                  Not Applicable

Item 2.  Changes in Securities and Use of Proceeds

                  Not Applicable

Item 3.  Defaults Upon Senior Securities

                  Not Applicable

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

                  Not Applicable

Item 5.  Other Information

                  Not Applicable

Item 6.  Exhibits and Reports on Form 8-K

    (a)  Exhibits

                  None

    (b)  Reports on Form 8-K

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

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<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
                                                    Chief Financial Officer

Dated: May 11, 2001

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