<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 27, 2002

                                       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 1, 2002: 4,789,729




<PAGE>




PART I - FINANCIAL INFORMATION
         Item 1.  Financial Statements


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

                                     ASSETS


<TABLE>
<CAPTION>
                                                                                SEPTEMBER 27, 2002          DECEMBER 28, 2001
                                                                                ------------------          -----------------
                                                                                    (UNAUDITED)                 (AUDITED)
<S>                                                                             <C>                        <C>
CURRENT ASSETS:

    Cash and equivalents                                                               $  39,699                  $  33,180

    Marketable securities                                                                 16,091                     11,016

    Receivables:
      Trade, less allowance for doubtful accounts of $231                                 10,895                     10,771
      Other                                                                                  924                        824
      Management fees - related party                                                        209                        148

    Inventories                                                                            1,168                      1,288

    Prepaid expenses and other                                                             1,825                      3,446
                                                                                       ---------                  ---------

      Total current assets                                                                70,811                     60,673

PROPERTY AND EQUIPMENT, at cost:
    Land and improvements                                                                 61,379                     61,140
    Buildings and improvements                                                           741,743                    745,277
    Furniture, fixture and equipment                                                     319,054                    312,079
    Construction in progress                                                              14,599                      1,868
                                                                                       ---------                  ---------

                                                                                       1,136,775                  1,120,364

    Less-accumulated depreciation and amortization                                      (362,380)                  (326,906)
                                                                                       ---------                  ---------

                                                                                         774,395                    793,458

DEFERRED FINANCING COSTS, FRANCHISE FEES AND OTHER, net,
    including $14,747 and $11,478 of restricted cash at
    September 27, 2002 and December 28, 2001, respectively                                38,733                     27,593
                                                                                       ---------                  ---------

TOTAL ASSETS                                                                           $ 883,939                  $ 881,724
                                                                                       =========                  =========
</TABLE>

          See Notes to Condensed Consolidated Financial Statements


                                       2
<PAGE>





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

                             LIABILITIES AND EQUITY


<TABLE>
<CAPTION>
                                                                                            SEPTEMBER 27, 2002    DECEMBER 28, 2001
                                                                                            ------------------    -----------------
                                                                                                (UNAUDITED)           (AUDITED)
<S>                                                                                         <C>                 <C>
LIABILITIES:

    Current portion of long-term debt                                                             $ 10,432            $ 38,862

    Accounts payable                                                                                 3,484               5,626

    Accrued expenses:
      Payroll and related benefits                                                                   6,800               7,307
      Sales and property taxes                                                                      16,093              11,680
      Insurance                                                                                      2,319               2,308
      Interest                                                                                      16,292              11,999
      Utilities, franchise fees and other                                                            9,575               6,152
                                                                                                  --------            --------
         Total current liabilities                                                                  64,995              83,934

    Long-term debt                                                                                 801,981             774,145
    Other obligations                                                                                2,831               2,340
                                                                                                  --------            --------
         Total liabilities                                                                         869,807             860,419
                                                                                                  --------            --------

MINORITY INTEREST OF HOLDERS OF LIMITED
    PARTNER UNITS                                                                                    8,715              14,111

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 2002
      and 2001, 6,042,000 shares issued at September 27, 2002 and December 28,
      2001, and 4,789,729 and 4,782,179 outstanding at September 27, 2002 and
      December 28, 2001, respectively                                                                   60                  60
    Class B common stock, $.01 par value, 1,000,000 shares authorized, 294,100
      shares issued and outstanding in 2002 and 2001                                                     3                   3
    Paid-in capital                                                                                 96,389              96,373
    Retained deficit, net                                                                          (85,366)             (83,539)
    Treasury Stock, at cost:  1,252,271 shares and 1,259,821 shares at September 27, 2002
      and December 28, 2001, respectively                                                           (5,669)              (5,703)
                                                                                                  --------            --------

TOTAL EQUITY                                                                                         5,417               7,194
                                                                                                  --------            --------

TOTAL LIABILITIES AND EQUITY                                                                      $883,939            $881,724
                                                                                                  ========            ========
</TABLE>

            See Notes to Condensed Consolidated Financial Statements


                                       3

<PAGE>




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

<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED                   NINE MONTHS ENDED
                                                        SEPT. 27, 2002  SEPT. 28, 2001     SEPT. 27, 2002      SEPT. 28, 2001
                                                        --------------  --------------     --------------      --------------
                                                          UNAUDITED       UNAUDITED           UNAUDITED           UNAUDITED
<S>                                                     <C>             <C>                <C>                 <C>
REVENUES:
    Rooms                                                $   68,938       $  64,419          $  205,979          $  206,581
    Food and beverage                                        24,950          24,083              84,338              85,989
    Meeting room rental, related party management
      fee and other                                          12,021          11,753              38,182              39,944
                                                         ----------       ---------          ----------          ----------
      Total revenues                                        105,909         100,255             328,499             332,514

OPERATING EXPENSES:
    Direct operating costs and expenses:
      Rooms                                                  17,731          17,398              51,499              52,757
      Food and beverage                                      20,697          21,257              66,071              71,210
      Other                                                     840             792               2,445               2,561

    General, administrative and sales expenses               34,963          33,012             102,742             101,633

    Repairs and maintenance                                   4,555           4,630              13,512              13,586

    Depreciation and amortization                            13,203          13,799              39,291              41,031
                                                         ----------       ---------          ----------          ----------

      Total operating costs                                  91,989          90,888             275,560             282,778
                                                         ----------       ---------          ----------          ----------

INCOME FROM OPERATIONS                                       13,920           9,367              52,939              49,736

OTHER INCOME (EXPENSE):
    Interest income                                             308             474                 756               1,627
    Interest expense and amortization of deferred
      financing fees                                        (17,931)        (18,079)            (53,415)            (55,355)
                                                         ----------       ---------          ----------          ----------
INCOME (LOSS) BEFORE MINORITY INTEREST, PROVISION FOR
    INCOME TAXES AND EXTRAORDINARY ITEM                      (3,703)         (8,238)                280              (3,992)
    Minority interest in (earnings) loss of partnership       2,813           6,262                (212)              3,035
                                                         ----------       ---------          ----------          ----------
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND
    EXTRAORDINARY ITEM                                         (890)         (1,976)                 68                (957)
    Provision for income taxes                                  (30)            (30)               (120)               (120)
                                                         ----------       ---------          ----------          ----------

LOSS BEFORE EXTRAORDINARY ITEM                                 (920)         (2,006)                (52)             (1,077)
    Extraordinary item: Cost of extinguishment of
      debt, net of applicable tax benefit and minority
      interest                                                 (142)           (102)             (1,775)               (114)
                                                         ----------       ---------          ----------          ----------

NET LOSS                                                 $   (1,062)      $  (2,108)         $   (1,827)         $   (1,191)
                                                         ==========       =========          ==========          ==========
BASIC AND DILUTED LOSS PER SHARE:

    Loss before extraordinary item                       $    (0.18)      $   (0.40)         $    (0.01)         $    (0.21)
    Extraordinary item                                        (0.03)          (0.02)              (0.35)              (0.02)
                                                         ----------       ---------          ----------          ----------
    Per share net loss allocable to company              $    (0.21)      $   (0.42)         $    (0.36)         $    (0.23)
                                                         ==========       =========          ==========          ==========

BASIC AND DILUTED WEIGHTED AVERAGE SHARES
    OUTSTANDING                                           5,083,829       5,076,174           5,080,372           5,070,270
                                                         ==========       =========          ==========          ==========
</TABLE>


            See Notes to Condensed Consolidated Financial Statements


                                       4

<PAGE>







                          JOHN Q. HAMMONS HOTELS, INC.
                                  AND COMPANIES
        CONDENSED 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 28, 2001
   (audited)                            $ 14,111           $  60        $   3    $ 96,373      $(83,539)     $(5,703)      $ 7,194

Issuance of common stock to
   directors (unaudited)                      -               -            -           16            -            34            50
Net loss allocable to the company
   (unaudited)                                -               -            -           -         (1,827)          -         (1,827)
Minority interest in loss of
   partnership, after
   extraordinary item
   of $5,608 (unaudited)                  (5,396)             -            -           -             -            -            -
                                         -------           -----        -----    --------      --------      -------       -------
BALANCE, September 27, 2002
   (unaudited)                           $ 8,715           $  60        $   3    $ 96,389      $(85,366)     $(5,669)      $ 5,417
                                         =======           =====        =====    ========      ========      =======       =======

</TABLE>


            See Notes to Condensed Consolidated Financial Statements


                                       5
<PAGE>





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

<TABLE>
<CAPTION>

                                                                                                    NINE MONTHS ENDED
                                                                                       SEPTEMBER 27, 2002       SEPTEMBER 28, 2001
                                                                                       ------------------       ------------------
                                                                                           (UNAUDITED)             (UNAUDITED)
<S>                                                                                    <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                                                            $   (1,827)             $   (1,191)

Adjustment to reconcile net loss to cash provided by operating activities:
        Minority interest in earnings (loss) of partnership                                        212                  (3,035)
        Depreciation, amortization and loan cost amortization                                   40,760                  42,831
        Extraordinary item                                                                       1,775                     114
        Non-cash director compensation                                                              50                      71

Changes in certain assets and liabilities:
        Receivables                                                                               (285)                    307
        Inventories                                                                                120                     195
        Prepaid expenses and other                                                               1,621                   1,875
        Accounts payable                                                                        (2,069)                 (2,185)
        Accrued expenses                                                                        11,561                  (2,344)
        Other obligations                                                                          491                     978
                                                                                            ----------              ----------
              Net cash provided by operating activities                                         52,409                  37,616
                                                                                            ----------              ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
        Additions to property and equipment                                                    (19,786)                (20,043)
        Franchise fees and other                                                                (2,839)                 (4,482)
        Purchase of marketable securities                                                       (5,075)                 (5,948)
                                                                                            ----------              ----------
              Net cash used in investing activities                                            (27,700)                (30,473)
                                                                                            ----------              ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
        Proceeds from borrowings                                                               510,000                   1,600
        Repayments of debt                                                                    (510,399)                (22,320)
        Debt offering costs                                                                    (13,730)                      -
        Debt redemption costs                                                                   (4,061)                      -
                                                                                            ----------              ----------
              Net cash used in financing activities                                            (18,190)                (20,720)
                                                                                            ----------              ----------
              Increase (decrease) in cash and equivalents                                        6,519                 (13,577)

CASH AND EQUIVALENTS, beginning of period                                                       33,180                  45,554
                                                                                            ----------              ----------
CASH AND EQUIVALENTS, end of period                                                         $   39,699              $   31,977
                                                                                            ==========              ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID FOR INTEREST                                                                      $   47,652              $   58,892
                                                                                            ==========              ==========
</TABLE>


            See Notes to Condensed Consolidated Financial Statements



                                       6
<PAGE>



                   JOHN Q. HAMMONS HOTELS, INC. AND COMPANIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

1. ENTITY MATTERS

The accompanying condensed 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).

We were incorporated in September 1994 and had no operations or assets prior to
our initial public offering of Class A common stock in November 1994.
Immediately prior to the initial public offering, Mr. John Q. Hammons
contributed approximately $5 million in cash to us in exchange for 294,100
shares of our Class B common stock (which represented approximately 72% of the
voting control). We contributed the approximate $96 million of net proceeds from
our Class A and Class B common stock offerings to John Q. Hammons Hotels, L.P.,
or the Partnership, in exchange for approximately 28% in general partnership
interest. Effective December 30, 2000, we exchanged 1,271,581 general
partnership units for funds advanced by the Partnership to us to repurchase our
common stock. Effective December 29, 2001, we sold 11,760 general partner units
to our general partner. The number of general partnership units exchanged is
equivalent to the number of shares repurchased, as outlined by the partnership
agreement. As a result, Mr. Hammons' limited partnership interest currently is
approximately 76% while our general partnership interest is approximately 24%.

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

2. GENERAL

The accompanying unaudited 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 our Form 10-K for the fiscal year ended December 28, 2001, which included
financial statements for the fiscal years ended December 28, 2001, December 29,
2000 and December 31, 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.

We consider 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



                                       7
<PAGE>



available-for-sale commercial paper and governmental agency obligations which
mature or will be available for use in operations in 2002. These securities are
valued at cost, which approximates current market value.

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. LOSS PER SHARE

Basic loss per share is computed by dividing net loss by the weighted average
number of common shares outstanding during the year. Diluted loss per share is
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 loss per share are identical; thus, a reconciliation of the
numerator and denominator is not necessary.

Basic and diluted loss per share before extraordinary item was $0.01 for the
nine months ended September 27, 2002, and $0.21 for the nine months ended
September 28, 2001, and was $0.18 for the three months ended September 27, 2002,
and $0.40 for the three months ended September 28, 2001. The basic and diluted
loss per share impact of the extraordinary item was $0.03 and $0.35 for the
three and nine months ended September 27, 2002, respectively, and $0.02 for the
three and nine months ended September 28, 2001. The weighted average diluted
common shares outstanding for the three and nine months ended September 27, 2002
and September 28, 2001, exclude the dilutive effect of approximately 900,000
options since such options would have been anti-dilutive; thus, basic and
diluted earnings per share are identical.

4. NEW ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial Accounting Standards Board, or FASB, issued
Financial Accounting Standards Statement No. 142, "Goodwill and Other Intangible
Assets," which addresses how intangible assets that are acquired individually,
or with a group of other assets, should be accounted for in financial statements
upon their acquisition. This statement also addresses how goodwill and other
intangible assets should be accounted for after they have been initially
recognized in the financial statements. We adopted this statement in the first
quarter of 2002 with no significant impact on our consolidated financial
position, results of operations, cash flows or related disclosures.

In October 2001, the FASB issued Statement No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." This statement addresses financial
accounting for the impairment or disposal of long-lived assets and requires that
one accounting model be used for long-lived assets to be disposed of by sale and
broadens the presentation of discontinued operations to include more disposal
transactions. We adopted this statement in the first quarter of 2002 with no
material impact on our financial position.


                                       8
<PAGE>

In April 2002, the FASB issued Statement No. 145, "Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections." This Statement rescinds FASB Statement No. 4, Reporting Gains and
Losses from Extinguishment of Debt, and FASB Statement No. 64, Extinguishments
of Debt Made to Satisfy Sinking-Fund Requirements, which would require applying
the criteria under Opinion 30 to determine whether or not the gains and losses
related to the extinguishment of debt should be classified as extraordinary
items. Any gain or loss on extinguishment of debt that was classified as an
extraordinary item in prior periods presented that does not meet the criteria in
Opinion 30 for classification as an extraordinary item shall be reclassified.
This Statement amends FASB Statement No. 13, Accounting for Leases, to eliminate
an inconsistency between the required accounting for sale-leaseback transactions
and the required accounting for certain lease modifications that have economic
effects that are similar to sale-leaseback transactions. The provisions of this
Statement related to the rescission of Statement 4 shall be applied in fiscal
years beginning after May 15, 2002. The provisions in paragraphs 8 and 9(c) of
this Statement related to Statement 13 shall be effective for transactions
occurring after May 15, 2002. All other provisions of this Statement shall be
effective for financial statements issued on or after May 15, 2002. Due to the
recent issuance of the standard, we are still assessing the potential impact to
our financial statements; however, management expects that the extinguishment of
debt losses classified as extraordinary items will be reclassified out of the
extraordinary item caption.

In June 2002, the FASB issued Statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This Statement addresses financial
accounting and reporting for costs associated with exit or disposal activities.
The provisions of this Statement are effective for exit or disposal activities
that are initiated after December 31, 2002. Due to the recent issuance of the
standard, we are still assessing the potential impact to our financial
statements.

5. LONG-TERM DEBT

In May 2002, we refinanced our $300 million 8 7/8% First Mortgage Notes due
February 2004, and our $90 million 9 3/4% First Mortgage Notes due April 2005,
as well as construction financing on five of our properties, with new $510
million 8 7/8% First Mortgage Notes, interest payable May 15th and November
15th, and principal due May 2012. In conjunction with this refinancing we
incurred aggregate early extinguishment of debt charges of approximately $1.8
million, net of minority interest. These changes were recorded in the second
quarter ($1.633 million) and the third quarter ($0.142 million), respectively,
as these costs became known.

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

GENERAL. Unless the context indicates or requires otherwise, the terms "we,"
"us," "our" and other references to our company refer to John Q. Hammons Hotels,
Inc. and John Q. Hammons Hotels, L.P., including all of our subsidiaries.


                                       9
<PAGE>

Our past development activity restricts our ability to grow per share income in
the near term. Fixed charges for new hotels (such as depreciation and
amortization expense) exceed new hotel operating cash flow in the first one to
three years of operations. As new hotels mature, we expect, 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.

We announced on September 11, 1998, that we were ceasing new development
activity except for the hotels then under construction. We opened the last two
hotels under construction in the first quarter of 2000, and currently we have no
hotels under construction. Although we are not developing new hotels, Mr.
Hammons continues to develop new hotels. During 2000, we entered into a
five-year management contract with Mr. Hammons whereby we will provide in-house
architectural services with a maximum value of 1.5% of the total development
costs of Mr. Hammons' personally developed hotels for the opportunity to manage
the hotels upon opening and the right to purchase the hotels in the event they
are offered for sale.

RESULTS OF OPERATIONS - THREE-MONTH PERIOD

The following discussion and analysis addresses results of operations for the
three-month periods ended September 27, 2002 (the "2002 Quarter"), and September
28, 2001 (the "2001 Quarter"). The results of operations for the three-month and
nine-month periods ended September 27, 2002 are not indicative of the results to
be expected for the full year.

For the 2002 Quarter, our total earnings before interest expense, taxes,
depreciation and amortization (EBITDA) were $27.1 million, an increase of 16.8%
compared to the 2001 Quarter EBITDA of $23.2 million. These amounts do not give
effect to the minority interest discussed in Note 1 to the Condensed
Consolidated Financial Statements above. As a percentage of total revenues,
EBITDA increased to 25.6% in the 2002 Quarter from 23.1% in the 2001 Quarter due
primarily to cost control measures implemented in response to decreased
business.

Total revenues for the 2002 Quarter were $105.9 million, an increase of $5.6
million, or 5.6%, compared to the 2001 Quarter, reflective of an increase in
occupancy of 8.4% from the 2001 Quarter.

Rooms revenues increased $4.5 million, or 7.0%, from the 2001 Quarter, and
increased as a percentage of total revenues, to 65.1% from 64.2%. The increase
was primarily due to the higher occupancy in the 2002 Quarter discussed above,
as the result of a slight increase in domestic travel. Our occupancy for the
2002 Quarter was 67.1% up 5.2 percentage points compared to our 2001 Quarter.
Occupancy for the hotel industry was up 0.9% from the 2001 Quarter, based on
information from Smith Travel Research. Our average room rate for the 2002
Quarter decreased $1.23, or 1.3%, compared to our 2001 Quarter average room rate
of $98.32. In comparison, the average room rate for the hotel industry was
$82.56 in the 2002 Quarter, down 0.4% from the 2001 Quarter. Our Revenue Per
Available Room (RevPAR) was



                                       10
<PAGE>

$65.12 in the 2002 Quarter, up 7.0% from $60.85 in the 2001 Quarter. RevPAR for
the hotel industry was $53.17, up 0.5% from the 2001 Quarter.

Food and beverage revenues increased $0.9 million, or 3.7%, compared to the 2001
Quarter, but decreased slightly as a percentage of total revenues, to 23.6% from
24.0% in the 2001 Quarter. The dollar increase was primarily attributable to
improved domestic group travel as well as overall occupancy increases.

Meeting room rental, related party management fee and other revenues increased
$0.2 million, or 1.7%, from the 2001 Quarter, but decreased as a percentage of
revenues, to 11.3% from 11.8%.

Rooms operating expenses increased $0.3 million, or 1.7%, compared to the 2001
Quarter, but decreased as a percentage of rooms revenues to 25.7% from 27.0%.
The dollar increase was due primarily to costs associated with the increased
rooms revenues and the percentage decrease related to management of labor costs.

Food and beverage operating expenses decreased $0.6 million, or 2.8%, compared
to the 2001 Quarter, and decreased as a percentage of food and beverage
revenues, to 82.8% from 88.4%. The decrease was attributable to lower food and
labor costs associated with enhanced food purchasing programs and management of
labor expenses.

Other operating expenses remained stable at $0.8 million compared to the 2001
Quarter, but decreased slightly as a percentage of meeting room rental, related
party management fee and other revenues, to 6.7% from 6.8%.

General, administrative and sales expenses increased $2.0 million, or 6.1%, over
the 2001 Quarter, and increased as a percentage of revenues to 33.1% from 32.9%.
The increase was primarily attributable to franchise termination charges
directly related to the planned franchise conversion of our Albuquerque Crowne
Plaza hotel.

Repairs and maintenance expenses remained stable at $4.6 million compared to the
2001 Quarter, and decreased as a percentage of revenues, to 4.3% from 4.6% in
the 2001 Quarter.

Depreciation and amortization expenses decreased by $0.6 million, or 4.3%,
compared to the 2001 Quarter, and decreased as a percentage of revenues to 12.5%
from 13.8% in the 2001 Quarter. The decrease related to cessation of new hotel
development.

Income from operations increased $4.5 million compared to the 2001 Quarter,
reflecting the increased revenues, and the decreased expenses as percentages of
revenue items in certain categories, discussed above.

Other expense, net of other income remained stable at $17.6 million compared to
the 2001 Quarter, as interest income decreased slightly, offset by a slight
decrease in interest expense.


                                       11
<PAGE>

Loss before minority interest, provision for income taxes and extraordinary item
was $3.7 million in the 2002 Quarter, compared to $8.2 million in the 2001
Quarter.

Net loss was $1.1 million for the 2002 Quarter compared to the 2001 Quarter net
loss of $2.1 million. The decrease in net loss reflects the slowly improving
environment for the lodging industry as a whole.

Basic and diluted loss per share in the 2002 Quarter was $0.21 and in the 2001
Quarter was $0.42. The $0.03 and $0.02 per share extraordinary item for the 2002
Quarter and 2001 Quarter, respectively, were related to costs associated with
the repurchase and refinancing of our long term debt.

RESULTS OF OPERATIONS - NINE-MONTH PERIOD

The following discussion addresses results of operations for the nine-month
periods ended September 27, 2002 (the "2002 Nine Months"), and September 28,
2001 (the "2001 Nine Months").

For the 2002 Nine Months, our total EBITDA was $92.2 million, a 1.5% increase
compared to the 2001 Nine Months EBITDA of $90.8 million. As a percentage of
total revenue, our EBITDA increased to 28.1% in the 2002 Nine Months from 27.3%
in the 2001 Nine Months.

Total revenues decreased to $328.5 million in the 2002 Nine Months from $332.5
million in the 2001 Nine Months, a decrease of $4.0 million or 1.2%. The
decrease is primarily attributable to the ongoing weaknesses in the corporate
group travel segments of our business during the first six months of 2002,
offset in part by a slight increase in travel in the 2002 Quarter.

Rooms revenues decreased to $206.0 million in the 2002 Nine Months from $206.6
million in the 2001 Nine Months, a decrease of $0.6 million or 0.3%, as a result
of decreased overall travel in the first six months of the year, offset in part
by the increase in occupancy in the 2002 Quarter. Rooms revenues as a percentage
of total revenues increased slightly, to 62.7%, compared to 62.1% in the 2001
Nine Months. Our average room rate decreased to $98.43 in the 2002 Nine Months
from $101.16 in the 2001 Nine Months, a decrease of $2.73 or 2.7%. Occupancy
increased to 65.9% in the 2002 Nine Months from 64.3% in the 2001 Nine Months,
an increase of 1.6 percentage points.

Food and beverage revenues decreased to $84.3 million in the 2002 Nine Months
from $86.0 million in the 2001 Nine Months, a decrease of $1.7 million or 2.0%,
and decreased as a percentage of total revenues to 25.7% from 25.9% in the 2001
Nine Months. The change was related to a decrease in group travel segments for
the first six months of 2002, offset in part by a slight increase in travel in
the 2002 Quarter, discussed above.


                                       12
<PAGE>
 Meeting room rental, related party management fee and other revenues decreased
to $38.2 million in the 2002 Nine Months from $39.9 million in the 2001 Nine
Months, a decrease of $1.7 million or 4.3%. Meeting room rental and other
revenues also decreased slightly as a percentage of total revenues to 11.6% from
12.0% in the 2001 Nine Months. The decrease was the result of decreased group
travel in the first six months of 2002, offset in part by a slight increase in
travel in the 2002 Quarter, as well as the absence of an energy surcharge, which
was $2.7 million in the 2001 Nine Months.

Rooms operating expenses decreased to $51.5 million in the 2002 Nine Months from
$52.8 million in the 2001 Nine Months, a decrease of $1.3 million or 2.5%, and
decreased as a percentage of rooms revenue to 25.0% from 25.6% in the 2001 Nine
Months. The decrease was attributable to reduced labor costs and travel agent
commissions, in part as the result of the decreased room revenue.

Food and beverage operating expenses decreased to $66.1 million in the 2002 Nine
Months from $71.2 million in the 2001 Nine Months, a decrease of $5.1 million or
7.2%. These expenses also decreased as a percentage of food and beverages
revenues in the 2002 Nine Months to 78.4%, from 82.8% in the 2001 Nine Months.
The decrease was attributable to lower food and labor costs associated with
enhanced food purchasing programs and management of labor costs.

Other operating expenses decreased to $2.4 million in the 2002 Nine Months, a
7.7% decrease, and declined as a percentage of meeting room rental, related
party management fee and other income, to 6.3% in the 2002 Nine Months from 6.5%
in the 2001 Nine Months.

General, administrative and sales expenses increased to $102.7 million in the
2002 Nine Months from $101.6 million in the 2001 Nine Months, an increase of
$1.1 million or 1.1%, and increased as a percentage of total revenues to 31.3%
from 30.6% in the 2001 Nine Months. The increase in these expenses was primarily
the result of franchise termination charges directly related to hotel franchise
conversions, offset in part by decreased energy costs from the 2001 Nine Months.

Repairs and maintenance expenses decreased to $13.5 million in the 2002 Nine
Months from $13.6 million in the 2001 Nine Months, a decrease of $0.1 million or
0.7%, and remained stable as a percentage of total revenues at 4.1%.

Depreciation and amortization expenses decreased to $39.3 million in the 2002
Nine Months from $41.0 million in the 2001 Nine Months, a decrease of $1.7
million or 4.1%, and decreased as a percentage of total revenues to 12.0% from
12.3% in the 2001 Nine Months. The decrease related to cessation of new hotel
development.

Income from operations was $52.9 million in the 2002 Nine Months compared to
$49.7 million in the 2001 Nine Months, an increase of $3.2 million or 6.4%. As a
percentage of revenue, income from operations increased to 16.1% in the 2002
Nine Months compared to 14.9% in


                                       13
<PAGE>

the 2001 Nine Months. The increase was due to decreased expenses in certain
categories, as discussed above.

Other expense, net of other income decreased to $52.7 million in the 2002 Nine
Months from $53.7 million in the 2001 Nine Months, a decrease of $1.0 million or
1.9%. This decrease was a result of the continued reduction of our long-term
debt. As a percentage of total revenues, other expense, net, decreased to 16.0%
from 16.2% in the 2001 Nine Months.

Income before minority interest, provision for income taxes and extraordinary
item was $0.3 million in the 2002 Nine Months, compared to a loss of $4.0
million in the 2001 Nine Months.

Net loss increased by $0.6 million in the 2002 Nine Months, as a result of
$1.8 million incurred in connection with the refinancing of our long-term
mortgage notes, partially offset by improved operating results.

Basic and diluted loss per share in the 2002 Nine Months was $0.36, compared to
$0.23 for the 2001 Nine Months. The results included an approximate $0.35 per
share expense for the 2002 Nine Months and $0.02 for the 2001 Nine Months as the
result of repayment of our long term debt.

LIQUIDITY AND CAPITAL RESOURCES

In general, we have financed our operations through internal cash flow, loans
from financial institutions, the issuance of public debt and equity, and the
issuance of industrial revenue bonds. Our principal uses of cash are to pay
operating expenses, to service debt and to fund capital expenditures.

At September 27, 2002, we had $39.7 million of cash and equivalents and $16.1
million of marketable securities, compared to $33.2 million and $11.0 million,
respectively, at the end of 2001. These amounts are available for working
capital requirements.

Net cash provided by operating activities was $52.4 million for the 2002 Nine
Months compared to $37.6 million for the 2001 Nine Months. The increase was
attributable to a timing difference in interest payment due dates for our
refinanced bond debt.

During the second quarter of 2002, we completed the refinancing of our long-term
debt and approximately $30.1 million of our short-term debt. We expect 2002
capital requirements to be funded by cash and cash flow from operations. Based
upon current plans, we anticipate that our capital resources will be adequate to
satisfy our 2002 capital requirements for normal recurring capital improvement
projects.

At September 27, 2002, our total debt was $812.4 million compared with $813.0
million at the end of 2001. The current portion of long-term debt at September
27, 2002, was $10.4 million, compared to $38.9 million at the end of 2001. We
incurred capital expenditures of


                                       14
<PAGE>

approximately $19.8 million during the 2002 Nine Months and $20.0 million during
the 2001 Nine Months. During the remainder of 2002, we expect capital
expenditures to total approximately $4.0 million, for renovation and updating of
existing hotels.

During fiscal 2000, we initiated claims against certain of our construction
service providers as well as with our insurance carrier. These claims resulted
from costs we incurred and expected to incur to address moisture related
problems caused by water intrusion through defective windows at certain of our
hotel properties. In December 2001, we initiated legal actions in an effort to
collect claims previously submitted. Subsequent to the filing of the legal
action, the insurance carrier notified us that a portion of our claims had been
denied. As of September 27, 2002, we had incurred approximately $12.7 million of
which $1.4 million was incurred in the 2002 Quarter, of an estimated $13.5
million of costs to correct the underlying moisture problem. In the fourth
quarter of 2001, we recorded additional depreciation expense of approximately
$6.1 million, to bring the total charge for that year to $7.6 million, to
reserve the net historical costs of the hotel property assets refurbished absent
any recoveries.

We will continue to vigorously pursue insurance recovery of these costs.
Currently, a trial is tentatively set for the fall of 2003. To the extent we
realize recoveries, we will record them as a component of other income.

FORWARD-LOOKING STATEMENTS

NOTE -- FORWARD-LOOKING STATEMENTS: Certain statements in this report contain
"forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, regarding, among other things, our business strategy,
prospects and financial position. These statements contain the words "believe,"
"anticipate," "estimate," "expect," "project," "intend," "may," "will," and
similar words. These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results to be
materially different from any future results expressed or implied by such
forward looking statements. Such factors include, among others:

         -        General economic conditions;
         -        Competition;
         -        Changes in operating costs, particularly energy and labor
                  costs;
         -        Unexpected events, such as the September 11, 2001 terrorist
                  attacks;
         -        Risks of hotel operations, such as hotel room supply exceeding
                  demand, increased energy and other travel costs and general
                  industry downturns;
         -        Seasonality of the hotel business;
         -        Cyclical over-building in the hotel and leisure industry;
         -        Requirements of franchise agreements, including the right of
                  some franchisors to immediately terminate their respective
                  agreements if we breach certain provisions;
         -        Costs of complying with applicable state and federal
                  regulations.

                                       15
<PAGE>

These risks and uncertainties are discussed in more detail in our other filings
with the SEC and should be considered in evaluating any forward-looking
statements contained in this report. We undertake no obligation to update or
revise publicly any forward looking statement, whether as a result of new
information, future events or otherwise, other than as required by law.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are exposed to changes in interest rates primarily as a result of our
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. Our financing
activities 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 our long-term fixed and variable-rate debt
obligations as of September 27, 2002:

                             EXPECTED MATURITY DATE
                                  (in millions)

<TABLE>
<CAPTION>
                                                                                                                               Fair
                                                                                                         There-                Value
                                               2002(d)      2003       2004       2005       2006        After      Total      (e)
<S>                                    <C>     <C>        <C>        <C>        <C>       <C>          <C>        <C>       <C>
Long-Term Debt                          (a)

 $510 Million 1st Mortgage Notes               $    -     $     -    $     -    $     -   $      -      $   503   $    503   $   482
    Average interest rate               (b)      8.9%        8.9%       8.9%       8.9%       8.9%         8.9%       8.9%


 Other fixed-rate debt obligations             $    9     $    34    $     7    $     7   $      8     $    206   $    271   $   271
    Average interest rate               (b)      8.4%        8.0%       8.3%       8.3%       8.3%         8.6%       8.5%

 Other variable-rate debt obligations          $    1     $     1    $     1    $     -   $     10     $     25   $     38   $    38
    Average interest rate               (c)      5.1%        5.1%       5.1%       5.1%       5.1%         5.1%       5.1%
</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 September 27, 2002, that is maturing in
       the year reported. The weighted average interest rate excludes the effect
       of the amortization of deferred financing costs.


                                       16
<PAGE>

(d)    The 2002 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 $510
       million 1st Mortgage Notes. The fair value of the first mortgage note
       issues is estimated by obtaining quotes from brokers.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures. Our chief executive officer
and chief financial officer have evaluated the effectiveness of our "disclosure
controls and procedures" (as defined in Rules 13a-14(c) and 15d-14(d) under the
Securities Exchange Act of 1934 as of November 5, 2002. Based on that review,
they have concluded that, as of such date, our disclosure controls and
procedures were effective to ensure that material information relating to us
would be made known to them.

Changes in internal controls. There were no significant changes in our internal
controls or, to the knowledge of our chief executive officer and chief financial
officer, in other factors that could significantly affect our internal controls,
including any corrective actions with regard to significant deficiencies and
material weaknesses, after the date of such evaluation.

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


                                       17

<PAGE>

    (a)  Exhibits

         See Exhibit Index

    (b)  Reports on Form 8-K

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

                                   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: November 8, 2002

                                 CERTIFICATIONS


I, John Q. Hammons, certify that:

1. I have reviewed this quarterly report on Form 10-Q of John Q. Hammons Hotels,
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of



                                       18
<PAGE>

operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

    a)       designed such disclosure controls and procedures to ensure that
             material information relating to the registrant, including its
             consolidated subsidiaries, is made known to us by others within
             those entities, particularly during the period in which this
             quarterly report is being prepared;

    b)       evaluated the effectiveness of the registrant's disclosure controls
             and procedures as of a date within 90 days prior to the filing date
             of this quarterly report (the "Evaluation Date"); and

    c)       presented in this quarterly report our conclusions about the
             effectiveness of the disclosure controls and procedures based on
             our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

    a)       all significant deficiencies in the design or operation of internal
             controls which could adversely affect the registrant's ability to
             record, process, summarize and report financial data and have
             identified for the registrant's auditors any material weaknesses in
             internal controls; and

    b)       any fraud, whether or not material, that involves management or
             other employees who have a significant role in the registrant's
             internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and all material weaknesses.


Date:  November 8, 2002


                                        /s/ John Q. Hammons
                                        ----------------------------------------
                                        John Q. Hammons, Chief Executive Officer



                                       19
<PAGE>

I, Paul E. Muellner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of John Q. Hammons Hotels,
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

    a)       designed such disclosure controls and procedures to ensure that
             material information relating to the registrant, including its
             consolidated subsidiaries, is made known to us by others within
             those entities, particularly during the period in which this
             quarterly report is being prepared;

    b)       evaluated the effectiveness of the registrant's disclosure controls
             and procedures as of a date within 90 days prior to the filing date
             of this quarterly report (the "Evaluation Date"); and

    c)       presented in this quarterly report our conclusions about the
             effectiveness of the disclosure controls and procedures based on
             our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

    a)       all significant deficiencies in the design or operation of internal
             controls which could adversely affect the registrant's ability to
             record, process, summarize and report financial data and have
             identified for the registrant's auditors any material weaknesses in
             internal controls; and

    b)       any fraud, whether or not material, that involves management or
             other employees who have a significant role in the registrant's
             internal controls; and


                                       20
<PAGE>

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and all material weaknesses.

Date:  November 8, 2002


                                      /s/ Paul E. Muellner
                                      -----------------------------------------
                                      Paul E. Muellner, Chief Financial Officer


                                       21
<PAGE>




                                  EXHIBIT INDEX


Exhibit No.                Exhibit
-----------                -------

99.1                       Certification Statement of Chief Executive Officer

99.2                       Certification Statement of Chief Financial Officer



                                       22