<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 October 3, 2003

                                       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                   (IRS Employer
        of incorporation 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 [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

Number of shares of Registrant's Class A Common Stock outstanding as of November
12, 2003: 4,808,879
<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>
                                                                                   OCTOBER 3,     JANUARY 3,
                                                                                     2003            2003
                                                                                  -----------     -----------
                                                                                  (UNAUDITED)
<S>                                                                               <C>             <C>
CURRENT ASSETS:
    Cash and equivalents                                                          $    49,057     $    21,774
    Restricted cash                                                                     1,422           1,103
    Marketable securities                                                              14,749          12,481
    Receivables:
      Trade, less allowance for doubtful accounts of $231                              10,923           9,034
      Other                                                                               923             441
      Management fees - related party                                                     294             152
    Inventories                                                                         1,109           1,151
    Prepaid expenses and other                                                            383           5,884
                                                                                  -----------     -----------
      Total current assets                                                             78,860          52,020
                                                                                  -----------     -----------
PROPERTY AND EQUIPMENT, at cost:
    Land and improvements                                                              62,100          62,035
    Buildings and improvements                                                        751,668         751,092
    Furniture, fixture and equipment                                                  333,620         327,079
    Construction in progress                                                            3,055              98
                                                                                  -----------     -----------
                                                                                    1,150,443       1,140,304
    Less-accumulated depreciation and amortization                                   (409,748)       (371,838)
                                                                                  -----------     -----------
                                                                                      740,695         768,466
DEFERRED FINANCING COSTS, FRANCHISE FEES AND OTHER, net, including $19,156 and
    $15,010 of restricted cash as of October 3, 2003
    and January 3, 2003, respectively                                                  41,554          39,486
                                                                                  -----------     -----------
TOTAL ASSETS                                                                      $   861,109     $   859,972
                                                                                  ===========     ===========
</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>
                                                                                  OCTOBER 3,    JANUARY 3,
                                                                                    2003          2003
                                                                                  ---------     ---------
                                                                                 (UNAUDITED)
<S>                                                                               <C>           <C>
LIABILITIES:
    Current portion of long-term debt                                             $   7,576     $  13,683
    Accounts payable                                                                  3,915         5,041
    Accrued expenses:
      Payroll and related benefits                                                    8,265         7,199
      Sales and property taxes                                                       15,324        12,500
      Insurance                                                                       2,092         1,903
      Interest                                                                       17,362         6,382
      Utilities, franchise fees and other                                             9,474         7,764
                                                                                  ---------     ---------
        Total current liabilities                                                    64,008        54,472
    Long-term debt                                                                  781,597       792,659
    Other obligations                                                                 2,779         2,444
                                                                                  ---------     ---------
        Total liabilities                                                           848,384       849,575
                                                                                  ---------     ---------
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST OF HOLDERS OF LIMITED
    PARTNER UNITS                                                                     7,689         5,901
                                                                                  ---------     ---------
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 at
      October 3, 2003, and January 3, 2003, 6,042,000 shares issued at October
      3, 2003, and January 3, 2003, and 4,808,879 and 4,789,729
      shares outstanding at October 3, 2003, and January 3, 2003, respectively           60            60
    Class B common stock, $.01 par value, 1,000,000 shares
      authorized, 294,100 shares issued and outstanding                                   3             3
    Paid-in capital                                                                  96,395        96,389
    Retained deficit, net                                                           (85,851)      (86,300)
    Less: treasury stock, at cost; 1,233,121 and 1,252,271 shares at
      October 3, 2003, and January 3, 2003, respectively                             (5,582)       (5,669)
    Accumulated other comprehensive income                                               11            13
                                                                                  ---------     ---------
        Total stockholders' equity                                                    5,036         4,496
                                                                                  ---------     ---------
TOTAL LIABILITIES AND EQUITY                                                      $ 861,109     $ 859,972
                                                                                  =========     =========
</TABLE>


            See Notes to Condensed Consolidated Financial Statements


                                       3
<PAGE>
                          JOHN Q. HAMMONS HOTELS, INC.
                                  AND COMPANIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
                       (000's omitted, except share data)


<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED             NINE MONTHS ENDED
                                                              OCT. 3, 2003   SEPT. 27, 2002   OCT. 3, 2003   SEPT. 27, 2002
                                                              -----------     -----------     -----------     -----------
<S>                                                           <C>            <C>              <C>            <C>
REVENUES:
    Rooms                                                     $    70,664     $    68,938     $   207,026     $   205,979
    Food and beverage                                              26,096          24,950          82,625          84,338
    Meeting room rental, related party management
       fee and other                                               12,091          12,021          37,994          38,182
                                                              -----------     -----------     -----------     -----------
      Total revenues                                              108,851         105,909         327,645         328,499
OPERATING EXPENSES:
    Direct operating costs and expenses:
      Rooms                                                        17,369          17,731          50,695          51,499
      Food and beverage                                            20,159          20,697          64,047          66,071
      Other                                                           706             840           2,099           2,445
    General, administrative, sales and management expenses         34,818          34,963         104,640         102,742
    Repairs and maintenance                                         4,595           4,555          13,633          13,512
    Depreciation and amortization                                  12,818          13,203          37,885          39,291
                                                              -----------     -----------     -----------     -----------
      Total operating costs                                        90,465          91,989         272,999         275,560
                                                              -----------     -----------     -----------     -----------
INCOME FROM OPERATIONS                                             18,386          13,920          54,646          52,939
OTHER INCOME (EXPENSE):
    Other income                                                       --              --             175              --
    Interest income                                                   143             308             478             756
    Interest expense and amortization of deferred
      financing fees                                              (17,410)        (17,931)        (52,617)        (53,415)
    Extinguishment of debt costs                                     (318)           (591)           (318)         (7,383)
                                                              -----------     -----------     -----------     -----------
INCOME (LOSS) BEFORE MINORITY INTEREST AND PROVISION
    FOR INCOME TAXES                                                  801          (4,294)          2,364          (7,103)
    Minority interest in (earnings) loss of partnership              (608)          3,262          (1,795)          5,396
                                                              -----------     -----------     -----------     -----------
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES                       193          (1,032)            569          (1,707)
    Provision for income taxes                                        (30)            (30)           (120)           (120)
                                                              -----------     -----------     -----------     -----------
NET INCOME (LOSS) ALLOCABLE TO THE COMPANY                    $       163     $    (1,062)    $       449     $    (1,827)
                                                              ===========     ===========     ===========     ===========
BASIC EARNINGS (LOSS) PER SHARE:
    Net earnings (loss) allocable to Company                  $      0.03     $     (0.21)    $      0.09     $     (0.36)
                                                              ===========     ===========     ===========     ===========
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING                       5,094,778       5,083,829       5,089,445       5,080,372
                                                              ===========     ===========     ===========     ===========
DILUTED EARNINGS (LOSS) PER SHARE:
    Net earnings (loss) allocable to Company                  $      0.03     $     (0.21)    $      0.09     $     (0.36)
                                                              ===========     ===========     ===========     ===========
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING                     5,384,894       5,083,829       5,262,806       5,080,372
                                                              ===========     ===========     ===========     ===========
</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
                                                                              --------------------
                                                                                                            Accumu-
                                                                                                             lated
                                                                                                             Other
                           Compreh-                                                                         Compreh-
                           ensive                  Class A    Class B                Company                 ensive
                           Income      Minority     Common     Common    Paid in     Retained    Treasury    Income
                            (Loss)     Interest     Stock      Stock     Capital      Deficit      Stock     (Loss)       Total
                           --------    --------    --------   --------   --------    --------    --------   --------    --------
<S>                        <C>         <C>         <C>        <C>        <C>         <C>         <C>        <C>         <C>
BALANCE, January 3, 2003               $  5,901    $     60   $      3   $ 96,389    $(86,300)   $ (5,669)  $     13       4,496
Issuance of common stock                     --          --         --          6          --          87         --          93
Net income allocable to
    the Company            $    449          --          --         --         --         449          --         --         449
Minority interest in
    earnings of
    partnership                           1,795          --         --         --          --          --         --          --
Unrealized depreciation
    on marketable
    securities net of
    minority interest            (2)         (7)         --         --         --          --          --         (2)         (2)
                           --------    --------    --------   --------   --------    --------    --------   --------    --------
Comprehensive income       $    447
                           ========
BALANCE, October 3, 2003
(unaudited)                            $  7,689    $     60   $      3   $ 96,395    $(85,851)   $ (5,582)  $     11    $  5,036
                                       ========    ========   ========   ========    ========    ========   ========    ========
</TABLE>


            See Notes to Condensed Consolidated Financial Statements


                                       5
<PAGE>
                          JOHN Q. HAMMONS HOTELS, INC.
                                  AND COMPANIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                 (000's omitted)


<TABLE>
<CAPTION>
                                                                                  NINE MONTHS ENDED
                                                                            OCT. 3, 2003   SEPT. 27, 2002
                                                                            ------------   --------------
<S>                                                                         <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) allocable to the Company                                   $     449       $  (1,827)
Adjustment to reconcile net income (loss) to cash provided by operating
     activities:
        Minority interest in earnings (loss) of partnership                      1,795          (5,396)
        Depreciation, amortization and loan cost amortization                   39,285          40,760
        Extinguishment of debt costs                                               318           7,383
        Non-cash director compensation                                              50              50
Changes in certain assets and liabilities
        Restricted cash                                                           (319)           (421)
        Receivables                                                             (2,513)           (285)
        Inventories                                                                 42             120
        Prepaid expenses and other                                               5,501           1,621
        Accounts payable                                                        (1,126)         (2,069)
        Accrued expenses                                                        16,769          11,561
        Other obligations                                                          335             491
                                                                             ---------       ---------
              Net cash provided by operating activities                         60,586          51,988
                                                                             ---------       ---------
CASH FLOWS FROM INVESTING ACTIVITIES
        Additions to property and equipment                                     (9,694)        (19,786)
        Franchise fees, restricted cash and other                               (4,154)         (2,839)
        Purchase of marketable securities                                       (2,277)         (5,075)
                                                                             ---------       ---------
              Net cash used in investing activities                            (16,125)        (27,700)
                                                                             ---------       ---------
CASH FLOWS FROM FINANCING ACTIVITIES
        Proceeds from issuance of common stock                                      43              --
        Proceeds from borrowing                                                     --         510,000
        Repayments of debt                                                     (17,169)       (510,399)
        Debt offering costs                                                         --         (13,730)
        Debt redemption costs                                                      (52)         (4,061)
                                                                             ---------       ---------
              Net cash used in financing activities                            (17,178)        (18,190)
                                                                             ---------       ---------
              Increase in cash and equivalents                                  27,283           6,098
CASH AND EQUIVALENTS, beginning of period                                       21,774          32,298
                                                                             ---------       ---------
CASH AND EQUIVALENTS, end of period                                          $  49,057       $  38,396
                                                                             =========       =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID FOR INTEREST                                                       $  40,318       $  47,652
                                                                             =========       =========
UNREALIZED DEPRECIATION OF MARKETABLE SECURITIES                             $      (9)      $      --
                                                                             =========       =========
</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 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 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 an approximately 28% 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 January 4, 2003, and December 29, 2001, we purchased
7,550 and 11,760 general partner units, respectively from the Partnership. The
number of general partnership units exchanged is equivalent to the number of
shares repurchased or sold, as outlined by the partnership agreement. As a
result, as of October 3, 2003, and September 27, 2002, Mr. Hammons' limited
partnership interest was approximately 76% while our general partnership
interest was 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. Interim results may not be
indicative of fiscal year performance because of seasonal and other factors.
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
January 3, 2003, which included financial statements for the fiscal years ended
January 3, 2003, December 28, 2001 and December 29, 2000.

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.


                                       7
<PAGE>
We consider all operating cash accounts and money market investments with an
original maturity of three months or less to be cash equivalents. Restricted
cash consists of certain funds maintained in escrow for property taxes and
certain other obligations. Marketable securities consist of available-for-sale
commercial paper and governmental agency obligations which mature or will be
available for use in operations in 2003. These securities are valued at current
market value. As of October 3, 2003, unrealized holding gains were approximately
$46,000, of which approximately $11,000 is allocable to us, with the remainder
allocable to the minority interest, and are included as a separate component of
shareholders' equity until realized.

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 (loss) per share are computed by dividing net income (loss) 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.

Basic and diluted earnings per share were $0.03 and $0.09, respectively, for the
three months and nine months ended October 3, 2003. As of October 3, 2003, the
Company had 747,400 options which were not included in the computation of
diluted earnings per share since the options would be anti-dilutive. Basic and
diluted loss per share for the three and nine months ended September 27, 2002,
was $0.21 and $0.36, respectively. The weighted average diluted common shares
outstanding for the three and nine months ended September 27, 2002 exclude the
dilutive effect of approximately 1.7 million options since such options would
have been anti-dilutive; thus, basic and diluted earnings per share for those
periods are identical.

The following is a reconciliation of the numerator and denominator for basic and
diluted earnings per share for the three months and nine months ended October 3,
2003:


<TABLE>
<CAPTION>
                                                            Three Months Ended October 3, 2003
                                                            ----------------------------------
                                                           (in thousands, except per share data)
                                                       Income               Shares            Per Share
                                                     (Numerator)        (Denominator)           Amount
                                                   ----------------    -----------------   -----------------
<S>                                                <C>                 <C>                 <C>
Basic earnings per share                                     $ 163                5,095               $0.03
                                                                                           =================
Effect of dilutive securities:
     Options                                                                        290
                                                   ----------------    -----------------
Diluted earnings per share                                   $ 163                5,385               $0.03
                                                   ================    =================   =================
</TABLE>


                                       8
<PAGE>
<TABLE>
<CAPTION>
                                                              Nine Months Ended October 3, 2003
                                                              ---------------------------------
                                                            (in thousands, except per share data)
                                                       Income               Shares            Per Share
                                                     (Numerator)        (Denominator)           Amount
                                                   ----------------    -----------------   -----------------
<S>                                                <C>                 <C>                 <C>
Basic earnings per share                                     $ 449                5,089               $0.09
                                                                                           =================
Effect of dilutive securities:
     Options                                                                        174
                                                   ----------------    -----------------
Diluted earnings per share                                   $ 449                5,263               $0.09
                                                   ================    =================   =================
</TABLE>

4. STOCK OPTIONS

We account for our stock-based compensation plans according to the intrinsic
method under APB Opinion No. 25, under which we have recognized expense for
certain stock option grants. In accordance with Statement of Financial
Accounting Standard No. 123 (SFAS No. 123), "Accounting for Stock-Based
Compensation," we are required, at a minimum, to report pro forma disclosures of
expense for stock-based awards based on their fair values. Had compensation cost
been determined consistent with SFAS No. 123, our net income (loss) and basic
and diluted earnings (loss) per share for the three months and nine months ended
October 3, 2003, and September 27, 2002, would have been as follows:

<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED           NINE MONTHS ENDED
                                                                   OCT. 3,      SEPT. 27,        OCT. 3,      SEPT. 27,
                                                                    2003          2002            2003          2002
                                                                  ---------     ---------       ---------     ---------
                                                                         (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                               <C>           <C>             <C>           <C>
Net income (loss)
  As reported                                                     $     163     ($  1,062)      $     449     ($  1,827)
  Deduct - total stock-based employee compensation expense
  determined under the fair value based method for all awards,
  net of related tax effects                                            (53)          (45)           (142)         (186)
                                                                  ---------     ---------       ---------     ---------
  Pro forma                                                       $     110     ($  1,107)      $     307     ($  2,013)
                                                                  =========     =========       =========     =========
Basic earnings (loss) per share
  As reported                                                     $    0.03     ($   0.21)      $    0.09     ($   0.36)
  Deduct - total stock-based employee compensation expense
  determined under the fair value based method for all awards,
  net of related tax effects                                          (0.01)        (0.01)          (0.03)        (0.04)
                                                                  ---------     ---------       ---------     ---------
  Pro forma                                                       $    0.02     ($   0.22)      $    0.06     ($   0.40)
                                                                  =========     =========       =========     =========
Diluted earnings (loss) per share
  As reported                                                     $    0.03     ($   0.21)      $    0.09     ($   0.36)
  Deduct - total stock-based employee compensation expense
  determined under the fair value based method for all awards,
  net of related tax effects                                          (0.01)        (0.01)          (0.03)        (0.04)
                                                                  ---------     ---------       ---------     ---------
  Pro forma                                                       $    0.02     ($   0.22)      $    0.06     ($   0.40)
                                                                  =========     =========       =========     =========
</TABLE>


The assumptions used to calculate the fair value of options granted are
evaluated and revised, as necessary, to reflect market conditions and
experience.


                                       9
<PAGE>
5. NEW ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial Accounting Standards Board, or FASB, issued
Statement No. 143, "Accounting for Asset Retirement Obligations." This statement
addresses financial accounting and reporting for obligations associated with the
retirement of tangible long-lived assets and the associated asset retirement
costs. We adopted this statement in the first quarter of 2003, with no material
impact on our financial position, results of operations or cash flows.

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 other existing authoritative pronouncements to make
various technical corrections, clarify meanings, or describe their applicability
under changed conditions. We adopted this statement in the first quarter of
2003, and reclassified our 2002 extraordinary item to extinguishment of debt
costs classified in other income (expense).

In June 2002, the FASB issued Statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This Statement requires companies
to recognize costs associated with exit or disposal activities when they are
incurred rather than at the date of a commitment to an exit or disposal plan.
Examples of costs covered by the standard include lease termination costs and
certain employee severance costs that are associated with a restructuring,
discontinued operation, or other exit or disposal activity. We adopted this
standard in the first quarter of 2003, with no material impact on our financial
position, results of operations or cash flows.

In January 2003, the FASB issued Interpretation No. 46 (FIN 46) "Consolidation
of Variable Interest Entities." Until this interpretation, a company generally
included another entity in its consolidated financial statements only if it
controlled the entity through voting interests. FIN 46 requires a variable
interest entity to be consolidated by a company if that company is subject to a
majority of the risk of loss from the variable interest entity's activities or
entitled to receive a majority of the entity's residual returns. FIN 46 applies
immediately to variable interest entities created after January 31, 2003, and to
variable interest entities in which an enterprise obtains an interest after that
date. A public entity with a variable interest in a variable interest entity
created before February 1, 2003 shall apply all the provisions of this
interpretation to that entity no later than the first interim or annual
reporting period ending after December 15, 2003. The related disclosure
requirements were effective immediately. Management does not believe that the
adoption of this interpretation will have a material impact on our financial
position, results of operations or cash flows.

In May 2003, the FASB issued Statement No. 150, "Accounting for Certain
Financial Instruments with Characteristics of Both Liabilities and Equity." This
Statement establishes


                                       10
<PAGE>
standards for how an issuer classifies and measures certain financial
instruments with characteristics of both liabilities and equity. This statement
was effective for financial instruments entered into or modified after May 31,
2003, and was effective on July 1, 2003, for financial instruments held prior to
issuance of this statement. We adopted this statement in the third quarter of
2003, with no material impact on our financial position, results of operation or
cash flows.

6. LONG-TERM DEBT

Since the beginning of fiscal 2003, we retired a $6.3 million note (Springdale
Hampton Inn) at 9-1/4% set to mature in the fourth quarter of 2003, as well as a
$5.2 million note (Denver Airport Holiday Inn) at 7-1/8%, due in the third
quarter of 2015, bringing the total debt reduction for the first nine months of
2003 to slightly over $17 million. We recorded $0.3 million in extinguishment of
debt costs related to these retirements.

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 $7.4
million. These charges were recorded in the second quarter of 2002 ($6.792
million) and the third quarter of 2002 ($0.591 million), as these costs became
known.

7. ASSETS CARRYING VALUE

We review the carrying value of our long-lived assets when events and
circumstances occur which indicate that the carrying value of an asset may not
be recoverable. Given the current outlook with respect to our World Golf Village
property, we commissioned an appraisal of the property to be completed prior to
year-end. In the event the carrying value of the property exceeds the fair
market value less the costs to sell, we will record a write down.

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.

Our consolidated financial statements include revenues from our owned hotels and
management fee revenues for providing management services to the managed hotels
(owned or directly controlled by Mr. Hammons). References to our hotels include
both our owned hotels and our managed hotels. We derive revenues from the owned
hotels from rooms, food and beverage, meeting rooms and other revenues. Our
beverage revenues include only revenues from the sale of alcoholic beverages,
while we show revenues from the sale of non-alcoholic beverages as part of food
revenue. Direct operating costs and expenses include expenses we incur in
connection with the direct operation of rooms, food and beverage and telephones.
Our general,


                                       11
<PAGE>
administrative, sales and management services expenses include expenses incurred
for franchise fees, administrative, sales and marketing, utilities, insurance,
property taxes, rent, management services and other expenses.

We currently have no hotels under construction and no plans to develop new
hotels for the foreseeable future. During 2000, we entered into a five-year
management contract with John Q. Hammons whereby we will provide in-house
development services, which include internal administrative, architectural
design, purchasing and legal services, to Mr. Hammons in conjunction with the
development of hotels in an amount not to exceed 1.5% of the total development
costs of any single hotel for the opportunity to manage the hotel upon opening
and the right to purchase the hotel in the event it is offered for sale. These
costs are amortized over a five-year contract period, beginning upon the opening
of the hotels.

RESULTS OF OPERATIONS - THREE-MONTH PERIOD

The following discussion and analysis addresses results of operations for the
three-month periods ended October 3, 2003 (the "2003 Quarter") and September 27,
2002 (the "2002 Quarter"). The results of operations for the three-month and
nine-month periods ended October 3, 2003 are not indicative of the results to be
expected for the full year.

Total revenues for the 2003 Quarter were $108.9 million, an increase of $3.0
million, or 2.8%, compared to the 2002 Quarter, primarily as a result of
slightly improved general economic conditions, reflected in higher revenues in
all three areas of our business.

Rooms revenues increased $1.8 million, or 2.6%, from the 2002 Quarter, but
decreased as a percentage of total revenues, to 64.9% from 65.1%. The increase
was primarily due to increases in the discount (AAA, AARP, travel agencies,
etc.) and association market segments of our business. Our average room rate
increased 2.4%, to $99.40 compared to the 2002 Quarter average room rate of
$97.09, as average room rates for all market segments increased from the 2002
Quarter. In comparison, the average room rate for the hotel industry was $83.44
in the 2003 Quarter, up 0.4% from the 2002 Quarter, based on information from
Smith Travel Research. Our occupancy for the 2003 Quarter increased to 67.2%, or
0.1 percentage point compared to the 2002 Quarter. Occupancy for the hotel
industry was 65.6%, up 2.0% from the 2002 Quarter. Our Revenue Per Available
Room (RevPAR) was $66.78 in the 2003 Quarter, up 2.5% from $65.12 in the 2002
Quarter. RevPAR for the hotel industry was $54.71, up 2.3% from the 2002
Quarter.

Food and beverage revenues increased $1.1 million, or 4.4%, compared to the 2002
Quarter, and increased as a percentage of total revenues, to 24.0% from 23.6% in
the 2002 Quarter. The increase was related to the increase in travel in the
association market segments of our business described above.

Meeting room rental, related party management fee and other revenues increased
$0.1 million, or 0.8%, from the 2002 Quarter, but decreased slightly as a
percentage of revenues, to 11.1% from 11.3%.


                                       12
<PAGE>
Rooms operating expenses decreased $0.3 million, or 1.7%, compared to the 2002
Quarter, and decreased as a percentage of rooms revenues to 24.6% from 25.7%.
The decrease was primarily attributable to favorable workers' compensation loss
experience, compared to the 2002 Quarter.

Food and beverage operating expenses decreased $0.5 million, or 2.4%, compared
to the 2002 Quarter, and decreased as a percentage of food and beverage
revenues, to 77.4% from 82.8%. The decrease was primarily attributable to the
favorable workers' compensation loss experience described above, as well as
improved management of labor expenses.

Other operating expenses decreased slightly to $0.7 million compared to the 2002
Quarter, and decreased as a percentage of meeting room rental, related party
management fee and other revenues to 5.8% from 6.7%.

General, administrative and sales expenses decreased $0.2 million, or 0.6%, from
the 2002 Quarter, and decreased as a percentage of total revenues to 32.0% from
33.1%. The decrease was primarily attributable to decreases in franchise fees
(related to the termination charges incurred in changing the brand name for one
of our hotels in the 2002 Quarter) and property insurance costs, partially
offset by increases in credit card commissions, costs associated with franchise
frequent traveler programs and utility costs.

Repairs and maintenance expenses remained stable at $4.6 million compared to the
2002 Quarter, and decreased slightly as a percentage of revenues, to 4.2% from
4.3% in the 2002 Quarter.

Depreciation and amortization expenses decreased by $0.4 million, or 3.0%,
compared to the 2002 Quarter, and decreased as a percentage of revenues to 11.8%
from 12.5%. The dollar decrease related to our cessation of new hotel
development.

Income from operations increased by $4.5 million, or 32.4%, compared to the 2002
Quarter, and increased as a percentage of revenues to 16.9% from 13.1%. The
increase is attributable to, among other factors, increased revenues, improved
cost controls, favorable workers' compensation loss experience and reduced
property insurance costs.

Income (loss) before minority interest and provision for income taxes was $0.8
million of income in the 2003 Quarter, compared to a loss of $4.3 million in the
2002 Quarter.

Net income (loss) allocable to the Company was $0.2 million of income in the
2003 Quarter compared to a net loss allocable to the Company of $1.1 million in
the 2002 Quarter.

Basic and diluted earnings (loss) per share in the 2003 Quarter were $0.03 of
earnings, compared to basic and diluted loss of $0.21 per share in the 2002
Quarter.

RESULTS OF OPERATIONS - NINE-MONTH PERIOD

The following discussion addresses results of operations for the nine-month
periods ended October 3, 2003 (the "2003 Nine Months"), and September 27, 2002
(the "2002 Nine Months").


                                       13
<PAGE>
Total revenues decreased slightly to $327.6 million in the 2003 Nine Months from
$328.5 million in the 2002 Nine Months, a decrease of $0.9 million or 0.3%. The
decrease is attributable to ongoing weaknesses in the association and corporate
group travel market segments of our business during the first six months of
2003, partially offset by a slight increase in these market segments during the
2003 Quarter.

Rooms revenues increased to $207.0 million in the 2003 Nine Months from $206.0
million in the 2002 Nine Months, an increase of $1.0 million, or 0.5%, reflected
primarily in the discount market segment of our business. Rooms revenues as a
percentage of total revenues increased, to 63.2%, compared to 62.7% in the 2002
Nine Months. Our average room rate increased to $99.98 in the 2003 Nine Months
from $98.43 in the 2002 Nine Months, an increase of $1.55, or 1.6%. Occupancy
decreased to 65.2% in the 2003 Nine Months from 65.9% in the 2002 Nine Months, a
decrease of 0.7 percentage point. Occupancy for the hotel industry was 60.7%,
down 0.3% from the 2002 Nine Months. Our revenue per available room (RevPAR) was
$65.21 in the 2003 Nine Months, up 0.6% from the 2002 Nine Months. RevPAR for
the hotel industry was $50.67, down 0.8% from the 2002 Nine Months.

Food and beverage revenues decreased to $82.6 million in the 2003 Nine Months
from $84.3 million in the 2002 Nine Months, a decrease of $1.7 million, or 2.0%,
and decreased as a percentage of total revenues to 25.2% from 25.7% in the 2002
Nine Months. The decrease related to the decreased association and corporate
group travel in the first six months of 2003, partially offset by a slight
increase in these market segments during the 2003 Quarter.

Meeting room rental, related party management fee and other revenues decreased
to $38.0 million in the 2003 Nine Months from $38.2 million in the 2002 Nine
Months, a decrease of $0.2 million, or 0.5%, and remained stable as a percentage
of total revenues, at 11.6%. The dollar decrease was the result of decreased
association and corporate group travel in the first six months of 2003,
partially offset by a slight increase in these market segments during the 2003
Quarter.

Rooms operating expenses decreased to $50.7 million in the 2003 Nine Months from
$51.5 million in the 2002 Nine Months, a decrease of $0.8 million, or 1.6%, and
decreased as a percentage of rooms revenue, to 24.5% from 25.0% in the 2002 Nine
Months. The decrease was primarily attributable to reduced labor costs and
favorable workers' compensation loss experience compared to the 2002 Nine
Months.

Food and beverage operating expenses decreased to $64.0 million in the 2003 Nine
Months from $66.1 million in the 2002 Nine Months, a decrease of $2.1 million,
or 3.2% as the result of decreased food and beverage revenues. These expenses
also decreased as a percentage of food and beverages revenues in the 2003 Nine
Months to 77.5%, from 78.4% in the 2002 Nine Months.

Other operating expenses decreased to $2.1 million in the 2003 Nine Months, from
$2.4 million in the 2002 Nine Months, and decreased as a percentage of meeting
room rental, related party management fee and other income, to 5.5% in the 2003
Nine Months from 6.3% in the 2002 Nine Months.


                                       14
<PAGE>
General, administrative and sales expenses increased to $104.6 million in the
2003 Nine Months from $102.7 million in the 2002 Nine Months, an increase of
$1.9 million, or 1.9%, and increased as a percentage of total revenues to 31.9%
from 31.3% in the 2002 Nine Months. The increase was primarily attributable to
increases in costs associated with franchise frequent traveler programs,
utilities and credit card commissions, partially offset by decreases in
franchise fees, property taxes and property insurance costs.

Repairs and maintenance expenses increased slightly to $13.6 million compared to
$13.5 million in the 2002 Nine Months, and increased slightly as a percentage of
revenues to 4.2% from 4.1% in the 2002 Nine Months.

Depreciation and amortization expenses decreased to $37.9 million in the 2003
Nine Months from $39.3 million in the 2002 Nine Months, a decrease of $1.4
million, or 3.6%, and decreased as a percentage of total revenues to 11.6% from
12.0% in the 2002 Nine Months. The decrease was related to cessation of new
hotel development.

Income from operations was $54.6 million in the 2003 Nine Months compared to
$52.9 million in the 2002 Nine Months, an increase of $1.7 million, or 3.2%. As
a percentage of revenue, income from operations increased to 16.7% in the 2003
Nine Months from 16.1% in the 2002 Nine Months, as the result of reduced costs
in several categories, discussed above.

Income (loss) before minority interest and provision for income taxes was $2.4
million of income in the 2003 Nine Months, compared to a $7.1 million loss in
the 2002 Nine Months. The variation related to the effect of expenses for the
extinguishment of debt in the 2002 Nine Months (the refinancing of our
outstanding 8-7/8% and 9-3/4% First Mortgage Notes for new 8-7/8% First Mortgage
Notes due 2012), in addition to the items discussed above.

Net income (loss) allocable to the Company was $0.4 million of income in the
2003 Nine Months compared to a net loss allocable to the Company of $1.8 million
in the 2002 Nine Months, due primarily to the extinguishment of debt and other
cost reduction items discussed above.

Basic and diluted earnings (loss) per share were earnings of $0.09 in the 2003
Nine Months, compared to basic and diluted loss per share of $0.36 for the 2002
Nine Months.

LIQUIDITY AND CAPITAL RESOURCES

In general, we have financed our operations through internal cash flow, loans
from financial institutions, the issuance of public and private 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 October 3, 2003, we had $49.1 million of cash and equivalents and $14.7
million of marketable securities, compared to $21.8 million and $12.5 million,
respectively, at the end of 2002. Such amounts are available for our working
capital requirements and capital expenditures.


                                       15
<PAGE>
Cash from operating activities increased to $60.6 million for the 2003 Nine
Months from $52.0 million for the 2002 Nine Months, primarily attributable to
the increase in net income and decrease in debt extinguishment costs and other
favorable changes in certain assets and liabilities.

We incurred capital expenditures of $9.7 million and $19.8 million,
respectively, for the 2003 Nine Months and the 2002 Nine Months. Approximately
$4.2 million of the expenditures in the 2002 Nine Months was related to
correcting the moisture related issues discussed below. Capital expenditures
typically include capital improvements on existing hotel properties.

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. 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 October 3, 2003, we had
incurred approximately $11.8 million of an estimated $12.3 million of costs to
correct the underlying moisture problem. During the 2003 Quarter, summary
judgment was granted to our insurance carrier in one action, which is currently
on appeal. Due to the uncertain outcome of this appeal, the parties have agreed
to a settlement conference in November 2003, to attempt to dispose of all issues
against the insurance carrier. Summary judgment was also granted to one of our
window manufacturers and we are in the process of appealing that decision. We
plan to continue to vigorously pursue collection of these costs, although there
can be no assurance that we will be successful. Our total cumulative
depreciation charge through October 3, 2003, was $7.6 million, which we recorded
in fiscal 2001 to reserve the net historical costs of the hotel property assets
refurbished absent any recoveries. To the extent we realize recoveries we will
record them as a component of other income.

At October 3, 2003, our total debt was $789.2 million compared with $806.3
million at the end of 2002. The decrease is attributable to the $17.1 million
reduction of existing debt since the end of 2002 (including the prepayment of a
9-1/4% note for $6.3 million due in the fourth quarter of 2003 and prepayment of
a 7-1/8% note for $5.2 million due in third quarter of 2015). The current
portion of long-term debt was $7.6 million, compared with $13.7 million at the
end of 2002. For the 2003 Nine Months, we incurred $0.3 million in early
extinguishment of debt charges.

During the second quarter of 2002, we completed the refinancing of our long-term
debt, primarily 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 $30.1
million of short-term debt, with new $510 million 8-7/8% First Mortgage Notes
due May 2012. We expect 2003 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 2003 capital requirements for normal
recurring capital improvement projects.

NEW ACCOUNTING PRONOUNCEMENTS


                                       16
<PAGE>
In June 2001, the Financial Accounting Standards Board, or FASB, issued
Statement No. 143, "Accounting for Asset Retirement Obligations." This statement
addresses financial accounting and reporting for obligations associated with the
retirement of tangible long-lived assets and the associated asset retirement
costs. We adopted this statement in the first quarter of 2003, with no material
impact on our financial position, results of operations or cash flows.

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 also amends other existing authoritative pronouncements to make
various technical corrections, clarify meanings, or describe their applicability
under changed conditions. We adopted this statement in the first quarter of
2003, and reclassified our 2002 extraordinary item to extinguishment of debt
costs classified in other income (expense).

In June 2002, the FASB issued Statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This Statement requires companies
to recognize costs associated with exit or disposal activities when they are
incurred rather than at the date of a commitment to an exit or disposal plan.
Examples of costs covered by the standard include lease termination costs and
certain employee severance costs that are associated with a restructuring,
discontinued operation, or other exit or disposal activity. We adopted this
standard in the first quarter of 2003, with no material impact on our financial
position, results of operations or cash flows.

In January 2003, the FASB issued Interpretation No. 46 (FIN 46) "Consolidation
of Variable Interest Entities." Until this interpretation, a company generally
included another entity in its consolidated financial statements only if it
controlled the entity through voting interests. FIN 46 requires a variable
interest entity to be consolidated by a company if that company is subject to a
majority of the risk of loss from the variable interest entity's activities or
entitled to receive a majority of the entity's residual returns. FIN 46 applies
immediately to variable interest entities created after January 31, 2003, and to
variable interest entities in which an enterprise obtains an interest after that
date. A public entity with a variable interest in a variable interest entity
created before February 1, 2003 shall apply all the provisions of this
interpretation to that entity no later than the first interim or annual
reporting period ending after December 15, 2003. The related disclosure
requirements were effective immediately. Management does not believe that the
adoption of this interpretation will have a material impact on our financial
position, results of operations or cash flows.

In May 2003, the FASB issued Statement No. 150, "Accounting for Certain
Financial Instruments with Characteristics of Both Liabilities and Equity." This
Statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity. This statement was effective for financial instruments entered into or
modified after May 31, 2003, and was effective on July 1, 2003, for


                                       17
<PAGE>
financial instruments held prior to issuance of this statement. We adopted this
statement in the third quarter of 2003, with no material impact on our financial
position, results of operation or cash flows.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. On an ongoing basis, we evaluate our estimates and assumptions,
including those related to bad debts, investments, valuation of long-lived
assets, net deferred tax assets, self-insurance reserves, contingencies and
litigation. We base our estimates and judgments on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying value of assets and liabilities that are not readily apparent from
other sources. We believe the following critical accounting policies, among
others, affect our more significant estimates and assumptions used in preparing
our consolidated financial statements. Actual results could differ from our
estimates and assumptions.

Trade receivables are reflected net of an estimated allowance for doubtful
accounts. This estimate is based primarily on historical experience and
assumptions with respect to future payment trends.

Property and equipment are stated at cost less accumulated depreciation. The
assessment of long-lived assets for possible impairment requires us to make
certain judgments, including real estate values and estimated future cash flow
from the respective properties and investments. We review the recoverability of
our long-lived assets when events or circumstances indicate that the carrying
amount of an asset may not be recoverable. Given the current outlook with
respect to our World Golf Village property, we commissioned an appraisal of the
property to be completed prior to year-end. In the event the carrying value of
the property exceeds the fair market value less the costs to sell, we will
record a write down.

Our deferred financing costs, franchise fees and other assets include management
and franchise contracts and leases. The value of our management and franchise
contracts and leases are amortized on a straight-line method over the life of
the respective agreement. The assessment of management and franchise contracts
and leases requires us to make certain judgments, including estimated future
cash flow from the respective properties.

We are self-insured for various levels of general liability, workers'
compensation and employee medical coverages. Estimated costs related to these
self insurance programs are accrued based on known claims and projected
settlements of unasserted claims. Subsequent changes in, among others,
unasserted claims, claim cost, claim frequency, as well as changes in actual
experience, could cause these estimates to change.

We recognize revenues from our rooms, catering and restaurant facilities as
earned on the close of business each day.


                                       18
<PAGE>
FORWARD-LOOKING STATEMENTS

This Form 10-Q contains "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934, regarding, among other
things, our operations outlook, 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 are not guarantees of future performance, and
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, including the duration and severity of
            the current economic slowdown and the pace at which the lodging
            industry adjusts to the continuing war on terrorism;

      -     The impact of any serious communicable diseases on travel, including
            any increase or further spread in Severe Acute Respiratory Syndrome
            (SARS);

      -     Competition;

      -     Changes in operating costs, particularly energy and labor costs;

      -     Unexpected events, such as terrorist attacks or outbreaks of war;

      -     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; and

      -     Costs of complying with applicable state and federal regulations.

These risks and uncertainties, as well as the risk factors discussed in our Form
10-K, should be considered in evaluating any forward looking statements
contained in this Form 10-Q. 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 October 3, 2003:


                                       19
<PAGE>
                             EXPECTED MATURITY DATE
                                  (in millions)


<TABLE>
<CAPTION>
                                                                                                                               Fair
                                                                                                    There-                    Value
                                           2003(d)     2004       2005       2006        2007        After       Total         (e)
                                           -------     ----       ----       ----        ----        -----       -----         ---
<S>                                        <C>        <C>        <C>        <C>         <C>         <C>          <C>          <C>
Long-Term Debt(a)

 $510 Million 1st Mortgage Notes           $   --     $   --     $   --     $   --      $   --      $  499       $  499       $  551
    Average interest rate(b)                  8.9%       8.9%       8.9%       8.9%        8.9%        8.9%         8.9%

 Other fixed-rate debt obligations         $    6     $    7     $    8     $   28      $   41      $  163       $  253       $  252
    Average interest rate(b)                  8.3%       8.3%       8.3%       7.8%        8.4%        8.7%         8.5%

 Other variable-rate debt obligations      $    1     $    1     $    1     $   10      $    1      $   23       $   37       $   37
    Average interest rate(c)                  4.6%       4.6%       4.6%       4.6%        4.6%        4.6%         4.6%
</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 October 3, 2003, that
            is maturing in the year reported. The weighted average interest rate
            excludes the effect of the amortization of deferred financing costs.

      (d)   The 2003 balances include actual and projected principal repayments
            and weighted average interest rates.

      (e)   The fair values of long-term debt obligations approximate their
            respective historical carrying amounts except with respect to the
            $510 million First Mortgage Notes. The fair value of the First
            Mortgage Notes is estimated by obtaining quotes from brokers. A one
            percentage point change in the par or the then-current premium or
            discount quote received for the $510 million First Mortgage Notes
            would have an effect of approximately $5 million. A one percentage
            point change in the 8-7/8% rate used to calculate the fair value of
            other fixed rate debt would change its estimated fair value by
            approximately $13 million.

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(d) and
15d-14(d) under the Securities Exchange Act of 1934) as of October 3, 2003.
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.


                                       20
<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

See Exhibit Index.

      (b) Reports on Form 8-K

Form 8-K to furnish Press Release announcing October 3, 2003 results, filed
November 12, 2003


                                       21
<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: November 14, 2003


                                       22
<PAGE>
                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT NO.    TITLE
-----------    -----
<S>            <C>
31.1           Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

31.2           Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

32             Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
</TABLE>


                                       23