Document:

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                                                                   EXHIBIT 10.31

                     THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

     This Third Amendment to Employment Agreement (the "Amendment") is made and
entered into as of the 2nd day of February 2005 by and between Arlington
Hospitality Inc. (the "Company") and Stephen K. Miller ("Employee").

                                    RECITALS

     WHEREAS, the Company and Employee entered into that certain Employment
Agreement dated July 25, 2003 by and between the Company and Employee, as
amended by the First Amendment dated September 10, 2003 and the Second Amendment
dated October 31, 2003 (collectively, the "Agreement");

     WHEREAS, pursuant to the Agreement, Employee is currently employed by the
Company as its Senior Vice President - Real Estate and Business Development; and

     WHEREAS, the Company and Employee have agreed to modify the Agreement as
provided herein;

     NOW, THEREFORE, in consideration of the premises and mutual covenants and
agreements of the parties herein contained, the parties agree as follow:

1.   All capitalized terms used but not defined herein shall have the meaning
     ascribed to such term in the Agreement.

2.   Amendment to Section 1.1. Section 1.1 of the Agreement is amended by
     deleting it in its entirety and replacing it with the following:

     1.1 Employment. The Company hereby employs, engages and hires Employee and
     Employee hereby accepts employment with the Company for the Position, upon
     the responsibilities as allocated from time to time by the Company's
     President or such other person(s) or entity directing the business affairs
     of the company. Employee's title shall be Senior Vice President - Real
     Estate and Business Development; provided, however, effective January 1,
     2005, Employee shall serve as the Interim Chief Executive Officer of the
     Company and shall serve in such capacity until a successor Chief Executive
     Officer (a "New CEO") is duly appointed by the Company's Board of
     Directors. During the period Employee serves as Interim Chief Executive
     Officer (the "Interim Period"), Employee shall perform those
     responsibilities as allocated from time to time by the Company's Board of
     Directors. After expiration of the Interim Period, Employee shall serve as
     the Company's Senior Vice President - Real Estate and Business Development.

3.   Amendment to Section 2.4. Section 2.4 of the Agreement is amended by
     deleting it in its entirety and replacing it with the following:

     2.4 Severance Upon Termination Without Cause. If the Company terminates
     Employee's employment without Cause and such termination is effective as of
     a date

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     that is: (a) three (3) months or more prior to the end of the expiration of
     the Employment Term, Employee shall be entitled to receive (i) his
     then-current Base Salary, expense reimbursement, vacation pay, benefits and
     bonuses, each to the extent earned, accrued and unpaid through the date of
     termination, plus (ii) the Usual Salary Amount (as defined in Exhibit A)
     for a period ending on the lesser of six (6) months after the termination
     or the end of the Employment Term, which amounts shall be payable in
     intervals in accordance with the general payroll payment practice of the
     Company; or (b) less than three (3) months prior to the end of the
     Employment Term, Employee shall be entitled to receive (i) his then-current
     Base Salary, expense reimbursement, vacation pay, benefits and bonuses,
     each to the extent earned, accrued and unpaid through the date of
     termination, plus (ii) the Usual Salary Amount (as defined in Exhibit A)
     for a period of three (3) months, which amounts shall be payable in
     intervals in accordance with the general payroll payment practice of the
     Company. As a supplement to, and not as an addition to, the severance
     payments described in (a)(ii) and (b)(ii) above, if Employee is terminated
     without Cause at any time within twelve (12) months of the Company's
     appointment of a New CEO, Employee shall be entitled to receive a severance
     payment in an amount equal to six (6) months of the Usual Salary Amount,
     which amount shall be payable in intervals in accordance with the general
     payroll payment practice of the Company or as otherwise agreed to by the
     Company and Employee.

4.   Amendment to Section 1 of Exhibit A. Section 1 of Exhibit A of the
     Agreement is amended by deleting it in its entirety and replacing it with
     the following:

     1. Base Salary. The Company shall pay Employee a base salary ("Base
     Salary") equal to: (a) for the period commencing on July 1, 2004 and
     continuing through and including December 31, 2004, One Hundred Eighty-Five
     Thousand Dollars ($185,000) per year (the "Usual Salary Amount"); (b) for
     the period commencing on January 1, 2005 and continuing to the date a New
     CEO is appointed (the "Appointment Date"), Two Hundred Thousand Dollars
     ($200,000) per year; and (c) commencing on the Appointment Date and
     continuing for the remaining Employment Term, the Usual Salary Amount. In
     each case, the Base Salary shall be payable in increments as is customarily
     paid by the Company and shall be subject to increase from time to time as
     determined in the sole discretion of the Company's Board of Directors. To
     compensate Employee for the Usual Salary Amount which should have been paid
     for the period from July 1, 2004 to the date of this Amendment (the "Past
     Period"), the Company shall provide Employee a lump sum payment, subject to
     applicable withholding and other taxes, in the amount necessary to
     compensate Employee at the Usual Salary Amount for the Past Period.

5.   Amendment to Section 2(h) of Exhibit A. Section 2(h) of Exhibit A is hereby
     amended by deleting it in its entirety and replacing it with the following:

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     (h) 2005 Incentive Bonus. Commencing on January 1, 2005 and continuing
     through the Employment Term, Employee shall be eligible to participate in
     those bonus and incentive plans and other programs as determined from time
     to time in the sole discretion of the Company's Board of Directors.

6.   Amendment to Section 2 of Exhibit A. The following Section shall be
     inserted as subsection (j) of Section 2 of Exhibit A:

     (j) Transition, Performance and Retention Bonus. In addition to the bonuses
     otherwise provided herein, on December 31, 2005, so long as Employee is
     employed by the Company on such date, or, if not employed by the Company on
     such date the reason for such unemployment is a termination by the Company
     without Cause, Employee shall receive a bonus equal to Twenty Thousand
     Dollars ($20,000) if, on or before June 30, 2005, the Company successfully
     secures, on behalf of itself or its Affiliate or venture partner, all debt
     and equity funding necessary for the Company or its Affiliate or venture
     partner to develop five (5) hotels, each hotel having at least seventy (70)
     rooms. For purposes of this Section, the Company shall be deemed to have
     "secured" the required funding, if the funding for at least four (4) hotels
     has been completed and fully funded, and a firm commitment has been
     obtained for the funding of the fifth hotel.

7.   No Other Amendment. The Employment Agreement has not been amended in any
     other way other than as set forth in this Amendment.

8.   Counterparts. This Amendment may be executed in separate counterparts, each
     of which when so executed and delivered shall be deemed an original, but
     all of which together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and
year specified at the beginning hereof.

THE COMPANY:                               THE EMPLOYEE:

ARLINGTON HOSPITALITY, INC.

                                           /s/ STEPHEN K. MILLER
                                           -----------------------------------
                                           STEPHEN K. MILLER

By: /s/ James B. Dale
    --------------------------------
By: /s/ Richard A. Gerhart
    --------------------------------

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                                                                   EXHIBIT 10.32

                     AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT

     This Amendment No. 2 to Employment Agreement (the "Amendment") is made and
entered into as of the 31st day of January 2005 by and between Arlington Lodging
Group Inc. (the "Company") and James B. Dale ("Executive").

                                    RECITALS

     WHEREAS, the Company and Executive entered into that certain Employment
Agreement dated January 12, 2001 by and between the Company and Executive, as
amended by Amendment No. 1 dated October 29, 2001 (collectively, the
"Agreement");

     WHEREAS, the Company is a wholly-owned subsidiary of Arlington Hospitality,
Inc. (the "Parent");

     WHEREAS, pursuant to the Agreement, Executive is currently employed by the
Company as its Chief Financial Officer and Senior Vice President of Finance and
serves as Parent's Senior Vice President and Chief Financial Officer; and

     WHEREAS, the Company and Executive have agreed to modify the Agreement as
provided herein.

     NOW, THEREFORE, in consideration of the premises and mutual covenants and
agreements of the parties herein contained, the parties agree as follow:

1.   All capitalized terms used but not defined herein shall have the meaning
     ascribed to such term in the Agreement.

2.   Amendment to Section 3. Section 3 of the Agreement is amended by deleting
     it in its entirety and replacing it with the following:

     3. TERM. The term of Executive's employment under this Agreement shall
     commence January 12, 2001 and shall continue until June 30, 2006, unless
     earlier terminated (the "Term").

3.   Amendment to Section 5. Section 5 of the Agreement is amended by, in the
     second sentence of such Section, deleting the term "Cash" and replacing it
     with "Base Salary."

4.   Amendment to Section 6. Section 6 of the Agreement is amended by deleting
     it in its entirety and replacing it with the following:

     6. SEVERANCE UPON TERMINATION WITHOUT CAUSE. If the Company terminates
     Executive's employment without Cause, then Executive shall be entitled to
     receive an amount equal to: (i) his then-current Base Salary (as defined in
     Exhibit A), expense reimbursement, Benefits, Incentive Bonus (as defined in
     Exhibit A), and Transition, Performance and Retention Bonus (as defined in
     Exhibit A), each to the extent earned, accrued and unpaid through the date
     of termination, plus (ii) an

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     amount equal to six (6) months of his then-current Base Salary, which
     amounts shall be payable in intervals in accordance with the general
     payroll payment practice of the Company or as otherwise agreed to by the
     Company and Executive.

5.   Amendment to Exhibit A. Exhibit A of the Agreement is hereby amended by
     deleting it in its entirety and replacing it with Exhibit A attached
     hereto.

6.   No Other Amendment. The Employment Agreement has not been amended in any
     other way other than as set forth in this Amendment.

7.   Counterparts. This Amendment may be executed in separate counterparts, each
     of which when so executed and delivered shall be deemed an original, but
     all of which together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and
year specified at the beginning hereof.

THE COMPANY:                                 EXECUTIVE:

ARLINGTON LODGING GROUP, INC.

                                             /s/ JAMES B. DALE
                                             -----------------------------------
                                             JAMES B. DALE

By: /s/ STEPHEN K. MILLER
    -------------------------------------
By: /s/ Richard A. Gerhart
    --------------------------------

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                                    EXHIBIT A

For the period commencing on the date of this Amendment No. 3 and continuing
through the Term:

1.   BASE SALARY. Base salary (the "Base Salary") shall be equal to One Hundred
     Sixty Eight Thousand Dollars ($168,000) per year, subject to increase from
     time to time as determined in the sole discretion of the Parent's Board of
     Directors. This Base Salary shall apply retroactively, as if it were
     effective on July 1, 2004 until the date of this Agreement (the "Past
     Period"). To effectuate the retroactive payment of the Base Salary, the
     Company shall provide Executive with a lump sum payment, subject to
     applicable withholding and other taxes, in the amount necessary to
     compensate Executive for the increased base salary over the Past Period.

2.   INCENTIVE BONUS. Executive shall be eligible to participate in those bonus
     and incentive plans and other programs as determined from time to time in
     the sole discretion of the Parent's Board of Directors (the "Incentive
     Bonus").

3.   TRANSITION, PERFORMANCE AND RETENTION BONUS. On December 31, 2005, so long
     as Executive is employed by the Company on that date, or, if not employed
     by the Company on such date the reason for such unemployment is a
     termination by the Company without Cause, Executive shall be entitled to
     receive a bonus equal to Ten Thousand Dollars ($10,000) (the "Transition,
     Performance and Retention Bonus") if, on or before March 31, 2005,
     Executive successfully facilitates the Parent's negotiation, documentation
     and closing of an operating line of credit (the "New Line of Credit") for
     the Parent to replace the Parent's existing line of credit which it has
     with LaSalle Bank and which expires on April 30, 2005 (the "Existing Line
     of Credit"), and such New Line of Credit provides for (i) a principal
     amount of not less than Four Million Dollars ($4,000,000), (ii) a term of
     at least one year, and (iii) interest to accrue at a rate which is less
     than that of the Existing Line of Credit.

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