AFM Hospitality Corporation's Management Division Continues Growth In 2003.

Business Editors/Travel Writers

SEATTLE--(BUSINESS WIRE)--July 14, 2003

Northwest Lodging International Group Now One

of Top 20 Management Companies in North America 

AFM Hospitality Corporation (TSX:AFM) announced today that its Hospitality Management Division saw double digit percentage growth in both the number of hotels operated and number of rooms under management during the first six months of 2003.

Peter Smith, President & CEO of the AFM Hospitality Management Division, said the Division increased the number of properties it operates from 46 to 51, for an increase of 10.9 percent. These properties represented an increase of 589 rooms, from 4,829 as of December 31, 2002 to 5,418 as of June 30, 2003, or 12.2 percent.

Consisting of Northwest Lodging International (USA) Inc., headquartered in Seattle, WA, and Northwest Lodging International (Canada) Inc., headquartered in Vancouver, BC, the Northwest Lodging International group now ranks among the top 20 hotel management companies in North America in number of properties operated, according to rankings reported by Hotel Business magazine in April, 2003.

"The Northwest Lodging International group now operate hotels flying eight brand flags," said Mr. Smith, "including Howard Johnson(R), Park Plaza(R), Park Inn(R), Ramada(R), Aston(R), Holiday Inn(R), Traveller's Inn(R) and Best Western(R), as well as three independent properties. Our 'cluster' approach to brand management, in which we operate eight or more locations under each of four different brands (Howard Johnson, Park, Ramada and Traveller's Inn), enables us to establish closer relationships with the franchise companies, drive greater revenues from franchise programs, have more influence in franchise initiatives and otherwise provide greater levels of service and benefit to the owners of the properties we manage.

"This benefit is truly a major one," explained Mr. Smith, "and it's a benefit that's only available through a large, diversified management company. We know the franchisors and their brands, we know their people, and we know their programs. As we are so deeply involved with multiple franchise companies and multiple brands (including the fact that our parent company, AFM Hospitality Corporation, is one of Canada's largest hotel franchisors), we know how to get the most from franchise programs and deliver that advantage to the owners of our managed properties."

Properties operated by the Northwest Lodging International group range from intimate, limited service roadside inns to large, full-service metropolitan convention center hotels with extensive exhibition, meeting and banquet facilities. In addition to its managed hotels, the group also manages more than 20 restaurants in the US and Canada, including the Arizonas(R) brand in the Midwest United States.

Growth during the first six months of 2003 continued the solid expansion experienced during 2002, according to Lawrence P. Horwitz, CHA, Chairman & CEO of AFM Hospitality Corporation. "In 2002, we grew from 30 managed locations to 46, and increase of more than 50 percent, and increased our room count 28 percent to 4,829," he said. "The challenging economic environment of the past two years has resulted in many opportunities for management companies who have strong balance sheets and can create value for owners and investors."

Northwest Lodging International (Canada) led the way during the first half of 2003, increasing the number of properties under management by 24 percent.

"The strong and steady growth of our Canadian management company is a tribute to Tom Matthews, President of Northwest Lodging International (Canada) Inc., and his team of operational and sales professionals throughout the country," said Mr. Smith. "Under Tom's guidance, our Canadian management company has become a major force in the marketplace, and we anticipate continued growth in both Canada and the United States in the months to come."

About the Northwest Lodging International Group

Northwest Lodging International (Canada) Inc. and Northwest Lodging International (USA) Inc. (the "Northwest Lodging International Group") are wholly owned subsidiaries of AFM Hospitality Corporation and provide professional hotel management services to owners and investors, including consulting, pre-opening, redevelopment and renovation services. With more than 70 hotels, inns, resorts and restaurants operated in the United States and Canada, the Northwest Lodging International Group is one of the largest hospitality management groups in North America. Managed properties range from intimate, limited service roadside inns to large, full-service metropolitan convention center hotels with extensive exhibition, meeting and banquet facilities. Hotels and resorts operated by Northwest Lodging International Group employ more than 2,000 persons in 11 states and provinces, have annual sales in excess of an estimated $75 million, and asset values of an estimated $300 million. Visit: www.northwestlodging.com.

About AFM Hospitality Corporation

Through its subsidiaries, AFM Hospitality Corporation owns AFM Preferred Alliance Group Inc., AFM Asset Management Inc., AFM Hospitality (USA) Corporation, Northwest Lodging International (USA) Inc., Northwest Lodging International (Canada) Inc., AFM Asset Management Services, Inc., Trigild International, Inc., Special Asset Services, Inc. and Staffing Services International, Inc. It is the exclusive Canadian Master Franchisor for Aston(R), Best Inns(R), Hawthorn Suites(R), Howard Johnson(R), Knights Inn(R), La Quinta(R), Park Plaza(R), Park Inn(R), Traveller's Inn(R) and Villager Lodge(R). AFM Hospitality Corporation operates or has open and/or executed franchise and management agreements with more than 250 hotels, restaurants and other nationally franchised service businesses throughout North America. The company's focus is to increase the number of hotels franchised by the respective brands, franchise new brands, build the portfolio of hotel management agreements, provide valuable resources and hospitality experience to help hotel owners grow their business, and acquire other franchise businesses related to the hospitality industry, while making available property management services. AFM Hospitality Corporation is a publicly traded company listed on the Toronto Stock Exchange (TSX:AFM) and may be reached at www.afmcorp.com.

Forward Looking Information

This Press Release contains certain forward-looking statements and information from AFM Hospitality Corporation relating, but not limited, to the company's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "anticipate", "believe", "plan" or similar words suggesting future outcomes. The results or events predicted in these statements may differ materially from actual results or events. By its nature, AFM Hospitality Corporation's forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general global economic and business conditions; the effects of competition and pricing pressures; hotel industry overcapacity; shifts in market demand; changes in laws and regulation; uncertainties of litigation; labour disputes; timing of completion of capital or maintenance projects by both franchised and managed hotels; currency and interest rate fluctuations; various events which disrupt operations; and technological changes. AFM Hospitality Corporation undertakes no obligation to update publicly or otherwise revise forward-looking information, whether as a result of new information, future events or otherwise.