AFM Hospitality Corporation Vitalizes Its Management Services With Appointment Of Tom Matthews.

Business Editors

TORONTO--(BUSINESS WIRE)--Nov. 5, 2001

Newly Named President of Northwest Lodging International (Canada)

Inc. Brings More than 25 Years of North American Hotel Experience

AFM Hospitality Corporation (TSE:AFM.) today announced that it has chosen Tom Matthews to help lead its rapidly expanding management services division as President of Northwest Lodging International (Canada) Inc.

Matthews will draw on his 26 years of North American hospitality and tourism savvy to drive the operations and growth of AFM's management services business. He has successfully held increasingly senior positions with Westin, Four Seasons and Delta in Western Canada, and was most recently President, RTM Hospitality Management and Development Company Ltd.

"Tom will oversee the quickly expanding management services division of AFM. In less than one year we have increased the number of hotels and lodging properties under our management to more than thirty. We expect to continue this pace of growth with Tom's entrepreneurial spirit," said Stephen Phillips, AFM Vice Chairman and CEO.

Matthews' business negotiations and hospitality industry expertise will enable him to meet AFM Hospitality Corporation's growing management requirements for Northwest Lodging International. The company recently expanded with management contracts for ten hotels located throughout Alberta and British Columbia including five Ramada Hotels, two Holiday Inn's, one Aston Resort, one Park Plaza and one Ramada Plaza Hotel for a total of nearly 1,600 rooms.

"AFM's management services division has risen to become an important leader in the North America hospitality market," said Matthews. "Northwest Lodging has presented me with the opportunity to lead one of the region's fastest growing hotel management firms, and my goal is for continued expansion while continuing to provide high levels of management services to existing clients."

"Tom brings to us the experience of running his own company combined with many years experience with several large hotel chains. His reputation for quality and his track record of hands-on attention to detail management are a perfect fit with the AFM Hospitality Corporation mission," said Lawrence P. Horwitz, AFM Chairman.

About AFM Hospitality Corporation

Through its subsidiaries, AFM Hospitality Corporation, which also owns HFS Purchasing Services Canada, AFM Asset Management Inc., Northwest Lodging International (USA) Inc. and Northwest Lodging International (Canada) Inc., is the exclusive Canadian Master Franchiser for ASTON(R), Best Inns(R), Hawthorn(R) Suites, Howard Johnson(R), Knights Inn(R), Park Plaza, Park Inn, Ramada(R), Villager(R) Lodge and La Quinta(R) Inns. AFM Hospitality Corporation operates or has open and/or executed franchise and management agreements with more than 170 hotels in North America, representing an inventory of nearly 20,000 hotel rooms. The company's primary focus is to increase the number of hotels franchised by the respective brands, franchise new brands, build the portfolio of hotel management agreements, 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 (TSE:AFM). AFM Hospitality Corporation system-wide sales for branded hotels in its franchise portfolio and properties operated by the company exceed CDN$300 million per year. AFM Hospitality Corporation may be reached at www.afmcorp.com