AFM Hospitality Signs Deal With AST Brands, LLC Becomes Master Franchiser For ASTON Hotels And Resorts In Canada.

TORONTO--(BUSINESS WIRE)--Aug. 19, 1999--

AFM Hospitality Corporation (TSE:AFM) Inc. today announced the signing of an international master franchise agreement for the development of ASTON Hotels and Resorts(R) in Canada.

The agreement, which is effective immediately, was signed with Seattle-based AST Brands, LLC, which holds the rights to the ASTON brand. The deal will see AFM bring more than 20 properties to Canada over the next five years. Prime location targets for ASTON(R) are Vancouver, Calgary, Toronto, Montreal, Halifax and the major resort areas in Western Canada, The Laurentians and Atlantic Canada.

"We have been looking to add to our portfolio a deluxe, full-service conference resort brand with a market mix that is strong in business and leisure," said Stephen Phillips, president and CEO of AFM Hospitality. "We have found it in ASTON Hotels and Resorts, which provides us with a brand that is looking to significantly accelerate its growth," added Phillips.

"This agreement marks a new strategy and direction for AST Brands in North America," said Lawrence P. Horwitz, President and CEO of AST Brands. "ASTON Hotels and Resorts is a long-established brand, well known for its 32 hotels and resorts in Hawaii and six located throughout Asia. We have been extremely careful in licensing the brand only twice before, but AFM Hospitality has demonstrated its ability to grow brands in Canada. We are pleased that the first agreement to license the Aston brand in North America is with AFM," he stated.

ASTON and ASTON Hotels and Resorts are registered trade names and trademarks of AST Brands, LLC.

Through its subsidiaries, AFM Hospitality Corporation is the exclusive Canadian master franchiser for Ramada(R), Howard Johnson(R), Knights Inn(R) and Villager Lodge(R) and also owns HFS Purchasing Services and AFM Asset Management Services Inc. With over 100 locations committed nationally, AFM Hospitality represents an inventory of more than 10,000 hotel rooms. The company's primary focus is to increase the number of hotels franchised by the respective brands, franchise new brands and acquire other franchise businesses related to the hospitality industry, while making available property management services. AFM Hospitality Corporation is a publicly traded company.