AFM Hospitality Welcomes New Directors And A New CFO; New additions strengthen AFM Hospitality's expertise in the US market.

Business Editors/Travel Writers

TORONTO--(BUSINESS WIRE)--Oct. 6, 2003

AFM Hospitality Corporation (TSX:AFM) announced the addition of two new directors to its board today, together with the departure of one director and the appointment of a new Chief Financial Officer.

Further to the approvals given at the last shareholders meeting on June 24, 2003, AFM Hospitality has become a Canadian federal corporation, and has added Richard A. Davis of Silverdale, Washington and Ronald P. Erickson of Seattle, Washington to its board.

Mr. Davis brings an attractive mix of public and private experience to AFM Hospitality. Mr. Davis has served at various staff and department directorships at the State of Washington, including Director of the State Department of Labor and Industries, Director of the Office of Financial Management and Governor's Chief of Staff from 1985 through 1990. Mr. Davis also was the President and CEO of the Pentzer Corporation (a subsidiary of Avista Corporation) from 1990 through 2000. Mr. Davis has acted as financial advisor and consultant to various private investment groups since 2001 and is currently a member of the board of Oxis International.

Mr. Erickson possesses extensive experience in the senior executive levels of both private and public companies. Presently the Chairman and CEO of eCharge Corporate of Seattle, Mr. Erickson has also held senior positions at Globaltel Resources, Inc., Egghead Software, Inc., NBI, Inc, and Microrim, Inc. Mr. Erickson also has held board positions at Intrinsyc Software, Inc., Newsgrade Corporation and Upgrade, Inc.

"We welcome both our new directors and are excited at the new approaches and ways of thinking that they bring into our board," enthused Lawrence P. Horwitz, Chairman and CEO of AFM Hospitality Corporation. "With these new additions, AFM Hospitality will continue its evolution of its board and its corporate governance policies to comply with the strictest requirements of both Canada and the United States. AFM Hospitality's course through these difficult economic conditions will be steadier with the growing experience and sophistication of its board."

In conjunction with the addition of Mr. Davis and Mr. Erickson, Mr. Warren Adamson, former President of AFM Hospitality, departed from the Board. "We wish to again thank Warren for all his many contributions to AFM Hospitality and its family of companies over the past years," said Mr. Horwitz, "His experience and guidance have contributed to AFM Hospitality's many successes. We again wish him well in all his future endeavors."

AFM Hospitality also announced the hiring of Mr. N. Scott Dickson as its new Chief Financial Officer. Mr. Dickson was most recently the CFO, Corporate Secretary and Acting CEO of Network Commerce Inc. of Seattle, Washington. His previous work experience includes senior financial officer positions at MemeStreams Inc., SPL WorldGroup and NetSource Communications Inc.

"We welcome our new CFO and look forward to the new ideas, fresh approach and enthusiasm that Scott will bring," added Mr. Horwitz. "AFM Hospitality's continuing growth in both the Canadian and US markets necessitate congruent growth in the expertise and sophistication of its CFO. We are excited and confident that Scott will excel at his opportunity."

Confirmation of Mr. Dickson's appointment as Chief Financial Officer is subject to the approval of the Toronto Stock Exchange which AFM Hospitality anticipates will be received in due course.

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, Best Inns, Hawthorn Suites, Howard Johnson, Knights Inn, La Quinta, Park Plaza, Park Inn, Traveller's Inn and Villager Lodge. 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.