Days Inns Creates Low Interest Loan Pool To Enhance Underperforming Properties.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 17, 1997--

Kane announces $10 million "Building a Better Days" program to help

franchisees upgrade properties

Days Inns of America President and CEO Joseph R. Kane Jr. has unveiled the chain's "Building a Better Days" initiative -- a $10 million low-interest loan-pool program aimed at helping Days Inn franchisees to upgrade underperforming properties and enhance the experience of the chain's guests. Through the support of parent company HFS Inc. the loans are being made available to qualified owners at a low five percent interest rate.

Kane made the announcement to more than 2,000 attendees gathered for the 1997 Days Inn General Managers and Owners Conference, held recently in Orlando, Florida.

The new program was developed as a result of Kane's observations and conversations with owners during months of travel to visit Days Inn properties across the country. The program also responds to franchisee requests for assistance with obtaining renovation financing.

The "Building a Better Days" program is an outgrowth of Kane's philosophy that chains must convey a willingness to listen to their franchisees and understand their concerns.

"Days Inns' commitment to its franchisees is the brand's No. 1 priority, and we need to reinvest in them," Kane said. "We are proud to be one of the first in the industry to offer our franchisees financing for renovations, when typically it is only available for new constructions."

Loans, which can be used for exterior or interior renovations or a combination, will be capped at the lesser of $200,000 or $2,500 per room, per property. The interest rate will be set at five percent, and loan amounts will not exceed fees paid to Days Inns by the franchisee over the past three years.

"We think the `Building a Better Days' program has the potential to catapult Days Inns into an unparalleled position in the industry," said Bill Hodges, chairman of Days' Franchise Advisory Committee. "The program is just the shot in the arm we need to raise the standard of brand quality to a new level."

Days Inns is the world's largest franchised hotel chain, with over 1,800 properties and more than 160,000 rooms. The chain was founded by Cecil D. Day in 1970 with the opening of the first Days Inn hotel in Savannah Beach, Ga. At the heart of the growth is the original commitment to value begun by Mr. Day: quality lodging at a fair price. Days Inns of America Inc. is a subsidiary of HFS Inc. (NYSE:HFS).

CONTACT: HFS Inc., Parsippany

Donna Dozier Gordon

973/496-8481

[e-mail]