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HFS STRIKES SECOND DEAL CONNECTED WITH RTC PACKAGE

 PARSIPPANY, N.J., April 12 /PRNewswire/ -- Hospitality Franchise Systems, Inc., the world's largest franchisor of hotel rooms, has entered into an agreement in principle with Chartwell Hotels Associates which may bring approximately 7,000 additional middle market and limited service hotel rooms into the HFS family of Days Inn, Howard Johnson, Ramada and Super 8 brands.
 Chartwell, an investment partnership comprised of members of the Fisher family of New York and the Gorden P. Getty Family Trust, through its affiliate Chequers Investment Associates, has contracted to acquire the Resolution Trust Corporation's second large structured group of non-performing hotel assets of approximately 71 properties located in 20 states with about 10,500 hotel rooms. Approximately 3,500 of those rooms are currently in an HFS chain.
 Under the HFS/Chartwell agreement, HFS has agreed to advance $4 million to Chartwell in return for the commitment by Chartwell to convert each of the hotels of which it or its affiliates becomes the owner to the Days Inn, Howard Johnson, Ramada or Super 8 brands. In late 1992, as previously disclosed, HFS advanced $5.5 million to Chartwell in connection with Chartwell's acquisition of the first multi- property RTC hotel portfolio consisting of 55 owned hotels and mortgages secured by hotels. The advance is being utilized by Chartwell to facilitate the conversion of the hotels, as Chartwell becomes the owner, to an HFS brand.
 The partnership's managing partner and portfolio manager is Ashford Financial Corp. of Dallas. Montgomery Bennett is the majority owner of Ashford. As properties become REO they will be managed by Dallas-based Remington Hotel Corp. Archie Bennett Jr. is the president and CEO of Remington.
 Henry R. Silverman, chairman and CEO of HFS, stated: "We have previously announced our program of strategic expansion of our brands by advancing funds to prospective franchisees with suitable credit to expedite multi-property conversions to the HFS brands. This transaction is further implementation of that strategy. We are particularly pleased that, over time, Chartwell may become our largest franchisee."
 Martin L. Edelman, spokesman for Chartwell Hotel Associates, said, "We are pleased to expand our business alliance with HFS. Our first conversions are working out well because of the diversity of the brand names offered by HFS, the individual brand management and advertising of each, and the fact that all HFS brands offer full service and limited service choices as appropriate."
 Hospitality Franchise Systems, the world's largest franchisor of hotel rooms, has more than 2,500 Days Inn, Hoard Johnson and Ramada hotels with more than 300,000 rooms in the United States, Canada, Mexico, India and Europe. As previously announced, HFS is scheduled to purchase the 1,000-unit/60,000-room Super 8 franchised motel system in late April 1993.
 -0- 4/12/93
 /CONTACT: Stephen P. Holmes, CFO of Hospitality Franchise Systems, 201-952-8423/
 (HFS)


CO: Hospitality Franchise Systems, Inc. ST: New Jersey IN: LEI SU:

GK-SM -- NY002 -- 4638 04/12/93 09:01 EDT
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Publication:PR Newswire
Date:Apr 12, 1993
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