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HOSPITALITY FRANCHISE SYSTEMS COMPLETES SECOND CHARTWELL-RTC TRANSACTION

 PARSIPPANY, N.J., May 12 /PRNewswire/ -- Hospitality Franchise Systems, Inc. (NYSE: HFS) today announced that it has completed its previously announced second RTC transaction with Chartwell Hotel Associates. Chartwell today acquired the 10,000 room HomeFed portfolio of hotels and mortgages secured by hotels from the RTC. HFS initially advanced $4 million to facilitate the conversion of any hotels included in the portfolio owned or to be owned by Chartwell to one of HFS's four brands.
 HFS also announced that the company and Chartwell had entered into an agreement with respect to Chartwell's third RTC portfolio, which it has committed to acquire, called Maco II (Middle Atlantic Consolidated Office). This portfolio consists of loans collateralized by 17 hotel assets in 9 states with a book value of $76 million. The hotels have an aggregate of 2,542 rooms. Eighty percent of the portfolio is in the form of non-performing loans with the balance in performing loans. The assets in this transaction will be added to the rooms included in the HomeFed portfolio available for conversion to an HFS brand. Under the Chartwell-HFS agreement, total funding from HFS for the HomeFed and Maco portfolios is limited to $8 million.
 Chartwell is owned by Dallas-based Ashford Financial Corporation, whose principal shareholder is Montgomery Bennett, and Chartwell Hotels, L.P., an investment partnership comprised of members of the Fisher family of New York City and an affiliate of Gordon P. Getty. Chartwell has contracted with Remington Hotel Corporation, a Dallas-based hotel management firm headed by Archie Bennett, Jr., to manage the REO properties purchased.
 As previously disclosed, HFS advanced $5.5 million to Chartwell in connection with the 7,000 room RTC EROST-004 transaction in November, 1992.
 Hospitality Franchise Systems, Inc., the world's largest hotel franchisor, is a publicly held company whose stock is traded on the New York Stock Exchange under the symbol HFS. The company has more than 3,600 Days Inn, Howard Johnson, Ramada and Super 8 franchised hotels with over 360,000 rooms in the United States, Canada, Mexico, India and Europe.
 -0- 5/12/93
 /CONTACT: Stephen P. Holmes, CFO of Hospitality Franchise Systems, 201-952-8423/
 (HFS)


CO: Hospitality Franchise Systems, Inc.; Chartwell Hotel Assoc. ST: New Jersey, Texas IN: LEI SU: TNM

SH-PS -- NY016 -- 7397 05/12/93 09:04 EDT
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Publication:PR Newswire
Date:May 12, 1993
Words:383
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