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HOSPITALITY FRANCHISE SYSTEMS COMPLETES SUPER 8 ACQUISITION

 PARSIPPANY, N.J., April 30 /PRNewswire/ -- Hospitality Franchise Systems, Inc. (NYSE: HFS) announced today that it has completed the previously announced acquisition of Super 8 Motels, Inc. for $125 million.
 Super 8 is the franchisor of approximately 1,000 economy motels with approximately 60,000 rooms in the United States and Canada.
 HFS said in connection with the acquisition financing it also refinanced its existing debt. Total debt which was rated BBB by Standard & Poor's is now $400 million, amortizing over the next seven years. The funds were provided by a group of banks led by Chemical Bank as administrative agent and includes: Bank of Nova Scotia, Banque Paribas, Canadian Imperial Bank of Commerce, Continental Bank, Long Term Credit Bank, Mellon Bank and Nations Bank as co-agents. The company said that its cost of funds is LIBOR plus 1.1 percent, excluding amortization of related loan financing costs.
 In connection with the refinancing of its existing debt, HFS said it would record an extraordinary, non-cash charge of $8.5 million net of tax in the second quarter of 1993.
 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- 4/30/93
 /CONTACT: Stephen P. Holmes of Hospitality Franchise Systems, 201-952-8423/
 (HFS)


CO: Hospitality Franchise Systems, Inc.; Super 8 Motels, Inc. ST: New Jersey IN: LEI SU: TNM

SH-PS -- NY009 -- 3055 04/30/93 09:01 EDT
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Publication:PR Newswire
Date:Apr 30, 1993
Words:277
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