AFM Acquires 8 Mgmt. Contracts In Deal With RTM Hosp.

TORONTO, ONTARIO— AFM Hospitality Corp. has acquired a portfolio of eight management agreements from Kelowna, British Columbia-based RTM Hospitality Management & Development Co. The deal includes the management agreement of eight hotels located throughout Alberta and British Columbia. The hotels will be managed by AFMs subsidiary, Northwest Lodging International, marking the growth of its portfolio to more than 30 hotels. In addition to the management contracts, AFM acquired RTMs name, related intellectual property and certain guarantees by certain hotel owners. Effective January 1, 2002, the transaction adds five Ramada Hotels, two Holiday Inns and one Aston Resort to the Northwest portfolio. In exchange for the management contracts, RTM and its hotel owners will collectively receive $1,824,000 in the form of 480,005 shares of AFM common stock. The shares will be held in escrow and released per a performance formula over five years as certain annual base and incentive fees are collected by AFM. The deal allows AFM, and Northwest Lodging, to exeed their original goal for management contracts in 200, said Lawrence Horwitz, chairman of AFM Hospitality. RTM founder and president, Tom Matthews will join Northwest Lodging as president, while Ellen Walker, also formerly of RTM, will serve as senior vp/sales for AFM and Northwest Lodging.