AFM Hospitality Reports Long-Term Forecast

SEATTLE— AFM Hospitality Corp., a North American hotel management company with offices in Seattle and Toronto, recently presented its long-term forecasts for growth through 2004 to shareholders at in Annual General Meeting held in Toronto. Chief among its forecasts was a threefold increase in licenses and management agreements for hotel properties and rooms by 2004. AFM is looking to build its portfolio of recognized lodging brands, following its recent franchise rights agreement in Canada for the Park Plaza and Park Inn hotels. AFM also intends to expand its relationships with blue-chip strategic marketing partners including Cendant, Air Canada, Petro-Canada and the Canadian National Post. Specifically, AFM forecasts that through 2004, the company will experience a 20-25% annual growth in number of franchised and managed properties, a 25-30% annual growth in revenue and a 50% annual growth in EBITDA. If these targets are met, AFM would achieve system-wide sales in excess of CDN$1 billion, or US$651.6 million and the number of rooms managed exceeding 35,000 by the end of 2004.