SEATTLE, WA (Feb. 10, 2003 ) � AFM Hospitality Corporation (TSX:AFM) announced today it has named a well known and respected hotelier to lead its rapidly growing managed hotel portfolio in the United States and Canada.

Peter Smith, former Executive Vice President of Operations for Westin Hotels & Resorts Worldwide, has been named President & Chief Executive Officer of the AFM Hospitality Management Division, effective immediately.

In making the announcement, Lawrence P. Horwitz, Chairman & CEO of AFM Hospitality Corporation, said �I am very excited about Peter Smith joining the AFM team, and I sincerely believe AFM is exceptionally fortunate to have an executive of Peter�s calibre heading our expanding Hospitality Management Division, which we anticipate will reach more than 100 properties this year!�

Growing in �Clusters�

During the past two years, AFM has acquired five management companies operating properties in �cluster� groups in the Pacific Northwest, Midwest and Southwest, and in Western Canada.  AFM companies now franchises and/or operates more than 200 hotels, restaurants and other nationally franchised service businesses, and is among the top 25 management companies in North America in number of properties operated.

�Last month, we implemented a realignment of our company�s operating units to help us place more emphasis on getting closer to our customers,� said Mr. Horwitz.  �AFM Hospitality (USA) Corporation was created to provide both franchise and managed operations in the United States.  At the same time, we�ve divided the company into three major operating divisions:  AFM Hospitality Franchise Division (in Canada, AFM is the master franchisor of such brands as Aston?, Best Inns?, Howard Johnson?, La Quinta?, Park Plaza? and others); the AFM Hospitality Management Division, which through its subsidiaries in the United States and Canada provides management services to hotels and restaurants; and the AFM Services Division, which specializes in providing interim asset management services for financial institutions, and operates hotels, restaurants, service stations, truck stops and other nationally franchised service businesses on their behalf.

Continuing the Momentum

A career hotelier and Certified Hotel Administrator (CHA), Mr. Smith is a proven leader both domestically and internationally, highlighted by more than 20 years with Westin Hotels & Resorts, where he rose to the position of Executive Vice President of Operations. 

Mr. Smith will be based at AFM�s US headquarters in Seattle, and will oversee the expanding AFM management company activities and operations worldwide, including Northwest Lodging International (Canada) Inc. and Northwest Lodging International (USA) Inc.  �There is no question in my mind,� he said, �that we will continue the momentum that has resulted in our growth and ability to provide more and better services for our customers.�

With Westin for 20 years, Mr. Smith�s diverse career encompassed all aspects of hotel operations.  He was responsible for the profitability, brand and product quality and employee development at 65 hotels in 11 countries, including a range of resorts, downtown and city center hotels, airport locations and major convention facilities.  On the �front lines,� he served as General Manager of Westin properties in Edmonton (400 rooms) and Toronto (600 rooms) in Canada, as well as General Manager of Westin�s headquarters hotel in Seattle (875 rooms). 

He was recruited away from Westin to join Holland America Line/Windstar Cruises, where he was charged with creating a hotel operating division within the cruise company, and was responsible for all shipboard hotel, food and beverage, entertainment, casino, concessions and shore excursions within both fleets � consisting of 14 ships with more than 400 sailings calling on 300 ports around the world each year � and directing 20 hotel managers and a staff of 6,000. 

During his tenure, both Westin and Holland America received prestigious industry awards for both product and service levels from Conde Nast Traveler, Travel & Leisure, AAA and Ocean & Cruise News, among others.

Variety of Tasks Ahead

�At AFM Hospitality,� said Mr. Horwitz, �Mr. Smith will be charged with upgrading profitability and standards of quality for the hotels we operate, and with directing initiatives designed to build revenues by attracting and retaining more repeat customers..

�Peter will serve as a resource for the leaders of our regional operating units,� he 
continued, �assist in building our management portfolios, create owner relations programs, and enhance development of career paths for employees, including both management training and internship programs.�

Mr. Smith added that he sees his major emphasis as being on upgrading the quality and consistency of AFM�s service to enhance guest experiences, and training teams in both hotel and food and beverage operations.  �I am a firm believer in �Moperations,�� he said, �and that�s the combining of marketing and operations to form a single, integrated unit that professionally addresses all aspects of the hotel�s business, while working as a closely aligned team that knows its success is dependent on meeting specific, agreed upon objectives in a prompt, consistent manner.� 

Mr. Smith also serves on the advisory board of the School of Hotel Administration at Washington State University, and as a trustee of the Washington State University Foundation.

About AFM Hospitality Corporation
Through its subsidiaries, AFM Hospitality Corporation owns AFM Preferred Alliance Group Inc., AFM Asset Management Inc., AFM Hospitality (USA) Corporation, Northwest Lodging International (USA) Inc., Northwest Lodging International (Canada) Inc., Trigild Services, Inc., Trigild Technologies, Inc. and Trigild Staffing, Inc.  It is the exclusive Canadian Master Franchisor for Aston, Best Inns, Hawthorn Suites, Howard Johnson, Knights Inn, La Quinta, Park Plaza, Park Inn, Traveller�s Inn and Villager Lodge. AFM Hospitality Corporation operates or has open and/or executed franchise and management agreements with 200 hotels, restaurants and other nationally franchised service businesses throughout North America. AFM Hospitality Corporation is a publicly traded company listed on the Toronto Stock Exchange (TSX:AFM).

This Press Release contains certain forward-looking statements and information from  AFM Hospitality Corporation relating, but not limited, to the company�s operations, anticipated financial performance, business prospects and strategies.