TORONTO - Oct. 4, 2000 -- AFM Hospitality Corporation today announced
the acquisition of the management agreements and other selected assets
of Seattle, Washington-based Northwest Lodging, Inc., to support management
of 14 hotels comprising nearly 1,700 rooms, located primarily in the Pacific
Northwest.
AFM will operate these hotels under the Northwest Lodging International
name as a subsidiary of AFM.
�This strategic acquisition will enable AFM to establish a strong and
immediate presence as a significant hotel management company in the North
American market,� says AFM CEO Stephen Phillips. �It also provides AFM
with the necessary infrastructure, operating systems and controls to facilitate
the desired and profitable growth of AFM�s Asset Management business.�
Under the terms of the agreement and subject to TSE approval, AFM will
acquire selected assets from Northwest Lodging for CDN $4.5 million. In
consideration, Northwest Lodging, Inc., and its shareholders will receive
two million common shares of AFM valued at CDN $2.25 per share, together
with 444,444 convertible securities which must be converted 1:1 for AFM
common shares within 13 months at CDN $2.25 per share, and 500,000 warrants
exercisable at CDN $2.50 per share and 500,000 warrants exercisable at
CDN $3.25 per share (all warrants to expire after 5 years). The transaction
is expected to close before the end of October 2000.
Principals Andre S. Tatibouet, Chairman of Northwest Lodging, and Lawrence
P. Horwitz, President and CEO of Northwest Lodging, will be nominated to
join the Board of Directors of AFM and, if so elected, Mr. Horwitz will
assume the role of Chairman of the Board.
| �The acquisition of Northwest Lodging will act as a catalyst in driving
all aspects of AFM�s business and Andre and I look forward to working closely
with the AFM management team in achieving our mutual business goals,� says
Horwitz. �This investment reinforces our commitment to the global hospitality
industry and complements our existing family of international hospitality
and real estate investments,� says Tatibouet.
In addition to Northwest Lodging, Inc., Tatibouet and Horwitz are co-investors
in AST Global Services, LLC, AST Brands, LLC and American Motels Acquisition
Company LLC.
About Northwest Lodging
Northwest Lodging, Inc. is a Seattle-based hotel management company
founded in June 1990, which operates properties throughout Washington,
Oregon, Idaho, Arizona and Texas. The company also offers property
and asset management services to the hospitality industry.
Northwest Lodging, Inc. is the largest franchisee in the Western United
States for both the Ramada and Howard Johnson brands. In 1998, Northwest
Lodging was honored as Cendant Corporation�s International Franchisee of
the Year and was awarded the esteemed �Franny� by the International Franchise
Association. The company was twice selected by Howard Johnson International
as its Franchisee of the Year.
About AFM
Through its subsidiaries, AFM Hospitality Corporation, which also owns
HFS Purchasing Services and AFM Asset Management Inc., is the exclusive
Canadian master franchisor for Aston Hotels®, Best Inns®, Hawthorn®,
Howard Johnson®, Knights Inn®, Ramada®, and Villager Lodge®.
With |
AFM Hospitality Corp. Enhances Leadership
Team
TORONTO, ONTARIO -- AUGUST 14, 2000 - Stephen Phillips,
CEO of AFM Hospitality Corp. (TSE:AFM), announced today that the AFM Board
of Directors has approved an enhanced leadership team to help manage and
shape continued expansion across the company's seven recognized and successful
lodging brands.
New to the AFM board of directors are John Burt and Warren
Adamson, who join current board members Wayne Hanley, Chairman; Stephen
Phillips, Vice-Chairman; Terry Shaikh; and Gene Fraser. New
member John Burt brings valuable industry perspective to the board,
having spent many years as an advisor to the hospitality industry.
Currently AFM Chief Financial Officer, Warren Adamson
takes on additional responsibilities as President. The move, reflecting
the new board and the company�s increasing scope, follows executive team
appointments announced by AFM July 24 when Warren Adamson was appointed
Executive Vice-President and Glen Blake Senior Vice-President. Glen Blake
now assumes additional duties as Chief Operating Officer. Former President
Stephen Phillips remains company CEO.
AFM�s new leadership team takes charge following a successful
first-half fiscal 2000, which included the addition of two lodging brands,
Best Inns and Hawthorn Suites, and a first-quarter 21 per cent increase
in revenues over Q1 1999. Also highlighting AFM�s first-half 2000 was the
opening of Canada�s first Knights Inn and Villager Lodge locations. Knights
is a trusted economy lodging brand, while Villager serves the growing extended-stay
market. AFM brands Ramada and Howard Johnson also marked milestones, with
Ramada raising the flag on the 60th property in Canada, and Howard Johnson
breaking the 40 mark.
�With five new brands coming on stream over the past two
years, AFM is quickly closing in on 2000 expansion targets,� says
Phillips. �Our new leadership team is in place to help take us to the next
phase.� |
|
over 120 locations committed nationally, AFM Hospitality represents an
inventory of more than 12,000 hotel rooms. The company�s primary focus
is to increase the number of hotels franchised by the respective brands,
franchise new brands and acquire other franchise businesses related to
the hospitality industry, while making available asset management services.
AFM Hospitality Corporation is a publicly traded company (TSE:AFM). |
