PARSIPPANY, NJ, Nov. 8, 2000 - Villager Franchise Systems Inc. today announced that six Studio Inn hotels representing more than 750 rooms in Mississippi and Florida will be franchised as Villager Premier extended-stay hotels.

The hotels, developed and managed by Southeastern Hotel Management Company Inc. of Atlanta, GA, will be converted to Villager Premier hotels, the chain�s mid-market product, by year�s end.
 

�These properties represent the type of high-quality product we continue to attract at Villager and will give us excellent representation in the Southeast,� said Ken Rodgers, Villager President and Chief Executive Officer.

The Studio Inn conversions represent part of an ambitious plan to expand the Villager system of 150 extended-stay properties open and under development, particularly the Villager Premier tier, which currently includes 18 hotels, he said.

Citing a study by the Atlanta-based Highland Group that forecasts continuing demand for extended-stay hotels, Rodgers noted the extended stay industry is �ripe for consolidation� and that Villager �plans to capitalize on this trend.�

Speaking of Matthew R. Young, CHA, Southeastern Hotel Management chief operating officer, and James T. Bell and W. Jack Hamilton III, two of the company�s principal owners, Rodgers said:  �I am truly excited that these quality investors and industry veterans will be joining our growing family, demonstrating their confidence in the continued success of Villager.�

Young said his company�s association with the Villager system �will ensure the continued high occupancy and success of our hotels.  We are pleased to join an established company that is a leader in extended stay.�

�With Villager, we will benefit from all of the corporate support, reservations and marketing programs offered to all Villager properties,� said Bell and Hamilton.

Villager Franchise Systems Inc., an extended-stay chain of 150 properties open or under development representing more than 10,000 guest rooms in the United States, Canada and Mexico, is a subsidiary of Cendant Corporation.