Development

AFM Hospitality Adds Two New Franchised Hotels In Saskatchewan

Howard Johnson Franchise Canada Now at 61 Locations

AFM Hospitality TORONTO, ON – AFM Hospitality Corporation (TSX: AFM) announced today that the 142-room Imperial 400 Motel in Swift Current and the 153-room Imperial 400 Motel in Yorkton have entered into franchise agreements with Howard Johnson Franchise Canada Inc., bringing the number of Howard Johnson locations in Saskatchewan to four properties with more than 500 rooms.

“With the renovations and refurbishment of these properties now underway, the new Howard Johnson Inns of Swift Current and Yorkton round out a strong regional group of Howard Johnson properties in the province, with other properties currently located in Regina and Saskatoon,” said Glen A. Blake, President & CEO/Franchise Division of AFM Hospitality, parent company of Howard Johnson Franchise Canada. “They provide key strategic connections between Alberta and Manitoba,” he explained, “as we continue the growth of the Howard Johnson brand across Canada.”

With the two new additions, the Howard Johnson brand now has 61 opened and/or executed franchise agreements in Canada.

According to Zula Nurmohammed, President of Prairie Hotels Inc., the new owner of the two properties, the decision to convert these locations to the Howard Johnson brand “was not difficult at all. We have worked with the Canadian Howard Johnson team before as franchisees, and we knew this was the best team to help us with the conversion project.

“This is our first venture outside of Ontario,” he continued, “where we have operated hotels under a number of different flags. With Regina and Saskatoon already part of the Howard Johnson system, we knew that our success would be greatly enhanced by the brand’s growing regional presence and name recognition that comes with the Howard Johnson brand”.

Both locations are presently undergoing renovations to join the Howard Johnson system, and it is anticipated their official “on-line” date will be on or before October 15, 2003. Each property is designed to appeal to both leisure and corporate guests, noted Mr. Blake, and both feature a variety of standard amenities, including in-room movies, Nintendo, coffee makers with free coffee, and many more. Both hotels also feature indoor swimming pools, waterslide and whirlpool, and meeting facilities.

The new Howard Johnson in Swift Current is located at 1150 Begg Street East, right along the Trans Canada (No. 1) highway. The new Howard Johnson in Yorkton is located at 207 Broadway East, at the junction of three highways including the Yellowhead (No. 16) highway



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