AFM Hospitality Corp.: Northwest Lodging Inc. Acquisition Deal Proposed
TORONTO / Terry M. Shaikh, chairman of the board of AFM Hospitality Corp.
The 17 hotels, representing 2,100 rooms, are located in the United States, primarily in the Pacific Northwest, and are all franchised under either the Ramada or Howard Johnson flags.
American Motels has agreed to guarantee the revenue stream from the management contracts for a period of five years. The management contracts are each for 20-year terms with an option to AFM to renew for a further 20 years.
Completion of the transaction -- which may be structured as a share purchase, asset purchase, merger or other business combination -- is subject to completion by AFM of satisfactory due diligence, conclusion of a definitive agreement and receipt of applicable regulatory approvals.
AFM proposes to satisfy the acquisition price by issuing the principals of Northwest Lodging, Andre S. Tatibouet and Lawrence P. Horwitz, 1.6 million AFM Hospitality common shares at a deemed value of CDN $3.65 per share.
About Northwest Lodging
Northwest Lodging 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.
About AFM
Through its subsidiaries, AFM Hospitality is the exclusive Canadian master franchiser for Aston Hotels and Resorts(r), Howard Johnson(r), Knights Inn(r), Ramada(r), and Villager Lodge(r) and also owns HFS Purchasing Services and AFM Asset Management Services Inc. With more than 110 locations committed nationally, AFM Hospitality represents an inventory of more than 13,000 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 Corp. is a publicly traded company