HFS incorporated reports record franchise sales and strong room growth

Parsipanny, NJ - HFS Incorporated ( NYSE:HFS) today announced it had entered into 227 new franchise agreements, representing 18.449 hotel rooms, in the third quarter of 1995, compared to 215 new agreements, representing 17.195 rooms sold during the third quarter of last year. Both the number of new hotel units and the number of new rooms sold are records for the third quarter. For the nine Months ended September 30, 1995, 592 new franchise agreements have been sold, representing 50.513 rooms, which are also the highest totals for any January through September period, compared to 549 franshises sold, representing 46.440 rooms, for the nine months ending September 30, 1994.

HFS' backlog of executed franchise agreements, which represent units sold but not yet open and operating in one of the Company's seven franshise chains, now stands at 46.973 rooms at September 30, 1994.

The company also reported 13.449 rooms were opened during the third quarter in its Days Inn, Howard Johnson, Knights Inn, Ramada, Park Inn, Super 8 and Villager Lodge hotel chains. Net of 5.799 rooms which were terminated in the third quarter, The company's chains grew by 7.650 rooms. In the third quarter last year, the company opened 13.456 rooms and terminated 3.933 rooms, resulting in net additions of 9.523 rooms. In the past nine months, the Company's total franshised rooms grew by 24.224 compared to 25.425 net rooms added in the comparable period in 1994. In addition, during the third quarter, the company completed the acquisition of the Knights Inn franchise system which added approximately 10.000 rooms to the total rooms at quarter end.

HFS Incorporated is the world's largest franchisor of hotels and residential real estate brokerage offices. Its stock is listed on the New York Stock Exchange under the Symbol of "HFS". In lodging, the company has approximately 4.700 Days Inn, Howard Johnson, Knights Inn, Park Inn International, Ramada, Super 8 and Villager Lodge franshised Hotels with over 450.000 rooms in the United States, Canada, Latin America and Europe. In residential real estate, HFS has approximately 6.000 CENTURY 21 franshised offices in the United States and twelve other Countries