Hfs Incorporated With National Lodging Corp. And Motels Of America Acquire Travelodge

Ninth Hotel Brand for HFS; National Lodging and Motels of America to Own and Operate Certain Hotels

Parsippany, NJ --HFS Incorporated HFS, the worlds largest franchisor of hotels and real estate brokerage offices, along with National LodgingCorp. NALC and Motels of America, Inc. (MAO) announced today that they have completed the acquisition of the stock of the North American Travelodge hotel operations of Forte PLC ( London exchange:FTE).

HFS acquired the Travelodge trademark and franchise system in North America, representing about 450 hotels and motels with about 33,000 rooms, for approximately $39 million, and remains a pure franchisor. National Lodging acquired 16 hotel and motel properties with 2,900 rooms and joint venture interests in 96 additional motels for approximately $ 98 million , and MOA acquired 19 motel properties for approximately $32 million.

HFS Chairman and Chief Executive Officer Henry R. Silverman said, "Travelodge is a perfect fit with our complement of mass-market hotel brands. Positioned in the upper economy, lower midscale market, Travelodge is a growing brand with special strengths in the family leisure market".

HFS President and Chief Operating Officer John D. Snodgrass said, "Travelodge is a highquality economy chain, which will benefit from HFS's expertise in marketing, operational support, training and preferred-vendor relationships. We also see great opportunities for expansion of the brand through conversions and new construction.

"Travelodge will continue to maintain its own brand identity and personality, consistent with our philosophy of brand management," Mr. Snodgrass said.

In connection with the acquisition, HFS named Mr. Snodgrass as chairman of Travelodge.

To remove any perceived conflict with National Lodging, the owner/operator of the acquired Travelodge properties, Mr. Snodgrass has resigned from the National Lodging board of directors.

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 "HFS". In lodging , the Company has more than 5,000 Days Inn, Howard Johnson, Knights Inn, Park Inn, Ramada, Super 8, Travelodge and Villager Lodge franchised hotels with approximately 475,000 rooms in the United States, Canada, Latin America and Europe. In residential real estate, HFS has more than 6,100 CENTURY 21 franchised offices in the United States and fourteen other countries and territories.

HFS recently announced an agreement in principle to purchase the Electronic Realty Associates (ERA) system, which comprises approximately 2,500 real estate brokerage offices in the United States and fourteen other countries.

Jane Baxter Lynn