AAHOA Report on Fair Franchising

Drives Changes to Franchisor-Franchisee Relationships

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. October 14, 2008

MARCH 28, 2008. In an unprecedented move, the Asian American Hotel Owners Association (AAHOA) today released a report on Fair Franchising that offers insight into franchisor-franchisee relationships and provides a tool for holding franchise companies more accountable for their practices and agreements.

AAHOA's Progress Report for 2007 summarizes improvements made to date by leading franchise companies in their respective Uniform Franchise Offering Circulars ("UFOCs"), franchise agreements and related business policies and procedures. AAHOA released the report to its members and the industry during its annual convention in San Antonio.

"With our members owning approximately 13,500 franchised hotels and having long-term agreements with their franchisors, fair franchising is the lifeblood of the association," explained Dilipkumar "Danny" Patel, AAHOA Chairman. "AAHOA is committed to working with all franchise companies in a spirit of true partnership to continue to improve franchising for everyone involved."

Mukesh Mowji, 2006 AAHOA Chairman and visionary behind the process, said "this is a first step in a journey toward 12 Point compliance. It is imperative that AAHOA and franchise companies continue progressive dialogue to improve agreements."

AAHOA's Progress Report is largely based on a lengthy, detailed and complex process during which the organization measured the then-offered franchise programs of five franchise companies against AAHOA's 12 Points of Fair Franchising. The companies in this first report include those with whom AAHOA's members do significant business, including Accor Franchising North America, LLC ("Accor"); Carlson Hotels Worldwide, Inc. ("Carlson"); Choice Hotels International, Inc. ("Choice"); La Quinta Franchising LLC ("La Quinta"); and Wyndham Hotel Group ("Wyndham"). Subsequent reports will include additional franchise companies.

Following preparation of a draft version of a performance appraisal report, AAHOA provided each franchisor with a copy of the report, as well as an opportunity to comment. The comments received by AAHOA from the Franchisor, if any, were carefully considered and integrated.

AAHOA first unveiled its 12 Points of Fair Franchising in 1998, and in 2006 prepared a substantially-updated version of the 12 Points with a summary of each one and commentary on the reasons why they are so important.

About AAHOA

The Asian American Hotel Owners Association ("AAHOA") is THE owner's organization and THE voice of owners in the hospitality industry. AAHOA is dedicated to promoting and protecting the interests of its members by inspiring excellence through programs and initiatives in advocacy, industry leadership, professional development, member benefits and community involvement. Founded in 1989, AAHOA is now one of the fastest-growing organizations in the industry, with 8,700 members owning more than 22,000 hotels in this country, and totaling $60 billion in property value. Of the hotels owned by AAHOA members, approximately 13,500 are franchised while 8,500 are independent. As the owners association, AAHOA accomplishes this by engaging in advocacy efforts at the federal, state, and local levels, establishing fair franchising standards for the industry, providing year-round programs focusing on education and leadership, securing valuable products and services for its members, and engaging in humanitarian and community efforts. For more information, visit www.aahoa.com.

Full copies of the Progress Report are available upon request.

This Progress Report is not intended to, and do not, reflect the opinions of the members, Board members, employees, representatives, or agents of AAHOA, or of any persons working or acting on behalf of AAHOA. Nor is it intended to provide legal, financial, or business advice, or as a recommendation or other judgment concerning a subject Franchisor's program. Before entering into a franchise agreement with any Franchisor, AAHOA members are encouraged to assess carefully the Franchisor's commitments and performance against factors of importance to the member, including the AAHOA updated 12 Points of Fair Franchising used as the benchmark for this Progress Report. As always, members are encouraged to work in conjunction with legal counsel for appropriate terms.