Press Release: Executive Inn Group Corporation and Hars Systems Inc.
July 1, 2002
VANCOUVER, BC-- Executive Inn Group Corporation, operator of the Executive Hotels and Resorts lodging chain, has
announced the sale of its partially owned division HARS Systems Inc., parent company of VIP International Corporation,
to Trimin Capital, a TSE listed company.
Gross proceeds of the sale to Executive were $4,208,794. Proceeds will be utilized to retire any outstanding loans
of Executive and the remainder of approximately $1,650,000 will be utilized for hospitality related acquisitions
which fit the Executive Hotels & Resorts growth strategy.
Following the sale of HARS, Executive Hotels & Resorts, will continue to be the exclusive hotel brand and management
company to be marketed to HARS' 1600 hotel clients worldwide. As per previous commitments, HARS maintains a multi-million
dollar Executive Hotels & Resorts brand development fund which will be utilized to continue the strategic growth
of the Executive Hotels & Resorts company.
For the year 2002, Executive confirms it is on track to meet its previously stated annual earnings targets of $.10
cents per share. EBITDA for 2002 is expected to come in at approximately $1,5000,000.
"We are pleased, at this point in the hotel industry cycle, to be sitting with a strong cash position and
healthy cash flow earnings. Our return on equity, estimated to be in the 37% - 39% range for the year, is a testament
to Executive's strong operating team which should be commended." said Salim Sayani, Chief Executive Officer
of Executive Hotels & Resorts.
Executive Inn Group Corporation is an international hotel brand and management company which operates under the
Executive Hotels and Resorts brand in the upper segment of business, resort and boutique hotels. Services provided
include hotel management and brand affiliation, seamless worldwide GDS, Internet and Toll Free reservations, National
and Property Specific Sales and Marketing programs and state-of-the-art Loyalty Rewards programs. The company currently
has 18 hotels with over 2,500 rooms open and under development across Canada and the Western U.S. Please visit
www.executivehotels.net for further information.
The Toronto Stock Exchange has neither approved or disapproved of the information contained herein.
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Contact: Executive Hotels & Resorts Hanif Mawji Chief Financial Officer Phone: (604) 642-5254 Email: hanif@executivehotels.net Website: www.executivehotels.net