Adam's Mark Submits Proposed Settlement Agreement to U.S. Department of Justice

Company Press Release: Adam's Mark Hotels & Resorts

February 25, 2000
ST. LOUIS, MO -- Adam's Mark Hotels & Resorts announced today that it has submitted a proposed settlement agreement to the U.S. Department of Justice to resolve a discrimination lawsuit pending against the company.

Fred Kummer, chairman and chief executive officer of HBE Corporation, Adam Mark's parent company, said the proposed agreement would assure that guest service policies and practices at the 21-hotel chain are non-discriminatory. The settlement agreement also asks that Project Equality, an independent, national equal employment opportunity organization, be designated by the Justice Department as the oversight group to ensure compliance.

Adam's Mark has stated that the allegations contained in the Justice Department suit are untrue, and that the company does not condone or knowingly practice discrimination. ``We are committed to satisfying the Justice Department's concerns, to demonstrate our absolute commitment to diversity and equality, and to make any changes in our policies that may be necessary to ensure that all guests are treated with respect, regardless of race, color or creed,'' said Kummer.

Under the proposed agreement, Adam's Mark would:

-- Continue to adhere to all applicable laws.
-- Enhance existing corporate policies and practices to ensure
non-discrimination against any guest.
-- Contract with an outside organization to oversee implementation of the
agreement, including establishing additional complaint mechanisms for
guests; investigating and resolving any discrimination complaints;
creating a diverse "secret shoppers" program to ensure equal treatment
of guests; and enhancing current diversity training programs for
employees.
-- Keep thorough records of compliance and submit periodic reports to the
Department of Justice.

``These are the concepts the Department of Justice has proposed, and we have accepted,'' said Kummer.

Independent of the proposed settlement agreement, Adam's Mark announced last week it has retained Project Equality to conduct an employment evaluation and provide diversity training for all employees. The evaluation will cover such areas as hiring, promotions and salary structures to ensure that equal employment opportunity laws are being met and to determine if the company is meeting its own diversity goals. These evaluations have already begun and will be completed in about 2 1/2 months. Project Equality will submit its findings and any recommendations for changes to the company.

``This will be one of the most comprehensive evaluation and training programs we have provided throughout our 35-year history,'' said the Rev. Kirk Perucca, president and chief executive officer of Project Equality.

``Adam's Mark has willingly opened every one of their properties to us for our review. The goal is to make sure all employment practices are based on equality, without regard to race, color, gender or disability,'' said Carlean Miller, equal employment opportunity director for Project Equality.

Project Equality's diversity training program will include all 9,000 corporate and hotel employees. The intensive, full-day course will promote equal treatment for all guests, raise awareness of non-discrimination laws, and discuss the barriers to diversity and how to overcome them.

CONTACT: Sharon Harvey Davis of Adam's Mark Hotels & Resorts, 314-567-9000.

SOURCE: Adam's Mark Hotels & Resorts