Allied Hotel Properties Inc. - News Releases - Allied Hotels Completes Reorganization With King George Development

	Thu Oct 21, 1999 Allied Hotels Completes Reorganization With King George Development
	Vancouver, B.C. - Allied Hotel Properties Inc. (AHP.V) is pleased to announce that, further to the proposed reorganization as previously announced by King George Development Corporation, it has completed the plan of arrangement under which Allied Hotels, King George Development and King George Financial Corporation (KGF.V) have reorganized into two public listed companies, being Allied Hotels and King George Financial. The net effect of this corporate reorganization will be to better enable the two resultant companies to focus on their respective strengths as the decision making process and financial requirements for the development and acquisition of first-class hotel properties differs from those for property development. Allied Hotels will focus on building its portfolio of first-class business hotels while King George Financial will concentrate on the development of and investment in commercial and residential real estate. Allied Hotels is principally involved in the ownership and management of first-class business hotels in major Canadian urban centres. It has been restructured to amalgamate the Canadian hotel interests of the Allied Holdings Group which has successfully developed and owned commercial and residential real estate in Canada and the United States since 1968, with a focus on the hotel industry in Canada since 1986. "We will now work to build our hotel portfolio which consists of seven hotel properties with a total of 2,297 rooms in the Greater Vancouver Area, Toronto and Edmonton," commented Mr. Peter Y.L. Eng, Chairman of Allied Hotels. These properties consist of: Crowne Plaza Hotel Georgia, Delta Pacific Resort & Conference Centre, Delta Vancouver Suite Hotel, Delta Vancouver Airport Hotel & Marina, Holiday Inn Vancouver Downtown Hotel & Tower Suites, Crowne Plaza Toronto Don Valley Hotel and Crowne Plaza Chateau Lacombe. "King George Development contributed the Crowne Plaza Chateau Lacombe and a major development property at Granville and Dunsmuir Streets in downtown Vancouver. I now look forward to a continuing relationship with Allied Hotels," commented Mr. Andrew Saxton, the new Deputy-Chairman of Allied Hotels. Each original shareholder of King George Development will receive one new share of each of Allied Hotels and King George Financial. Trading of the shares of King George Development was halted at the opening of the market on October 21, 1999 at the request of the company. The shares of Allied Hotels and King George Financial are expected to commence trading within ten days upon filing of the final documentation with respect to the listing of King George Financial. Allied Holdings Ltd. holds, directly and indirectly, a total of 66,649,840 common shares of Allied Hotels as a result of the reorganization. On behalf of the Board of Directors: Mr. Ronald G. Erdman President and Director THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.

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