Document:

Exhibit 10.33
                              Suburban Lodges, Inc.

A Promissory  Note to Finova  Realty  Capital Inc. with  substantially  the same
terms as Exhibit 10.25 to the Company's  Annual Report on Form 10-K for the year
ended  December  31, 1999 for the  following  group of  properties  is not being
separately filed:

<TABLE>
<CAPTION>
 PROPERTY NAME/                         ADDRESS                  CITY, STATE
AMOUNT OF NOTE
<S>                                   <C>                       <C>
Group 6/$13,700,000

Suburban Lodge - Hazlewood             9067 Dunn Road            Hazelwood, MO
Suburban Lodge - St. Charles           1769 Fairlane Dr.         St. Charles, MO
Suburban Lodge - East Indianapolis     2301 Post Dr.             Indianapolis, IN
Suburban Lodge - Newport News          12015 Jefferson Ave.      Newport News, VA
Suburban Lodge - Jackson, Miss.        5731 I-55 N               Jackson, MS
</TABLE>Schedule to Exhibit 10.34
                              Suburban Lodges, Inc.

A security  agreement in favor of Finova Realty Capital Inc. with  substantially
the same terms as Exhibit 10.26 to the Company's  Annual Report on Form 10-K for
the year ended  December 31, 1999 for the  following  group of properties is not
being separately filed:

 PROPERTY NAME                          ADDRESS                CITY, STATE

Group 6

Suburban Lodge - Hazlewood           9067 Dunn Road            Hazelwood, MO
Suburban Lodge - St. Charles         1769 Fairlane Dr.         St. Charles, MO
Suburban Lodge - East Indianapolis   2301 Post Dr.             Indianapolis, IN
Suburban Lodge - Newport News        12015 Jefferson Ave.      Newport News, VA
Suburban Lodge - Jackson, Miss.      5731 I-55 N               Jackson, MSExhibit 10.35
                                      Suburban Lodges, Inc.

An assignment of franchise agreements and franchisor's consent and subordination
of franchise  agreement in favor of Finova with  substantially the same terms as
Exhibit  10.27 to the  Company's  Annual  Report on Form 10-K for the year ended
December 31, 1999 for the following group of properties is not being  separately
filed:

     PROPERTY NAME                       ADDRESS                  CITY, STATE

Group 6

Suburban Lodge - Hazlewood            9067 Dunn Road            Hazelwood, MO
Suburban Lodge - St. Charles          1769 Fairlane Dr.         St. Charles, MO
Suburban Lodge - East Indianapolis    2301 Post Dr.             Indianapolis, IN
Suburban Lodge - Newport News         12015 Jefferson Ave.      Newport News, VA
Suburban Lodge - Jackson, Miss.       5731 I-55 N               Jackson, MSAREA DEVELOPMENT AGREEMENT

    AGREEMENT  made  the 3rd  day of  March,  1998,  by and  between  GuestHouse
International  LLC  ("GuestHouse"),  an Arkansas limited  liability  company and
Western Steel, Inc. ("Western"),  a Washington  corporation,  or subsidiaries or
affiliates of George A. Swift.

                                    RECITALS

    WHEREAS,  GuestHouse is the franchisor of hotel/motel property  affiliations
under  the names  "GuestHouse(R)  Inn,"  "GuestHouse(R)  Hotel,"  "GuestHouse(R)
Suites,"  "GuestHouse  International(R)"  or other  variations which contain the
trademarked name GuestHouse(R), along with allied services and products; and

    WHEREAS, Western is in the business of construction,  ownership. maintenance
and operation of hotel/motel properties; and

    WHEREAS, Western has requested and GuestHouse has agreed to grant Western an
exclusive  night.  subject  to the terms and  conditions  set forth  herein,  to
develop GuestHouse affiliated properties in a designated area; and

    WHEREAS,  Western's  exclusive  rights are based upon the  development  of a
required number of GuestHouse(R) properties within specified times; and

    WHEREAS,  the parties desire to set forth their respective  rights,  duties,
obligations and benefits,

    IT IS THEREFORE AGREED by and between the parties as follows:

    1.  EXCLUSIVE  DEVELOPMENT  RIGHTS.  Subject to the terms and conditions set
forth  below,  GuestHouse  hereby  grants  to  Western  the  exclusive  right to
construct,  establish,  develop, own. operate and maintain GuestHouse affiliated
properties in the states of Washington,  Oregon,  Montana, Idaho and Alaska (the
"Designated Area") for a twenty year period ending December 31, 2018. So long as
this  Agreement  is in effect,  no other person shall be allowed to enter into a
franchise  agreement with  GuestHouse 'in the Designated  Area without the prior
written consent of Western.

    2.  NONEXCLUSIVE  GRANT.  Upon the  termination  of this  Agreement  for any
reason,  other persons shall be allowed to enter into franchise  agreements with
GuestHouse in the  Designated  Area.  In addition,  Western may request to enter
into franchise agreements with GuestHouse in states other than in the Designated
Area on a nonexclusive basis. Irrespective of the status of this Agreement.

    3. FRANCHISE REGULATION. Notwithstanding,  paragraphs 1 and 2 above, Western
must meet the then current  standards for  franchisees  to be able to enter into
franchise  agreement  with  GuestHouse  within or without the  Designated  Area.
Further,  Western acknowledges that all franchise agreements and offers to enter
into franchise agreements are conditioned upon GuestHouse's  compliance with all
federal and state laws and regulations  governing the offer,  sale and operation
of franchises. For any period 'in which GuestHouse's application for

                                                                 Initials G.A.S.

<PAGE>

registration  with any state which requires  pre-sale  registration of franchise
offerings is pending,  the parties acknowledge that GuestHouse may not offer nor
may Western accept any franchise.  GuestHouse will keep Western  informed of its
franchise  registration  process within the Designated  Area and in other states
'in which Western may wish to develop GuestHouse properties, as requested.

    4.  DEVELOPMENT  SCHEDULE.  In consideration of the exclusive rights granted
Western in  paragraph I above and as a condition  to  retaining  said  exclusive
rights,  Western  agrees  that it shall  construct  or  acquire at least one (1)
hotel/motel  property for each calendar year of this Agreement plus construct or
acquire  at least  five (5)  hotel/motel  properties  in  every  three (3)  year
period which shall be GuestHouse affiliated properties. For the purposes of this
Agreement,  a property  shall be  considered  constructed  when it is framed and
under  roof.  Properties  constructed  or  acquired  both within and Without the
Designated Area for which GuestHouse franchise agreements have been signed shall
be counted  for the  purposes  of the  minimum  development  schedule  set forth
herein.  Every three (3) year period shall include the most  recently  concluded
calendar year and the two (2) prior years, on a rolling, basis. After completion
of  thirty  five (35)  GuestHouse  franchised  properties  the  performance  and
affiliation clause described above will be satisfied.

    5. FRANCHISE  AFFILIATION AND FEES.  GuestHouse  agrees to execute franchise
agreements  with Western for the properties  developed or acquired by Western in
furtherance  of  this  Agreement  provided  said  properties  meet  all  current
standards  for  GuestHouse  franchisees.  GuestHouse  will permit the use of the
GuestHouse  Inn(R) and  GuestHouse  Suites(R)  name for motels that are designed
with rooms that are single room suites. In consideration of Western's commitment
to  develop  GuestHouse  affiliated  properties,   GuestHouse  shall  waive  the
franchise fee for ten (10)  proper-ties of the properties  developed or acquired
by Western in furtherance of this Agreement.  In regard to liquidated damages as
provided in the franchise  agreements,  the parties agree to amend the franchise
agreement  to provide that in the event  Western  sells all of Its Interest in a
site, no liquidated  damages will be due  GuestHouse.  All franchise  agreements
shall  be on the  same  terms  and  conditions  as the  then  current  franchise
agreement for other GuestHouse franchisees.  with the exception of the waiver of
the  franchise fee for ten (10) of the  properties as noted above.  In addition,
for the term of this Agreement,  any franchise agreement that is not included in
the ten (10) for which the franchise  fee is waived,  the franchise fee shall be
fixed  at  Twenty  Thousand  and  no/100  Dollars  ($20,000.00).  All  franchise
agreements  between  GuestHouse  and Western shall be not less than five (5) nor
more than ten (10) years'  duration.  Prior to signing any franchise  agreement,
Western will be provided a copy of GuestHouse's then current Franchise  Offering
Circular,  with  any  state  addendum,  as  appropriate.  Western  will  have an
automatic  right to renew each license  agreement at the end of its initial term
if Western is not in default of any of the terms and conditions of the franchise
agreement. Renewal shall be accomplished by execution by the parties of the then
current franchise agreement under the then current tee structure.

6. DESIGNATION AS SELECT VENDOR. As additional consideration for this Agreement,
Western  shall be  designated  a Select  Vendor  pursuant  to  Section 16 of the
current  GuestHouse  License  Agreement  for such goods and  services  as agreed
between  GuestHouse  and  Western.  Continuation  as a  Select  Vendor  shall be
contingent  upon Western  maintaining  the quality  standards as  established by
GuestHouse  from  time to time.  Failure  of  Western  to  continue  to meet the
standards  of a  Select  Vendor  shall  not  terminate  Western's  rights  under
paragraphs 1 and 2 above.  Within ten (10) days of GuestHouse mailing any Select

                                       2
                                                                 Initials G.A.S.

<PAGE>

Vendor list to  GuestHouse  franchisees,  GuestHouse  will provide  Western with
written notice of the mailing and include the names and addresses of all persons
receiving such mailing.

    7. TERMINATION.  This Agreement shall terminate upon the earlier of December
31, 2018 and Western's failure to meet the development and affiliation  schedule
as set forth in paragraph 4 above.  The effect of  termination of this Agreement
shall be the loss of the  exclusive  rights of Western in the  Designated  Area.
Western's  rights as a  franchisee,  as Select  Vendor or rights to construct or
acquire  GuestHouse  proper-ties on a nonexclusive basis shall not be terminated
by termination of this Agreement.

    8.  ADDITIONAL  TERMS.  The  terms  of this  Agreement  are  subject  to the
following additional terms and conditions:

         (a)  Relationship of Parties.  Western  is an  independent  contractor.
              -----------------------
Neither  party is the  legal  representative  or agent  of,  or has the power to
obligate  (or has the right to direct or  supervise  the daily  affairs  of) the
other for any purpose  whatsoever.  and no partnership,  joint venture,  agency,
fiduciary or  employment  relationship  is intended or created by reason of this
Agreement.

         (b)  Partial  Invalidity.  Should any part of this  Agreement,  for any
              -------------------
reason, be declared invalid,  such decision shall not affect the validity of any
remaining portion.

         (c) No Waiver.  No failure or delay in requiring strict compliance with
             ---------
any  obligation  of this  Agreement  (or in the  exercise of any right or remedy
provided  herein) and no custom or practice  at variance  with the  requirements
hereof  shall  constitute  a waiver or  modification  of arty  such  obligation,
requirement, right or remedy or preclude exercise of any such night or remedy or
the right to require strict  compliance with any obligation set forth herein. No
waiver of any  particular  default or any right or remedy  with  respect to such
default  shall  preclude,  affect or impair  enforcement  of any right or remedy
provided herein with respect to any subsequent  default.  No approval or consent
of GuestHouse  shall be effective  unless in writing and signed by an authorized
representative of GuestHouse.  GuestHouse's  consent or approval may be withheld
for so long as  Western  is in  default  of any of its  obligations  under  this
Agreement.

         (d) Notices.  Notices will be  effective  hereunder  when and only when
             -------
they are  reduced  to writing  and  delivered  via a  recognized  carrier  which
provides  a  verifiable  receipt of  delivery  to the  appropriate  party at its
address  stated below or to such person and at such address as may be designated
by notice hereunder. Notices shall be deemed given on the date delivered or date
of attempted delivery, if service is refused.

If to Western:                                 If to GuestHouse:
WESTERN STEEL, INC.                            GUESTHOUSE INTERNATIONAL LLC
1044 Industry Drive                            1501 North University, Suite 968
Seattle, Washington 98188-4801                 Little Rock, Arkansas 72207
Attention: Mr. George Swift                    Attention: President

                                       3
                                                                 Initials G.A.S.
<PAGE>

         (e)  Choice of Forum.  Litigation  related to this  Agreement  in which
              ---------------
GuestHouse  is the plaintiff  shall be initiated and  prosecuted in the state of
Washington.  litigation  related  to this  Agreement  in  which  Western  is the
plaintiff shall be initiated and prosecuted in the state of Arkansas.

         (f) Miscellaneous. This Agreement is exclusively for the benefit of the
             -------------
par-ties  hereto  and may  not  give  rise to  liability  to a third  party.  No
agreement  between  GuestHouse  and anyone  else is for the  benefit of Western.
Neither  party  will  interfere  with  contractual  relations  of the  other and
exercise by GuestHouse of any right  provided  GuestHouse  under this  Agreement
shall not constitute such  Interference.  The section headings in this Agreement
are for  convenience of reference  only and will not affect its  interpretation.
All monetary references are to United States dollars.  This Agreement,  together
with all instruments,  exhibits,  attachments and schedules hereto,  constitutes
the entire agreement (superceding all prior agreements and understandings,  oral
or written) of the parties  hereto with respect to the matters stated herein and
shall not be modified or amended in any  respect  except in writing  executed by
all such parties.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first stated above.

                                            GUESTHOUSE:
                                            GUESTHOUSE INTERNATIONAL LLC

                                            By:  /s/ James M. Sculley
                                            Title: President and COO

ATTEST:

By:  /s/ Eris Canady
Title: Executive Asssistant
                                            WESTERN:
                                            Western Steel, Inc.

                                            By:  /s/ George A Swift
                                            Title:  President

ATTEST:

By:  /s/ Kristine Tanaka
Title:  Secretary/Treasurer

                                       4
                                                                 Initials G.A.S.
<PAGE>

                  FIRST AMENDMENT TO AREA DEVELOPMENT AGREEMENT

This First  Amendment  to Area  Development  Agreement  ("First  Amendment")  is
entered  into as of the 31st day of  August,  1999,  by and  between  GuestHouse
International  Franchise Systems,  Inc.  ("GuestHouse"),  a Georgia corporation,
Western Steel, Inc. ("Western"), a Washington corporation,  and George A. Swift,
an individual residing in the state of Washington.

                                    RECITALS

WHEREAS,   GuestHouse  International  LLC  and  Western  entered  into  an  Area
Development Agreement, dated as of March 3, 1998 (the Area Development Agreement
is  hereafter  referred to  individually  as "Area  Development  Agreement"  and
collectively with the First Amendment as "Agreement"); and

WHEREAS,  GuestHouse  International  LLC  assigned  all of its right,  title and
interest in the Agreement to GuestHouse, pursuant to the provisions of a certain
General Assignment and Bill of Sale, dated as of June 1, 1999; and

WHEREAS,  GuestHouse and Western desire to clarify and modify certain provisions
of the Agreement;

NOW,  THEREFORE,  in  consideration  of the premises and other good and valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged, the
parties agree to amend the Agreement as follows,

1.       GuestHouse  and  Western  agree  that  new  Franchise   Agreements  for
         GuestHouse  affiliated  properties  hereafter  executed  by the parties
         pursuant to the  Agreement  shall  provide for the  following  fees and
         contributions:

         (a)      Franchises  Agreements  executed  from  the date  first  above
                  written until December 31, 2001:
                  (i)      $1.25 per room per day  Operating  Fee,  for the five
                           year initial term;
                  (ii)     $.25  per  room per day  Marketing  Contribution  for
                           brand awareness (non-property specific);
                  (iii)    all reservation charges paid directly by  Franchisee;
                  (iv)     for ten year franchise  agreements  years six through
                           ten shall have an Operating Fee of $1.75 per room per
                           day,  and a Marketing  Contribution  of $.25 per room
                           per day for brand awareness (non-property specific).

         (b)      Franchises  Agreements  executed  from  January  1, 2002 until
                  December 31, 2003:
                  (i)      $1.50 per room per day  Operating  Fee,  for the five
                           year initial term;
                  (ii)     if less than 150  properties  are open  system  wide,
                           $.25  per  room per day  Marketing  Contribution  for
                           brand awareness (non-proper specific),
                  (iii)    if 150 or more  properties are open system wide, $.50
                           per room per day  Marketing  Contribution  for  brand
                           awareness (non-proper specific);
                  (iv)     all reservation charges paid directly by Franchisee.

<PAGE>

         (c)      Franchises  executed  from January 1, 2004 until  December 31,
                  2005:
                  (i)      $1.75 per room per day  Operating  Fee,  for the five
                           year initial term;
                  (ii)     if less than 150  properties  are open  system  wide,
                           $.25  per  room per day  Marketing  Contribution  for
                           brand awareness (non-property specific);
                  (iii)    if 150 or more  properties are open system wide, $.50
                           per room per day  Marketing  Contribution  for  brand
                           awareness (non-property specific);
                  (iv)     all reservation charges paid directly by Franchisee.

         (d)      Franchises  executed  from January 1, 2006 until  December 31,
                  2010:

                  (i)      Operating Fees and Marketing  Contribution shall each
                           be at the then  current rate as set forth in the then
                           current   GuestHouse   Uniform   Franchise   Offering
                           Circular,  however when combined  shall not exceed 7%
                           of the gross room revenue for the property.
                  (ii)     all reservation charges paid directly by Franchisee;

2.       Notwithstanding  anything  to  the  contrary  in the  Area  Development
         Agreement,   Western   Steel,   Inc.  a  Washington   Corporation,   or
         subsidiaries  or  affiliates  of George A.  Swift,  and  generally  the
         defined  term  "Western"   shall  be  deemed  to  be  George  A.  Swift
         individually,  or any entity in which  George A. Swift has  irrevocable
         and unfettered  control,  and owns at least a 25% equity interest,  for
         hotels  located  in the  territory  set  forth  in  Paragraph  I of the
         Agreement  (51% for  hotels  located  outside of such  territory).  For
         purposes of the foregoing,  "irrevocable and unfettered  control" shall
         be deemed to be: i) the sole general partner in a limited  partnership,
         ii) the sole manager in a limited liability  company,  or iii) the sole
         director in a corporation.  It is the intent of this paragraph that all
         of the rights and  obligations  of the  Agreement  shall  accrue to the
         various entities owned and controlled by George A. Swift.

3.       GuestHouse  and Western  acknowledge  and agree that the  provision  in
         Paragraph 5 of the Area Development  Agreement allowing a waiver of the
         "franchise fee" for ten properties,  shall be accomplished by inserting
         the following  language into the  individual  franchise  agreements for
         such ten properties:

                  The  Initial  Fee  (as  defined  in  Section   _____  of  this
                  Agreement)  is  hereby  waived  and  shall  be zero  for  this
                  Property.

4.       GuestHouse  and Western  acknowledge  and agree that the  provision  in
         Paragraph 5 of the Area Development  Agreement  allowing a reduction of
         the  "franchise  fee" for the  properties to be added to the GuestHouse
         system  that are not  included  in the ten  properties  for  which  the
         "'franchise  fee" is waived,  shall be  accomplished  by inserting  the
         following  language into the individual  franchise  agreements for such
         properties:

                  The  Initial  Fee  (as  defined  in  Section   _____  of  this
                  Agreement) is hereby  reduced and shall be $20,000.00 for this
                  Property.

5.       GuestHouse  and Western  acknowledge  and agree that the  provision  in
         Paragraph  5 of the Area  Development  Agreement  allowing  a waiver of
         certain  liquidated  damages  in the  event  Western  sells  all of its

                                       2

<PAGE>

         interest in a site,  shall be  accomplished  by inserting the following
         language into the individual franchise agreements:

                  In the  event  Franchisee  sells  all of its  interest  in the
                  Property to an unrelated third party,  the Termination Fee set
                  forth in Section -of this Agreement is hereby waived.

6.       Paragraph 8(d) of the Area Development  Agreement is hereby modified to
         change the address for GuestHouse as follows:  GuestHouse International
         Franchise  Systems,  Inc., 300 Galleria Parkway,  Suite 1200,  Atlanta,
         Georgia 30339 Attention: Vice President Development/General Counsel.

7.       Paragraph  8(e) of the Area  Development  Agreement is hereby  replaced
         with the following:

                  (e) Choice of Forum.  Litigation  related to this Agreement in
                      ---------------
                  which  GuestHouse  is  a  Plaintiff  shall  be  initiated  and
                  prosecuted in the state of Washington.  Litigation  related to
                  this  Agreement  in  which  Western  is a  Plaintiff  shall be
                  initiated and prosecuted in the state of Georgia.

8.       Paragraph 4 of the Area  Development  Agreement  is hereby  modified by
         adding the following sentences at the conclusion of the Paragraph.

                  The required  number of hotels to be  constructed  or acquired
                  must be achieved and  continuously  maintained on a cumulative
                  basis.  Western must  continue to construct or acquire  hotels
                  that  shall be  operated  under a validly  executed  Franchise
                  Agreement,  at a rate of at least one hotel per calendar  year
                  pursuant to the Agreement and shall continuously  maintain not
                  less  than  the  minimum   number  of  GuestHouse   affiliated
                  properties shown in the chart reproduced below.

Anniversary Date                               MINIMUM NUMBER of GuestHouse
----------------                               Affiliated Properties
                                               ---------------------

December 31, 1998                              1
December 31, 1999                              2
DECEMBER 31, 2000                              5
December 31, 2001                              6
December 31, 2002                              7
DECEMBER 31, 2003                              10
December 31, 2004                              11
December 31, 2005                              12
DECEMBER 31, 2006                              15
December 31, 2007                              16
December 31, 2008                              17
DECEMBER 31, 2009                              20
December 31, 2010                              21
December 31, 2011                              22
DECEMBER 31, 2012                              25
December 31, 2013                              26

                                       3

<PAGE>

December 31, 2014                              27
DECEMBER 31, 2015                              30
December 31, 2016                              31
December 31, 2017                              32
DECEMBER 31, 2018                              35

         Nothing in this Paragraph  shall be interpreted to modify any provision
         of any  license or  franchise  agreement  (now  existing  or  hereafter
         executed) with respect to a GuestHouse  affiliated property (including,
         without  limitation,  the fights and obligations of the parties thereto
         with respect to the term, renewal and termination of such agreements).

9.       The terms of this First  Amendment  shall govern any conflicts  between
         the terms of the Area  Development  Agreement.  Except as  specifically
         provided  to the  contrary  in  this  First  Amendment,  the  remaining
         provisions of the Area Development  Agreement are hereby reaffirmed and
         remain  unchanged.  The  provisions  of the  First  Amendment  shall be
         binding upon the parties hereto, their successors and assigns.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       4
<PAGE>

IN WITNESS WHEREOF, the parties have entered into this First Amendment as of the
date first stated above.

 WESTERN:
 Western Steel, Inc.

By: /s/ George A. Swift

Print Name: George A. Swift                   Attest:
Title:  President                             By: /s/ Donna Carter
                                              Print Name: Donna Carter
                                              Title:  Administrative Assistant

George A. Swift, Individually

                 MONTANA AMENDMENT TO AREA DEVELOPMENT AGREEMENT

This Montana Amendment to Area Development  Agreement  ("Montana  Amendment") is
entered  into  as of the day of  17th  day of  December,  1999,  by and  between
GuestHouse  International  Franchise  Systems,  Inc.  ("GuestHouse")  a  Georgia
corporation,  Western Steel, Inc.  ("Western"),  a Washington  corporation,  and
George A. Swift, an individual residing in the state of Washington.

                                    RECITALS

WHEREAS,   GuestHouse  International  LLC  and  Western  entered  into  an  Area
Development  Agreement,  dated as of March 3, 1998 as modified  by that  certain
First Amendment to Area Development Agreement dated as of the 31st day of August
1999, (the Area Development  Agreement combined with the First Amendment to Area
Development Agreement is hereafter referred to as "Area Development Agreement");
and

WHEREAS,  GuestHouse  International  LLC  assigned  all of its right,  title and
interest in the Agreement to GuestHouse, pursuant to the provisions of a certain
General Assignment and Bill of Sale, dated as of June 1, 1999; and

WHEREAS,  GuestHouse and Western desire to clarify and modify certain provisions
of the Agreement;

NOW, THEREFORE,  in consideration of the provisions  contained herein, and other
good and valuable consideration,  the receipt and sufficiency of which is hereby
acknowledged,  the  parties  agree to amend the Area  Development  Agreement  as
follows.

1.       Western  hereby  agrees  to  develop,  open and  operate  3  GuestHouse
         International  Properties  in the state of Montana  within 3 years from
         the date first written  above.  Provided that each Montana  property is
         framed and under roof,  prior to the 3rd  anniversary  of this  Montana
         Amendment,  GuestHouse  International  hereby  agrees that the fees and
         contributions for such 3 properties shall be as follows:

                  (a)      $.63  per room per day  Operating  Fee,  for the five
                           year initial term;
                  (b)      $.25  per  room per day  Marketing  Contribution  for
                           brand awareness (non-property specific);
                  (c)      all reservation charges paid directly by  Franchisee;
                  (d)      for ten year franchise agreements,  years six through
                           ten shall have an Operating Fee of $1.13 per room per
                           day,  and a Marketing  Contribution  of $.25 per room
                           per day for  brand awareness (non-property specific).

2.       Within  thirty days  hereafter,  Western shall enter into the Franchise
         Agreements for acceptable franchises in the following locations:

                  (a)      Miles City, Montana;

<PAGE>

                  (b)      Fairbanks, Alaska
                  (c)      Valdez, Alaska
                  (d)      Dupont, Washington

         Such Franchise  Agreements shall be subject to the terms and conditions
         of the Area Development Agreement,  except that the Miles City, Montana
         Franchise Agreement shall be subject to the terms and conditions of the
         Area Development Agreement as modified by this Montana Amendment.

3.       The terms of this Montana  Amendment shall modify the terms of the Area
         Development Agreement.  Except as specifically provided to the contrary
         in  this  Montana  Amendment,  the  remaining  provisions  of the  Area
         Development  Agreement are hereby reaffirmed and remain unchanged.  The
         provisions of the Montana  Amendment  shall be binding upon the parties
         hereto, their successors and assigns.

IN WITNESS WHEREOF,  the parties have entered into this Montana  Amendment as of
the date first stated above.

 WESTERN:
 Western Steel, Inc.

By: /s/ George A. Swift                      Attest:
Print Name:  George A. Swift                 By: /s/ Donna Carter
Title:   President                           Print Name:  Donna Carter
                                             Title:  Administrative Assistant

George A. Swift, Individually

/s/ George A. Swift
                                             Witness:
                                             By: /s/ Donna Carter
                                             Print Name:  Donna Carter
                                             Title:  Administrative Assistant

GUESTHOUSE:
GuestHouse International Franchise Systems, Inc.

By: /s/ Dan J. Berman                        Attest:
Print Name: Dan J. Berman                    By: /s/ Kevin Pfannes
Title:  Executive Vice President             Print Name: Kevin Pfannes
                                             Title: Secretary

                                       2

/s/ George A. Swift
                                              Witness:
                                              By: /s/ Donna Carter
                                              Print Name: Donna Carter
                                              Title:  Administrative Assistant

GUESTHOUSE:
GuestHouse International Franchise Systems, Inc.

By: /s/ Dan J. Berman                         Attest:
Print Name: Dan J. Berman                     By: /s/ Kevin Pfannes
Title:  Executive Vice President              Print Name: Kevin Pfannes
                                              Title: Secretary

                                       5

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