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Choice Hotels International

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Choice Hotels International

Choice Hotels International is one of the largest hotel franchisors in the world with more than 5,000 hotels, inns, all-suites, extended stay and resort properties open in 43 countries. Choice Hotel�s diverse portfolio meets the needs of today�s developers and value-minded travelers. Comfort Inn�, Comfort Suite�, Quality�, Sleep Inn�, Clarion�, MainStay Suites�, Econo Lodges�, Rodeway Inn�, Suburban� and their new upscale all-suites brand Cambria SuitesTM.

With over 60 years of experience in the hotel industry, Choice Hotels offers franchisees a comprehensive support system that includes operational systems, technology support and marketing programs. Choice Hotels International is committed to supporting franchisees by increasing reservations and reducing operating costs.

In 2004, Choice Hotels Central Revenue System booked over $1.4 billion in room revenue � with over 55 million occupied room nights. By offering guests loyalty programs with rewards such as Choice Privileges, Ea$y Choice and Airline Miles, Choice guests benefit and so do franchisees.

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Investment Required
The fee for a Choice Hotels International franchise is $500 per room with a range of $25,000 to $60,000.

Choice Hotels International provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced. Costs will vary depending on the brand chosen. The list below is not exhaustive as each brand has a separate list of required investments.

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On-Going Expenses
In general, Choice Hotels International franchisees pay a royalty fee starting at 3.5% of the preceding month�s gross room revenue (GRR), a marketing fee starting at 1.25% of the preceding month�s GRR, a reservation fee equal to 1.75% of the preceding month�s GRR and a data communications fee of $140 a month. Fees vary depending on brand. The Rodeway brand offers a flat per room, per month fee that combines the fees for royalties, marketing and reservations.

What You Get�Training and Support
A staff of 300 franchise services professionals located throughout the country is dedicated to providing franchisees in their regions with all the support they need. Franchisees receive assistance with the design, construction, opening and operating of a hotel. A five-day orientation program provides the necessary skills for managing a hotel, as well as how to formulate a marketing program and familiarize oneself with Choice Hotels� extensive franchisee resources. Franchise Service Directors will visit hotels to train staff in guest satisfaction, reward programs, housekeeping, maintenance and front-desk management. After a hotel opens, they will continue to offer support and advice to improve revenue. Additional specialized training programs, regional training days and annual conventions are also conducted.

Choice Hotels International understands that revenue begins with attracting the attention of desired guests, and it accomplishes this through extensive national and local marketing, partnerships with other well-known brands and promotional opportunities. Advertisements appear on national TV and radio, in national consumer and trade publications and on major Internet sites. Marketing brochures can be customized for each franchisee�s hotel, and franchisees receive assistance with press releases and graphic design. In 2004 alone, Choice Hotels International spent more than $50 million on advertising.

Territory

Choice Hotels International does not grant exclusive territories.