Choice Hotels International Reports First Quarter 2013 Diluted EPS Of $0.26 Per Share

 Choice Hotels International Reports First Quarter 2013 Diluted EPS Of $0.26
                                  Per Share

New Domestic Hotel Franchise Contracts Rise 30%

PR Newswire

ROCKVILLE, Md., April 29, 2013

ROCKVILLE, Md., April 29, 2013 /PRNewswire/ -- Choice Hotels International,
Inc., (NYSE: CHH) today reported the following highlights for the first
quarter 2013:

  oFranchising revenues increased 4% to $59.5 million for the three months
    ended March 31, 2013 from $57.3 million for the same period of 2012.
    Total revenues increased 6% to $136.9 million for the three months ended
    March 31, 2013 compared to the same period of 2012.
  oDomestic royalty fees for the three months ended March 31, 2013 increased
    $2.0 million to $44.3 million from $42.3 million for the three months
    ended March 31, 2012, an increase of 5%.
  oDomestic system-wide revenue per available room ("RevPAR") increased 4.6%
    for the three months ended March 31, 2013 compared to the same quarter of
    the prior year as occupancy and average daily rates increased 100 basis
    points and 2.3 percent, respectively.
  oDomestic unit and room growth increased 1.7 percent and 0.8 percent from
    March 31, 2012, respectively.
  oThe effective royalty rate increased 5 basis points to 4.39% for the three
    months ended March 31, 2013 compared to 4.34% for the same period of the
    prior year.
  oInitial and relicensing fees for the three months ended March 31, 2013
    increased $1.2 million or 49% to $3.8 million from the same period of the
    prior year.
  oThe company executed 83 new domestic hotel franchise contracts for the
    three months ended March 31, 2013 compared to 64 new domestic hotel
    franchise contracts in the same period of the prior year, a 30% increase.
  oThe company entered into a multi-faceted strategic marketing alliance with
    Bluegreen Corporation which will add 21 Bluegreen Vacation Club® Resorts
    in top vacation destinations to the company's Ascend Hotel Collection.
  oDomestic relicensing and contract renewal transactions increased from 49
    contracts during the three months ended March 31, 2012 to 69 in the
    current period, a 41% increase.
  oThe number of worldwide hotels under construction, awaiting conversion or
    approved for development as of March 31, 2013 was 476 hotels representing
    37,977 rooms.
  oEarnings before interest, taxes, depreciation and amortization ("EBITDA")
    was $32.6 million for the three months ended March 31, 2013, compared to
    $33.1 million in the same period of the prior year. The first quarter 2013
    EBITDA results reflect certain one-time costs related to the company's
    recent corporate headquarters relocation as well as additional investments
    in alternative growth strategies.
  oThe effective income tax rate for the three months ended March 31, 2013
    was 25.8% compared to 33.9% for the same period of 2012.
  oDiluted earnings per share ("EPS") for first quarter 2013 were $0.26
    compared to $0.34 for the first quarter of 2012. EPS for the first
    quarter of 2013 reflect $7.7 million of additional interest expense
    compared to the prior year reflecting the financing transactions entered
    into during the second and third quarters of 2012 in conjunction with the
    payment of the $600 million special cash dividend on August 23, 2012.
  oThe company launched SkyTouch Technology, a new division that develops and
    markets cloud-based technology products to help industry-wide hoteliers
    improve their efficiency and profitability.

"Our development results continued to build on the momentum that started last
year, increasing by 30% over the same period of the prior year," said Stephen
P. Joyce, president and chief executive officer. "We are also encouraged by
our RevPAR results which still reflect a strong mix of both occupancy and
average daily rate increases. We remain optimistic that our core hotel
franchising business will continue to improve and we are excited about our new
alliance with Bluegreen Corporation and the launch of our new SkyTouch
Technology initiative."

Use of Free Cash Flow

The company has historically used its free cash flow (cash flow from
operations less capital expenditures) to return value to shareholders,
primarily through share repurchases and dividends.

Dividends

The company did not pay dividends during the three months ended March 31, 2013
as the company's regular first quarter dividend was paid in December 2012. The
company's current quarterly dividend rate per common share is $0.185, subject
to declaration by our board of directors.

Share Repurchases

The company did not repurchase any shares of common stock under the share
repurchase program during the three months ended March 31, 2013 but has
authorization to purchase up to an additional 1.4 million shares under this
program. We expect we will continue to make repurchases under our share
repurchase program in the open market and through privately negotiated
transactions, subject to market and other conditions. No minimum number of
share repurchases has been fixed. Since Choice announced its stock repurchase
program on June 25, 1998, the company has repurchased 45.3 million shares of
its common stock for a total cost of $1.1 billion through March 31, 2013.
Considering the effect of a two-for-one stock split in October 2005, the
company has repurchased 78.3 million shares through March 31, 2013 under the
share repurchase program at an average price of $13.89 per share.

Other

Our board of directors previously authorized us to enter into a program which
permits us to offer financing, investment and guaranty support to qualified
franchisees as well as to acquire and resell real estate to incent franchise
development for certain brands in strategic markets. At March 31, 2013 and
December 31, 2012, the company had approximately $69 million and $68 million
outstanding related to this program, respectively. Over the next several
years, we expect to continue to opportunistically deploy capital pursuant to
this program to promote growth of our emerging brands. We expect these
advances to range between $20 million and $40 million per year, however, the
amount and timing of the investments will be dependent on market and other
conditions. Notwithstanding this program, the company expects to continue to
return value to its shareholders through a combination of share repurchases
and dividends, subject to market and other conditions.

Balance Sheet

At March 31, 2013, the company had gross debt of $871.3 million and cash and
cash equivalents totaling $140.2 million resulting in net debt of $731.1
million. At December 31, 2012, the company had gross debt of $855.3 million
and cash equivalents totaling $134.2 million resulting in net debt of $721.1
million.

At March 31, 2013 and December 31, 2012, the company had outstanding mezzanine
financing, real estate investments and sliver equity investments totaling $69
million and $68 million, respectively pursuant to its program to offer
financing and investment support to incent franchise development for the
Cambria Suites brand in strategic markets. These investments are reported in
other current assets and other assets on the company's consolidated balance
sheet.

Outlook

The company's second quarter 2013 diluted EPS is expected to be $0.45. The
company expects full-year 2013 diluted EPS to range between $1.87 and $1.91.
EBITDA for full-year 2013 are expected to range between $206 million and $210
million. These estimates include the following assumptions:

  oThe company expects net domestic unit growth to increase by approximately
    1.5% in 2013;
  oRevPAR is expected to increase approximately 4% for the second quarter of
    2013 and increase between 4.5% and 5.5% for full-year 2013;
  oThe effective royalty rate is expected to increase 3 basis points for
    full-year 2013;
  oAll figures assume the existing share count;
  oAn effective tax rate of 30.8% and 30.6% for the second quarter and
    full-year 2013, respectively;
  oOur EBITDA outlook for full year 2013 reflects additional expenses related
    to the company's recently announced SkyTouch Technology initiative. The
    company expects to deploy additional resources towards this growth
    opportunity and as a result expects to incur operating expenses in 2013
    not contemplated in the company's previous outlook ranging between $6
    million and $8 million for investment in the infrastructure of this
    division including business development, sales and marketing and other
    costs as well as continued software development expenditures related to
    the division's technology related products and services.

Conference Call

Choice will conduct a conference call on Monday, April 29, 2013 at 10:00 a.m.
EDT to discuss the company's first quarter 2013 results. The dial-in number to
listen to the call is 1-800-884-5695, and the access code is 85035046.
International callers should dial 1-617-786-2960 and enter the access code
85035046. The conference call also will be Webcast simultaneously via the
company's Web site, www.choicehotels.com. Interested investors and other
parties wishing to access the call via the Webcast should go to the Web site
and click on the Investor Info link. The Investor Information page will
feature a conference call microphone icon to access the call.

The call will be recorded and available for replay beginning at 12:00 p.m. EDT
on Monday April 29, 2013 through Monday, May 6, 2013 by calling 1-888-286-8010
and entering access code 97633732. The international dial-in number for the
replay is 1-617-801-6888, access code 97633732. In addition, the call will be
archived and available on www.choicehotels.com via the Investor Info link.

About Choice Hotels

Choice Hotels International, Inc. franchises over 6,200 hotels, representing
more than 500,000 rooms, in the United States and more than 30 other countries
and territories. As of March 31, 2013, 395 hotels, representing more than
30,000 rooms, were under construction, awaiting conversion or approved for
development in the United States. Additionally, 81 hotels, representing
approximately 7,000 rooms, were under construction, awaiting conversion or
approved for development in more than 20 other countries and territories. The
company's Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria
Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway
Inn brands, as well as its Ascend Hotel Collection membership program, serve
guests worldwide.

SkyTouch Technology is an initiative of Choice Hotels International, Inc. that
develops and markets cloud-based technology products to help industry-wide
hoteliers improve their efficiency and profitability.

Additional corporate information can be found on the Choice Hotels
International, Inc. web site, which may be accessed at www.choicehotels.com.

Forward-Looking Statements

Certain matters discussed in this press releaseconstitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Generally, our use of words such as "expect," "estimate," "believe,"
"anticipate," "will," "forecast," "plan"," project," "assume" or similar words
of futurity identify such forward-looking statements. Theseforward-looking
statements are based on management's current beliefs, assumptions and
expectations regarding future events, which in turn are based on information
currently available to management. Such statements may relate to
projectionsof the company's revenue, earnings and other financial and
operational measures, company debt levels, ability to repay outstanding
indebtedness, payment of dividends, and future operations, among other
matters. We caution you not to place undue reliance on any such
forward-looking statements. Forward-looking statements do not guarantee
future performance and involve known and unknown risks, uncertainties and
other factors.

Several factors could cause actual results, performance or achievements of the
company to differ materially from those expressed in or contemplated by the
forward-looking statements.Such risks include, but are not limited to,
changes to general, domestic and foreign economic conditions; operating risks
common in the lodging and franchising industries; changes to the desirability
of our brands as viewed by hotel operators and customers; changes to the terms
or termination of our contracts with franchisees; our ability to keep pace
with improvements in technology utilized for reservations systems and other
operating systems; fluctuations in the supply and demand for hotels rooms;
andour ability to manage effectively our indebtedness. These and other risk
factors are discussed in detail in the Risk Factors section of the company's
Form 10-K for the year ended December 31, 2012, filed with the Securities and
Exchange Commission on February 28, 2013 and our quarterly reports filed on
Form 10-Q.We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

Statement Concerning Non-GAAP Financial Measurements Presented in Exhibit 8

EBITDA, franchising revenues and franchising margins are non-GAAP financial
measurements. This information should not be considered as an alternative to
any measure of performance as promulgated under generally accepted accounting
principles in the United States ("GAAP"), operating income, total revenues and
operating margins. The company's calculation of these measurements may be
different from the calculations used by other companies and therefore
comparability may be limited. The company has included an exhibit
accompanying this release that reconciles these measures to the comparable
GAAP measurement. We discuss management's reasons for reporting these non-GAAP
measures below.

Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA
reflects earnings excluding the impact of interest expense, tax expense,
depreciation and amortization. Our management considers EBITDA to be an
indicator of operating performance because it can be used to measure our
ability to service debt, fund capital expenditures, and expand our business.
EBITDA is a commonly used measure of performance in our industry. In addition,
it is used by analysts, lenders, investors and others, as well as by us, to
facilitate comparisons between the company and its competitors because it
excludes certain items that can vary widely across different industries or
among companies within the same industry.

Franchising Revenues and Margins: The company reports franchising revenues
and margins which exclude marketing and reservation revenues and hotel
operations. Marketing and reservation activities are excluded from revenues
and operating margins since the company is required by its franchise
agreements to use these fees collected for marketing and reservation
activities. Cumulative reservation and marketing system fees not expended are
recorded as a liability on the company's financial statements and are carried
over to the next year and expended in accordance with the franchise
agreements. Cumulative marketing and reservation expenditures in excess of
system fees collected for marketing and reservation activities are recorded as
a receivable on the company's financial statements. In addition, the company
has the contractual authority to require that the franchisees in the system at
any given point repay the company for any deficits related to marketing and
reservation activities. Hotel operations are excluded since they do not
reflect the most accurate measure of the company's core franchising business.
These non-GAAP measures are a commonly used measure of performance in our
industry and facilitate comparisons between the company and its competitors.

Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites,
Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban
Extended Stay Hotel, Econo Lodge, Rodeway Inn, Ascend Hotel Collection and
SkyTouch Technologyare proprietary trademarks and service marks of Choice
Hotels International.

©2013 Choice Hotels International, Inc. All rights reserved.





Choice Hotels                                                        Exhibit 1
International, Inc.
Consolidated Statements of
Income
(Unaudited)
                           Three Months Ended March 31,
                                                           Variance
                           2013               2012         $         %
(In thousands, except per
share amounts)
REVENUES:
Royalty fees               $            $       $      4%
                           49,736             47,853    1,883
Initial franchise and      3,777              2,528        1,249     49%
relicensing fees
Procurement services       3,950              3,315        635       19%
Marketing and              76,440             70,929       5,511     8%
reservation
Hotel operations           956                978          (22)      (2%)
Other                      2,013              3,566        (1,553)   (44%)
 Total revenues       136,872            129,169      7,703     6%
OPERATING EXPENSES:
Selling, general and       26,916             24,349       2,567     11%
administrative
Depreciation and           2,175              2,017        158       8%
amortization
Marketing and              76,440             70,929       5,511     8%
reservation
Hotel operations           875                809          66        8%
Total operating expenses   106,406            98,104       8,302     8%
Operating income           30,466             31,065       (599)     (2%)
OTHER INCOME AND
EXPENSES, NET:
Interest expense           10,770             3,117        7,653     246%
Interest income            (644)              (337)        (307)     91%
Other (gains) and losses   (710)              (2,003)      1,293     (65%)
Equity in net loss of      141                55           86        156%
affiliates
Total other income and     9,557              832          8,725     1049%
expenses, net
Income before income       20,909             30,233       (9,324)   (31%)
taxes
Income taxes               5,386              10,236       (4,850)   (47%)
Net income                 $            $       $       (22%)
                           15,523             19,997    (4,474)
Basic earnings per share   $          $       $      (21%)
                           0.27                 0.34  (0.07)
Diluted earnings per       $          $       $      (24%)
share                      0.26                 0.34  (0.08)



Choice Hotels International, Inc.                                  Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share amounts)            March 31,    December
                                                                   31,
                                                    2013           2012
                                                    (Unaudited)
ASSETS
Cash and cash equivalents                           $         $    
                                                    140,225        134,177
Accounts receivable, net                            54,202         52,270
Investments, employee benefit plans, at fair value  378            3,486
Other current assets                                44,968         43,537
          Total current assets                      239,773        233,470
Fixed assets and intangibles, net                   149,652        130,937
Receivable -- marketing and reservation fees        51,297         42,179
Investments, employee benefit plans, at fair value  13,933         12,755
Other assets                                        91,318         91,431
                         Total assets               $         $    
                                                    545,973        510,772
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses               $        $     
                                                    94,563        94,266
Deferred revenue                                    76,316         71,154
Deferred compensation & retirement plan obligations 2,361          2,522
Current portion of long-term debt                   8,201          8,195
Other current liabilities                           1,550          -
          Total current liabilities                 182,991        176,137
Long-term debt                                      863,114        847,150
Deferred compensation & retirement plan             19,940         20,399
obligations
Other liabilities                                   19,257         15,990
          Total liabilities                         1,085,302      1,059,676
Common stock, $0.01 par value                       585            582
Additional paid-in-capital                          108,995        110,246
Accumulated other comprehensive loss                (4,233)        (4,216)
Treasury stock, at cost                             (921,421)      (927,776)
Retained earnings                                   276,745        272,260
          Total shareholders' deficit               (539,329)      (548,904)
                         Total liabilities and      $         $    
                         shareholders'              545,973        510,772
                         deficit



Choice Hotels International, Inc.                                Exhibit 3
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)                              Three Months Ended March 31,
                                            2013                 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                  $           $      
                                            15,523              19,997
Adjustments to reconcile net income to net
cash provided
by operating activities:
 Depreciation and amortization           2,175                2,017
 Provision for bad debts, net              844                  679
 Non-cash stock compensation and other     2,549                2,543
charges
 Non-cash interest and other (income) loss 76                   (1,593)
 Deferred income taxes                     446                  (30)
 Dividends received from equity method     146                  -
investments
 Equity in net loss of affiliates          141                  55
Changes in assets and liabilities:
 Receivables                               (3,531)              (870)
 Receivable - marketing and reservation    (4,101)              (6,187)
fees, net
 Accounts payable                          10,471               6,712
 Accrued expenses                          (31,145)             (25,342)
 Income taxes payable/receivable           4,367                8,180
 Deferred revenue                          5,160                1,997
 Other assets                              (3,869)              (2,611)
 Other liabilities                         2,622                (1,135)
NET CASH PROVIDED BY OPERATING ACTIVITIES  1,874                4,412
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment        (13,645)             (3,129)
Equity method investments                   (1,000)              (2,600)
Issuance of notes receivable                (1,729)              (3,719)
Collections of notes receivable             19                   151
Purchases of investments, employee benefit  (1,242)              (743)
plans
Proceeds from sales of investments,         3,882                8,652
employee benefit plans
Other items, net                            (101)                (108)
NET CASH USED IN INVESTING ACTIVITIES      (13,816)             (1,496)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings pursuant to revolving credit 18,000               5,900
facilities
Principal payments on long-term debt        (2,046)              (166)
Dividends paid                              (503)                (10,713)
Purchase of treasury stock                  (3,634)              (14,854)
Excess tax benefits from stock-based        952                  422
compensation
Proceeds from exercise of stock options     5,367                389
NET CASH PROVIDED (USED) IN FINANCING      18,136               (19,022)
ACTIVITIES
Net change in cash and cash equivalents     6,194                (16,106)
Effect of foreign exchange rate changes on  (146)                361
cash and cash equivalents
Cash and cash equivalents at beginning of   134,177              107,057
period
CASH AND CASH EQUIVALENTS AT END OF PERIOD  $            $      
                                            140,225             91,312



CHOICE HOTELS INTERNATIONAL, INC.                                                                  Exhibit
                                                                                                   4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
             For the Three Months Ended    For the Three Months Ended  Change
             March 31, 2013*               March 31, 2012*
             Average                       Average                     Average
             Daily                         Daily                       Daily
             Rate       Occupancy  RevPAR  Rate     Occupancy  RevPAR  Rate     Occupancy  RevPAR
             $                 $     $   
Comfort Inn    76.30  47.5%                  46.8%      $34.76  2.7%     70    bps  4.3%
                                   36.24  74.29
Comfort      81.82      52.6%      43.04   79.88    51.0%      40.72   2.4%     160   bps  5.7%
Suites
Sleep        69.07      47.6%      32.85   66.39    45.0%      29.90   4.0%     260   bps  9.9%
Quality      64.20      42.2%      27.08   63.39    40.8%      25.87   1.3%     140   bps  4.7%
Clarion      68.84      41.1%      28.32   67.90    38.7%      26.26   1.4%     240   bps  7.8%
Econo Lodge  51.67      38.6%      19.95   50.31    38.7%      19.45   2.7%     (10)  bps  2.6%
Rodeway      47.96      42.2%      20.25   47.08    41.7%      19.61   1.9%     50    bps  3.3%
MainStay     68.55      57.0%      39.05   64.60    61.8%      39.94   6.1%     (480) bps  (2.2%)
Suburban     40.90      63.4%      25.94   39.15    62.5%      24.47   4.5%     90    bps  6.0%
Ascend       113.87     56.1%      63.84   104.02   52.0%      54.11   9.5%     410   bps  18.0%
Collection
             $                 $     $   
Total         68.87  45.5%                  44.5%      $29.95  2.3%     100   bps  4.6%
                                   31.34  67.32
             For the Quarter
             Ended
             3/31/2013  3/31/2012
System-wide
effective    4.39%      4.34%
royalty
rate
* Operating statistics represent hotel
operations from December through February



CHOICE HOTELS INTERNATIONAL, INC.                                                Exhibit
                                                                                 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
               March 31, 2013   March 31, 2012   Variance
               Hotels  Rooms    Hotels  Rooms    Hotels  Rooms    %       %
Comfort Inn    1,332   104,159  1,392   108,777  (60)    (4,618)  (4.3%)  (4.2%)
Comfort        597     46,079   613     47,506   (16)    (1,427)  (2.6%)  (3.0%)
Suites
Sleep          382     27,685   394     28,564   (12)    (879)    (3.0%)  (3.1%)
Quality        1,172   99,090   1,054   91,942   118     7,148    11.2%   7.8%
Clarion        190     27,268   188     27,550   2       (282)    1.1%    (1.0%)
Econo Lodge    811     49,244   797     49,254   14      (10)     1.8%    (0.0%)
Rodeway        421     24,269   396     22,183   25      2,086    6.3%    9.4%
MainStay       41      3,165    39      3,024    2       141      5.1%    4.7%
Suburban       63      7,241    61      7,191    2       50       3.3%    0.7%
Ascend         63      5,481    53      4,671    10      810      18.9%   17.3%
Collection
Cambria        19      2,221    19      2,215    -       6        0.0%    0.3%
Suites
Domestic       5,091   395,902  5,006   392,877  85      3,025    1.7%    0.8%
Franchises
International  1,173   104,474  1,168   103,491  5       983      0.4%    0.9%
Franchises
Total          6,264   500,376  6,174   496,368  90      4,008    1.5%    0.8%
Franchises



                                                                                                        Exhibit
                                                                                                        6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
            For the Three Months Ended       For the Three Months Ended       % Change
            March 31, 2013                   March 31, 2012
            New                              New                              New
            Construction  Conversion  Total  Construction  Conversion  Total  Construction  Conversion  Total
Comfort     3             5           8      1             8           9      200%          (38%)       (11%)
Inn
Comfort     2             2           4      1             2           3      100%          0%          33%
Suites
Sleep       1             -           1      3             -           3      (67%)         NM          (67%)
Quality     -             19          19     -             27          27     NM            (30%)       (30%)
Clarion     -             3           3      -             2           2      NM            50%         50%
Econo       -             8           8      -             4           4      NM            100%        100%
Lodge
Rodeway     -             9           9      -             12          12     NM            (25%)       (25%)
MainStay    1             -           1      -             -           -      NM            NM          NM
Suburban    -             1           1      -             -           -      NM            NM          NM
Ascend      2             26          28     1             2           3      100%          1200%       833%
Collection
Cambria     1             -           1      1             -           1      0%            NM          0%
Suites
Total
Domestic    10            73          83     7             57          64     43%           28%         30%
System



                                                                                                            Exhibit
                                                                                                            7
CHOICE HOTELS INTERNATIONAL, INC.
DOMESTIC HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT
(UNAUDITED)
A hotel in the domestic pipeline does not always result in an open
and operating hotel due to various factors.
                                                                              Variance
            March 31, 2013                   March 31, 2012
            Units                            Units                            Conversion     New            Total
                                                                                             Construction
                        New                              New
            Conversion                Total  Conversion                Total  Units  %       Units  %       Units   %
                        Construction                     Construction
Comfort     30          49            79     28          44            72     2      7%      5      11%     7       10%
Inn
Comfort     2           67            69     3           83            86     (1)    (33%)   (16)   (19%)   (17)    (20%)
Suites
Sleep Inn   1           44            45     1           44            45     -      0%      -      0%      -       0%
Quality     35          2             37     40          4             44     (5)    (13%)   (2)    (50%)   (7)     (16%)
Clarion     9           -             9      12          1             13     (3)    (25%)   (1)    (100%)  (4)     (31%)
Econo       23          -             23     18          2             20     5      28%     (2)    (100%)  3       15%
Lodge
Rodeway     30          -             30     25          1             26     5      20%     (1)    (100%)  4       15%
MainStay    -           25            25     2           22            24     (2)    (100%)  3      14%     1       4%
Suburban    3           12            15     2           16            18     1      50%     (4)    (25%)   (3)     (17%)
Ascend      30          9             39     7           4             11     23     329%    5      125%    28      255%
Collection
Cambria     -           24            24     -           29            29     -      NM      (5)    (17%)   (5)     (17%)
Suites
Total
Domestic    163         232           395    138         250           388    25     18%     (18)   (7%)    7       2%
Pipeline



   CHOICE HOTELS INTERNATIONAL, INC.                                 Exhibit 8
   SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
   (UNAUDITED)
CALCULATION OF FRANCHISING REVENUES
AND FRANCHISING MARGINS
(dollar amounts in       Three Months Ended March
thousands)               31,
                         2013         2012
   Franchising
   Revenues:
   Total Revenues        $       $     
                          136,872     129,169
   Adjustments:
    Marketing and    (76,440)     (70,929)
   reservation revenues
    Hotel            (956)        (978)
   operations
   Franchising Revenues  $       $     
                           59,476     57,262
   Franchising Margins:
   Operating Margin:
   Total Revenues        $       $     
                          136,872     129,169
   Operating Income      $       $     
                           30,466     31,065
    Operating        22.3%        24.0%
   Margin
   Franchising Margin:
   Franchising Revenues  $       $     
                           59,476     57,262
   Operating Income      $       $     
                           30,466     31,065
   Hotel operations      (81)         (169)
                         $       $     
                           30,385     30,896
    Franchising      51.1%        54.0%
   Margins
EBITDA Reconciliation
(in thousands)
                         Q1 2013      Q1 2012       Full-Year 2013
                         Actuals      Actuals       Outlook Range
   Operating Income      $       $        $     $   
   (per GAAP)              30,466     31,065          
                                                    196     200
   Depreciation and      2,175        2,017         10       10
   amortization
   Earnings before
   interest, taxes,                                 $     $   
   depreciation &        $       $                
   amortization            32,641     33,082  206     210

   (non-GAAP)



SOURCE Choice Hotels International, Inc.

Website: http://www.choicehotels.com
Contact: David White, Senior Vice President, Chief Financial Officer &
Treasurer, (301) 592-5117, or Robin Pence, Vice President, Public Relations,
(301) 592-5186
 
Press spacebar to pause and continue. Press esc to stop.