Choice Hotels International Reports Second Quarter 2013 Diluted EPS of $0.48 Per Share

 Choice Hotels International Reports Second Quarter 2013 Diluted EPS of $0.48
                                  Per Share

PR Newswire

ROCKVILLE, Md., July 26, 2013

ROCKVILLE, Md., July 26, 2013 /PRNewswire/ -- Choice Hotels International,
Inc., (NYSE:CHH) today reported the following highlights for the second
quarter of 2013:

  oFranchising revenues increased 6% to $82.6 million for the three months
    ended June 30, 2013 from $77.8 million for the same period of 2012. Total
    revenues increased 6% to $183.6 million for the three months ended June
    30, 2013 compared to the same period of 2012.
  oDomestic royalty fees for the three months ended June 30, 2013 increased
    4% to $62.2 million from $59.8 million for the three months ended June 30,
    2012.
  oDomestic system-wide revenue per available room ("RevPAR") increased 3.5%
    for the three months ended June 30, 2013 compared to the same quarter of
    the prior year as occupancy and average daily rates increased 90 basis
    points and 1.8%, respectively.
  oDomestic unit and room growth increased 1.9% and 1.0% from June 30, 2012,
    respectively.
  oThe effective domestic royalty rate increased 3 basis points to 4.35% for
    the three months ended June 30, 2013 compared to 4.32% for the same period
    of the prior year.
  oInitial and relicensing fees for the three months ended June 30, 2013
    increased $1.2 million or 39% to $4.4 million from the same period of the
    prior year.
  oThe company executed 104 new domestic hotel franchise contracts for the
    three months ended June 30, 2013 compared to 106 new domestic hotel
    franchise contracts in the same period of the prior year.
  oDomestic relicensing and contract renewal transactions increased from 47
    contracts during the three months ended June 30, 2012 to 63 in the current
    period, a 34% increase.
  oThe number of worldwide hotels under construction, awaiting conversion or
    approved for development as of June 30, 2013 was 448 hotels representing
    36,487 rooms.
  oSelling, general and administrative ("SG&A") expenses increased $5.6
    million to $30.2 million for the three months ended June 30, 2013 compared
    to the same period of the prior year. SG&A expenses include expenses
    related to the company's SkyTouch Technology division totaling $3.2
    million and $0.8 million during the three months ended June 30, 2013 and
    2012, respectively. In addition, SG&A for the second quarter of 2013
    includes approximately $0.7 million of costs that are not expected to
    recur in future periods related to the relocation of the company's
    corporate headquarters during the second quarter as well as additional
    variable expenses totaling approximately $0.5 million related to an
    increase in initial fees and procurement services revenues.
  oThe effective income tax rate for the three months ended June 30, 2013 was
    29.6% compared to 33.5% for the same period of 2012.
  oDiluted earnings per share ("EPS") for second quarter 2013 were $0.48
    compared to $0.55 for the second quarter of 2012. EPS for the second
    quarter of 2013 reflect $7.3 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.

"We are excited about the growth prospects for our core franchising business.
We are seeing particularly strong RevPAR performance for our upscale Ascend
Collection, Suburban Extended Stay Hotel brand and our Sleep Inn brand which
delivered impressive results as more of our franchisees upgrade their hotels
to our new Design to Dream proto-type," said Stephen P. Joyce, president and
chief executive officer. "On the development side of the business, conversion
franchise sales for our flagship Comfort brand and our Ascend Collection
continued to outpace last year's results demonstrating that Choice remains a
top option for hotel developers."

"We are also excited to report that we debuted SkyTouch Technology's cloud
based technology products to the hospitality industry in June at the
Hospitality Financial and Technology Professional's HITEC conference and are
pleased with the level of interest we received," said Stephen P. Joyce,
president and chief executive officer. "We have executed our first customer
contracts for this division and are excited that our new customers will
experience the benefits that our cloud based technology products will deliver
to their hotels."

Use of Free Cash Flow

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

Dividends

During the six months ended June 30, 2013, the company paid $11.3 million of
cash dividends to shareholders. The company's current quarterly dividend rate
per common share is $0.185, subject to declaration by our board of directors.
The company's regular dividend for the first quarter was paid in December
2012.

Share Repurchases

The company did not repurchase any shares of common stock under the share
repurchase program during the three and six months ended June 30, 2013 but has
authorization to purchase up to an additional 1.4 million shares under this
program. We expect we will make repurchases from time to time 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 June 30, 2013.
Considering the effect of a two-for-one stock split in October 2005, the
company has repurchased 78.3 million shares through June 30, 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. Over the next several
years, we expect to continue to opportunistically deploy capital pursuant to
this program to promote growth of our emerging brands. Our current
expectation is that our annual investment in this program will range between
$20 million and $40 million per year and we generally expect to recycle these
investments over a 5 year period. However, the amount and timing of the
investment in this program 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 June 30, 2013, the company had gross debt of $866.5 million and cash and
cash equivalents totaling $143.8 million resulting in net debt of $722.7
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 June 30, 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 third quarter 2013 diluted EPS is expected to be $0.66. The
company expects full-year 2013 diluted EPS to range between $1.84 and $1.87.
Earnings before interest, taxes and depreciation ("EBITDA") for full-year 2013
are expected to range between $203.5 million and $206.5 million. These
estimates include the following assumptions:

  oThe company expects net domestic unit growth to increase by approximately
    2% in 2013;
  oRevPAR is expected to increase approximately 3% for the third quarter of
    2013 and increase between 3.5% and 4.25% for full-year 2013; RevPAR growth
    is expected to moderate in the second half of the year and continue to
    grow at a moderate pace into 2014;
  oThe effective royalty rate is expected to increase 2 basis points for
    full-year 2013;
  oAll figures assume the existing share count;
  oThe effective tax rate is expected to be 29.5% and 30.0% for the third
    quarter and full-year 2013, respectively; and
  oOur EBITDA outlook for the full year includes expenses related to the
    company's SkyTouch Technology division ranging between $12 million and $14
    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 Friday, July 26, 2013 at 10:00 a.m.
EDT to discuss the company's second quarter 2013 results. The dial-in number
to listen to the call is 1-877-280-4959, and the access code is 31314907.
International callers should dial 1-857-244-7316 and enter the access code
31314907. 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 Friday, July 26, 2013 through Friday, August 2, 2013 by calling
1-888-286-8010 and entering access code 26118362. The international dial-in
number for the replay is 1-617-801-6888, access code 26118362. 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 more than 6,200 hotels,
representing more than 500,000 rooms, in the United States and more than 30
other countries and territories. As of June 30, 2013, 365 hotels,
representing more than 29,000 rooms, were under construction, awaiting
conversion or approved for development in the United States. Additionally, 83
hotels, representing approximately 7,200 rooms, were under construction,
awaiting conversion or approved for development in more than 15 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"), such as 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, interest income,
provision for income taxes, depreciation and amortization, other (gains) and
losses and equity in net income (loss) of unconsolidated affiliates. We
consider EBITDA to be an indicator of operating performance because we use it
to measure our ability to service debt, fund capital expenditures, and expand
our business. We also use EBITDA, as do analysts, lenders, investors and
others, to evaluate companies because it excludes certain items that can vary
widely across different industries or among companies within the same
industry. For example, interest expense can be dependent on a company's
capital structure, debt levels and credit ratings. Accordingly, the impact of
interest expense on earnings can vary significantly among companies. The tax
positions of companies can also vary because of their differing abilities to
take advantage of tax benefits and because of the tax policies of the
jurisdictions in which they operate. As a result, effective tax rates and
provision for income taxes can vary considerably among companies. EBITDA also
excludes depreciation and amortization because companies utilize productive
assets of different ages and use different methods of both acquiring and
depreciating productive assets. These differences can result in considerable
variability in the relative costs of productive assets and the depreciation
and amortization expense among companies.

Franchising Revenues and Margins: The company reports franchising revenues
and margins which exclude marketing and reservation revenues, SkyTouch
Technology 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 reflect the company's
ownership of three MainStay Suites hotels. SkyTouch Technology is a division
of the company that develops and markets cloud-based technology products to
help industry-wide hoteliers improve their efficiency and profitability. Hotel
and SkyTouch Technology operations are excluded from franchising revenue and
margins since they do not reflect the most accurate measure of the company's
core franchising business but are adjacent, complimentary lines of 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 Technology are proprietary trademarks and service marks of Choice
Hotels International.

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

Choice Hotels                                                                   Exhibit
International, Inc.                                                             1
Consolidated Statements
of Income
(Unaudited)
                Three Months Ended June 30,         Six Months Ended June 30,
                                  Variance                             Variance
                2013     2012     $         %       2013      2012     $          %
(In thousands,
except per
share amounts)
REVENUES:
                $     $                       $      $   
Royalty fees               $       4%                  $       4%
                        66,064  2,315             118,115  113,917  4,198
                68,379
Initial
franchise and   4,416    3,178    1,238     39%     8,193     5,706    2,487      44%
relicensing
fees
Procurement     7,546    6,836    710       10%     11,496    10,151   1,345      13%
services
Marketing and   99,645   94,633   5,012     5%      176,085   165,562  10,523     6%
reservation
Hotel           1,334    1,224    110       9%      2,290     2,202    88         4%
operations
Other           2,258    1,686    572       34%     4,271     5,252    (981)      (19%)
Total     183,578  173,621  9,957     6%      320,450   302,790  17,660     6%
revenues
OPERATING
EXPENSES:
Selling,
general and     30,180   24,554   5,626     23%     57,096    48,903   8,193      17%
administrative
Depreciation
and             2,520    1,977    543       27%     4,695     3,994    701        18%
amortization
Marketing and   99,645   94,633   5,012     5%      176,085   165,562  10,523     6%
reservation
Hotel           911      867      44        5%      1,786     1,676    110        7%
operations
Total
operating       133,256  122,031  11,225    9%      239,662   220,135  19,527     9%
expenses
Operating       50,322   51,590   (1,268)   (2%)    80,788    82,655   (1,867)    (2%)
income
OTHER INCOME
AND EXPENSES,
NET:
Interest        10,807   3,540    7,267     205%    21,577    6,657    14,920     224%
expense
Interest        (659)    (394)    (265)     67%     (1,303)   (731)    (572)      78%
income
Other (gains)   147      377      (230)     (61%)   (563)     (1,626)  1,063      (65%)
and losses
Equity in net
(income) loss   (60)     128      (188)     (147%)  81        183      (102)      (56%)
of affiliates
Total other
income and      10,235   3,651    6,584     180%    19,792    4,483    15,309     341%
expenses, net
Income before   40,087   47,939   (7,852)   (16%)   60,996    78,172   (17,176)   (22%)
income taxes
Income taxes    11,853   16,077   (4,224)   (26%)   17,239    26,313   (9,074)    (34%)
                $     $                       $      $   
Net income                 $        (11%)              $        (16%)
                        31,862  (3,628)          43,757   51,859  (8,102)
                28,234
Basic           $     $                       $      $   
earnings per              $       (13%)              $       (16%)
share                  0.55  (0.07)              0.75         (0.14)
                0.48                                          0.89
Diluted         $     $                       $      $   
earnings per              $       (13%)              $       (17%)
share                  0.55  (0.07)              0.74         (0.15)
                0.48                                          0.89



Choice Hotels International, Inc.                                  Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share amounts)              June 30,   December
                                                                   31,
                                                      2013         2012
                                                      (Unaudited)
ASSETS
Cash and cash equivalents                             $       $    
                                                      143,790      134,177
Accounts receivable, net                              70,951       52,270
Investments, employee benefit plans, at fair value    377          3,486
Other current assets                                  40,586       43,537
          Total current assets                        255,704      233,470
Fixed assets and intangibles, net                     147,034      130,937
Receivable -- marketing and reservation fees          54,786       42,179
Investments, employee benefit plans, at fair value    14,114       12,755
Other assets                                          91,074       91,431
                         Total assets                 $       $    
                                                      562,712      510,772
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses                 $       $     
                                                      102,291      94,266
Deferred revenue                                      67,757       71,154
Deferred compensation & retirement plan obligations   2,393        2,522
Current portion of long-term debt                     8,205        8,195
          Total current liabilities                   180,646      176,137
Long-term debt                                        858,273      847,150
Deferred compensation & retirement plan obligations 20,114       20,399
Other liabilities                                     23,700       15,990
          Total liabilities                           1,082,733    1,059,676
Common stock, $0.01 par value                         585          582
Additional paid-in-capital                            111,580      110,246
Accumulated other comprehensive loss                  (6,097)      (4,216)
Treasury stock, at cost                               (920,355)    (927,776)
Retained earnings                                     294,266      272,260
          Total shareholders' deficit                 (520,021)    (548,904)
                         Total liabilities and        $       $    
                         shareholders'                562,712      510,772
                         deficit



Choice Hotels International,                         Exhibit 3
Inc.
Consolidated Statements of Cash
Flows
(Unaudited)
(In thousands)                  Six Months Ended June 30,
                                2013                 2012
CASH FLOWS FROM OPERATING
ACTIVITIES ^(1):
Net income                      $            $       51,859
                                 43,757
Adjustments to reconcile net
income to net cash provided
by operating activities:
 Depreciation and              4,695                3,994
amortization
 Provision for bad debts, net  1,420                1,236
 Non-cash stock compensation   5,581                4,868
and other charges
 Non-cash interest and other   967                  (820)
(income) loss
 Deferred income taxes         4,169                (194)
 Dividends received from       535                  399
equity method investments
 Equity in net (income) loss   81                   183
of affiliates
Changes in assets and
liabilities:
 Receivables                   (21,156)             (12,258)
 Receivable - marketing and    (2,945)              (2,389)
reservation fees, net
 Accounts payable              9,893                6,330
 Accrued expenses              (18,463)             (17,659)
 Income taxes                  1,729                11,808
payable/receivable
 Deferred revenue              (3,318)              (4,404)
 Other assets                  (1,664)              (4,331)
 Other liabilities             7,271                (820)
NET CASH PROVIDED BY OPERATING 32,552               37,802
ACTIVITIES ^(1)
CASH FLOWS FROM INVESTING
ACTIVITIES ^(1):
Investment in property and      (21,005)             (6,236)
equipment
Equity method investments       (1,851)              (6,315)
Purchases of investments,       (1,580)              (969)
employee benefit plans
Proceeds from sales of
investments, employee benefit   3,934                8,969
plans
Issuance of notes receivable    (3,641)              (5,820)
Collections of notes receivable 247                  210
Other items, net                (304)                (226)
NET CASH USED IN INVESTING     (24,200)             (10,387)
ACTIVITIES ^(1)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net borrowings pursuant to      15,200               -
revolving credit facilities
Principal payments on long-term (4,095)              (333)
debt
Proceeds from the issuance of   -                    393,444
long-term debt
Purchase of treasury stock      (3,651)              (22,173)
Dividends paid                  (11,261)             (21,396)
Excess tax benefits from        1,146                641
stock-based compensation
Debt issuance costs             -                    (153)
Proceeds from exercise of stock 5,973                445
options
NET CASH PROVIDED BY FINANCING 3,312                350,475
ACTIVITIES
Net change in cash and cash     11,664               377,890
equivalents
Effect of foreign exchange rate
changes on cash and cash        (2,051)              443
equivalents
Cash and cash equivalents at    134,177              107,057
beginning of period
CASH AND CASH EQUIVALENTS AT    $            $      485,390
END OF PERIOD                   143,790
^(1) The company is currently reviewing, in consultation with its independent
registered public accounting firm, its accounting policies regarding the
presentation of its cash flows related to certain of its development advances
and collections presented under the captions "Issuance and Collections of
Notes Receivable." The company's statements of cash flows contained in this
press release have been prepared in accordance with the company's existing
accounting policy which is to present these items as cash flows from investing
activities, which is consistent with prior audited periods. However, our
independent registered public accounting firm has recently questioned the
appropriateness of classifying these items as cash flows from investing
activities rather than as cash flows from operating activities. If the
company determines that it is required to move these items from cash flows
from investing activities to cash flows from operating activities in the
current statements contained in this press release, its net cash provided by
operating activities for the six months ended June 30, 2013 and 2012 will be
reduced by $3.6 million and $1.5 million, respectively, with a corresponding
adjustment to net cash used in investing activities. Until this review is
complete, the company cannot determine if it will reclassify, restate or make
other changes to its historical consolidated statements of cash flows,
including the information contained in this press release.





Exhibit 4
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
            For the Six Months Ended      For the Six Months Ended      Change
            June 30, 2013*                June 30, 2012*
            Average                       Average                       Average
            Daily                         Daily                         Daily
            Rate       Occupancy  RevPAR  Rate       Occupancy  RevPAR  Rate     Occupancy  RevPAR
Comfort     $                 $     $                 $  
Inn           79.42  54.2%              77.48  53.6%            2.5%     60    bps  3.8%
                                  43.08                        41.52
Comfort     85.00      58.3%      50.01   83.15      57.6%      47.92   2.2%     70    bps  4.4%
Suites
Sleep       72.06      54.5%      39.29   69.90      52.0%      36.32   3.1%     250   bps  8.2%
Quality     67.16      48.4%      32.49   66.29      46.8%      31.03   1.3%     160   bps  4.7%
Clarion     72.04      46.7%      33.65   71.85      44.6%      32.07   0.3%     210   bps  4.9%
Econo       53.60      44.1%      23.64   52.48      44.0%      23.09   2.1%     10    bps  2.4%
Lodge
Rodeway     50.43      47.0%      23.70   49.36      46.2%      22.81   2.2%     80    bps  3.9%
MainStay    70.33      63.6%      44.74   67.02      67.4%      45.16   4.9%     (380) bps  (0.9%)
Suburban    42.15      68.8%      29.01   40.48      67.3%      27.24   4.1%     150   bps  6.5%
Ascend      120.34     60.6%      72.90   109.96     59.4%      65.28   9.4%     120   bps  11.7%
Collection
            $                 $     $                 $  
Total        71.81  51.7%              70.38  50.7%            2.0%     100   bps  4.0%
                                  37.10                        35.66
* Operating statistics represent hotel
operations from December through May
            For the Three Months Ended    For the Three Months Ended    Change
            June 30, 2013*                June 30, 2012*
            Average                       Average                       Average
            Daily                         Daily                         Daily
            Rate       Occupancy  RevPAR  Rate       Occupancy  RevPAR  Rate     Occupancy  RevPAR
Comfort     $                 $     $                 $  
Inn           81.77  60.8%              79.87  60.2%            2.4%     60    bps  3.4%
                                  49.67                        48.05
Comfort     87.52      64.9%      56.82   85.71      64.2%      55.01   2.1%     70    bps  3.3%
Suites
Sleep       74.30      61.3%      45.54   72.52      58.7%      42.56   2.5%     260   bps  7.0%
Quality     69.35      54.2%      37.61   68.43      52.5%      35.95   1.3%     170   bps  4.6%
Clarion     74.43      52.0%      38.68   74.71      50.2%      37.53   (0.4%)   180   bps  3.1%
Econo       55.06      49.4%      27.19   54.14      49.2%      26.62   1.7%     20    bps  2.1%
Lodge
Rodeway     52.32      51.5%      26.93   51.10      50.4%      25.76   2.4%     110   bps  4.5%
MainStay    71.71      70.0%      50.23   69.06      72.9%      50.32   3.8%     (290) bps  (0.2%)
Suburban    43.16      73.9%      31.90   41.58      71.9%      29.89   3.8%     200   bps  6.7%
Ascend      124.77     64.1%      79.99   114.40     66.4%      75.94   9.1%     (230) bps  5.3%
Collection
            $                 $     $                 $  
Total        74.02  57.5%              72.69  56.6%            1.8%     90    bps  3.5%
                                  42.60                        41.16
* Operating statistics represent hotel
operations from March through May
            For the Quarter               For the Six Months
            Ended                         Ended
            6/30/2013  6/30/2012          6/30/2013  6/30/2012
System-wide
effective   4.35%      4.32%              4.36%      4.33%
royalty
rate





CHOICE HOTELS INTERNATIONAL, INC.                                                Exhibit
                                                                                 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
               June 30, 2013    June 30, 2012    Variance
               Hotels  Rooms    Hotels  Rooms    Hotels  Rooms    %       %
Comfort Inn    1,311   102,882  1,379   107,895  (68)    (5,013)  (4.9%)  (4.6%)
Comfort        587     45,339   608     46,903   (21)    (1,564)  (3.5%)  (3.3%)
Suites
Sleep          379     27,478   391     28,327   (12)    (849)    (3.1%)  (3.0%)
Quality        1,192   99,761   1,082   93,655   110     6,106    10.2%   6.5%
Clarion        191     27,184   189     27,534   2       (350)    1.1%    (1.3%)
Econo Lodge    817     49,608   801     49,114   16      494      2.0%    1.0%
Rodeway        427     24,782   401     22,671   26      2,111    6.5%    9.3%
MainStay       43      3,332    40      3,083    3       249      7.5%    8.1%
Suburban       63      7,241    62      7,260    1       (19)     1.6%    (0.3%)
Ascend         90      7,521    52      4,652    38      2,869    73.1%   61.7%
Collection
Cambria        18      2,094    19      2,221    (1)     (127)    (5.3%)  (5.7%)
Suites
Domestic       5,118   397,222  5,024   393,315  94      3,907    1.9%    1.0%
Franchises
International  1,169   104,701  1,175   104,522  (6)     179      (0.5%)  0.2%
Franchises
Total          6,287   501,923  6,199   497,837  88      4,086    1.4%    0.8%
Franchises



                                                                                                       Exhibit
                                                                                                       6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
            For the Six Months Ended June    For the Six Months Ended June    % Change
            30, 2013                         30, 2012
            New                              New                              New
            Construction  Conversion  Total  Construction  Conversion  Total  Construction  Conversion  Total
Comfort     5             18          23     6             12          18     (17%)         50%         28%
Inn
Comfort     5             2           7      7             4           11     (29%)         (50%)       (36%)
Suites
Sleep       5             -           5      11            1           12     (55%)         (100%)      (58%)
Quality     1             44          45     -             63          63     NM            (30%)       (29%)
Clarion     -             7           7      -             7           7      NM            0%          0%
Econo       -             31          31     -             18          18     NM            72%         72%
Lodge
Rodeway     -             24          24     -             31          31     NM            (23%)       (23%)
MainStay    4             -           4      1             1           2      300%          (100%)      100%
Suburban    -             1           1      -             1           1      NM            0%          0%
Ascend      3             36          39     1             4           5      200%          800%        680%
Collection
Cambria     1             -           1      2             -           2      (50%)         NM          (50%)
Suites
Total
Domestic    24            163         187    28            142         170    (14%)         15%         10%
System
            For the Three Months Ended June  For the Three Months Ended June  % Change
            30, 2013                         30, 2012
            New                              New                              New
            Construction  Conversion  Total  Construction  Conversion  Total  Construction  Conversion  Total
Comfort     2             13          15     5             4           9      (60%)         225%        67%
Inn
Comfort     3             -           3      6             2           8      (50%)         (100%)      (63%)
Suites
Sleep       4             -           4      8             1           9      (50%)         (100%)      (56%)
Quality     1             25          26     -             36          36     NM            (31%)       (28%)
Clarion     -             4           4      -             5           5      NM            (20%)       (20%)
Econo       -             23          23     -             14          14     NM            64%         64%
Lodge
Rodeway     -             15          15     -             19          19     NM            (21%)       (21%)
MainStay    3             -           3      1             1           2      200%          (100%)      50%
Suburban    -             -           -      -             1           1      NM            (100%)      (100%)
Ascend      1             10          11     -             2           2      NM            400%        450%
Collection
Cambria     -             -           -      1             -           1      (100%)        NM          (100%)
Suites
Total
Domestic    14            90          104    21            85          106    (33%)         6%          (2%)
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
            June 30, 2013                    June 30, 2012
            Units                            Units                            Conversion     New            Total
                                                                                             Construction
            Conversion  New           Total  Conversion  New           Total  Units  %       Units  %       Units  %
                        Construction                     Construction
Comfort     34          46            80     25          40            65     9      36%     6      15%     15     23%
Inn
Comfort     2           61            63     2           82            84     -      0%      (21)   (26%)   (21)   (25%)
Suites
Sleep Inn   -           44            44     1           40            41     (1)    (100%)  4      10%     3      7%
Quality     34          3             37     39          3             42     (5)    (13%)   -      0%      (5)    (12%)
Clarion     8           -             8      14          1             15     (6)    (43%)   (1)    (100%)  (7)    (47%)
Econo       26          -             26     20          1             21     6      30%     (1)    (100%)  5      24%
Lodge
Rodeway     24          -             24     31          1             32     (7)    (23%)   (1)    (100%)  (8)    (25%)
MainStay    -           26            26     1           22            23     (1)    (100%)  4      18%     3      13%
Suburban    3           12            15     2           14            16     1      50%     (2)    (14%)   (1)    (6%)
Ascend      14          8             22     8           5             13     6      75%     3      60%     9      69%
Collection
Cambria     -           20            20     -           26            26     -      NM      (6)    (23%)   (6)    (23%)
Suites
            145         220           365    143         235           378    2      1%      (15)   (6%)    (13)   (3%)





  CHOICE HOTELS INTERNATIONAL, INC.                         Exhibit 8
  SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
  (UNAUDITED)
CALCULATION OF FRANCHISING
REVENUES AND FRANCHISING
MARGINS
(dollar amounts  Three Months Ended    Six Months Ended
in thousands)    June 30,             June 30,
                 2013       2012       2013       2012
  Franchising
  Revenues:
  Total          $      $      $      $    
  Revenues                                 
                 183,578   173,621    320,450    302,790
  Adjustments:
  
  Marketing and  (99,645)   (94,633)   (176,085)  (165,562)
  reservation
  revenues
   Hotel     (1,334)    (1,224)    (2,290)    (2,202)
  operations
  Franchising    $      $      $      $    
  Revenues                               
                 82,599    77,764     142,075    135,026
  Franchising
  Margins:
  Operating
  Margin:
  Total          $      $      $      $    
  Revenues                                 
                 183,578   173,621    320,450    302,790
  Operating      $      $      $      $    
  Income                                 
                 50,322    51,590     80,788     82,655
  
  Operating      27.4%      29.7%      25.2%      27.3%
  Margin
  Franchising
  Margin:
  Franchising    $      $      $      $    
  Revenues                               
                 82,599    77,764     142,075    135,026
  Operating      $      $      $      $    
  Income                                 
                 50,322    51,590     80,788     82,655
  SkyTouch       3,159      831        5,401      1,338
  Division
  Hotel          (423)      (357)      (504)      (526)
  operations
                 $      $      $      $    
                                         
                 53,058    52,064     85,685     83,467
  
  Franchising    64.2%      67.0%      60.3%      61.8%
  Margins
EBITDA
Reconciliation
(in thousands)
                                       Six        Six
                                       Months     Months
                                       Ended      Ended
                 Q2 2013    Q2 2012                          Full-Year 2013
                 Actuals    Actuals    June 30,   June 30,   Outlook Range
                                       2013       2012

                                       Actuals    Actuals
  Operating      $      $      $      $      $       $ 
  Income (per                                  193,900  196,900
  GAAP)          50,322    51,590     80,788     82,655
  Depreciation   $      $      $      $    
  and                                      9,600     9,600
  amortization   2,520     1,977      4,695      3,994
  Earnings
  before
  interest,
  taxes,         $      $      $      $      $       $ 
  depreciation                                 203,500  206,500
  &              52,842    53,567     85,483     86,649
  amortization

  (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
 
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