Choice Hotels International Reports Third Quarter 2013 Diluted EPS Of $0.70 Per Share

 Choice Hotels International Reports Third Quarter 2013 Diluted EPS Of $0.70
                                  Per Share

New Domestic Hotel Franchise Contracts Rise 45%

Franchising Operating Income Increases 6%

PR Newswire

ROCKVILLE, Md., Oct. 24, 2013

ROCKVILLE, Md., Oct. 24, 2013 /PRNewswire/ -- Choice Hotels International,
Inc., (NYSE: CHH) today reported the following highlights for the third
quarter of 2013:

  oFranchising revenues increased 6% to $95.5 million for the three months
    ending September 30, 2013 from $90.1 million for the same period in 2012.
    Total revenues increased 6% to $223.2 million for the three months ending
    September 30, 2013 compared to the same period in 2012.
  oOperating income from franchising activities totaled $69.5 million for the
    three months ending September 30, 2013, a 6% increase compared to the same
    period in 2012. Total operating income increased 2% to $66.5 million for
    the three months ending September 30, 2013 compared to the same period in
    2012.
  oDomestic system-wide revenue per available room ("RevPAR") increased 3.0%
    for the three months ending September 30, 2013 compared to the same period
    in 2012 as occupancy and average daily rates increased 70 basis points and
    1.9%, respectively.
  oDomestic unit and room growth increased 2.0% and 0.7% from September 30,
    2012, respectively.
  oDomestic royalty fees for the three months ending September 30, 2013
    increased 3% to $76.7 million from $74.3 million for the three months
    ending September 30, 2012.
  oInitial and relicensing fees for the three months ending September 30,
    2013 increased $1.4 million or 43% to $4.7 million from the same period in
    2012.
  oThe company executed 129 new domestic hotel franchise contracts for the
    three months ending September 30, 2013 compared to 89 new domestic hotel
    franchise contracts for the same period in 2012, a 45% increase.
  oDomestic relicensing and contract renewal transactions increased from 62
    contracts during the three months ending September 30, 2012 to 72 in the
    current period, a 16% increase.
  oThe number of worldwide hotels under construction, awaiting conversion or
    approved for development as of September 30, 2013 was 455 hotels
    representing 37,077 rooms, an increase of 4.6% and 2.6%, respectively,
    from September 30, 2012.
  oFranchising SG&A expenses increased 6% from $22.5 million for the three
    months ending September 30, 2012 to $23.8 million for the same period in
    2012. Excluding variable expenses related to the company's non-qualified
    retirement plan deferred compensation, franchising SG&A expense increased
    3.6% from $22.2 million in the prior year quarter to $23.0 million in the
    three months ending September 30, 2013. Selling, general and
    administrative ("SG&A") expenses increased $3.8 million to $27.0 million
    for the three months ended September 30, 2013 compared to the same period
    in 2012.

(Logo: http://photos.prnewswire.com/prnh/20131015/NE98133LOGO-l)

"Our franchising business continues to outperform our expectations. We are
particularly pleased with recent activities on the development side of the
business highlighted by a 45% increase in new domestic franchise contracts.
The increase was driven by a 130% improvement in contracts for our flagship
Comfort brands," said Stephen P. Joyce, president and chief executive officer,
Choice Hotels International. "The Ascend Hotel Collection continues its rapid
growth. This quarter we expanded in Europe and added another Ascend hotel in
Australia. The Ascend HotelCollection now has more than 115 worldwide
locations, and we are excited about the future growth prospects of this brand
as well as our family of brands."

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

The company's current quarterly dividend rate per common share is $0.185,
subject to declaration by our board of directors. During the nine months
ending September 30, 2013 and 2012, the company paid $22.0 million and $632.8
million in cash dividends to shareholders, respectively. The cash dividends
paid during the nine months ending September 2013 reflect the company's
decision to pay the first quarter of 2013 quarterly cash dividend in December
2012. In addition, cash dividends paid during the nine months ending September
30, 2012 include a special cash dividend in the amount of $10.41 per share or
approximately $600.7 million paid on August 23, 2012.

As a result of the payment of the special cash dividend, earnings per share
for the nine months ending September 30, 2013 include $15.5 million of
additional interest expense compared to the prior year reflecting the
financing transactions entered into during the second and third quarters of
2012.

Share Repurchases

The company did not repurchase any shares of common stock under the share
repurchase program during the three and nine months ending September 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. There is no time limit
on this authorization and no minimum number of share repurchases has been
fixed. Since Choice announced its stock repurchase program on June 25, 1998
through September 30, 2013, the company has repurchased 45.3 million shares of
its common stock for a total cost of $1.1 billion. Considering the effect of a
two-for-one stock split in October 2005, the company has repurchased 78.3
million shares through September 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

As of September 30, 2013, the company had total debt (long-term plus current
portion) of $825 million and cash and cash equivalents totaling $161 million
resulting in net debt of $664 million. At December 31, 2012, the company had
total debt of $855 million and cash equivalents totaling $134 million
resulting in net debt of $721 million.

As of September 30, 2013 and December 31, 2012, the company had outstanding
mezzanine financing, real estate investments and sliver equity investments
totaling $71 million and $68 million, respectively, pursuant to its program to
offer financing and investment support to incent franchise development for
emerging brands 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 fourth quarter 2013 diluted EPS is expected to range between
$0.44 and $0.46. The company expects full-year 2013 diluted EPS to range
between $1.89 and $1.91. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") for full-year 2013 are expected to range between
$203.5 million and $205.5 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 2% and 3.25% for the fourth
    quarter and full-year of 2013, respectively;
  oThe effective royalty rate is expected to increase 1 basis point for
    full-year 2013;
  oAll figures assume the existing share count;
  oThe effective tax rate is expected to be 29.0% and 28.5% for the fourth
    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 Thursday, October 24, 2013 at 9:30
a.m. EDT to discuss the company's third quarter 2013 results. The dial-in
number to listen to the call is 1-800-901-5213, and the access code is
73582897. International callers should dial 1-617-786-2962 and enter the
access code 73582897. 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 1:30 p.m. EDT
on Thursday October 24, 2013 through Thursday, October 31, 2013 by calling
1-888-286-8010 and entering access code 43130503. The international dial-in
number for the replay is 1-617-801-6888, access code 43130503. In addition,
the call will be archived for approximately one-year and available on
www.choicehotels.com via the Investor Info link.

About Choice Hotels

Choice Hotels International, Inc. franchises more than 6,300 hotels,
representing more than 500,000 rooms, in the United States and more than 30
other countries and territories. As of September 30, 2013, 371 hotels,
representing more than 29,000 rooms, were under construction, awaiting
conversion or approved for development in the United States. Additionally, 84
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 this Press
Release

EBITDA, franchising revenues, franchising SG&A, franchising margins and net
debt are non-GAAP financial measurements. These measures should not be
considered as an alternative to any measure of performance or liquidity as
promulgated under or authorized by generally accepted accounting principles
in the United States ("GAAP"), such as operating income, total revenues,
operating margins and long-term debt. 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 EBITDA, franchising
revenues, franchising SG&A and franchising margins to the most comparable GAAP
financial measures. 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, loss on
extinguishment of debt, 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, Operating Income, SG&A and Margins: The company reports
franchising revenues, operating income, SG&A and margins which exclude
marketing and reservation revenues, SkyTouch Technology and hotel operations.
Marketing and reservation activities are excluded from franchising 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 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.

Net Debt: Net debt is long-term debt plus the current portion of long-term
debt (i.e., long-term debt due within one year) less cash and cash
equivalents. The company believes that net debt is an important measurement
as many investors use net debt in making investment decisions, as it gives
them an idea of a company's financial health and its level of leverage
compared to liquid assets. Some industries may have more net debt than others;
therefore, investors often compare a company's net debt to others in the same
business.

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
International,                                                                    1
Inc.
Consolidated
Statements of
Income
(Unaudited)
                Three Months Ended September 30,    Nine Months Ended September 30,
                                  Variance                             Variance
                2013     2012     $         %       2013      2012     $          %
(In thousands,
except per
share amounts)
REVENUES:
                $     $                       $      $   
Royalty fees               $       3%                  $       3%
                        80,845  2,262             201,222  194,762  6,460
                83,107
Initial
franchise and   4,650    3,247    1,403     43%     12,843    8,953    3,890      43%
relicensing
fees
Procurement     4,708    3,839    869       23%     16,204    13,990   2,214      16%
services
Marketing and   126,296  119,062  7,234     6%      302,381   284,624  17,757     6%
reservation
Hotel           1,310    1,238    72        6%      3,600     3,440    160        5%
operations
Other           3,091    2,182    909       42%     7,362     7,434    (72)       (1%)
 Total     223,162  210,413  12,749    6%      543,612   513,203  30,409     6%
revenues
OPERATING
EXPENSES:
Selling,
general and     26,982   23,170   3,812     16%     84,078    72,073   12,005     17%
administrative
Depreciation
and             2,379    1,995    384       19%     7,074     5,989    1,085      18%
amortization
Marketing and   126,296  119,062  7,234     6%      302,381   284,624  17,757     6%
reservation
Hotel           956      933      23        2%      2,742     2,609    133        5%
operations
Total
operating       156,613  145,160  11,453    8%      396,275   365,295  30,980     8%
expenses
Operating       66,549   65,253   1,296     2%      147,337   147,908  (571)      (0%)
income
OTHER INCOME
AND EXPENSES,
NET:
Interest        10,757   10,166   591       6%      32,334    16,823   15,511     92%
expense
Interest        (676)    (425)    (251)     59%     (1,979)   (1,156)  (823)      71%
income
Loss on
extinguishment  -        526      (526)     (100%)  -         526      (526)      (100%)
of debt
Other (gains)   (703)    (511)    (192)     38%     (1,266)   (2,137)  871        (41%)
and losses
Equity in net
(income) loss   (421)    (171)    (250)     146%    (340)     12       (352)      (2933%)
of affiliates
Total other
income and      8,957    9,585    (628)     (7%)    28,749    14,068   14,681     104%
expenses, net
Income before   57,592   55,668   1,924     3%      118,588   133,840  (15,252)   (11%)
income taxes
Income taxes    16,080   11,291   4,789     42%     33,319    37,604   (4,285)    (11%)
                $     $                       $      $   
Net income                 $        (6%)               $         (11%)
                        44,377  (2,865)          85,269   96,236  (10,967)
                41,512
Basic           $     $                       $      $   
earnings per              $       (8%)               $       (12%)
share                  0.77  (0.06)              1.46         (0.20)
                0.71                                          1.66
Diluted         $     $                       $      $   
earnings per              $       (8%)               $       (12%)
share                  0.76  (0.06)              1.45         (0.20)
                0.70                                          1.65

Choice Hotels International, Inc.                                  Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share amounts)       September 30,     December
                                                                   31,
                                               2013                2012
                                               (Unaudited)
ASSETS
Cash and cash equivalents                      $              $    
                                               161,138             134,177
Accounts receivable, net                       62,605              52,270
Investments, employee benefit plans, at fair   386                 3,486
value
Other current assets                           34,138              43,537
          Total current assets                 258,267             233,470
Fixed assets and intangibles, net              142,228             130,937
Receivable -- marketing and reservation fees   32,564              42,179
Investments, employee benefit plans, at fair   14,950              12,755
value
Other assets                                   107,700             91,431
                         Total assets          $              $    
                                               555,709             510,772
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses          $             $     
                                               84,233             94,266
Deferred revenue                               61,401              71,154
Deferred compensation & retirement plan        2,439               2,522
obligations
Current portion of long-term debt              9,132               8,195
Other current liabilities                      21,906              -
          Total current liabilities            179,111             176,137
Long-term debt                                 815,957             847,150
Deferred compensation & retirement plan        21,219              20,399
obligations
Other liabilities                              24,146              15,990
          Total liabilities                    1,040,433           1,059,676
Common stock, $0.01 par value                  586                 582
Additional paid-in-capital                     114,571             110,246
Accumulated other comprehensive loss           (5,370)             (4,216)
Treasury stock, at cost                        (919,516)           (927,776)
Retained earnings                              325,005             272,260
          Total shareholders' deficit          (484,724)           (548,904)
                         Total liabilities and $              $    
                         shareholders' deficit 555,709             510,772



Choice Hotels International, Inc.                              Exhibit 3
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)                         Nine Months Ended September 30,
                                                               Revised ^(1)
                                       2013                    2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                             $              $      
                                       85,269                 96,236
Adjustments to reconcile net income to
net cash provided
by operating activities:
 Depreciation and amortization      7,074                   5,989
 Provision for bad debts, net         2,054                   1,802
 Non-cash stock compensation and      8,638                   7,306
other charges
 Non-cash interest and other (income) 1,057                   (633)
loss
 Loss on extinguishment of debt       -                       526
 Deferred income taxes                (4,118)                 (1,627)
 Dividends received from equity       1,109                   855
method investments
 Equity in net (income) loss of       (340)                   12
affiliates
Changes in assets and liabilities:
 Receivables                          (13,699)                (17,405)
 Receivable - marketing and           23,756                  20,811
reservation fees, net
 Forgivable notes receivable, net     (5,722)                 (2,853)
 Accounts payable                     1,280                   5,980
 Accrued expenses                     (22,757)                (10,309)
 Income taxes payable/receivable      24,638                  12,786
 Deferred revenue                     (9,686)                 8,018
 Other assets                         (2,395)                 (7,458)
 Other liabilities                    8,851                   (1,613)
NET CASH PROVIDED BY OPERATING        105,009                 118,423
ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment   (26,442)                (12,525)
Equity method investments              (3,761)                 (9,454)
Purchases of investments, employee     (1,845)                 (1,191)
benefit plans
Proceeds from sales of investments,    4,052                   10,909
employee benefit plans
Issuance of mezzanine and other notes  -                       (4,236)
receivable
Collections of mezzanine and other     224                     110
notes receivable
Other items, net                       (578)                   (322)
NET CASH USED IN INVESTING            (28,350)                (16,709)
ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) pursuant   (27,500)                16,725
to revolving credit facilities
Principal payments on long-term debt   (6,158)                 (502)
Proceeds from issuance of long-term    3,360                   543,500
debt
Purchase of treasury stock             (3,684)                 (22,227)
Dividends paid                         (22,026)                (632,751)
Excess tax benefits from stock-based   1,216                   793
compensation
Debt issuance costs                    -                       (4,753)
Proceeds from exercise of stock        6,677                   4,695
options
NET CASH USED IN FINANCING ACTIVITIES (48,115)                (94,520)
Net change in cash and cash            28,544                  7,194
equivalents
Effect of foreign exchange rate        (1,583)                 813
changes on cash and cash equivalents
Cash and cash equivalents at beginning 134,177                 107,057
of period
CASH AND CASH EQUIVALENTS AT END OF    $               $     
PERIOD                                 161,138                115,064
(1) The presentation of the Company's forgivable notes receivable for the nine
months ended September 30, 2012 has been revised
 from prior year disclosures. See Note 1 to the Company's Form 10-Q filed
with the SEC on August 9, 2013 for additional information.



CHOICE HOTELS INTERNATIONAL, INC.                                                                    Exhibit
                                                                                                     4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
             For the Nine Months Ended     For the Nine Months Ended     Change
             September 30, 2013*           September 30, 2012*
             Average                       Average                       Average
             Daily                         Daily                         Daily
             Rate       Occupancy  RevPAR  Rate       Occupancy  RevPAR  Rate     Occupancy  RevPAR
             $                 $     $                 $  
Comfort Inn    83.44  59.8%              81.52  59.2%            2.4%     60    bps  3.5%
                                   49.92                        48.24
Comfort      87.41      63.0%      55.05   85.62      61.8%      52.92   2.1%     120   bps  4.0%
Suites
Sleep        74.51      58.7%      43.70   72.29      56.3%      40.68   3.1%     240   bps  7.4%
Quality      70.61      53.2%      37.54   69.84      51.8%      36.14   1.1%     140   bps  3.9%
Clarion      75.66      51.1%      38.64   74.98      49.4%      37.00   0.9%     170   bps  4.4%
Econo Lodge  56.94      48.9%      27.86   55.76      48.7%      27.13   2.1%     20    bps  2.7%
Rodeway      54.63      51.8%      28.29   53.59      51.3%      27.48   1.9%     50    bps  2.9%
MainStay     72.87      67.6%      49.29   69.27      70.4%      48.79   5.2%     (280) bps  1.0%
Suburban     42.71      70.3%      30.01   41.24      69.9%      28.82   3.6%     40    bps  4.1%
Ascend
Hotel        122.40     64.5%      78.96   112.27     63.5%      71.25   9.0%     100   bps  10.8%
Collection
             $                 $     $                 $  
Total         75.10  56.4%              73.65  55.5%            2.0%     90    bps  3.6%
                                   42.37                        40.89
* Operating statistics represent hotel operations
from December through August
             For the Three Months Ended    For the Three Months Ended    Change
             September 30, 2013*           September 30, 2012*
             Average                       Average                       Average
             Daily                         Daily                         Daily
             Rate       Occupancy  RevPAR  Rate       Occupancy  RevPAR  Rate     Occupancy  RevPAR
             $                 $     $                 $  
Comfort Inn    89.49  70.8%              87.58  70.2%            2.2%     60    bps  3.1%
                                   63.35                        61.46
Comfort      91.36      71.2%      65.05   89.69      70.2%      62.93   1.9%     100   bps  3.4%
Suites
Sleep        78.45      66.8%      52.38   76.09      64.8%      49.32   3.1%     200   bps  6.2%
Quality      75.81      62.5%      47.36   75.02      61.2%      45.88   1.1%     130   bps  3.2%
Clarion      81.27      59.7%      48.50   79.73      58.7%      46.82   1.9%     100   bps  3.6%
Econo Lodge  61.76      58.1%      35.88   60.60      57.7%      34.97   1.9%     40    bps  2.6%
Rodeway      60.78      60.8%      36.97   59.62      60.8%      36.23   1.9%     -     bps  2.0%
MainStay     76.91      75.2%      57.82   73.17      76.5%      55.96   5.1%     (130) bps  3.3%
Suburban     43.79      73.1%      32.02   42.62      75.1%      32.03   2.7%     (200) bps  (0.0%)
Ascend
Hotel        125.54     71.6%      89.86   115.98     71.4%      82.77   8.2%     20    bps  8.6%
Collection
             $                 $     $                 $  
Total         80.14  65.7%              78.63  65.0%            1.9%     70    bps  3.0%
                                   52.63                        51.09
* Operating statistics represent hotel operations
from June through August
             For the Quarter               For the Nine Months
             Ended                         Ended
             9/30/2013  9/30/2012          9/30/2013  9/30/2012
System-wide
effective    4.30%      4.29%              4.34%      4.31%
royalty
rate





CHOICE HOTELS INTERNATIONAL, INC.                                                Exhibit
                                                                                 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
               September 30,    September 30,    Variance
               2013             2012
               Hotels  Rooms    Hotels  Rooms    Hotels  Rooms    %       %
Comfort Inn    1,312   102,586  1,367   106,970  (55)    (4,384)  (4.0%)  (4.1%)
Comfort        590     45,519   603     46,647   (13)    (1,128)  (2.2%)  (2.4%)
Suites
Sleep          378     27,351   390     28,232   (12)    (881)    (3.1%)  (3.1%)
Quality        1,193   98,788   1,101   95,469   92      3,319    8.4%    3.5%
Clarion        188     26,885   187     26,943   1       (58)     0.5%    (0.2%)
Econo Lodge    821     50,230   803     49,248   18      982      2.2%    2.0%
Rodeway        434     24,660   409     23,336   25      1,324    6.1%    5.7%
MainStay       43      3,331    39      2,997    4       334      10.3%   11.1%
Suburban       63      7,213    60      6,978    3       235      5.0%    3.4%
Ascend Hotel   94      8,006    56      4,946    38      3,060    67.9%   61.9%
Collection
Cambria        18      2,094    19      2,221    (1)     (127)    (5.3%)  (5.7%)
Suites
Domestic       5,134   396,663  5,034   393,987  100     2,676    2.0%    0.7%
Franchises
International  1,169   106,000  1,165   102,942  4       3,058    0.3%    3.0%
Franchises
Total          6,303   502,663  6,199   496,929  104     5,734    1.7%    1.2%
Franchises



                                                                                                        Exhibit
                                                                                                        6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
            For the Nine Months Ended        For the Nine Months Ended        % Change
            September 30, 2013               September 30, 2012
            New                              New                              New
            Construction  Conversion  Total  Construction  Conversion  Total  Construction  Conversion  Total
Comfort     12            35          47     10            17          27     20%           106%        74%
Inn
Comfort     7             6           13     11            4           15     (36%)         50%         (13%)
Suites
Sleep       9             1           10     17            1           18     (47%)         0%          (44%)
Quality     1             76          77     -             88          88     NM            (14%)       (13%)
Clarion     1             12          13     -             14          14     NM            (14%)       (7%)
Econo       -             61          61     -             33          33     NM            85%         85%
Lodge
Rodeway     1             39          40     -             46          46     NM            (15%)       (13%)
MainStay    5             -           5      2             1           3      150%          (100%)      67%
Suburban    1             1           2      1             1           2      0%            0%          0%
Ascend
Hotel       5             40          45     1             8           9      400%          400%        400%
Collection
Cambria     2             -           2      4             -           4      (50%)         NM          (50%)
Suites
Total
Domestic    44            271         315    46            213         259    (4%)          27%         22%
System
            For the Three Months Ended       For the Three Months Ended       % Change
            September 30, 2013               September 30, 2012
            New                              New                              New
            Construction  Conversion  Total  Construction  Conversion  Total  Construction  Conversion  Total
Comfort     7             17          24     4             5           9      75%           240%        167%
Inn
Comfort     2             4           6      4             -           4      (50%)         NM          50%
Suites
Sleep       4             1           5      6             -           6      (33%)         NM          (17%)
Quality     -             32          32     -             25          25     NM            28%         28%
Clarion     1             5           6      -             7           7      NM            (29%)       (14%)
Econo       -             31          31     -             15          15     NM            107%        107%
Lodge
Rodeway     1             15          16     -             15          15     NM            0%          7%
MainStay    1             -           1      1             -           1      0%            NM          0%
Suburban    1             -           1      1             -           1      0%            NM          0%
Ascend
Hotel       2             4           6      -             4           4      NM            0%          50%
Collection
Cambria     1             -           1      2             -           2      (50%)         NM          (50%)
Suites
Total
Domestic    20            109         129    18            71          89     11%           54%         45%
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
            September 30, 2013               September 30, 2012
            Units                            Units                            Conversion     New            Total
                                                                                             Construction
            Conversion  New           Total  Conversion  New           Total  Units  %       Units  %       Units    %
                        Construction                     Construction
Comfort     36          50            86     23          39            62     13     57%     11     28%     24       39%
Inn
Comfort     4           47            51     1           77            78     3      300%    (30)   (39%)   (27)     (35%)
Suites
Sleep Inn   1           45            46     1           38            39     -      0%      7      18%     7        18%
Quality     33          3             36     37          3             40     (4)    (11%)   -      0%      (4)      (10%)
Clarion     7           2             9      18          1             19     (11)   (61%)   1      100%    (10)     (53%)
Econo       33          -             33     23          1             24     10     43%     (1)    (100%)  9        38%
Lodge
Rodeway     24          1             25     25          -             25     (1)    (4%)    1      NM      -        0%
MainStay    -           26            26     1           18            19     (1)    (100%)  8      44%     7        37%
Suburban    3           12            15     2           14            16     1      50%     (2)    (14%)   (1)      (6%)
Ascend
Hotel       13          10            23     9           4             13     4      44%     6      150%    10       77%
Collection
Cambria     -           21            21     -           25            25     -      NM      (4)    (16%)   (4)      (16%)
Suites
            154         217           371    140         220           360    14     10%     (3)    (1%)    11       3%



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      Nine Months Ended
thousands)           September 30,          September 30,
                     2013         2012       2013       2012
Franchising
Revenues:
                     $       $      $      $    
Total Revenues        223,162                      
                                  210,413    543,612    513,203
Adjustments:
 Marketing and
reservation          (126,296)    (119,062)  (302,381)  (284,624)
revenues
 SkyTouch        (13)         -          (13)       -
Division
 Hotel           (1,310)      (1,238)    (3,600)    (3,440)
operations
Franchising          $       $      $      $    
Revenues               95,543                    
                                  90,113     237,618    225,139
Franchising
Margins:
Operating Margin:
                     $       $      $      $    
Total Revenues        223,162                      
                                  210,413    543,612    513,203
                     $       $      $      $    
Operating Income       66,549                    
                                  65,253     147,337    147,908
 Operating       29.8%        31.0%      27.1%      28.8%
Margin
Franchising
Margin:
Franchising          $       $      $      $    
Revenues               95,543                    
                                  90,113     237,618    225,139
                     $       $      $      $    
Operating Income       66,549                    
                                  65,253     147,337    147,908
SkyTouch Division    3,272        720        8,768      2,074
operating loss
Hotel operations     (354)        (305)      (858)      (831)
operating income
Operating Income -   $       $      $      $    
Franchising            69,467                    
                                  65,668     155,247    149,151
 Franchising     72.7%        72.9%      65.3%      66.2%
Margins
CALCULATION OF FRANCHISING
SELLING, GENERAL AND
ADMINISTRATION EXPENSES
(dollar amounts in
thousands)
                     Three Months Ended      Nine Months Ended
                     September 30,          September 30,
                     2013         2012       2013       2012
Total Selling,                    $      $      $    
General and          $                        
Administrative         26,982  23,170     84,078      72,073
Expenses
SkyTouch Division    (3,189)      (719)      (8,590)    (2,073)
Franchising                       $      $      $    
Selling, General     $                        
and Administration     23,793  22,451     75,488      70,000
Expenses
CALCULATION OF
EBITDA
(dollar amounts in
thousands)
                                             Nine       Nine
                                             Months     Months
                                             Ended      Ended
                     Q3 2013      Q3 2012
                     Actuals      Actuals    September  September
                                             30, 2013   30, 2012

                                             Actuals    Actuals
                     $       $      $      $    
Net income             41,512                   
                                  44,377     85,269      96,236
 Income taxes       16,080       11,291     33,319     37,604
 Interest expense   10,757       10,166     32,334     16,823
 Interest income    (676)        (425)      (1,979)    (1,156)
 Other (gains) and  (703)        (511)      (1,266)    (2,137)
losses
 Loss on the
extinguishment of    -            526        -          526
debt
 Equity in net
(income) loss of     (421)        (171)      (340)      12
affiliates
Depreciation and     2,379        1,995      7,074      5,989
amortization
                     $       $      $      $    
EBITDA                 68,928                    
                                  67,248     154,411    153,897



SOURCE Choice Hotels International, Inc.

Website: http://www.choicehotels.com
Contact: David White, Senior Vice President, Chief Financial Officer &
Treasurer, (301) 592-5117, or Scott Carman, Director, Public Relations, (301)
592-6361