Choice Hotels International (CHH) 8-K Choice Hotels International Reports Record Revenues, Operating Income and Net Income

Exhibit 99.1

For Immediate Release

CHOICE HOTELS INTERNATIONAL REPORTS RECORD REVENUES, OPERATING INCOME AND NET INCOME

Domestic Pipeline of Hotels Awaiting Conversion or Approved for Development Increased 19%

ROCKVILLE, MD. (February 18, 2016) - Choice Hotels International, Inc. (NYSE:CHH) today reported the following highlights for the fourth quarter and full-year 2015:

Fourth Quarter Highlights

• Diluted earnings per share (“EPS”) from continuing operations for the three months ended December 31, 2015 totaled $0.51, an increase of 19 percent from the same period of 2014.

• Revenues for the three months ended December 31, 2015 totaled $211.0 million, an increase of 14 percent from the same period of 2014.

• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from franchising activities for the three months ended December 31, 2015 totaled $55.7 million, an increase of 6 percent from the same period of 2014.

• Franchising margins for the three months ended December 31, 2015 were 62.3 percent, an increase of 20 basis points from the same period of 2014.

• Domestic royalty fees for the three months ended December 31, 2015 totaled $63.1 million, an increase of 6.7 percent from the same period of 2014.

• Domestic system-wide revenue per available room (“RevPAR”) increased 4.3 percent in the fourth quarter of 2015, as occupancy and average daily rates increased 60 basis points and 3.2 percent, respectively from the same period of 2014.

• Domestic units as of December 31, 2015 increased 1.1 percent from December 31, 2014.

• Effective royalty rate for the three months ended December 31, 2015 was 4.37 percent, an increase of 9 basis points from the same period of 2014.

• Domestic relicensing and contract renewal transactions totaled 104 for the three months ended December 31, 2015, an increase of 12 percent from the same period of 2014.

• The company’s domestic pipeline of hotels awaiting conversion, under construction or approved for development as of December 31, 2015 increased 19 percent from December 31, 2014.

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“We are pleased to report another record year of revenue, operating income and net income performance," said Stephen P. Joyce, president and chief executive officer, Choice Hotels. "Our performance was driven by continued improvement in our domestic royalty revenues resulting from growth in all 3 critical levers - RevPAR, system-size and effective royalty rate, as well as our franchise development results. Our effective royalty rates for the domestic system increased 9 basis points during the quarter and, excluding the impact of our Comfort rejuvenation strategy, our domestic units under franchise grew 4% from the prior year. As domestic franchise contracts for both new construction and conversion sales continue to strengthen, we are expecting an acceleration of the growth rates for our domestic system size in 2016. We are optimistic that developers will continue to respond to our strong family of brands and are optimistic that RevPAR performance and growth of our effective royalty rates will continue to be strong in 2016.”

Full-Year Highlights

• EBITDA from franchising activities in 2015 totaled $255.8 million, an increase of $15.8 million or 7 percent from 2014.

• Revenues for 2015 totaled $859.9 million, an increase of 13 percent from 2014.

• Franchising revenues for 2015 totaled $366.7 million, an increase of $21.9 million or 6 percent from 2014.

• Franchising selling, general and administration (“SG&A”) expenses in 2015 totaled $110.9 million, an increase of 5.8 percent from 2014.

• Franchising margins for 2015 were 67.3 percent, an increase of 10 basis points from 2014.

• Diluted EPS from continuing operations in 2015 totaled $2.22, an increase of 7 percent from 2014.

• Domestic royalty fees in 2015 totaled $281.3 million, an increase of 7 percent from 2014.

• Domestic system-wide RevPAR increased 6.5 percent in 2015 as occupancy and average daily rates increased 160 basis points and 3.7 percent, respectively, from 2014.

• The effective royalty rate in 2015 was 4.30 percent, a 2 basis point increase from 2014.

• Initial and relicensing fees for 2015 totaled $24.7 million, an increase of 27 percent from 2014.

• New franchise contracts executed in 2015 for domestic hotels, totaled 630, an 11 percent increase from 2014.

• Domestic relicensing and contract renewal transactions in 2015 totaled 408 contracts, an increase of 21 percent from 2014.

• During 2015, non-franchising activities, which primarily relate to SkyTouch, and an acquired vacation rental technology business drove $4 million of revenues and a net $19 million operating expense.

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Use of Cash Flows

Dividends

During the fourth quarter of 2015, the company’s board of directors announced a 5% increase in the current quarterly dividend rate per common share to $0.205 per share. During the year ended December 31, 2015, the company paid cash dividends totaling approximately $45 million.

Share Repurchases

The company repurchased 1.3 million shares of common stock under its share repurchase program during 2015, at a total cost of approximately $66 million. The company currently has authorization to purchase up to 1.7 million additional shares under this program.

Hotel Development & Financing

Pursuant to its program to encourage acceleration of the growth of our upscale select-service Cambria hotel & suites brand, the company’s net advances in support of the Cambria brand totaled $61 million during the year ended December 31, 2015. These advances are primarily in the form of joint venture investments, forgivable key money loans, senior and mezzanine lending and site acquisitions. At December 31, 2015, the Company had approximately $129 million outstanding pursuant to these financial support activities. With respect to lending and joint venture investments, the company generally expects to recycle these loans and investments within a five year period.

Discontinued Operations

During 2014, the company entered into and completed a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the sale of these hotels met the definition of a discontinued operation since the operations and cash flows of these components have been eliminated from the on-going operations of the company and the company does not have significant continuing involvement in the operations of the hotels after the transaction. As a result, the company’s consolidated statement of income for the three months and year ended December 31, 2014, reflects these three company-owned hotels as discontinued operations.

Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.

Outlook

The company’s consolidated 2016 outlook reflects the following assumptions:

Hotel Franchising

• EBITDA from franchising activities for full-year 2016 are expected to range between $270 million and $275 million;

• Net domestic unit growth for 2016 is expected to be between 2% and 3%;

• RevPAR is expected to increase approximately 2% for first quarter and range between 3.75% and 4.75% for full-year 2016; and

• The effective royalty rate is expected to increase between 6 and 8 basis points for full-year 2016 as compared to full-year 2015.

Non-Hotel Franchising Activities

• Net reductions in EBITDA relating to our non-hotel franchising operations, which primarily relate to SkyTouch and vacation rental activities, for full-year 2016 are expected to range between approximately $16 million and $19 million.

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Other Items

• The effective tax rate for continuing operations is expected to be approximately 33.5% for the first quarter and full-year 2016; and

• All figures assume no further repurchases of common stock under the company’s share repurchase program.

Consolidated Outlook

The company’s first quarter 2016 diluted EPS is expected to be at least $0.38. The company expects full-year 2016 diluted EPS to range between $2.30 and $2.36 and full year 2016 EBITDA to range between $252 million and $257 million. The EPS and consolidated EBITDA estimates assume that we incur net reductions in EBITDA related to non-hotel franchising activities at the midpoint of the range for these investments.

Conference Call

Choice will conduct a conference call on Thursday, February 18, 2016 at 10:00 a.m. EST to discuss the company’s fourth quarter and full-year 2015 results. The dial-in number to listen to the call is 1-855-638-5678, and the access code is 32610371. International callers should dial 1-920-663-6286 and enter the access code 32610371. The conference call also will be webcast simultaneously via the company’s website, www.choicehotels.com. Interested investors and other parties wishing to access the call via the webcast should go to the website and click on the Investor Info link. The Investor page will feature a conference call microphone icon to access the call.

The call will be recorded and available for replay beginning at 1:00 p.m. EST on Thursday, February 18, 2016 through Thursday, February 25, 2016 by calling 1-855-859-2056 and entering access code 32610371. The international dial-in number for the replay is 1-404-537-3406 and the access code is 32610371. 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.^® (NYSE: CHH) is one of the world’s largest lodging companies. With more than 6,400 hotels franchised in more than 35 countries and territories, we represent more than 500,000 rooms around the globe. As of December 31, 2015, 720 hotels were in our development pipeline. Our company's Ascend Hotel Collection^®, Cambria® hotels & suites, Comfort Inn^®, Comfort Suites^®, Sleep Inn^®, Quality^®, Clarion^®, MainStay Suites^®, Suburban Extended Stay Hotel^®, Econo Lodge^® and Rodeway Inn^® brands provide a spectrum of lodging choices to meet guests’ needs. With more than 25 million members and counting, check out our Choice Privileges® rewards program to see how you can reap the benefits of being a member of the Choice Hotels^® family. Visit us at www.choicehotels.com for more information.

SkyTouch Technology^® is a business division of Choice Hotels that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company.

Forward-Looking Statements

Certain matters discussed in this press release constitute 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,” “should,” “will,” “forecast,” “plan,” “project,” “assume” or similar words of futurity identify such forward-looking statements.  These forward-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 projections of the company’s revenue, earnings and other financial and operational measures, company debt levels, ability to repay outstanding indebtedness, payment of

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dividends, repurchases of common stock 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; foreign currency fluctuations; 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 marketing and reservations systems and other operating systems; or ability to grow our franchise system; exposure to risks related to development activities; fluctuations in the supply and demand for hotels rooms; our ability to realize anticipated benefits from acquired businesses; the level of acceptance of alternative growth strategies we may implement; operating risks associated with our international operations; the outcome of litigation; and our ability to manage our indebtedness.  These and other risk factors are discussed in detail in the company's filings with the Securities and Exchange Commission including our annual reports on Form 10-K 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, EBITDA from franchising activities and franchising margins 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 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 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 income from continuing operations excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, other (gains) and losses and equity in net income 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, Franchising EBITDA, Franchising SG&A and Margins: The company reports franchising revenues, EBITDA, SG&A and margins which exclude marketing and reservation revenues, the SkyTouch Technology division, recently acquired operations that provide SaaS technology solutions to vacation rental management companies and revenue generated from the ownership of an office building that is leased to a third-party. Marketing and reservation activities are excluded since the company is required by its franchise agreements to use the fees collected for marketing and reservation activities; as such, no income or loss to the company is generated. Cumulative marketing and reservation system fees not expended are recorded as a liability in the company’s financial statements and are carried over to the next year and expended in accordance with the

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franchise agreements. Cumulative marketing and reservation expenditures in excess of fees collected for marketing and reservation activities are deferred and recorded as an asset in the company’s financial statements and recovered in future periods. SkyTouch Technology is a division of the company that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company. The operations for SkyTouch Technology and our vacation rental technology solutions provider are excluded 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.

Contacts

David White, Senior Vice President, Chief Financial Officer & Treasurer

(301) 592-5117

Scott Carman, Director, Public Relations

(301) 592-6361

© 2016 Choice Hotels International, Inc. All rights reserved.

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Choice Hotels International, Inc.																		Exhibit 1
Consolidated Statements of Income
(Unaudited)
	Three Months Ended December 31,											Year Ended December 31,
							Variance											Variance
	2015			2014			$			%		2015			2014			$			%
(In thousands, except per share amounts)
REVENUES:
Royalty fees	$	67,965		$	65,237		$	2,728		4	%	$	301,508		$	287,538		$	13,970		5	%
Initial franchise and relicensing fees	6,977			6,720			257			4	%	24,680			19,481			5,199			27	%
Procurement services	7,404			5,526			1,878			34	%	27,071			23,819			3,252			14	%
Marketing and reservation	122,465			103,594			18,871			18	%	488,763			412,619			76,144			18	%
Other	6,140			4,325			1,815			42	%	17,856			14,513			3,343			23	%
Total revenues	210,951			185,402			25,549			14	%	859,878			757,970			101,908			13	%
OPERATING EXPENSES:
Selling, general and administrative	38,542			33,089			5,453			16	%	134,254			121,418			12,836			11	%
Depreciation and amortization	2,749			2,462			287			12	%	11,542			9,365			2,177			23	%
Marketing and reservation	122,465			103,594			18,871			18	%	488,763			412,619			76,144			18	%
Total operating expenses	163,756			139,145			24,611			18	%	634,559			543,402			91,157			17	%
Operating income	47,195			46,257			938			2	%	225,319			214,568			10,751			5	%
OTHER INCOME AND EXPENSES, NET:
Interest expense	10,776			10,110			666			7	%	42,833			41,486			1,347			3	%
Interest income	(598		)	(556		)	(42		)	8	%	(1,580		)	(1,761		)	181			(10	)%
Other (gains) and losses	(581		)	585			(1,166		)	(199	)%	(820		)	427			(1,247		)	(292	)%
Equity in net (income) loss of affiliates	(206		)	80			(286		)	(358	)%	901			658			243			37	%
Total other income and expenses, net	9,391			10,219			(828		)	(8	)%	41,334			40,810			524			1	%
Income from continuing operations before income taxes	37,804			36,038			1,766			5	%	183,985			173,758			10,227			6	%
Income taxes	8,601			10,729			(2,128		)	(20	)%	55,956			52,285			3,671			7	%
Income from continuing operations, net of income taxes	29,203			25,309			3,894			15	%	128,029			121,473			6,556			5	%
Income from discontinued operations, net of income taxes	—			(24		)	24			(100	)%	—			1,687			(1,687		)	(100	)%
Net income	$	29,203		$	25,285		$	3,918		15	%	$	128,029		$	123,160		$	4,869		4	%
Basic earnings per share
Continuing operations	$	0.52		$	0.44		$	0.08		18	%	$	2.24		$	2.08		$	0.16		8	%
Discontinued operations	—			—			—			NM		—			0.03			(0.03		)	(100	)%
	$	0.52		$	0.44		$	0.08		18	%	$	2.24		$	2.11		$	0.13		6	%
Diluted earnings per share
Continuing operations	$	0.51		$	0.43		$	0.08		19	%	$	2.22		$	2.07		$	0.15		7	%
Discontinued operations	—			—			—			NM		—			0.03			(0.03		)	(100	)%
	$	0.51		$	0.43		$	0.08		19	%	$	2.22		$	2.10		$	0.12		6	%

Choice Hotels International, Inc.						Exhibit 2
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)			December 31,			December 31,
			2015			2014(1)
			(Unaudited)
ASSETS
Cash and cash equivalents			$	193,441		$	214,879
Accounts receivable, net			89,352			91,681
Other current assets			28,160			18,869
	Total current assets		310,953			325,429
Fixed assets and intangibles, net			179,433			152,034
Notes receivable, net of allowances			82,572			40,441
Investments, employee benefit plans, at fair value			17,674			17,539
Other assets			126,378			102,474
		Total assets	$	717,010		$	637,917
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable			$	64,431		$	57,124
Accrued expenses and other current liabilities			70,807			64,243
Deferred revenue			71,587			66,382
Current portion of long-term debt			1,191			12,349
	Total current liabilities		208,016			200,098
Long-term debt			812,945			772,729
Deferred compensation & retirement plan obligations			22,859			23,987
Other liabilities			69,089			69,904
	Total liabilities		1,112,909			1,066,718
	Total shareholders' deficit		(395,899		)	(428,801		)
		Total liabilities and shareholders' deficit	$	717,010		$	637,917
(1) The consolidated balance sheet has been recast to reflect the Company's adoption of ASU 2015-03 "Simplifying the Presentation
of Debt Issuance Costs" and ASU 2015-17 "Balance Sheet Classification of Deferred Taxes". As a result, debt issuance costs
have been recast from other assets to long-term debt and current deferred taxes were recast as long-term assets.

Choice Hotels International, Inc.				Exhibit 3
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)	Year Ended December 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	128,029		$	123,160
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization	11,542			9,365
Gain on sale of assets	(1,521		)	(2,809		)
Provision for bad debts, net	1,704			2,775
Non-cash stock compensation and other charges	11,805			9,706
Non-cash interest and other (income) loss	3,229			3,174
Deferred income taxes	615			(22,899		)
Equity (earnings) losses from unconsolidated joint ventures, net of distributions received	3,279			2,200
Changes in assets and liabilities, net of acquisition:
Receivables	401			(14,250		)
Advances to/from marketing and reservation activities, net	11,074			70,179
Forgivable notes receivable, net	(23,066		)	(12,914		)
Accounts payable	6,493			9,636
Accrued expenses and other current liabilities	5,166			6,678
Income taxes payable/receivable	(4,399		)	(3,582		)
Deferred revenue	5,251			5,297
Other assets	(5,792		)	(1,250		)
Other liabilities	6,062			(575		)
NET CASH PROVIDED BY OPERATING ACTIVITIES	159,872			183,891
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment	(27,765		)	(20,946		)
Proceeds from sales of assets	6,347			15,612
Acquisition, net of cash acquired	(13,269		)	—
Issuance of mezzanine and other notes receivable	(36,884		)	(3,340		)
Collections of mezzanine and other notes receivable	4,849			11,289
Contributions to equity method investments	(23,737		)	(17,789		)
Distributions from equity method investments	518			—
Purchases of investments, employee benefit plans	(3,220		)	(2,794		)
Proceeds from sales of investments, employee benefit plans	3,170			964
Other items, net	(9,819		)	(642		)
NET CASH USED BY INVESTING ACTIVITIES	(99,810		)	(17,646		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings pursuant to revolving credit facilities	158,867			—
Principal payments on long-term debt	(130,501		)	(10,108		)
Proceeds from the issuance of long-term debt	176			250
Debt issuance costs	(2,169		)	—
Purchase of treasury stock	(72,873		)	(77,972		)
Dividends paid	(45,214		)	(43,529		)
Excess tax benefits from stock-based compensation	5,207			3,721
Proceeds from exercise of stock options	7,056			10,098
NET CASH USED BY FINANCING ACTIVITIES	(79,451		)	(117,540		)
Net change in cash and cash equivalents	(19,389		)	48,705
Effect of foreign exchange rate changes on cash and cash equivalents	(2,049		)	(1,621		)
Cash and cash equivalents at beginning of period	214,879			167,795
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	193,441		$	214,879

CHOICE HOTELS INTERNATIONAL, INC.																		Exhibit 4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
	For the Year Ended December 31, 2015						For the Year Ended December 31, 2014						Change
	Average Daily						Average Daily						Average Daily
	Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR		Rate		Occupancy				RevPAR
Comfort Inn	$	89.68	65.0	%	$	58.25	$	86.08	63.3	%	$	54.50	4.2	%	170		bps		6.9	%
Comfort Suites	93.89		68.3	%	64.16		90.24		66.5	%	60.01		4.0	%	180		bps		6.9	%
Sleep	80.41		63.9	%	51.41		77.13		62.5	%	48.24		4.3	%	140		bps		6.6	%
Quality	75.06		58.2	%	43.69		71.98		56.1	%	40.39		4.3	%	210		bps		8.2	%
Clarion	79.85		57.2	%	45.63		77.65		54.5	%	42.34		2.8	%	270		bps		7.8	%
Econo Lodge	59.61		53.5	%	31.90		57.85		51.6	%	29.86		3.0	%	190		bps		6.8	%
Rodeway	59.75		56.3	%	33.64		56.68		55.1	%	31.25		5.4	%	120		bps		7.6	%
MainStay	77.02		67.1	%	51.71		74.82		71.4	%	53.40		2.9	%	(430	)	bps		(3.2	)%
Suburban	47.61		75.5	%	35.95		45.25		71.8	%	32.51		5.2	%	370		bps		10.6	%
Ascend Hotel Collection	127.27		58.5	%	74.47		121.49		60.3	%	73.20		4.8	%	(180	)	bps		1.7	%
Total	$	79.86	61.1	%	$	48.78	$	77.03	59.5	%	$	45.80	3.7	%	160		bps		6.5	%
	For the Three Months Ended December 31, 2015						For the Three Months Ended December 31, 2014						Change
	Average Daily						Average Daily						Average Daily
	Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR		Rate		Occupancy				RevPAR
Comfort Inn	$	86.31	59.4	%	$	51.25	$	83.22	58.4	%	$	48.59	3.7	%	100		bps		5.5	%
Comfort Suites	90.85		63.7	%	57.90		87.51		62.4	%	54.65		3.8	%	130		bps		5.9	%
Sleep	77.35		58.7	%	45.41		75.09		59.0	%	44.30		3.0	%	(30	)	bps		2.5	%
Quality	71.82		52.5	%	37.68		68.96		51.3	%	35.37		4.1	%	120		bps		6.5	%
Clarion	76.13		51.8	%	39.43		76.21		50.3	%	38.29		(0.1	)%	150		bps		3.0	%
Econo Lodge	56.79		48.8	%	27.72		55.18		47.7	%	26.33		2.9	%	110		bps		5.3	%
Rodeway	57.00		49.9	%	28.47		54.01		50.9	%	27.47		5.5	%	(100	)	bps		3.6	%
MainStay	73.73		60.1	%	44.30		72.56		67.0	%	48.59		1.6	%	(690	)	bps		(8.8	)%
Suburban	47.15		71.1	%	33.51		45.11		67.5	%	30.45		4.5	%	360		bps		10.0	%
Ascend Hotel Collection	126.92		54.4	%	69.09		124.75		62.2	%	77.56		1.7	%	(780	)	bps		(10.9	)%
Total	$	76.81	55.7	%	$	42.76	$	74.42	55.1	%	$	41.00	3.2	%	60		bps		4.3	%
					For the Three Months Ended						For the Year Ended
					12/31/2015		12/31/2014				12/31/2015		12/31/2014
System-wide effective royalty rate					4.37%		4.28%				4.3%		4.28%

CHOICE HOTELS INTERNATIONAL, INC.											Exhibit 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
	December 31, 2015		December 31, 2014		Variance
	Hotels	Rooms	Hotels	Rooms	Hotels		Rooms		%		%
Comfort Inn	1,156	89,545	1,240	95,862	(84	)	(6,317	)	(6.8	)%	(6.6	)%
Comfort Suites	569	43,949	577	44,632	(8	)	(683	)	(1.4	)%	(1.5	)%
Sleep	377	27,047	371	26,811	6		236		1.6	%	0.9	%
Quality	1,379	110,116	1,284	104,454	95		5,662		7.4	%	5.4	%
Clarion	175	24,449	178	25,049	(3	)	(600	)	(1.7	)%	(2.4	)%
Econo Lodge	856	52,978	856	52,878	—		100		—	%	0.2	%
Rodeway	513	28,880	474	26,172	39		2,708		8.2	%	10.3	%
MainStay	52	3,846	45	3,568	7		278		15.6	%	7.8	%
Suburban	62	6,994	65	7,198	(3	)	(204	)	(4.6	)%	(2.8	)%
Ascend Hotel Collection	112	9,455	109	9,395	3		60		2.8	%	0.6	%
Cambria hotel & suites	25	3,113	22	2,642	3		471		13.6	%	17.8	%
Domestic Franchises	5,276	400,372	5,221	398,661	55		1,711		1.1	%	0.4	%
International Franchises	1,147	107,111	1,158	106,617	(11	)	494		(0.9	)%	0.5	%
Total Franchises	6,423	507,483	6,379	505,278	44		2,205		0.7	%	0.4	%

								Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
	For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			% Change
	New Construction	Conversion	Total	New Construction	Conversion	Total	New Construction	Conversion	Total
Comfort Inn	37	39	76	31	24	55	19%	63%	38%
Comfort Suites	45	6	51	39	1	40	15%	500%	28%
Sleep	34	—	34	36	2	38	(6)%	(100)%	(11)%
Quality	3	193	196	3	166	169	—%	16%	16%
Clarion	—	12	12	1	28	29	(100)%	(57)%	(59)%
Econo Lodge	—	60	60	3	79	82	(100)%	(24)%	(27)%
Rodeway	—	104	104	3	76	79	(100)%	37%	32%
MainStay	27	—	27	20	3	23	35%	(100)%	17%
Suburban	1	6	7	4	5	9	(75)%	20%	(22)%
Ascend Hotel Collection	5	32	37	11	23	34	(55)%	39%	9%
Cambria hotel & suites	21	5	26	8	—	8	163%	NM	225%
Total Domestic System	173	457	630	159	407	566	9%	12%	11%
	For the Three Months Ended  December 31, 2015			For the Three Months Ended December 31, 2014
							% Change
	New Construction	Conversion	Total	New Construction	Conversion	Total	New Construction	Conversion	Total
Comfort Inn	20	11	31	15	13	28	33%	(15)%	11%
Comfort Suites	27	3	30	28	1	29	(4)%	200%	3%
Sleep	15	—	15	15	1	16	—%	(100)%	(6)%
Quality	—	79	79	—	84	84	NM	(6)%	(6)%
Clarion	—	5	5	—	13	13	NM	(62)%	(62)%
Econo Lodge	—	21	21	2	33	35	(100)%	(36)%	(40)%
Rodeway	—	47	47	—	28	28	NM	68%	68%
MainStay	11	—	11	10	2	12	10%	(100)%	(8)%
Suburban	—	2	2	2	2	4	(100)%	—%	(50)%
Ascend Hotel Collection	2	10	12	5	12	17	(60)%	(17)%	(29)%
Cambria hotel & suites	7	3	10	3	—	3	133%	NM	233%
Total Domestic System	82	181	263	80	189	269	3%	(4)%	(2)%

													Exhibit 7
CHOICE HOTELS INTERNATIONAL, INC.
DOMESTIC 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
	December 31, 2015 Units			December 31, 2014 Units			Conversion			New Construction			Total
	Conversion	New Construction	Total	Conversion	New Construction	Total	Units		%	Units		%	Units		%
Comfort Inn	38	83	121	36	64	100	2		6%	19		30%	21		21%
Comfort Suites	3	95	98	—	75	75	3		NM	20		27%	23		31%
Sleep Inn	—	81	81	2	72	74	(2	)	(100)%	9		13%	7		9%
Quality	53	5	58	52	5	57	1		2%	—		—%	1		2%
Clarion	7	2	9	12	2	14	(5	)	(42)%	—		—%	(5	)	(36)%
Econo Lodge	23	4	27	32	5	37	(9	)	(28)%	(1	)	(20)%	(10	)	(27)%
Rodeway	47	2	49	31	4	35	16		52%	(2	)	(50)%	14		40%
MainStay	—	60	60	1	46	47	(1	)	(100)%	14		30%	13		28%
Suburban	5	8	13	4	12	16	1		25%	(4	)	(33)%	(3	)	(19)%
Ascend Hotel Collection	28	19	47	14	20	34	14		100%	(1	)	(5)%	13		38%
Cambria hotel & suites	5	38	43	—	21	21	5		NM	17		81%	22		105%
	209	397	606	184	326	510	25		14%	71		22%	96		19%

CHOICE HOTELS INTERNATIONAL, INC.											Exhibit 8
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS
(dollar amounts in thousands)		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
	Franchising Revenues:
	Total Revenues	$	210,951		$	185,402		$	859,878		$	757,970
	Adjustments:
	Marketing and reservation revenues	(122,465		)	(103,594		)	(488,763		)	(412,619		)
	Non-franchising activities	(1,943		)	(387		)	(4,416		)	(600		)
	Franchising Revenues	$	86,543		$	81,421		$	366,699		$	344,751
	Franchising Margins:
	Operating Margin:
	Total Revenues	$	210,951		$	185,402		$	859,878		$	757,970
	Operating Income	$	47,195		$	46,257		$	225,319		$	214,568
	Operating Margin	22.4		%	24.9		%	26.2		%	28.3		%
	Franchising Margin:
	Franchising Revenues	$	86,543		$	81,421		$	366,699		$	344,751
	Operating Income	$	47,195		$	46,257		$	225,319		$	214,568
	Non-franchising activities operating loss	$	6,722		$	4,271		$	21,529		$	17,065
		$	53,917		$	50,528		$	246,848		$	231,633
	Franchising Margins	62.3		%	62.1		%	67.3		%	67.2		%
CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES
(dollar amounts in thousands)		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
	Total Selling, General and Administrative Expenses	$	38,542		$	33,089		$	134,254		$	121,418
	Non-Franchising Activities	(7,746		)	(4,336		)	(23,376		)	(16,658		)
	Franchising Selling, General and Administration Expenses	$	30,796		$	28,753		$	110,878		$	104,760
CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")
(dollar amounts in thousands)
		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
Income from continuing operations, net of income taxes		$	29,203		$	25,309		$	128,029		$	121,473
	Income taxes	8,601			10,729			55,956			52,285
	Interest expense	10,776			10,110			42,833			41,486
	Interest income	(598		)	(556		)	(1,580		)	(1,761		)
	Other (gains) and losses	(581		)	585			(820		)	427
	Equity in net (income) loss of affiliates	(206		)	80			901			658
	Depreciation and amortization	2,749			2,462			11,542			9,365
EBITDA		$	49,944		$	48,719		$	236,861		$	223,933
Franchising		$	55,747		$	52,668		$	255,821		$	239,991
Non-Franchising activities		(5,803		)	(3,949		)	(18,960		)	(16,058		)
		$	49,944		$	48,719		$	236,861		$	223,933

CHOICE HOTELS INTERNATIONAL, INC.						Exhibit 9
DISCONTINUED OPERATIONS
(UNAUDITED)
	Three Months Ended December 31,				Year Ended December 31,
(In thousands)	2015	2014			2015	2014
REVENUES:
Hotel operations	—	—			—	$	801
Total revenues	—	—			—	801
OPERATING EXPENSES:
Hotel operations	—	43			—	927
Total operating expenses	—	43			—	927
Operating income (loss)	—	(43		)	—	(126		)
Gain (loss) on disposal of discontinued operations	—	4			—	2,807
Income (loss) from discontinued operations before income taxes	—	(39		)	—	2,681
Income tax (benefit)	—	(15		)	—	994
Income (loss) from discontinued operations	—	$	(24	)	—	$	1,687