Choice Hotels International (CHH) 8-K Choice Hotels Reports Third Quarter 2010 Diluted Eps of

Exhibit 99.1

For Immediate Release

CHOICE HOTELS REPORTS THIRD QUARTER 2010 DILUTED EPS OF

$0.68, DOMESTIC REVPAR GROWTH OF 7.4%

SILVER SPRING, MD. (October 27, 2010) – Choice Hotels International, Inc., (NYSE:CHH) today reported the following highlights for third quarter 2010:

• Adjusted diluted earnings per share (“EPS”) for third quarter 2010 were $0.68 compared to $0.56 for the same period of the prior year. Diluted EPS were $0.68 for third quarter 2010 compared to $0.55 for third quarter 2009. Adjusted diluted EPS for third quarter 2009 exclude certain special items, as described below, totaling $0.01.

• Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $57.3 million for the three months ended September 30, 2010, compared to $51.7 million for the same period of 2009. Operating income for the three months ended September 30, 2010 and 2009 was $54.9 million and $48.1 million, respectively.

• Franchising revenues increased 7% from $74.6 million for the three months ended September 30, 2009 to $79.9 million for the same period of 2010. Total revenues for the three months ended September 30, 2010 increased 11% compared to the same period of 2009.

• Domestic unit and room growth increased 1.2% and 0.7%, respectively, from September 30, 2009.

• Domestic system-wide revenue per available room (“RevPAR”) increased 7.4% for the third quarter of 2010 compared to the same period of 2009 primarily as a result of occupancy rates increasing 420 basis points.

• The effective royalty rate increased 7 basis points to 4.30% for the three months ended September 30, 2010 compared to 4.23% for the same period of the prior year.

• The company executed 79 new domestic hotel franchise contracts for both the three months ended September 30, 2010 and 2009.

• The number of domestic hotels under construction, awaiting conversion or approved for development declined 27% from September 30, 2009 to 545 hotels representing 44,627 rooms; the worldwide pipeline declined 26% from September 30, 2009 to 638 hotels representing 52,723 rooms.

• On August 25, 2010, the company completed and issued unsecured senior notes in an aggregate principal amount of $250 million, in an underwritten, registered public offering. The notes will mature in August 2020 and bear a coupon rate of interest of 5.7%. Considering bond issuance and related interest rate hedging costs, the company’s effective interest cost is approximately 6.2%. The proceeds from these senior notes were utilized to repay other outstanding indebtedness under the company’s unsecured revolving credit facility.

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• The effective income tax rate for the three months ended September 30, 2010 was 26.4% compared to 35.0% for the same period of the prior year. Excluding discrete items, totaling $3.8 million (approximately $0.06 diluted earnings per share), recorded during the three months ended September 30, 2010, the company’s effective income tax rate was approximately 34.7%.

“During the third quarter, we were pleased to see strong gains in RevPAR domestically across every brand in the Choice family, enabling us to post positive year-to-date domestic RevPAR performance,” said Stephen P. Joyce, president and chief executive officer. “While the hotel transaction environment and lack of access to financing continues to impact our franchise sales results, our recently launched incentive program for the Quality, Clarion, and Econo Lodge brands has been well-received by developers. With our roster of strong, well-known brands and proven ability to deliver reservations to our franchisees’ hotels, we are well-positioned for growth as the hotel development environment improves.”

Special Items

During the three and nine months ended September 30, 2010, the company recorded employee termination benefits charges of approximately $0.3 million and $0.5 million, respectively. These special items did not have an impact on diluted EPS for the three and nine months ended September 30, 2010.

During the three and nine months ended September 30, 2009, the company recorded employee termination benefits of approximately $1.5 million and $2.3 million, respectively. During the nine months ended September 30, 2009, the company also recorded a $1.5 million charge related to the sublease of a portion of its office space. These special items represent diluted EPS of $0.01 and $0.03 for the three and nine months ended September 30, 2009.

Outlook for 2010

The company’s fourth quarter 2010 adjusted diluted EPS is expected to be $0.38. The company expects full-year 2010 adjusted diluted EPS to be between $1.77 and $1.79. Adjusted EBITDA for full-year 2010 are expected to be between $168.5 million and $170.5 million. These estimates include the following assumptions:

• The company expects net domestic unit growth of approximately 1% in 2010;

• RevPAR is expected to increase approximately 7% to 8% for fourth quarter of 2010 and increase approximately 2% for full-year 2010;

• The effective royalty rate is expected to increase 6 basis points for full-year 2010;

• All figures assume the existing share count and an effective tax rate of 34.7% for the fourth quarter and 32.3% for full-year 2010.

• Adjusted EBITDA and adjusted diluted EPS for the fourth quarter and full year 2010 exclude $1.0 million and $1.5 million, respectively of operating expenses related to employee termination benefits which represent approximately $0.01 diluted EPS for both periods.

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Use of Free Cash Flow

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

For the nine months ended September 30, 2010 the company paid $32.9 million of cash dividends to shareholders. The current quarterly dividend rate per common share is $0.185, subject to declaration by our board of directors.

During the nine months ended September 30, 2010, the company purchased approximately 0.3 million shares of its common stock at an average price of $32.36 for a total cost of $8.7 million under the share repurchase program and has authorization to purchase up to an additional 3.6 million shares under this program. During the three months ended September 30, 2010 the Company purchased approximately 0.1 million shares of its common stock for a total cost of $1.9 million at an average price of $34.85. We expect to continue making repurchases 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 43.2 million shares of its common stock for a total cost of $1 billion through September 30, 2010. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 76.2 million shares through September 30, 2010 under the share repurchase program at an average price of $13.35 per share.

Our Board previously authorized us to enter into programs which permit 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 top markets. Recent market conditions have resulted in an increase in opportunities to incent development under these programs. As a result, during the nine months ended September 30, 2010, the Company has advanced approximately $18.9 million pursuant to these programs (of which $5 million has been repaid to the Company).

Over the next several years, we expect to continue to opportunistically deploy capital pursuant to these programs to promote growth of our emerging brands. The amount and timing of the investment in these programs will be dependent on market and other conditions. Our current expectation is that our annual investment in these programs will range between $20 million to $40 million. Notwithstanding these programs, 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.

Conference Call

Choice will conduct a conference call on Thursday, October 28, 2010 at 10:15 a.m. EDT to discuss the company’s third quarter 2010 results. The dial-in number to listen to the call is 1-866-314-5232, and the access code is 99130444. International callers should dial 1-617-213-8052 and enter the access code 99130444. 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 1:15 p.m. EDT on October 28, 2010 through November 28, 2010 by calling 1-888-286-8010 and entering access code 42827909. The international dial-in number for the replay is 617-801-6888, access code 42827909. In addition, the call will be archived and available on www.choicehotels.com via the Investor Info link.

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About Choice Hotels

Choice Hotels International, Inc. franchises more than 6,000 hotels, representing more than 490,000 rooms, in the United States and more than 35 other countries and territories. As of September 30, 2010, more than 540 hotels are under construction, awaiting conversion or approved for development in the United States, representing more than 44,000 rooms, and approximately 90 hotels, representing approximately 8,000 rooms, are under construction, awaiting conversion or approved for development in 20 other countries and territories. The company’s Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands serve guests worldwide. In addition, via its Ascend Collection membership program, travelers in the United States, Canada and the Caribbean have upscale lodging options at historic, boutique and unique hotels.

Additional corporate information may 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 release constitute forward-looking statements within the meaning of the federal securities law. Generally, our use of words such as “expect,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “plan”,” project,” “assume” or similar words of futurity identify statements that are forward-looking and that we intend to be included within the Safe Harbor protections provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such 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, payment of stock 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; and our 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, 2009, filed with the Securities and Exchange Commission on March 1, 2010. 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

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

Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects earnings excluding the impact of interest expense, tax expense, depreciation and amortization. Our management considers EBITDA to

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be an indicator of operating performance because it can be used to measure our ability to service debt, fund capital expenditures, and expand our business. EBITDA is a commonly used measure of performance in our industry. In addition, it is used by analysts, lenders, investors and others, as well as by us, to facilitate comparisons between the company and its competitors because it excludes certain items that can vary widely across different industries or among companies within the same industry.

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

Adjusted Diluted EPS, Adjusted EBITDA, Adjusted SG&A and Adjusted Franchising Margins: The company’s management also uses adjusted diluted EPS, adjusted EBITDA, adjusted SG&A and adjusted franchising margins which exclude employee termination benefits for the three and nine months September 30, 2010 and 2009 as well as a loss on the sublease of a portion of the Company’s office space during the nine months ended September 30, 2009. The company utilizes these non-GAAP measures to enable investors to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of on-going operations.

Contacts

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

(301) 592-5117

David Peikin, Senior Director, Corporate Communications

(301) 592-6361

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 and Ascend Collection are proprietary trademarks and service marks of Choice Hotels International.

^© 2010 Choice Hotels International, Inc. All rights reserved.

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Exhibit 1

Choice Hotels International, Inc.

Consolidated Statements of Income

(Unaudited)

	Three Months Ended September 30,								Nine Months Ended September 30,
					Variance								Variance
	2010		2009		$		%		2010		2009		$		%
(In thousands, except per share amounts)
REVENUES:
Royalty fees	$	72,565	$	66,401	$	6,164		9%	$	171,029	$	164,771	$	6,258		4%
Initial franchise and relicensing fees		1,970		2,957		(987)		(33%)		6,537		9,599		(3,062)		(32%)
Procurement services		3,756		3,922		(166)		(4%)		13,612		14,084		(472)		(3%)
Marketing and reservation		102,867		90,465		12,402		14%		242,096		227,803		14,293		6%
Hotel operations		1,068		934		134		14%		3,044		3,231		(187)		(6%)
Other		1,575		1,297		278		21%		4,752		3,989		763		19%
Total revenues		183,801		165,976		17,825		11%		441,070		423,477		17,593		4%
OPERATING EXPENSES:
Selling, general and administrative		23,156		24,517		(1,361)		(6%)		67,796		73,054		(5,258)		(7%)
Depreciation and amortization		2,078		2,105		(27)		(1%)		6,470		6,252		218		3%
Marketing and reservation		102,867		90,465		12,402		14%		242,096		227,803		14,293		6%
Hotel operations		823		764		59		8%		2,387		2,378		9		0%
Total operating expenses		128,924		117,851		11,073		9%		318,749		309,487		9,262		3%
Operating income		54,877		48,125		6,752		14%		122,321		113,990		8,331		7%
OTHER INCOME AND EXPENSES:
Interest expense		1,864		926		938		101%		3,160		3,731		(571)		(15%)
Interest and other investment income		(1,671)		(2,961)		1,290		(44%)		(1,645)		(5,302)		3,657		(69%)
Equity in net income of affiliates		(342)		(336)		(6)		2%		(890)		(779)		(111)		14%
Total other income and expenses, net		(149)		(2,371)		2,222		(94%)		625		(2,350)		2,975		(127%)
Income before income taxes		55,026		50,496		4,530		9%		121,696		116,340		5,356		5%
Income taxes		14,532		17,688		(3,156)		(18%)		38,398		41,721		(3,323)		(8%)
Net income	$	40,494	$	32,808	$	7,686		23%	$	83,298	$	74,619	$	8,679		12%
Basic earnings per share	$	0.68	$	0.55	$	0.13		24%	$	1.40	$	1.24	$	0.16		13%
Diluted earnings per share	$	0.68	$	0.55	$	0.13		24%	$	1.40	$	1.24	$	0.16		13%

Exhibit 2

Choice Hotels International, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)	September 30, 2010			December 31, 2009
	(Unaudited)
ASSETS
Cash and cash equivalents	$	79,548		$	67,870
Accounts receivable, net		53,682			41,898
Deferred income taxes		7,980			7,980
Other current assets		23,980			10,114
Total current assets		165,190			127,862
Fixed assets and intangibles, net		140,657			133,999
Receivable — marketing and reservation fees		46,127			33,872
Investments, employee benefit plans, at fair value		22,370			20,931
Other assets		28,963			23,373
Total assets	$	403,307		$	340,037
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Accounts payable and accrued expenses	$	76,240		$	70,933
Deferred revenue		71,296			51,765
Revolving credit facility		6,600			—
Deferred compensation & retirement plan obligations		2,510			2,798
Current portion of long-term debt		294			—
Income taxes payable		19,775			6,310
Total current liabilities		176,715			131,806
Long-term debt		251,613			277,700
Deferred compensation & retirement plan obligations		34,579			34,956
Other liabilities		15,894			9,787
Total liabilities		478,801			454,249
Common stock, $0.01 par value		596			595
Additional paid-in-capital		89,611			90,731
Accumulated other comprehensive income (loss)		(7,545	)		333
Treasury stock, at cost		(872,999	)		(870,302	)
Retained earnings		714,843			664,431
Total shareholders’ deficit		(75,494	)		(114,212	)
Total liabilities and shareholders’ deficit	$	403,307		$	340,037

Exhibit 3

Choice Hotels International, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)	Nine Months Ended September 30,
	2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	83,298		$	74,619
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,470			6,252
Provision for bad debts		2,421			1,643
Non-cash stock compensation and other charges		6,969			8,796
Non-cash interest and other income		(987	)		(4,953	)
Dividends received from equity method investments		618			819
Equity in net income of affiliates		(890	)		(779	)
Changes in assets and liabilities, net of acquisitions:
Receivables		(14,511	)		(9,409	)
Receivable - marketing and reservation fees, net		(2,594	)		(13,742	)
Accounts payable		6,274			(2,061	)
Accrued expenses		(1,210	)		(5,754	)
Income taxes payable/receivable		11,940			22,314
Deferred income taxes		(2,704	)		—
Deferred revenue		19,443			5,349
Other assets		(11,755	)		2,087
Other liabilities		5,457			(5,215	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		108,239			79,966
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment		(17,673	)		(7,539	)
Acquisitions, net of cash acquired		(466	)		—
Issuance of notes receivable		(8,901	)		(1,731	)
Collections of notes receivable		5,055			190
Purchases of investments, employee benefit plans		(1,396	)		(3,239	)
Proceeds from sales of investments, employee benefit plans		1,018			13,839
Other items, net		(296	)		(447	)
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES		(22,659	)		1,073
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of long-term debt		247,733			—
Net borrowings (repayments) pursuant to revolving credit facility		(271,100	)		7,900
Principal payments on long-term debt		(20	)		—
Settlement of forward starting interest rate swap agreement		(8,663	)		—
Debt issuance costs		(804	)		—
Purchase of treasury stock		(11,171	)		(57,042	)
Excess tax benefits from stock-based compensation		331			4,374
Dividends paid		(32,884	)		(33,335	)
Proceeds from exercise of stock options		1,321			6,744
NET CASH USED IN FINANCING ACTIVITIES		(75,257	)		(71,359	)
Net change in cash and cash equivalents		10,323			9,680
Effect of foreign exchange rate changes on cash and cash equivalents		1,355			1,285
Cash and cash equivalents at beginning of period		67,870			52,680
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	79,548		$	63,645

Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL OPERATING INFORMATION

DOMESTIC HOTEL SYSTEM

(UNAUDITED)

	For the Nine Months Ended September 30, 2010*						For the Nine Months Ended September 30, 2009*						Change
	Average Daily						Average Daily						Average Daily
	Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR
Comfort Inn	$	77.16		55.4%	$	42.72	$	77.48		54.7%	$	42.36		(0.4%)		70 bps		0.8%
Comfort Suites		82.92		55.1%		45.72		85.72		54.2%		46.50		(3.3%)		90 bps		(1.7%)
Sleep		68.94		51.8%		35.69		70.16		52.5%		36.80		(1.7%)		(70) bps		(3.0%)
Midscale without Food & Beverage		77.47		54.8%		42.42		78.41		54.2%		42.53		(1.2%)		60 bps		(0.3%)
Quality		67.30		48.0%		32.31		68.73		46.9%		32.20		(2.1%)		110 bps		0.3%
Clarion		75.54		43.3%		32.73		77.95		43.0%		33.55		(3.1%)		30 bps		(2.4%)
Midscale with Food & Beverage		68.98		47.0%		32.40		70.54		46.1%		32.48		(2.2%)		90 bps		(0.2%)
Econo Lodge		54.26		45.7%		24.81		54.96		43.9%		24.15		(1.3%)		180 bps		2.7%
Rodeway		51.42		46.0%		23.64		53.24		43.9%		23.35		(3.4%)		210 bps		1.2%
Economy		53.39		45.8%		24.45		54.46		43.9%		23.92		(2.0%)		190 bps		2.2%
MainStay		66.03		63.8%		42.09		71.68		58.1%		41.65		(7.9%)		570 bps		1.1%
Suburban		39.24		64.2%		25.20		42.37		56.0%		23.72		(7.4%)		820 bps		6.2%
Extended Stay		46.76		64.1%		29.97		50.76		56.6%		28.71		(7.9%)		750 bps		4.4%
Total	$	70.36		51.2%	$	36.02	$	71.59		50.1%	$	35.85		(1.7%)		110 bps		0.5%

* Operating statistics represent hotel operations from December through August

	For the Three Months Ended September 30, 2010*						For the Three Months Ended September 30, 2009*						Change
	Average Daily						Average Daily						Average Daily
	Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR
Comfort Inn	$	82.46		66.7%	$	54.99	$	81.35		62.7%	$	51.04		1.4%		400 bps		7.7%
Comfort Suites		85.78		64.2%		55.03		86.67		60.0%		52.02		(1.0%)		420 bps		5.8%
Sleep		72.03		60.4%		43.52		72.14		57.9%		41.74		(0.2%)		250 bps		4.3%
Midscale without Food & Beverage		81.84		65.1%		53.28		81.32		61.4%		49.89		0.6%		370 bps		6.8%
Quality		71.76		58.3%		41.84		72.71		53.7%		39.02		(1.3%)		460 bps		7.2%
Clarion		80.18		51.5%		41.27		81.07		47.8%		38.75		(1.1%)		370 bps		6.5%
Midscale with Food & Beverage		73.44		56.8%		41.72		74.33		52.4%		38.97		(1.2%)		440 bps		7.1%
Econo Lodge		58.62		55.4%		32.47		58.54		51.2%		29.94		0.1%		420 bps		8.5%
Rodeway		57.40		56.0%		32.15		57.37		51.1%		29.30		0.1%		490 bps		9.7%
Economy		58.24		55.6%		32.37		58.19		51.1%		29.75		0.1%		450 bps		8.8%
MainStay		68.96		72.5%		49.98		73.01		63.6%		46.44		(5.5%)		890 bps		7.6%
Suburban		40.61		67.8%		27.52		41.68		60.1%		25.06		(2.6%)		770 bps		9.8%
Extended Stay		49.01		69.1%		33.87		50.88		61.1%		31.10		(3.7%)		800 bps		8.9%
Total	$	74.79		61.1%	$	45.71	$	74.77		56.9%	$	42.56		0.0%		420 bps		7.4%

* Operating statistics represent hotel operations from June through August

	For the Quarter Ended				For the Nine Months Ended
	9/30/2010		9/30/2009		9/30/2010		9/30/2009
System-wide effective royalty rate		4.30%		4.23%		4.32%		4.25%

Exhibit 5

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA

(UNAUDITED)

	September 30, 2010				September 30, 2009				Variance
	Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		%		%
Comfort Inn		1,450		113,952		1,457		114,377		(7)		(425)		(0.5%)		(0.4%)
Comfort Suites		624		48,411		601		46,853		23		1,558		3.8%		3.3%
Sleep		394		28,714		389		28,459		5		255		1.3%		0.9%
Midscale without Food & Beverage		2,468		191,077		2,447		189,689		21		1,388		0.9%		0.7%
Quality		990		88,831		963		88,129		27		702		2.8%		0.8%
Clarion		176		25,208		167		24,063		9		1,145		5.4%		4.8%
Midscale with Food & Beverage		1,166		114,039		1,130		112,192		36		1,847		3.2%		1.6%
Econo Lodge		774		48,022		795		49,504		(21)		(1,482)		(2.6%)		(3.0%)
Rodeway		387		21,522		374		21,834		13		(312)		3.5%		(1.4%)
Economy		1,161		69,544		1,169		71,338		(8)		(1,794)		(0.7%)		(2.5%)
MainStay		37		2,868		37		2,866		—		2		0.0%		0.1%
Suburban		63		7,608		63		7,531		—		77		0.0%		1.0%
Extended Stay		100		10,476		100		10,397		—		79		0.0%		0.8%
Ascend Collection		34		2,821		26		1,941		8		880		30.8%		45.3%
Cambria Suites		22		2,558		18		2,073		4		485		22.2%		23.4%
Domestic Franchises		4,951		390,515		4,890		387,630		61		2,885		1.2%		0.7%
International Franchises		1,140		101,637		1,116		99,582		24		2,055		2.2%		2.1%
Total Franchises		6,091		492,152		6,006		487,212		85		4,940		1.4%		1.0%

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL INFORMATION BY BRAND

DEVELOPMENT RESULTS — DOMESTIC NEW HOTEL CONTRACTS

(UNAUDITED)

	For the Nine Months Ended September 30, 2010						For the Nine Months Ended September 30, 2009						% Change
	New						New						New
	Construction		Conversion		Total		Construction		Conversion		Total		Construction		Conversion		Total
Comfort Inn		4		22		26		4		22		26		0%		0%		0%
Comfort Suites		13		1		14		9		1		10		44%		0%		40%
Sleep		3		—		3		11		2		13		(73%)		(100%)		(77%)
Midscale without Food & Beverage		20		23		43		24		25		49		(17%)		(8%)		(12%)
Quality		1		54		55		3		87		90		(67%)		(38%)		(39%)
Clarion		—		17		17		1		23		24		(100%)		(26%)		(29%)
Midscale with Food & Beverage		1		71		72		4		110		114		(75%)		(35%)		(37%)
Econo Lodge		—		38		38		—		45		45		NM		(16%)		(16%)
Rodeway		1		26		27		1		36		37		0%		(28%)		(27%)
Economy		1		64		65		1		81		82		0%		(21%)		(21%)
MainStay		4		—		4		1		1		2		300%		(100%)		100%
Suburban		1		—		1		2		—		2		(50%)		NM		(50%)
Extended Stay		5		—		5		3		1		4		67%		(100%)		25%
Ascend Collection		1		5		6		1		5		6		0%		0%		0%
Cambria Suites		5		—		5		2		—		2		150%		NM		150%
Total Domestic System		33		163		196		35		222		257		(6%)		(27%)		(24%)
	For the Three Months Ended September 30, 2010						For the Three Months Ended September 30, 2009						% Change
	New Construction		Conversion		Total		New Construction		Conversion		Total		New Construction		Conversion		Total
Comfort Inn		1		9		10		3		7		10		(67%)		29%		0%
Comfort Suites		5		—		5		3		—		3		67%		NM		67%
Sleep		1		—		1		4		—		4		(75%)		NM		(75%)
Midscale without Food & Beverage		7		9		16		10		7		17		(30%)		29%		(6%)
Quality		—		23		23		1		23		24		(100%)		0%		(4%)
Clarion		—		11		11		1		9		10		(100%)		22%		10%
Midscale with Food & Beverage		—		34		34		2		32		34		(100%)		6%		0%
Econo Lodge		—		16		16		—		16		16		NM		0%		0%
Rodeway		—		7		7		—		8		8		NM		(13%)		(13%)
Economy		—		23		23		—		24		24		NM		(4%)		(4%)
MainStay		1		—		1		—		—		—		NM		NM		NM
Suburban		—		—		—		—		—		—		NM		NM		NM
Extended Stay		1		—		1		—		—		—		NM		NM		NM
Ascend Collection		1		2		3		1		3		4		0%		(33%)		(25%)
Cambria Suites		2		—		2		—		—		—		NM		NM		NM
Total Domestic System		11		68		79		13		66		79		(15%)		3%		0%

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, 2010 Units						September 30, 2009 Units						Conversion				New Construction				Total
	Conversion		New Construction		Total		Conversion		New Construction		Total		Units		%		Units		%		Units		%
Comfort Inn		35		64		99		37		97		134		(2)		(5%)		(33)		(34%)		(35)		(26%)
Comfort Suites		1		126		127		—		194		194		1		NM		(68)		(35%)		(67)		(35%)
Sleep Inn		1		81		82		1		129		130		—		0%		(48)		(37%)		(48)		(37%)
Midscale without Food & Beverage		37		271		308		38		420		458		(1)		(3%)		(149)		(35%)		(150)		(33%)
Quality		38		9		47		49		16		65		(11)		(22%)		(7)		(44%)		(18)		(28%)
Clarion		20		4		24		23		6		29		(3)		(13%)		(2)		(33%)		(5)		(17%)
Midscale with Food & Beverage		58		13		71		72		22		94		(14)		(19%)		(9)		(41%)		(23)		(24%)
Econo Lodge		37		2		39		40		4		44		(3)		(8%)		(2)		(50%)		(5)		(11%)
Rodeway		16		2		18		35		2		37		(19)		(54%)		—		0%		(19)		(51%)
Economy		53		4		57		75		6		81		(22)		(29%)		(2)		(33%)		(24)		(30%)
MainStay		—		40		40		—		34		34		—		NM		6		18%		6		18%
Suburban		—		26		26		—		31		31		—		NM		(5)		(16%)		(5)		(16%)
Extended Stay		—		66		66		—		65		65		—		NM		1		2%		1		2%
Ascend Collection		3		5		8		1		2		3		2		200%		3		150%		5		167%
Cambria Suites		—		35		35		—		43		43		—		NM		(8)		(19%)		(8)		(19%)
		151		394		545		186		558		744		(35)		(19%)		(164)		(29%)		(199)		(27%)

Exhibit 8

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

(UNAUDITED)

CALCULATION OF FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS

(dollar amounts in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Franchising Revenues:
Total Revenues	$	183,801	$	165,976	$	441,070	$	423,477
Adjustments:
Marketing and reservation revenues		(102,867)		(90,465)		(242,096)		(227,803)
Hotel operations		(1,068)		(934)		(3,044)		(3,231)
Franchising Revenues	$	79,866	$	74,577	$	195,930	$	192,443
Franchising Margins:
Operating Margin:
Total Revenues	$	183,801	$	165,976	$	441,070	$	423,477
Operating Income	$	54,877	$	48,125	$	122,321	$	113,990
Operating Margin		29.9%		29.0%		27.7%		26.9%
Adjusted Franchising Margin:
Franchising Revenues	$	79,866	$	74,577	$	195,930	$	192,443
Operating Income	$	54,877	$	48,125	$	122,321	$	113,990
Employee termination benefits		263		1,496		497		2,270
Loss on sublease of office space		—		—		—		1,503
Hotel operations		(245)		(170)		(657)		(853)
	$	54,895	$	49,451	$	122,161	$	116,910
Adjusted Franchising Margins		68.7%		66.3%		62.3%		60.8%
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS
(dollar amounts in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Selling, general and administrative costs	$	23,156	$	24,517	$	67,796	$	73,054
Employee termination benefits		(263)		(1,496)		(497)		(2,270)
Loss on sublease of office space		—		—		—		(1,503)
Adjusted Selling, General and Administrative Costs	$	22,893	$	23,021	$	67,299	$	69,281
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
(In thousands, except per share amounts)	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Net Income	$	40,494	$	32,808	$	83,298	$	74,619
Adjustments:
Employee termination benefits		165		936		311		1,421
Loss on sublease of office space		—		—		—		941
Adjusted Net Income	$	40,659	$	33,744	$	83,609	$	76,981
Weighted average shares outstanding-diluted		59,658		59,818		59,646		60,412
Diluted Earnings Per Share	$	0.68	$	0.55	$	1.40	$	1.24
Adjustments:
Employee termination benefits		—		0.01		—		0.02
Loss on sublease of office space		—		—		—		0.01
Adjusted Diluted Earnings Per Share (EPS)	$	0.68	$	0.56	$	1.40	$	1.27

Adjusted EBITDA Reconciliation

(in millions)	Q3 2010 Actuals		Q3 2009 Actuals		Nine Months Ended September 30, 2010 Actuals		Nine Months Ended September 30, 2009 Actuals		Full-Year 2010 Outlook
Operating Income (per GAAP)	$	54.9	$	48.1	$	122.3	$	114.0	$	158.5 - $160.5
Employee termination benefits		0.3		1.5		0.5		2.3		1.5
Loss on sublease of office space		—		—		—		1.5		—
Depreciation and amortization		2.1		2.1		6.5		6.3		8.5
Adjusted Earnings before interest, taxes, depreciation & amortization (non-GAAP)	$	57.3	$	51.7	$	129.3	$	124.1	$	168.5 - $170.5