Choice Hotels International (CHH) 8-K Results of Operations and Financial Condition

Exhibit 99.1

For Immediate Release

CHOICE HOTELS REPORTS SECOND QUARTER 2011 DILUTED EPS OF $0.46,

DOMESTIC RevPAR GROWTH OF 6.6%

SILVER SPRING, MD. (August 1, 2011) – Choice Hotels International, Inc., (NYSE:CHH) today reported the following highlights for second quarter 2011:

• Diluted earnings per share (“EPS”) for second quarter 2011 were $0.46 compared to $0.45 for the same period of the prior year.

• Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $47.3 million for the three months ended June 30, 2011, compared to $45.7 million for the same period of 2010. Operating income increased 3% from $43.6 million for the three months ended June 30, 2010 to $45.1 million for the same period of the current year.

• Franchising revenues increased 7% from $68.4 million for the three months ended June 30, 2010 to $73.4 million for the same period of 2011. Total revenues for the three months ended June 30, 2011 increased 10% to $165.3 million compared to the same period of 2010.

• Worldwide unit growth increased 0.7 percent from June 30, 2010 comprised of domestic and international unit growth of 0.5 percent and 1.6 percent, respectively.

• Domestic system-wide revenue per available room (“RevPAR”) increased 6.6% for the second quarter of 2011 compared to the same period of 2010.

• The effective royalty rate increased 4 basis points to 4.33% for the three months ended June 30, 2011 compared to 4.29% for the same period of the prior year.

• The company executed 69 new domestic hotel franchise contracts for the three months ended June 30, 2011, an increase of 11% compared to the 62 contracts executed in the same period of the prior year.

• The number of domestic hotels under construction, awaiting conversion or approved for development declined 23% from June 30, 2010 to 451 hotels representing 37,892 rooms; the worldwide pipeline declined 19% from June 30, 2010 to 554 hotels representing 46,612 rooms.

“During the second quarter, we continued to see strong gains in RevPAR domestically across every brand in the Choice family thanks to a combination of increases in both occupancy and rate,” said Stephen P. Joyce, president and chief executive officer. “We were also pleased to see a robust increase in domestic franchise development agreements for our conversion brands. In particular, the development community continues to warmly receive our Ascend Collection membership program, with units online increasing more than 35% over

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the past year. We are also excited with the recent addition of the Collection’s largest property, the 431-room Xona Resorts Suites hotel in Scottsdale, Arizona which will further strengthen the portfolio.”

Special Items

During the three and six months ended June 30, 2011, the company recorded employee termination benefits charges of approximately $0.3 million and $0.4 million, respectively. In addition, during the six months ended June 30, 2011, the company reduced the carrying amount of a parcel of land held for sale resulting in a loss of $1.8 million included in other gains and losses. These amounts represented diluted EPS of $0.03 for the six months ended June 30, 2011 but did not have an effect on the reported diluted EPS for the three months ended June 30, 2011.

During the three and six months ended June 30, 2010, the company recorded employee termination benefits charges (reversals) of approximately ($0.1) million and $0.2 million, respectively. These amounts did not have an effect on the reported diluted EPS for the periods reported.

Outlook for 2011

The company’s third quarter 2011 diluted EPS is expected to be $0.59. The company expects full-year 2011 adjusted diluted EPS to be between $1.75 and $1.77. Adjusted EBITDA for full-year 2011 are expected to be between $178 million and $180 million. These estimates include the following assumptions:

• The company expects net domestic unit growth to be relatively flat in 2011;

• RevPAR is expected to increase approximately 5% for the third quarter of 2011 and increase approximately 5% for full-year 2011;

• The effective royalty rate is expected to increase 1 basis points for full-year 2011;

• The growth rate for selling, general and administrative expenses for the second half of 2011 is expected to moderate, from the growth rate in the first half of 2011, to a mid-single digit percentage increase compared to the second half of 2010;

• All figures assume the existing share count and an effective tax rate of 34.5% and 33.5% for the third quarter and full-year 2011, respectively;

• Adjusted EBITDA for the full year 2011 excludes $0.4 million of operating expenses related to employee termination benefits. Adjusted diluted EPS excludes the aforementioned employee termination benefits as well as a $1.8 million loss on land held for sale which together represent approximately $0.03 diluted EPS for full year 2011.

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 six months ended June 30, 2011 the company paid $21.9 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 six months ended June 30, 2011, the company did not purchase shares of its common stock under the share repurchase program but still has authorization to purchase up to an additional 3.6 million shares under this program. 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 June 30, 2011. Considering the effect of a two-for-one stock

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split in October 2005, the company had repurchased 76.2 million shares through June 30, 2011 under the share repurchase program at an average price of $13.35 per share.

Our board of directors 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. 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. 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 Tuesday, August 2, 2011 at 10:00 a.m. EDT to discuss the company’s second quarter 2011 results. The dial-in number to listen to the call is 1-800-599-9816, and the access code is 24713398. International callers should dial 1-617-847-8705 and enter the access code 24713398. 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 1:00 p.m. EDT on Tuesday, August 2, 2011 through Friday, September 2, 2011 by calling 1-888-286-8010 and entering access code 84948188. The international dial-in number for the replay is 1-617-801-6888, access code 84948188. In addition, the call will be archived and available on www.choicehotels.com via the Investor Info link.

About Choice Hotels

Choice Hotels International, Inc. franchises more than 6,100 hotels, representing more than 490,000 rooms, in the United States and more than 30 other countries and territories. As of June 30, 2011, more than 450 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 37,000 rooms, and approximately 100 hotels, representing approximately 8,700 rooms, were under construction, awaiting conversion or approved for development in more than 20 other countries and territories. The company’s Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands 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

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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, 2010, filed with the Securities and Exchange Commission on March 1, 2011. 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 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 six months ended June 30, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the six months ended June 30, 2011. 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.

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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.

© 2011 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 June 30,												Six Months Ended June 30,
							Variance												Variance
	2011			2010			$			%			2011			2010			$			%
(In thousands, except per share amounts)
REVENUES:
Royalty fees	$	62,301		$	57,443		$	4,858			8	%	$	106,541		$	98,464		$	8,077			8	%
Initial franchise and relicensing fees		2,585			2,655			(70	)		(3	%)		5,199			4,567			632			14	%
Procurement services		6,557			6,611			(54	)		(1	%)		9,722			9,856			(134	)		(1	%)
Marketing and reservation		90,832			80,389			10,443			13	%		153,799			139,229			14,570			10	%
Hotel operations		1,073			1,109			(36	)		(3	%)		1,937			1,976			(39	)		(2	%)
Other		1,953			1,641			312			19	%		3,384			3,177			207			7	%
Total revenues		165,301			149,848			15,453			10	%		280,582			257,269			23,313			9	%
OPERATING EXPENSES:
Selling, general and administrative		26,539			22,824			3,715			16	%		50,386			44,640			5,746			13	%
Depreciation and amortization		1,948			2,220			(272	)		(12	%)		3,903			4,392			(489	)		(11	%)
Marketing and reservation		90,832			80,389			10,443			13	%		153,799			139,229			14,570			10	%
Hotel operations		860			808			52			6	%		1,693			1,564			129			8	%
Total operating expenses		120,179			106,241			13,938			13	%		209,781			189,825			19,956			11	%
Operating income		45,122			43,607			1,515			3	%		70,801			67,444			3,357			5	%
OTHER INCOME AND EXPENSES, NET:
Interest expense		3,267			675			2,592			384	%		6,491			1,296			5,195			401	%
Interest income		(221	)		(135	)		(86	)		64	%		(431	)		(195	)		(236	)		121	%
Other (gains) and losses		(38	)		1,238			(1,276	)		(103	%)		1,005			221			784			355	%
Equity in net income of affiliates		—			(195	)		195			(100	%)		(301	)		(548	)		247			(45	%)
Total other income and expenses, net		3,008			1,583			1,425			90	%		6,764			774			5,990			774	%
Income before income taxes		42,114			42,024			90			0	%		64,037			66,670			(2,633	)		(4	%)
Income taxes		14,536			15,013			(477	)		(3	%)		20,729			23,866			(3,137	)		(13	%)
Net income	$	27,578		$	27,011		$	567			2	%	$	43,308		$	42,804		$	504			1	%
Basic earnings per share	$	0.46		$	0.45		$	0.01			2	%	$	0.72		$	0.72		$	—			0	%
Diluted earnings per share	$	0.46		$	0.45		$	0.01			2	%	$	0.72		$	0.72		$	—			0	%

Exhibit 2

Choice Hotels International, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)	June 30,			December 31,
	2011			2010
	(Unaudited)
ASSETS
Cash and cash equivalents	$	90,961		$	91,259
Accounts receivable, net		58,044			47,638
Deferred income taxes		429			429
Other current assets		22,030			24,256
Total current assets		171,464			163,582
Fixed assets and intangibles, net		139,066			142,528
Receivable — marketing and reservation fees		60,475			42,507
Investments, employee benefit plans, at fair value		24,972			23,365
Other assets		45,328			39,740
Total assets	$	441,305		$	411,722
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Accounts payable and accrued expenses	$	83,752		$	88,986
Deferred revenue		60,898			67,322
Deferred compensation & retirement plan obligations		2,693			2,552
Current portion of long-term debt		516			420
Revolving credit facility		—			200
Income taxes payable		17,142			5,778
Total current liabilities		165,001			165,258
Long-term debt		251,981			251,554
Deferred compensation & retirement plan obligations		34,969			35,707
Other liabilities		17,296			17,274
Total liabilities		469,247			469,793
Common stock, $0.01 par value		598			596
Additional paid-in-capital		95,083			92,774
Accumulated other comprehensive loss		(5,768	)		(7,192	)
Treasury stock, at cost		(867,249	)		(872,306	)
Retained earnings		749,394			728,057
Total shareholders’ deficit		(27,942	)		(58,071	)
Total liabilities and shareholders’ deficit	$	441,305		$	411,722

Exhibit 3

Choice Hotels International, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)	Six Months Ended June 30,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	43,308		$	42,804
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,903			4,392
Provision for bad debts		1,340			1,637
Non-cash stock compensation and other charges		7,436			5,297
Non-cash interest and other loss		22			307
Dividends received from equity method investments		159			148
Equity in net income of affiliates		(301	)		(548	)
Changes in assets and liabilities, net of acquisitions:
Receivables		(11,058	)		(10,061	)
Receivable - marketing and reservation fees, net		(11,387	)		(17,996	)
Accounts payable		6,026			9,043
Accrued expenses		(11,004	)		(6,601	)
Income taxes payable/receivable		11,404			11,492
Deferred income taxes		40			(55	)
Deferred revenue		(6,463	)		5,475
Other assets		(750	)		(4,307	)
Other liabilities		(624	)		577
NET CASH PROVIDED BY OPERATING ACTIVITIES		32,051			41,604
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment		(5,110	)		(12,249	)
Equity method investments		(1,600	)		—
Acquisitions, net of cash acquired		—			(466	)
Purchases of investments, employee benefit plans		(1,139	)		(1,204	)
Proceeds from sales of investments, employee benefit plans		347			836
Issuance of notes receivable		(2,651	)		(8,008	)
Collections of notes receivable		13			37
Other items, net		(192	)		(361	)
NET CASH USED IN INVESTING ACTIVITIES		(10,332	)		(21,415	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) pursuant to revolving credit facilities		(200	)		13,400
Repayments of long-term debt		(13	)		—
Proceeds from the issuance of long-term debt		75			—
Purchase of treasury stock		(2,527	)		(9,242	)
Dividends paid		(21,922	)		(21,924	)
Excess tax benefits from stock-based compensation		1,061			12
Debt issuance costs		(2,356	)		—
Proceeds from exercise of stock options		3,132			1,315
NET CASH USED IN FINANCING ACTIVITIES		(22,750	)		(16,439	)
Net change in cash and cash equivalents		(1,031	)		3,750
Effect of foreign exchange rate changes on cash and cash equivalents		733			(694	)
Cash and cash equivalents at beginning of period		91,259			67,870
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	90,961		$	70,926

Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL OPERATING INFORMATION

DOMESTIC HOTEL SYSTEM

(UNAUDITED)

	For the Six Months Ended June 30, 2011*							For the Six Months Ended June 30, 2010*							Change
	Average Daily							Average Daily							Average Daily
	Rate		Occupancy			RevPAR		Rate		Occupancy			RevPAR		Rate			Occupancy			RevPAR
Comfort Inn	$	75.27		51.1	%	$	38.47	$	73.44		49.5	%	$	36.33		2.5	%		160	bps		5.9	%
Comfort Suites		81.82		53.7	%		43.96		81.05		50.5	%		40.92		1.0	%		320	bps		7.4	%
Sleep		67.81		48.7	%		33.03		66.93		47.3	%		31.68		1.3	%		140	bps		4.3	%
Quality		64.47		44.7	%		28.81		64.10		42.6	%		27.31		0.6	%		210	bps		5.5	%
Clarion		70.89		42.4	%		30.07		72.34		39.1	%		28.27		(2.0	%)		330	bps		6.4	%
Econo Lodge		51.60		42.4	%		21.89		51.21		40.7	%		20.87		0.8	%		170	bps		4.9	%
Rodeway		47.78		43.2	%		20.66		47.06		40.7	%		19.14		1.5	%		250	bps		7.9	%
MainStay		64.06		61.8	%		39.57		64.20		59.3	%		38.06		(0.2	%)		250	bps		4.0	%
Suburban		39.82		65.3	%		25.99		38.47		62.4	%		24.01		3.5	%		290	bps		8.2	%
Ascend Collection		106.96		55.3	%		59.19		103.97		50.1	%		52.09		2.9	%		520	bps		13.6	%
Total	$	68.57		48.2	%	$	33.02	$	67.57		46.1	%	$	31.12		1.5	%		210	bps		6.1	%

* Operating statistics represent hotel operations from December through May

	For the Three Months Ended June 30, 2011*							For the Three Months Ended June 30, 2010*							Change
	Average Daily							Average Daily							Average Daily
	Rate		Occupancy			RevPAR		Rate		Occupancy			RevPAR		Rate			Occupancy			RevPAR
Comfort Inn	$	77.54		57.7	%	$	44.73	$	75.22		55.9	%	$	42.04		3.1	%		180	bps		6.4	%
Comfort Suites		83.89		60.3	%		50.55		82.40		56.9	%		46.88		1.8	%		340	bps		7.8	%
Sleep		69.95		55.0	%		38.45		68.54		53.3	%		36.51		2.1	%		170	bps		5.3	%
Quality		66.58		50.4	%		33.58		65.93		48.0	%		31.62		1.0	%		240	bps		6.2	%
Clarion		73.14		47.9	%		35.01		74.37		44.2	%		32.85		(1.7	%)		370	bps		6.6	%
Econo Lodge		53.10		47.4	%		25.14		52.44		45.7	%		23.95		1.3	%		170	bps		5.0	%
Rodeway		49.34		47.7	%		23.55		48.32		44.8	%		21.63		2.1	%		290	bps		8.9	%
MainStay		66.31		69.2	%		45.87		65.04		66.3	%		43.09		2.0	%		290	bps		6.5	%
Suburban		41.13		69.7	%		28.68		39.51		65.8	%		25.98		4.1	%		390	bps		10.4	%
Ascend Collection		113.44		60.4	%		68.50		108.34		57.0	%		61.70		4.7	%		340	bps		11.0	%
Total	$	70.72		54.1	%	$	38.22	$	69.31		51.8	%	$	35.86		2.0	%		230	bps		6.6	%

* Operating statistics represent hotel operations from March through May

	For the Quarter Ended						For the Six Months Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010
System-wide effective royalty rate		4.33	%		4.29	%		4.34	%		4.30	%

Exhibit 5

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA

(UNAUDITED)

	June 30, 2011				June 30, 2010				Variance
	Hotels		Rooms		Hotels		Rooms		Hotels			Rooms			%			%
Comfort Inn		1,416		110,736		1,446		113,677		(30	)		(2,941	)		(2.1	%)		(2.6	%)
Comfort Suites		613		47,441		621		48,200		(8	)		(759	)		(1.3	%)		(1.6	%)
Sleep		394		28,625		392		28,586		2			39			0.5	%		0.1	%
Quality		1,027		89,571		984		88,453		43			1,118			4.4	%		1.3	%
Clarion		193		28,335		175		25,188		18			3,147			10.3	%		12.5	%
Econo Lodge		778		48,197		785		48,543		(7	)		(346	)		(0.9	%)		(0.7	%)
Rodeway		377		20,506		381		21,473		(4	)		(967	)		(1.0	%)		(4.5	%)
MainStay		39		3,007		36		2,798		3			209			8.3	%		7.5	%
Suburban		61		7,255		63		7,608		(2	)		(353	)		(3.2	%)		(4.6	%)
Ascend Collection		44		3,392		32		2,646		12			746			37.5	%		28.2	%
Cambria Suites		19		2,215		21		2,453		(2	)		(238	)		(9.5	%)		(9.7	%)
Domestic Franchises		4,961		389,280		4,936		389,625		25			(345	)		0.5	%		(0.1	%)
International Franchises		1,156		102,086		1,138		100,858		18			1,228			1.6	%		1.2	%
Total Franchises		6,117		491,366		6,074		490,483		43			883			0.7	%		0.2	%

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL INFORMATION BY BRAND

DEVELOPMENT RESULTS — DOMESTIC NEW HOTEL CONTRACTS

(UNAUDITED)

	For the Six Months Ended June 30, 2011						For the Six Months Ended June 30, 2010						% Change
	New Construction		Conversion		Total		New Construction		Conversion		Total		New Construction			Conversion			Total
Comfort Inn		5		18		23		3		13		16		67	%		38	%		44	%
Comfort Suites		1		4		5		8		1		9		(88	%)		300	%		(44	%)
Sleep		3		1		4		2		—		2		50	%		NM			100	%
Quality		—		35		35		1		31		32		(100	%)		13	%		9	%
Clarion		—		8		8		—		6		6		NM			33	%		33	%
Econo Lodge		—		18		18		—		22		22		NM			(18	%)		(18	%)
Rodeway		—		18		18		1		19		20		(100	%)		(5	%)		(10	%)
MainStay		1		3		4		3		—		3		(67	%)		NM			33	%
Suburban		2		1		3		1		—		1		100	%		NM			200	%
Ascend Collection		—		5		5		—		3		3		NM			67	%		67	%
Cambria Suites		2		—		2		3		—		3		(33	%)		NM			(33	%)
Total Domestic System		14		111		125		22		95		117		(36	%)		17	%		7	%
	For the Three Months Ended June 30, 2011						For the Three Months Ended June 30, 2010						% Change
	New Construction		Conversion		Total		New Construction		Conversion		Total		New Construction			Conversion			Total
Comfort Inn		3		11		14		2		5		7		50	%		120	%		100	%
Comfort Suites		1		2		3		6		1		7		(83	%)		100	%		(57	%)
Sleep		1		1		2		—		—		—		NM			NM			NM
Quality		—		11		11		—		20		20		NM			(45	%)		(45	%)
Clarion		—		3		3		—		3		3		NM			0	%		0	%
Econo Lodge		—		12		12		—		12		12		NM			0	%		0	%
Rodeway		—		13		13		—		8		8		NM			63	%		63	%
MainStay		—		3		3		1		—		1		(100	%)		NM			200	%
Suburban		2		1		3		—		—		—		NM			NM			NM
Ascend Collection		—		4		4		—		1		1		NM			300	%		300	%
Cambria Suites		1		—		1		3		—		3		(67	%)		NM			(67	%)
Total Domestic System		8		61		69		12		50		62		(33	%)		22	%		11	%

Exhibit 7

CHOICE HOTELS INTERNATIONAL, INC.

DOMESTIC HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT

(UNAUDITED)

A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.

													Variance
	June 30, 2011 Units						June 30, 2010 Units						Conversion						New Construction						Total
	Conversion		New Construction		Total		Conversion		New Construction		Total		Units			%			Units			%			Units			%
Comfort Inn		27		50		77		33		69		102		(6	)		(18	%)		(19	)		(28	%)		(25	)		(25	%)
Comfort Suites		3		108		111		1		136		137		2			200	%		(28	)		(21	%)		(26	)		(19	%)
Sleep Inn		—		62		62		1		101		102		(1	)		(100	%)		(39	)		(39	%)		(40	)		(39	%)
Quality		25		5		30		41		11		52		(16	)		(39	%)		(6	)		(55	%)		(22	)		(42	%)
Clarion		16		2		18		15		5		20		1			7	%		(3	)		(60	%)		(2	)		(10	%)
Econo Lodge		34		1		35		35		2		37		(1	)		(3	%)		(1	)		(50	%)		(2	)		(5	%)
Rodeway		15		1		16		26		3		29		(11	)		(42	%)		(2	)		(67	%)		(13	)		(45	%)
MainStay		4		37		41		—		39		39		4			NM			(2	)		(5	%)		2			5	%
Suburban		—		22		22		—		26		26		—			NM			(4	)		(15	%)		(4	)		(15	%)
Ascend Collection		5		3		8		3		4		7		2			67	%		(1	)		(25	%)		1			14	%
Cambria Suites		—		31		31		—		35		35		—			NM			(4	)		(11	%)		(4	)		(11	%)
		129		322		451		155		431		586		(26	)		(17	%)		(109	)		(25	%)		(135	)		(23	%)

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 June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Franchising Revenues:
Total Revenues	$	165,301		$	149,848		$	280,582		$	257,269
Adjustments:
Marketing and reservation revenues		(90,832	)		(80,389	)		(153,799	)		(139,229	)
Hotel operations		(1,073	)		(1,109	)		(1,937	)		(1,976	)
Franchising Revenues	$	73,396		$	68,350		$	124,846		$	116,064
Franchising Margins:
Operating Margin:
Total Revenues	$	165,301		$	149,848		$	280,582		$	257,269
Operating Income	$	45,122		$	43,607		$	70,801		$	67,444
Operating Margin		27.3	%		29.1	%		25.2	%		26.2	%
Adjusted Franchising Margin:
Franchising Revenues	$	73,396		$	68,350		$	124,846		$	116,064
Operating Income	$	45,122		$	43,607		$	70,801		$	67,444
Employee termination benefits		347			(119	)		417			233
Hotel operations		(213	)		(301	)		(244	)		(412	)
	$	45,256		$	43,187		$	70,974		$	67,265
Adjusted Franchising Margins		61.7	%		63.2	%		56.8	%		58.0	%
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS
(dollar amounts in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Selling, general and administrative costs	$	26,539		$	22,824		$	50,386		$	44,640
Employee termination benefits		(347	)		119			(417	)		(233	)
Adjusted Selling, General and Administrative Costs	$	26,192		$	22,943		$	49,969		$	44,407
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
(In thousands, except per share amounts)	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net Income	$	27,578		$	27,011		$	43,308		$	42,804
Adjustments:
Employee termination benefits		218			(74	)		262			146
Loss on land held for sale		—			—			1,111			—
Adjusted Net Income	$	27,796		$	26,937		$	44,681		$	42,950
Weighted average shares outstanding-diluted		59,918			59,676			59,854			59,639
Diluted Earnings Per Share	$	0.46		$	0.45		$	0.72		$	0.72
Adjustments:
Employee termination benefits		—			—			0.01			—
Loss on land held for sale		—			—			0.02			—
Adjusted Diluted Earnings Per Share (EPS)	$	0.46		$	0.45		$	0.75		$	0.72

Adjusted EBITDA Reconciliation

(in millions)
	Q2 2011 Actuals		Q2 2010 Actuals			Six Months Ended June 30, 2011 Actuals		Six Months Ended June 30, 2010 Actuals		Full-Year 2011  Outlook
Operating Income (per GAAP)	$	45.1	$	43.6		$	70.8	$	67.4	$	169.1 - $171.1
Employee termination benefits		0.3		(0.1	)		0.4		0.2		0.4
Depreciation and amortization		1.9		2.2			3.9		4.4		8.5
Adjusted Earnings before interest, taxes, depreciation & amortization (non-GAAP)	$	47.3	$	45.7		$	75.1	$	72.0	$	178 -$180