Choice Hotels International 8K Regulation FD Disclosure | CHH 1 Oct 13

Deutsche Bank 2013 Leveraged

Finance Conference

Exhibit 99.1

Investor Presentation

Disclaimer

Certain matters discussed throughout all of this presentation 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, assumption 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

repay

outstanding

indebtedness,

payment

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

the

supply

and

demand

for

hotels rooms; the level of acceptance of alternative growth strategies we may implement; the outcome of litigation;

and our ability to effectively manage our indebtedness. These and other risk factors are discussed in detail in the

Risk Factors section of the company’s Form 10-K for the year ended December 31, 2012, filed with the Securities

and Exchange Commission on February 28, 2013. We undertake no obligation to publicly update or revise any

forward-looking statement, whether as a result of new information, future events or otherwise, except as required by

law.

Investor Presentation

Company overview

Investor Presentation

Choice Hotels overview

Growing US hotel market share

–

9.7% share of branded US hotels (+50 basis points over

trailing 5 years)*

–

largest U.S. hotelier*

Well-known, diversified brands

Global pipeline of 448 hotels

Stable, profitable, long-term growth throughout economic cycles

Cumulative free cash flows of ~$1.5 billion since 1997

–

$2.1 billion returned to shareholders through share

repurchases and quarterly and special cash dividends

Capital “light”

model generates strong after-tax returns on invested

capital

Strong, growing, global hotel franchising

business

Highly attractive business model with strong

financial returns

Chain scale mix -

rooms (Domestic Q2 2013)

Geographic property distribution -

rooms (Q2 2013)

Source: Choice Internal Data as of June 30, 2013

* Based on number of hotels as June 30, 2013 (Smith Travel Research)

Investor Presentation

Diversified global footprint*

Source: Choice internal data

*As of June 30, 2013. The Company includes its Caribbean properties within domestic operating statistics.

Investor Presentation

Portfolio overview

Brand

Number of properties

Number of rooms

Occupancy (%)

Average daily room

rate (ADR)

RevPAR

Upscale

7,521

64.6%

$118.22

$76.36

2,094

Upper

Midscale

1,311

102,882

59.9%

82.49

49.37

587

45,339

62.4%

86.35

53.87

191

27,184

50.5%

74.99

37.86

Midscale

379

27,478

57.7%

73.38

42.31

1,192

99,761

52.3%

69.73

36.43

Extended Stay

3,332

68.4%

70.92

48.52

7,241

70.5%

42.42

29.91

Economy

817

49,608

48.6%

56.29

27.34

427

24,782

51.1%

53.72

27.46

Total / Average

5,118

397,222

56.0%

$74.23

$41.56

International

1,169

104,701

Total

6,287

501,923

Note: Number of properties and rooms are as of June 30, 2013; Operating statistics are for the trailing twelve months ended June 30, 2013.

Source: Company’s public filings, management data

Investor Presentation

Franchise portfolio growth

Worldwide hotels*

Domestic pipeline*

Worldwide unit growth has increased at a CAGR of

2.0% over the last 5 years

Executed a total of 490 new domestic hotel

franchise contracts during the trailing twelve

months ended June 30, 2013, a 30% increase over

the prior year

Current domestic pipeline consists of 365 hotels

representing 29,245 rooms

220 hotels under construction or awaiting

development

145 hotels awaiting conversion

* As of June 30, 2013

Source: Company’s public filings

Investor Presentation

Strategy for Choice’s brands, growth and shareholders

Improve and Grow Brands

–

Increase portfolio profitability of the Comfort brand family

–

Refresh Sleep Inn to improve long-term brand growth potential

–

Invest in and expand emerging brands/segments –

Cambria, Ascend, International

Capture Greater Share of Reservations Via Central Channels

–

Grow Choice Privileges loyalty program –

target 2.0 million new members in 2013

–

Continue to enhance ChoiceHotels.com to increase traffic and conversion

Allocate Free Cash Flows To “Best And Highest”

Use

–

Continue effective long-term capital allocation practices by optimizing balance sheet leverage,

share repurchase and dividend policy

–

Leverage financial capacity/strength to support expansion of emerging brands

–

Evaluate opportunities to enter new segments that leverage core competencies (i.e. Sky Touch)

–

Invest in IT infrastructure to shore up value proposition for international properties

Investor Presentation

Investment highlights

Investor Presentation

Investment highlights

Investor Presentation

Established hotel franchising platform with global

scale

One of the largest hoteliers…

…

with a significant number of rooms in the portfolio

Source:

Various

public

companies’

filings

June

30,

2013,

except

for

Hilton

which

December

31,

2012.

Investor Presentation

Resilient fee-for-service business model with stable

cash flows

($ in millions)

Source: Smith Travel Research, Management data, December 2012

Investor Presentation

Strong, growing loyalty program

Choice Privileges revenue as percent

of domestic gross room revenues*

Source: Management Data, December 31, 2012, Company’s public filings

* 2001-2008 Data Excludes Econo Lodge and Rodeway Inn brands

Comprehensive loyalty rewards program

16.5 million members worldwide –

contribute over ¼

of domestic

gross room revenues

2.4 million new members added in 2012

Delivers incremental business to all Choice

brand hotels

Important selling point for franchise sales

Loyalty program

Investor Presentation

Effective marketing and central reservation system

Consists of the telephone reservation system,

proprietary internet site, mobile phone applications,

global distribution systems and other internet

reservation sites

Central Reservation System (“CRS”) provides a data

link to the Company’s franchised properties and to

airline reservation systems

Offers rooms for sale on the Company’s own internet

site, as well as other travel companies

Expertise and innovation in on-line, targeted interactive

marketing to influence guest hotel stay decisions

Powerful advertising campaigns

Focus on driving guests to Choice central channels

Facilitate “one-stop”

shopping

Reservation agents can match each caller with a

Choice-branded hotel

Approximately $400 million in annual marketing and

reservation spending

Description

Size, scale and distribution

Domestic franchise system

gross room revenue source

Domestic Choice CRS

net room revenue

Source: Company’s public filings as of December 31, 2012, Management data

Investor Presentation

Strong pipeline expected to continue to grow as the

global economy improves

Historical international pipeline

Source: Company’s public filings, Management data as of December 31, 2012

Historical domestic pipeline

Investor Presentation

Asset light franchising model with strong returns on

investment

Capital light model generates strong after-tax returns on invested capital

Virtually 100% of the properties are franchised*

* The Company owns a limited number of hotels that it holds for strategic purposes. Source: Company’s public filings, Management data as of December 31, 2012

Investor Presentation

Strong and growing brand awareness

Source: Percentage of survey respondents. Millward Brown, December 2012.

* Econo Lodge, Rodeway Inn and Suburban Extended Stay measured among economy hotel users.

Investor Presentation

Financial overview

Investor Presentation

Choice’s franchise business model provides stable, growing cash flows, driven

primarily through unit expansion, RevPAR growth and effective royalty rate growth

Recent performance

LTM Revenue

LTM Adjusted EBITDA

Choice has experienced consistent revenue growth

over the past eight quarters

Revenues have increased by 14% since Q2 2011

EBITDA margins have increased by 138 bps since

Q2 2011

Domestic and international unit growth and

improvement in operating performance continues

to drive profitability

($ in millions)

Source: Company’s public filings

Investor Presentation

Historical operating metrics

RevPAR & occupancy

Total worldwide rooms

Source: Company’s public filings

Investor Presentation

Historical financial overview

Revenue*

Adjusted EBITDA

*Excludes marketing and reservation revenues

Source: Company’s public filings

($ in millions)

Investor Presentation

Historical capital expenditure overview

($ in millions)

*Capital expenditures reflect tenant improvements related to the

of its corporate offices in Rockville, MD during 2013.

Source: Company’s public filings

Company leasing extra space for a new technology center in Phoenix, AZ during 2010 and the relocation

Investor Presentation

Credit Metrics

($ in millions)

Captialization

As of

Mult LTM

6/30/2013

Adjusted EBITDA

Total cash and equivalents

$143.8

New revolver

$72.2

0.4x

Term Loan

$142.5

0.7x

Total secured debt

$214.7

1.1x

Senior Notes Due 2020

$250.0

1.2x

Senior Notes Due 2022

$400.0

2.0x

Other debt

$2.2

0.0x

Total debt

$866.9

4.3x

LTM Adjusted EBITDA

$202.5

Interest expense

$42.1

Capital expenditures

$30.2

Credit metrics

Total debt / Adjusted EBITDA

4.3x

Net debt / Adjusted EBITDA

3.6x

Adjusted EBITDA / int. exp.

4.8x

(Adjusted EBITDA -

capex) / int. exp

4.1x

Source: Company’s public filings

Investor Presentation

Questions and answers

Investor Presentation

DISCLAIMER

Adjusted earnings before interest, taxes depreciation and amortization (EBITDA),

return on average invested capital (ROIC), franchising revenues and free cash

flows are non-GAAP financial measurements. These financial measurements are

presented as supplemental disclosures because they are used by management in

reviewing and analyzing the company’s performance. This information should not

considered

alternative

any

measure

performance

promulgated

under accounting principles generally accepted in the United States (GAAP), such

as operating income, total revenues or net cash provided by operating activities.

The calculation of these

non-GAAP measures may be different from the

calculation by other companies and therefore comparability may be limited. The

company has included the following appendix which reconcile these measures to

the comparable GAAP measurement.

Investor Presentation

FRANCHISING REVENUES

Source: Choice Internal Data, December 2012

($ amounts in thousands)

Year Ended

December 31,

2012

2011

2010

2009

2008

2007

2006

2005

Total Revenues

691,509

638,793

596,076

564,178

641,680

615,494

539,903

472,098

Adjustments:

Marketing and Reservation

(384,784)

(349,036)

(329,246)

(305,379)

(336,477)

(316,827)

(273,267)

(237,822)

Product Sales

Hotel Operations

(4,573)

(4,356)

(4,031)

(4,140)

(4,936)

(4,692)

(4,505)

(4,293)

Franchising Revenues

302,152

285,401

262,799

254,659

300,267

293,975

262,131

229,983

Investor Presentation

FRANCHISING REVENUES

(Continued)

Source: Choice Internal Data, December 2012

($ amounts in thousands)

Year Ended

December 31,

2004

2003

2002

2001

2000

1999

1998

Total Revenues

428,208

385,866

365,562

341,428

352,841

324,203

165,474

Adjustments:

Marketing and Reservation

(220,732)

(195,219)

(190,145)

(168,170)

(185,367)

(162,603)

Product Sales

(3,871)

(20,748)

Hotel Operations

(3,729)

(3,565)

(3,331)

(3,215)

(1,249)

(1,098)

Franchising Revenues

203,747

187,082

172,086

170,043

166,225

157,729

143,628

Investor Presentation

RETURN ON INVESTED CAPITAL

(a) Operating income and tax rate for the year ended December 31, 2001 have been adjusted to exclude the effect of a $22.7 million impairment charge related

to the write-off of the company’s investment in Friendly Hotels.

Source: Choice Internal Data, December 2012

Year Ended

December 31,

($ in thousands)

2012

2011

2010

2009

2008

2007

2006

Operating Income (a)

$193.1

$171.9

$160.8

$148.1

$174.6

$185.2

$166.6

Tax Rate(a)

28.7%

30.1%

32.1%

34.8%

36.3%

36.0%

27.4%

After-Tax Operating Income

137.7

120.2

109.2

96.6

111.2

118.5

121.0

+ Depreciation & Amortization

8.2

8.0

8.3

8.2

8.6

9.7

- Maintenance CAPEX

8.2

8.0

8.3

8.2

8.6

9.7

Net Op. Profit After-tax (NOPAT)

$137.7

$120.2

$109.2

$96.6

$111.2

$118.5

$121.0

Total Assets

$510.8

$447.7

$411.7

$340.0

$328.2

$328.4

$303.3

- Current Liabilities

176.1

184.6

165.3

131.8

135.1

147.5

139.8

Invested Capital

$334.7

$263.1

$246.4

$208.2

$193.1

$180.9

$163.5

Return on Average Invested Capital

46.1%

47.2%

48.0%

48.1%

59.5%

68.8%

78.5%

Investor Presentation

RETURN ON INVESTED CAPITAL

(Continued)

(a) Operating income and tax rate for the year ended December 31, 2001 have been adjusted to exclude the effect of a $22.7 million impairment charge related

to the write-off of the company’s investment in Friendly Hotels.

Source: Choice Internal Data, December 2012

Year Ended

December 31,

($ in thousands)

2005

2004

2003

2002

2001

2000

1999

1998

Operating Income (a)

$143.8

$125.0

$113.9

$104.7

$96.3

$92.4

$94.2

$85.2

Tax Rate(a)

33.0%

35.1%

36.1%

36.5%

35.0%

39.0%

39.5%

41.7%

After-Tax Operating Income

96.3

81.1

72.8

66.5

62.6

56.4

57.0

49.7

+ Depreciation & Amortization

9.1

9.9

11.2

11.3

12.5

11.6

7.7

6.7

- Maintenance CAPEX

9.1

9.9

11.2

11.3

12.5

11.6

7.7

6.7

Net Op. Profit After-tax (NOPAT)

$96.3

$81.1

$72.8

$66.5

$62.6

$56.4

$57.0

$49.7

Total Assets

$265.3

$263.4

$267.3

$316.8

$321.2

$484.1

$464.7

$398.2

- Current Liabilities

120.3

102.1

102.2

84.3

71.2

93.8

88.7

64.7

Invested Capital

$145.0

$161.3

$165.1

$232.5

$250.0

$390.3

$375.9

$333.6

Return on Average Invested Capital

62.9%

49.7%

36.7%

27.6%

19.5%

14.7%

16.1%

15.2%

Investor Presentation

FREE CASH FLOWS

Source: Choice Internal Data, June 30, 2013

Year to Date Ended

Year Ended

June 30,

December 31,

($ in thousands)

2013

2012

2011

2010

2009

2008

2007

2006

2005

Net Cash Provided by Operating Activities

28,957

150,122

131,369

143,815

112,216

104,399

145,666

153,680

133,588

Net Cash Provided (Used) by Investing Activities

(20,605)

(47,101)

(20,329)

(31,035)

(3,349)

(20,265)

(21,284)

(17,244)

(24,531)

Free Cash Flows

8,352

103,021

111,040

112,780

108,867

84,134

124,382

136,436

109,057

Investor Presentation

FREE CASH FLOWS

(Continued)

Source: Choice Internal Data, June 30, 2013

Year Ended

December 31,

($ in thousands)

2004

2003

2002

2001

2000

1999

1998

Net Cash Provided by Operating Activities

108,908

115,304

99,018

101,712

53,879

65,040

38,952

Net Cash Provided (Used) by Investing Activities

(14,544)

27,784

(14,683)

87,738

(16,617)

(36,031)

(9,056)

Free Cash Flows

94,364

143,088

84,335

189,450

37,262

29,009

29,896

Investor Presentation

Source: Choice Internal Data, June 30, 2013

ADJUSTED EBITDA

LTM

Year Ended

($ in thousands)

June 30,

December 31,

2013

2012

2011

2010

2009

2008

Operating Income

191,275

193,142

171,863

160,762

148,073

174,596

Adjustments

Acceleration of Management Succession Plan

6,605

Loss on Sublease of Office Space

1,503

Executive Termination Benefits

491

4,444

1,730

4,604

3,537

Curtailment and Settlement of SERP

1,818

1,209

Loan Reserves Related to Impaired Notes Receivable

7,555

Product Sales

Impairment of Friendly investment

Depreciation and Amortization

8,927

8,226

8,024

8,342

8,336

8,184

Adjusted EBITDA

202,511

203,677

184,331

170,834

163,725

200,477

Choice Hotels International (CHH) 8-KRegulation FD Disclosure