Press Releases

Choice Hotels Reports Full Year 2006 Diluted EPS of $1.68, Adjusted Diluted EPS of $1.49 Up 18 Percent
New Domestic Hotel Franchise Contracts Up 13% to a Record 720 For Full-Year 2006; 30 Contracts Executed for New Cambria Suites Brand in 2006
PRNewswire-FirstCall
SILVER SPRING, Md.

Choice Hotels International, Inc., today reported the following highlights for the fourth quarter and full-year 2006:

  -- Diluted earnings per share ("EPS") for full-year 2006 were $1.68, up
     27% compared to $1.32 for full-year 2005; Diluted EPS for fourth
     quarter 2006 were $0.37, a 16% increase compared to $0.32 for the same
     period in 2005.

  -- Adjusted diluted EPS for full-year 2006 were $1.49, an 18% increase
     compared to $1.26 for full-year 2005; Adjusted diluted EPS for fourth
     quarter 2006 were $0.36, up 13% compared to $0.32 reported in the same
     period of the prior year.

  -- Operating income increased 16% to $166.6 million for full-year 2006, as
     compared to $143.8 reported in the same period of the prior year.
     Operating income for fourth quarter 2006 increased 10% to $39.9 million
     compared to $36.2 million reported for the same period in 2005.

  -- Earnings before interest, taxes, depreciation and amortization
     ("EBITDA") for full-year 2006 increased 15% to $176 million from $153
     million in 2005.  EBITDA for fourth quarter 2006 was $42.3 million, an
     increase of 10% compared to $38.5 million reported for the same period
     in 2005.

  -- Franchising revenues and total revenues increased 14% for full-year
     2006.  Franchising revenues increased 10% and total revenues increased
     18% for fourth quarter 2006 compared to the same period of the prior
     year.

  -- New domestic hotel franchise contracts for full-year 2006 increased 13%
     to a record 720.  Fourth quarter new domestic hotel franchise contracts
     increased 21% to 267 compared to fourth quarter 2005.

  -- Domestic unit growth increased 4 percent for 2006.

  -- Domestic system-wide revenue per available room (RevPAR) increased 6.1%
     for full-year 2006 and 3.7% for the fourth quarter.  Domestic RevPAR
     for the company's midscale without food and beverage brands increased
     approximately 9% for 2006 and approximately 6% for the fourth quarter
     of 2006.

  -- The domestic hotel pipeline of hotels under construction, awaiting
     conversion or approved for development increased more than 43% to 860
     hotels representing 66,238 rooms; the worldwide pipeline increased 35%
     to 930 hotels representing 72,555 rooms.

  -- Thirty domestic hotel contracts executed for the new upscale Cambria
     Suites brand during 2006, with 43 executed since the brand was
     introduced in 2005.

"2006 was another strong year for Choice Hotels, as we saw significant growth in domestic franchise contracts for both new construction and conversion hotels," said Charles A. Ledsinger, Jr., vice chairman and chief executive officer. "We are very pleased with Cambria Suites' progress and the momentum we are seeing for the brand among hotel developers. For 2007 and beyond, our solid operating model, prudent management of our strong portfolio of ten brands, and continued focus on both new construction and conversion markets positions Choice for continued long-term growth."

Outlook for 2007

The company's first quarter 2007 diluted EPS is expected to be $0.23. The company expects full year 2007 diluted EPS of $1.59. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for full-year 2007 is expected to be approximately $186 million. These estimates include the following assumptions.

  -- The company expects net domestic unit growth of approximately 4% in
     2007;

  -- RevPAR is expected to increase 2% for first quarter 2007 and 4% for
     full-year 2007;

  -- The effective royalty rate is expected to increase 3 basis points for
     full-year 2007;

  -- All figures assume the existing share count and assume an effective tax
     rate of 36.25%;

  -- All figures assume approximately $3.6 million ($0.03 diluted EPS) in
     first-quarter 2007 and $4.5 million ($0.04 diluted EPS) for full-year
     2007, respectively, of severance costs related to the previously
     announced termination of certain executive officers.

  Adjusted Net Income and Diluted EPS

Net income and diluted earnings per share for the three and twelve months ended December 31, 2006 include a reduction of income tax expense related to reversal of provisions for certain income tax contingencies of approximately $0.2 million and $12.8 million, respectively. Net income and diluted earnings per share for the twelve months ended December 31, 2006 also include a loss of approximately $0.3 million ($0.2 million, net of the related tax effect) related to the extinguishment of debt. Those items represent diluted EPS of $0.01 and $0.19, net, for the three and twelve months ended December 31, 2006, respectively. Adjusted diluted EPS and adjusted net income for the three and twelve months ended December 31, 2006 exclude these items.

Net income and diluted earnings per share for the twelve months ended December 31, 2005 include additional income tax expense of approximately $1.2 million related to the Company's plan to repatriate approximately $23.5 million of foreign earnings pursuant to the American Jobs Creation Act. Net income and diluted earnings per share for the three and twelve months ended December 31, 2005 include a reduction of income tax expense related to the reversal of provisions for certain income tax contingencies of approximately $0.5 million and $4.9 million, respectively. Those items represent diluted EPS of less than $0.01, net, for the three months and $0.06, net, for the twelve months ended December 31, 2006. Adjusted diluted EPS and adjusted net income for the three and twelve months ended December 31, 2005 exclude these items.

Use of Free Cash Flow

The company has consistently used its free cash flow (cash flow from operations less capital expenditures) generated from its operations to return value to shareholders. This is primarily achieved through share repurchases and dividends.

For the twelve months ended December 31, 2006, the company paid $35.4 million of cash dividends to shareholders. The annual dividend rate per common share was increased 15% by the Board of Directors in September 2006 and is now $0.60.

The company has authorization to purchase up to an additional 5.1 million shares under the share repurchase program. Repurchases will continue to be made in the open market and through privately negotiated transactions subject to market and other conditions. No minimum number of shares has been fixed. Since Choice announced its stock repurchase program on June 25, 1998, the company has repurchased 33.6 million shares of its common stock for a total cost of $711.9 million through February 13, 2007. Considering the effect of a two-for-one stock split in October 2005, the company has repurchased 66.6 million shares at an average price of $10.69 per share.

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 Wednesday, February 14, 2007 at 9:30 a.m. EST to discuss the company's fourth quarter and full-year 2006 results. The call-in number to listen to the call is 1-877-209-0397. International callers should dial 612-332-0637. The conference call also will be Web cast simultaneously via the company's Web site, http://www.choicehotels.com/. Interested investors and other parties wishing to access the call on the Web 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 audio of the call will be archived and available on http://www.choicehotels.com/ for those unable to listen to the call on February 14th. The call will also be available for replay beginning at 4:30 p.m. EST on February 14 and will be available until March 14 by calling 1-800-475-6701, access code 860608. International callers should dial 320-365-3844 and enter access code 860608.

  Items Impacting Comparability

  Acquisition of Suburban

During 2005, the company acquired Suburban Franchise Holding Company, Inc. ("Suburban"), which included 67 Suburban Extended Stay Hotel units open and operating in the United States. The results of operations for Suburban have been included in the company's results of operations since September 28, 2005.

About Choice Hotels

Choice Hotels International franchises more than 5,300 hotels, representing more than 435,000 rooms, in the United States and more than 40 countries and territories. As of December 31, 2006, 860 hotels are under development in the United States, representing 66,238 rooms, and an additional 70 hotels, representing 6,317 rooms, are under development in more than 15 countries and territories. The company's Cambria Suites, Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites and Suburban Extended Stay Hotel brands serve guests worldwide.

Additional corporate information may be found on Choice Hotels' Internet site, which may be accessed at http://www.choicehotels.com/.

Forward-Looking Statements

Certain matters discussed in this press release may constitute forward- looking statements within the meaning of the federal securities law. Such statements are based on management's beliefs, assumptions and expectations, which in turn are based on information currently available to management. Actual performance and results could differ from those expressed in or contemplated by the forward-looking statements due to a number of risks, uncertainties and other factors, many of which are beyond Choice's ability to predict or control. The company's Form 10-K for the year ended December 31, 2005 details some of the important risk factors that you should review.

Statement Concerning Non-GAAP Financial Measurements

Adjusted net income, adjusted diluted EPS, franchising revenues, franchising margins, EBITDA, 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 be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (GAAP), such as net income, diluted earnings per share, total revenues, operating income, operating margins, and cash flows from operations. The company's calculation of these measurements may be different from the calculation used by other companies and therefore comparability may be limited. The company has included exhibits accompanying this release that reconcile these measures to the comparable GAAP measurement.

Cambria Suites, Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, and Rodeway Inn are proprietary trademarks and service marks of Choice Hotels International, Inc.

  Choice Hotels International, Inc.                                Exhibit 1
  Consolidated Statements of Income
  (Unaudited)

                                          Three Months Ended December 31,
                                                                Variance
                                          2006      2005       $        %
  (In thousands, except per share
   amounts)

  REVENUES:

    Royalty fees                         $54,271   $49,120   $5,151     10%
    Initial franchise and relicensing
     fees                                  9,530     8,717      813      9%
    Brand solutions                        3,092     3,024       68      2%
    Marketing and reservation             74,307    58,629   15,678     27%
    Hotel operations                       1,163     1,079       84      8%
    Other                                  1,345     1,416      (71)    (5%)
        Total revenues                   143,708   121,985   21,723     18%

  OPERATING EXPENSES:

    Selling, general and administrative   26,316    23,987    2,329     10%
    Depreciation and amortization          2,370     2,282       88      4%
    Marketing and reservation             74,307    58,629   15,678     27%
    Hotel operations                         829       840      (11)    (1%)
        Total operating expenses         103,822    85,738   18,084     21%

  Operating income                        39,886    36,247    3,639     10%

  OTHER INCOME AND EXPENSES:
    Interest expense                       2,807     4,031   (1,224)   (30%)
    Interest and other investment income    (942)     (134)    (808)   603%
    Equity in net income of affiliates      (315)     (182)    (133)    73%
    Loss on extinguishment of debt             -         -        -      NM
    Other                                      -        (3)       3   (100%)
        Total other income and
         expenses, net                     1,550     3,712   (2,162)   (58%)

  Income before income taxes              38,336    32,535    5,801     18%
  Income taxes                            13,707    10,983    2,724     25%
  Net income                             $24,629   $21,552   $3,077     14%


  Weighted average shares outstanding-
   basic                                  65,728    64,360

  Weighted average shares outstanding-
   diluted                                67,171    66,360

  Basic earnings per share                 $0.37     $0.33    $0.04     12%

  Diluted earnings per share               $0.37     $0.32    $0.05     16%


                                          Twelve Months Ended December 31,
                                                                Variance
                                           2006      2005      $        %
  (In thousands, except per share
   amounts)

  REVENUES:

    Royalty fees                         $211,645  $187,340  $24,305    13%
    Initial franchise and relicensing
     fees                                  29,629    25,388    4,241    17%
    Brand solutions                        13,945    13,382      563     4%
    Marketing and reservation             278,026   243,123   34,903    14%
    Hotel operations                        4,505     4,293      212     5%
    Other                                   6,912     3,873    3,039    78%
        Total revenues                    544,662   477,399   67,263    14%

  OPERATING EXPENSES:

    Selling, general and administrative    87,112    78,250    8,862    11%
    Depreciation and amortization           9,705     9,051      654     7%
    Marketing and reservation             278,026   243,123   34,903    14%
    Hotel operations                        3,194     3,225      (31)   (1%)
        Total operating expenses          378,037   333,649   44,388    13%

  Operating income                        166,625   143,750   22,875    16%

  OTHER INCOME AND EXPENSES:
    Interest expense                       14,098    15,325   (1,227)   (8%)
    Interest and other investment income   (2,041)   (1,094)    (947)   87%
    Equity in net income of affiliates     (1,052)     (803)    (249)   31%
    Loss on extinguishment of debt            342         -      342     NM
    Other                                       -      (420)     420  (100%)
        Total other income and
         expenses, net                     11,347    13,008   (1,661)  (13%)

  Income before income taxes              155,278   130,742   24,536    19%
  Income taxes                             42,491    43,177     (686)   (2%)
  Net income                             $112,787   $87,565  $25,222    29%


  Weighted average shares outstanding-
   basic                                   65,387    64,429

  Weighted average shares outstanding-
   diluted                                 67,050    66,336

  Basic earnings per share                  $1.72     $1.36    $0.36    26%

  Diluted earnings per share                $1.68     $1.32    $0.36    27%



  Choice Hotels International, Inc.                                Exhibit 2
  Consolidated Balance Sheets


  (In thousands)                                  December 31,  December 31,
                                                      2006          2005
                                                  (Unaudited)

  ASSETS

  Cash and cash equivalents                           $35,841      $16,921
  Accounts receivable, net                             41,694       37,155
  Deferred income taxes                                 1,790        2,616
  Other current assets                                  7,757        6,308
       Total current assets                            87,082       63,000

  Fixed assets and intangibles, net                   144,124      150,376
  Receivable -- marketing fees                          6,662       13,225
  Investments, employee benefit plans, at fair
   value                                               31,529       23,337
  Other assets                                         33,912       15,333

             Total assets                             303,309      265,271


  LIABILITIES AND SHAREHOLDERS' DEFICIT

  Current portion of long-term debt                       146          146
  Other current liabilities                           139,645      120,170
       Total current liabilities                      139,791      120,316

  Long-term debt                                      172,390      273,972
  Deferred compensation & retirement plan
   obligations                                         40,101       28,987
  Other liabilities                                    13,407        9,172

       Total liabilities                              365,689      432,447

       Total shareholders' deficit                    (62,380)    (167,176)

             Total liabilities and shareholders'
              deficit                                $303,309     $265,271



  Choice Hotels International, Inc.                                Exhibit 3
  Consolidated Statements of Cash Flows
  (Unaudited)


  (In thousands)                            Twelve months ended December 31,

                                                 2006              2005
  CASH FLOWS FROM OPERATING ACTIVITIES:

  Net income                                    $112,787           $87,565

  Adjustments to reconcile net income
   to net cash provided
   by operating activities:
    Depreciation and amortization                  9,705             9,051
    Gain on sale of assets                             -              (386)
    Provision for bad debts                         (163)              391
    Non-cash stock compensation and other
     charges                                      10,644             5,288
    Loss on extinguishment of debt                   342                 -
    Non-cash interest and other income            (1,576)             (294)
    Dividends received from equity method
     investees                                     1,095               681
    Equity in net income of affiliates            (1,052)             (803)

  Changes in assets and liabilities, net
   of acquisitions:
    Receivables                                   (3,007)           (2,415)
    Receivable - marketing and
     reservation fees, net                        19,049            19,393
    Accounts payable                               6,888             1,923
    Accrued expenses and other                    (7,631)           12,894
    Income taxes payable                           2,857            11,250
    Deferred income taxes                        (17,214)          (13,318)
    Deferred revenue                              15,036             8,822
    Other assets                                  (1,724)           (2,040)
    Other liabilities                              7,892            (4,414)

   NET CASH PROVIDED BY OPERATING ACTIVITIES*    153,928           133,588

  CASH FLOWS FROM INVESTING ACTIVITIES:

  Investment in property and equipment            (7,707)          (11,504)
  Acquisitions, net of cash acquired                (826)           (7,314)
  Purchases of investments                       (10,515)           (8,929)
  Proceeds from sales of investments               3,728             3,539
  Issuance of notes receivable                    (2,433)           (2,667)
  Collection of notes receivable                     868               462
  Proceeds from disposition of assets                  -             2,811
  Other items, net                                  (446)             (929)

   NET CASH USED IN INVESTING ACTIVITIES         (17,331)          (24,531)

  CASH FLOWS FROM FINANCING ACTIVITIES:

  Principal payments of long-term debt              (146)             (150)
  Net repayments pursuant to revolving
   credit facility                              (101,500)          (55,129)
  Debt issuance costs                               (477)             (193)
  Excess tax benefits from stock-based
   compensation                                   12,699                 -
  Purchase of treasury stock                      (1,365)          (49,154)
  Dividends paid                                 (35,386)          (30,241)
  Proceeds from exercise of stock options          8,498            14,213

   NET CASH USED IN FINANCING ACTIVITIES        (117,677)         (120,654)

  Net change in cash and cash equivalents         18,920           (11,597)
  Cash and cash equivalents at beginning of
   period                                         16,921            28,518

  CASH AND CASH EQUIVALENTS AT END OF PERIOD     $35,841           $16,921


  * Net cash provided by operating activities for the twelve months ended
    December 31, 2005 includes approximately $9.9 million of excess
    tax benefits related to stock-based compensation.  Effective January 1,
    2006, the Company began reporting these excess tax benefits as
    cash flows from financing activities as a result of the adoption of
    Statement of Financial Accounting Standards No. 123R
    "Accounting for Stock-Based Compensation."



                     CHOICE HOTELS INTERNATIONAL, INC.            EXHIBIT 4
                    SUPPLEMENTAL OPERATING INFORMATION
                          DOMESTIC HOTEL SYSTEM
                               (UNAUDITED)

                                           For the Twelve Months Ended
                                                December 31, 2006

                                         Average Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $73.08      63.0%      $46.06
  Comfort Suites                             82.93      67.0%       55.59
  Sleep                                      66.44      62.4%       41.43
     Midscale without Food & Beverage        74.18      63.7%       47.26

  Quality                                    66.89      55.3%       37.01
  Clarion                                    78.98      51.2%       40.41
     Midscale with Food & Beverage           69.76      54.3%       37.87

  Econo Lodge                                53.09      47.7%       25.31
  Rodeway                                    51.66      45.8%       23.66
     Economy                                 52.83      47.3%       24.99

  MainStay                                   67.26      69.4%       46.66

  Total Domestic System*                    $69.71      58.0%      $40.46


                                           For the Twelve Months Ended
                                                December 31, 2005

                                        Average Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $68.84      61.7%      $42.45
  Comfort Suites                             77.51      66.3%       51.36
  Sleep                                      62.52      61.0%       38.16
     Midscale without Food & Beverage        69.68      62.4%       43.51

  Quality                                    64.86      54.6%       35.41
  Clarion                                    74.62      52.5%       39.15
     Midscale with Food & Beverage           67.41      54.0%       36.41

  Econo Lodge                                50.95      48.2%       24.56
  Rodeway                                    49.91      46.7%       23.31
     Economy                                 50.78      48.0%       24.35

  MainStay                                   64.76      65.7%       42.54

  Total Domestic System*                    $66.24      57.6%      $38.15


                                                      Change

                                          Average Daily
                                               Rate     Occupancy   RevPAR

  Comfort Inn                                  6.2%      130 bps      8.5%
  Comfort Suites                               7.0%       70 bps      8.2%
  Sleep                                        6.3%      140 bps      8.6%
     Midscale without Food & Beverage          6.5%      130 bps      8.6%

  Quality                                      3.1%       70 bps      4.5%
  Clarion                                      5.8%     -130 bps      3.2%
     Midscale with Food & Beverage             3.5%       30 bps      4.0%

  Econo Lodge                                  4.2%      -50 bps      3.1%
  Rodeway                                      3.5%      -90 bps      1.5%
     Economy                                   4.0%      -70 bps      2.6%

  MainStay                                     3.9%      370 bps      9.7%

  Total Domestic System*                       5.2%       40 bps      6.1%


                                           For the Three Months Ended
                                                December 31, 2006

                                        Average Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $73.14      63.5%      $46.46
  Comfort Suites                             82.35      66.1%       54.42
  Sleep                                      66.04      62.5%       41.29
     Midscale without Food & Beverage        74.04      63.9%       47.30

  Quality                                    65.79      54.6%       35.89
  Clarion                                    78.38      51.0%       39.98
     Midscale with Food & Beverage           68.79      53.7%       36.91

  Econo Lodge                                52.74      47.6%       25.10
  Rodeway                                    49.79      43.4%       21.61
     Economy                                 52.18      46.7%       24.38

  MainStay                                   66.91      72.8%       48.74

  Total Domestic System*                    $69.27      57.8%      $40.04


                                           For the Three Months Ended
                                                December 31, 2005

                                        Average Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $68.81      63.4%      $43.65
  Comfort Suites                             77.28      68.2%       52.70
  Sleep                                      62.68      62.0%       38.88
     Midscale without Food & Beverage        69.68      64.1%       44.69

  Quality                                    63.47      55.1%       34.95
  Clarion                                    75.70      53.9%       40.80
     Midscale with Food & Beverage           66.57      54.8%       36.46

  Econo Lodge                                50.83      47.9%       24.35
  Rodeway                                    48.01      44.7%       21.47
     Economy                                 50.37      47.3%       23.85

  MainStay                                   65.55      68.1%       44.64

  Total Domestic System*                    $65.99      58.5%      $38.60


                                                      Change

                                          Average Daily
                                               Rate     Occupancy   RevPAR

  Comfort Inn                                  6.3%       10 bps      6.4%
  Comfort Suites                               6.6%     -210 bps      3.3%
  Sleep                                        5.4%       50 bps      6.2%
     Midscale without Food & Beverage          6.3%      -20 bps      5.8%

  Quality                                      3.7%      -50 bps      2.7%
  Clarion                                      3.5%     -290 bps     (2.0%)
     Midscale with Food & Beverage             3.3%     -110 bps      1.2%

  Econo Lodge                                  3.8%      -30 bps      3.1%
  Rodeway                                      3.7%     -130 bps      0.7%
     Economy                                   3.6%      -60 bps      2.2%

  MainStay                                     2.1%      470 bps      9.2%

  Total Domestic System*                       5.0%      -70 bps      3.7%


  * Amounts exclude Suburban activity because comparable pre-acquisition
    data is not available


                            For the Quarter Ended     For the Year Ended
                           12/31/2006  12/31/2005   12/31/2006  12/31/2005

  System-wide effective
   royalty rate              4.13%       4.08%        4.10%       4.08%



                     CHOICE HOTELS INTERNATIONAL, INC.             EXHIBIT 5
                 SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
                               (UNAUDITED)


                                       December 31, 2006  December 31, 2005

                                         Hotels   Rooms    Hotels   Rooms

  Comfort Inn                            1,415   110,877   1,428   111,598
  Comfort Suites                           433    33,976     411    32,251
  Sleep                                    327    24,575     319    24,205
      Midscale without Food & Beverage   2,175   169,428   2,158   168,054

  Quality                                  736    72,054     660    66,316
  Clarion                                  162    23,945     153    23,554
      Midscale with Food & Beverage        898    95,999     813    89,870

  Econo Lodge                              816    49,679     805    49,763
  Rodeway                                  233    14,168     180    11,051
       Economy                           1,049    63,847     985    60,814

  MainStay                                  29     2,183      27     2,047
  Suburban                                  60     7,984      65     8,568
       Extended Stay                        89    10,167      92    10,615

  Domestic Franchises                    4,211   339,441   4,048   329,353

  International Franchises               1,165    97,944   1,162    97,703

  Total Franchises                       5,376   437,385   5,210   427,056


                                                     Variance

                                          Hotels   Rooms      %        %

  Comfort Inn                              (13)     (721)   (0.9%)   (0.6%)
  Comfort Suites                            22     1,725     5.4%     5.3%
  Sleep                                      8       370     2.5%     1.5%
      Midscale without Food & Beverage      17     1,374     0.8%     0.8%

  Quality                                   76     5,738    11.5%     8.7%
  Clarion                                    9       391     5.9%     1.7%
      Midscale with Food & Beverage         85     6,129    10.5%     6.8%

  Econo Lodge                               11       (84)    1.4%    (0.2%)
  Rodeway                                   53     3,117    29.4%    28.2%
       Economy                              64     3,033     6.5%     5.0%

  MainStay                                   2       136     7.4%     6.6%
  Suburban                                  (5)     (584)   (7.7%)   (6.8%)
       Extended Stay                        (3)     (448)   (3.3%)   (4.2%)

  Domestic Franchises                      163    10,088     4.0%     3.1%

  International Franchises                   3       241     0.3%     0.2%

  Total Franchises                         166    10,329     3.2%     2.4%



                     CHOICE HOTELS INTERNATIONAL, INC.             EXHIBIT 6
                    SUPPLEMENTAL INFORMATION BY BRAND
                DEVELOPMENT RESULTS -- NEW HOTEL CONTRACTS
                               (UNAUDITED)


                                    For the Twelve         For the Twelve
                                     Months Ended           Months Ended
                                  December 31, 2006      December 31, 2005

                               New                     New
                             Construc- Conver-       Construc- Conver-
                               tion     sion   Total   tion     sion   Total

  Comfort Inn                    67       65     132     53       56     109
  Comfort Suites                 98        3     101     89        5      94
  Sleep                          58        1      59     55        2      57
       Midscale without
        Food & Beverage         223       69     292    197       63     260

  Quality                         6      143     149      5      148     153
  Clarion                         2       26      28      4       31      35
       Midscale with Food
        & Beverage                8      169     177      9      179     188

  Econo Lodge                     1       80      81      4       85      89
  Rodeway                         3      105     108      -       75      75
       Economy                    4      185     189      4      160     164

  MainStay                        9        1      10     14        -      14
  Suburban                       14        8      22      -        -       -
       Extended Stay             23        9      32     14        -      14

  Cambria Suites                 30        -      30     13        -      13

  Total Domestic System         288      432     720    237      402     639


                                                    % Change

                                             New
                                         Construction  Conversion  Total

  Comfort Inn                                 26%          16%       21%
  Comfort Suites                              10%         (40%)       7%
  Sleep                                        5%         (50%)       4%
       Midscale without Food & Beverage       13%          10%       12%

  Quality                                     20%          (3%)      (3%)
  Clarion                                    (50%)        (16%)     (20%)
       Midscale with Food & Beverage         (11%)         (6%)      (6%)

  Econo Lodge                                (75%)         (6%)      (9%)
  Rodeway                                      NM          40%       44%
       Economy                                 0%          16%       15%

  MainStay                                   (36%)          NM      (29%)
  Suburban                                     NM           NM        NM
       Extended Stay                          64%           NM      129%

  Cambria Suites                             131%           NM      131%

  Total Domestic System                       22%           7%       13%



                                     For the Three         For the Three
                                     Months Ended           Months Ended
                                   December 31, 2006      December 31, 2005

                               New                     New
                             Construc- Conver-       Construc- Conver-
                               tion     sion   Total   tion     sion   Total

  Comfort Inn                    29       22      51    18        16      34
  Comfort Suites                 43        -      43    49         1      50
  Sleep                          31        -      31    19         1      20
       Midscale without
        Food & Beverage         103       22     125    86        18     104

  Quality                         1       43      44     1        36      37
  Clarion                         1        4       5     2        16      18
       Midscale w/ Food
        & Beverage                2       47      49     3        52      55

  Econo Lodge                     1       37      38     -        24      24
  Rodeway                         1       32      33     -        28      28
       Economy                    2       69      71     -        52      52

  MainStay                        4        -       4     4         -       4
  Suburban                        5        3       8     -         -       -
       Extended Stay              9        3      12     4         -       4

  Cambria Suites                 10        -      10     5         -       5

  Total Domestic System         126      141     267    98       122     220


                                                    % Change

                                             New
                                         Construction  Conversion  Total

  Comfort Inn                                 61%          38%       50%
  Comfort Suites                             (12%)       (100%)     (14%)
  Sleep                                       63%        (100%)      55%
       Midscale without Food & Beverage       20%          22%       20%

  Quality                                      0%          19%       19%
  Clarion                                    (50%)        (75%)     (72%)
       Midscale w/ Food & Beverage           (33%)        (10%)     (11%)

  Econo Lodge                                  NM          54%       58%
  Rodeway                                      NM          14%       18%
       Economy                                 NM          33%       37%

  MainStay                                     0%           NM        0%
  Suburban                                     NM           NM        NM
       Extended Stay                         125%           NM      200%

  Cambria Suites                             100%           NM      100%

  Total Domestic System                       29%          16%       21%



                     CHOICE HOTELS INTERNATIONAL, INC.             Exhibit 7
          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.


                                                   December 31, 2006
                                                         Units

                                                           New
                                           Conversion  Construction   Total

  Comfort Inn                                   56         124         180
  Comfort Suites                                 3         233         236
  Sleep Inn                                      -         123         123
     Midscale without Food & Beverage           59         480         539

  Quality                                       76          10          86
  Clarion                                       11           4          15
       Midscale with Food & Beverage            87          14         101

  Econo Lodge                                   41           5          46
  Rodeway                                       66           3          69
       Economy                                 107           8         115

  MainStay                                       -          33          33
  Suburban                                       5          24          29
       Extended Stay                             5          57          62

  Cambria Suites                                 -          43          43

                                               258         602         860


                                                   December 31, 2005
                                                         Units

                                                           New
                                            Conversion Construction   Total

  Comfort Inn                                   41          85         126
  Comfort Suites                                 2         165         167
  Sleep Inn                                      1          88          89
     Midscale without Food & Beverage           44         338         382

  Quality                                       54          12          66
  Clarion                                       13           4          17
       Midscale with Food & Beverage            67          16          83

  Econo Lodge                                   41           9          50
  Rodeway                                       35           -          35
       Economy                                  76           9          85

  MainStay                                       1          29          30
  Suburban                                       2           9          11
       Extended Stay                             3          38          41

  Cambria Suites                                 -          12          12

                                               190         413         603


                                                     Variance

                                                        New
                                        Conversion  Construction   Total

                                        Units    %   Units   %   Units   %

  Comfort Inn                             15    37%    39   46%    54   43%
  Comfort Suites                           1    50%    68   41%    69   41%
  Sleep Inn                               (1) -100%    35   40%    34   38%
     Midscale without Food & Beverage     15    34%   142   42%   157   41%

  Quality                                 22    41%    (2) -17%    20   30%
  Clarion                                 (2)  -15%     -    0%    (2) -12%
       Midscale with Food & Beverage      20    30%    (2) -13%    18   22%

  Econo Lodge                              -     0%    (4) -44%    (4)  -8%
  Rodeway                                 31    89%     3    NM    34   97%
       Economy                            31    41%    (1) -11%    30   35%

  MainStay                                (1) -100%     4   14%     3   10%
  Suburban                                 3   150%    15  167%    18  164%
       Extended Stay                       2    67%    19   50%    21   51%

  Cambria Suites                           -     NM    31  258%    31  258%

                                          68    36%   189   46%   257   43%



                     CHOICE HOTELS INTERNATIONAL, INC.             EXHIBIT 8
               SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
                               (UNAUDITED)


  CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS

                                    Three Months Ended      Year Ended
  (dollar amounts in thousands)        December 31,        December 31,

                                      2006      2005      2006      2005
    Franchising Revenues:

    Total Revenues                  $143,708  $121,985  $544,662  $477,399
    Adjustments:
         Marketing and reservation
          revenues                   (74,307)  (58,629) (278,026) (243,123)
         Hotel Operations             (1,163)   (1,079)   (4,505)   (4,293)
    Franchising Revenues             $68,238   $62,277  $262,131  $229,983

    Franchising Margins:

    Operating Margin:

    Total Revenues                  $143,708  $121,985  $544,662  $477,399
    Operating Income                 $39,886   $36,247  $166,625  $143,750
         Operating Margin               27.8%     29.7%     30.6%     30.1%

    Franchising Margin:

    Franchising Revenues             $68,238   $62,277  $262,131  $229,983

    Operating Income                 $39,886   $36,247  $166,625  $143,750
    Less: Hotel Operations               334       239     1,311     1,068
                                     $39,552   $36,008  $165,314  $142,682

         Franchising Margins            58.0%     57.8%     63.1%     62.0%


  CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED
  EARNINGS PER SHARE (EPS)

  (In thousands, except per share      Three Months Ended     Year Ended
   amounts)                               December 31,       December 31,

                                         2006     2005      2006     2005

  Net Income                            $24,629  $21,552  $112,787  $87,565
  Adjustments:
    Loss on Debt Extinguishment Costs         -        -       217        -
    Resolution of Provisions for Income
     Tax Contingencies                     (210)    (454)  (12,791)  (4,855)
    Income Tax Expense Incurred Due to
     Foreign Earnings Repatriation            -        -         -    1,192
  Adjusted Net Income                   $24,419  $21,098  $100,213  $83,902

  Weighted average shares outstanding-
   diluted                               67,171   66,360    67,050   66,336

  Diluted Earnings Per Share              $0.37    $0.32     $1.68    $1.32
  Adjustments:
    Loss on Debt Extinguishment Costs         -        -         -        -
    Resolution of Provisions for Income
     Tax Contingencies                    (0.01)   (0.00)    (0.19)   (0.08)
    Income Tax Expense Incurred Due to
     Foreign Earnings Repatriation            -        -         -     0.02
  Adjusted Diluted Earnings Per Share
   (EPS)                                  $0.36    $0.32     $1.49    $1.26


  EBITDA Reconciliation

  (in millions)
                                              Year       Year
                                              Ended      Ended      Full-
                                            December   December     Year
                        Q4 2006   Q4 2005   31, 2006   31, 2005     2007
                        Actuals   Actuals    Actuals    Actuals    Outlook*

    Operating Income
     (per GAAP)           $39.9     $36.2     $166.6     $143.7     $176.2
    Depreciation and
     amortization           2.4       2.3        9.7        9.1        9.8
    Earnings before
     interest, taxes,
     depreciation &
     amortization (non-
     GAAP) ("EBITDA")     $42.3     $38.5     $176.3     $152.8     $186.0


    * Full Year 2007 Operating income and EBITDA include approximately $4.5
      million of severance costs related to the previously announced
      termination certain executive officers.

First Call Analyst:
FCMN Contact: david_peikin@choicehotels.com

SOURCE: Choice Hotels International, Inc.

CONTACT: David White, Chief Financial Officer, +1-301-592-5117, or Anne
Madison, Vice President, Corporate Communications, +1-301-592-6723, both of
Choice Hotels International, Inc.