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Choice Hotels' News

Choice Hotels Reports Second Quarter 2007 Diluted EPS of $0.43, Domestic Unit Growth of 5.1%
PRNewswire-FirstCall
SILVER SPRING, Md.

Choice Hotels International, Inc., today reported the following highlights for the second quarter 2007:

  -- Diluted earnings per share ("EPS") for second quarter 2007 increased
     19% to $0.43 compared to $0.36 in the same period of the prior year.
     Operating income for second quarter 2007 increased 12% to $47.4 million
     compared to $42.1 million for second quarter 2006.

  -- Earnings before interest, taxes and depreciation ("EBITDA") were $49.5
     million for second quarter 2007, an increase of 11% compared to $44.7
     million for second quarter 2006.

  -- Domestic units increased 5.1 percent from June 30, 2006.

  -- Domestic system-wide revenue per available room (RevPAR) increased 3.3%
     for the second quarter of 2007 compared to the same period of the prior
     year.  Domestic RevPAR for the company's mid-scale without food and
     beverage brands (Comfort Inn, Comfort Suites and Sleep Inn), which
     represents approximately half of the company's domestic rooms online,
     increased 4.8% for the second quarter of 2007, with average daily rate
     increasing 5.3% for those brands.

  -- Executed 176 new domestic hotel franchise contracts during the second
     quarter of 2007, an increase of 14% compared to 155 for second quarter
     2006, with new construction contracts comprising 39% of executed
     agreements.  Overall, year-to-date, new domestic hotel franchise
     contracts executed increased 4% to 287 compared to 275 in the same
     period of the prior year.

  -- The number of domestic hotels under construction, awaiting conversion
     or approved for development increased 25% to 858 hotels representing
     67,740 rooms; the worldwide pipeline also increased 25% to 943 hotels
     representing 75,747 rooms.

  -- Executed first direct franchise agreements in Canada for Cambria Suites
     and MainStay Suites brands, with contracts for two Cambria Suites
     hotels to be developed in the Toronto metropolitan area and agreements
     for four MainStay Suites hotels to be developed in Ontario and Alberta.

  -- Executed 11 new hotel franchise contracts for the Cambria Suites brand,
     including the two Canadian hotels, during the second quarter of 2007,
     with sixty hotel franchise contracts executed since the brand's launch
     in 2005.  During the quarter, the company executed a contract for a
     300-room Cambria Suites hotel in Brooklyn, the brand's largest property
     currently under contract.

  -- Franchising revenues and total revenues both increased 12% for second
     quarter 2007 compared to the same period of the prior year. Year-to-
     date franchising revenues and total revenues have increased 9% and 10%,
     respectively, compared to the same period of 2006.

  -- Franchising margins for the second quarter of 2007 were 62.9% compared
     to 62.6% for the second quarter of 2006.  Year to date franchising
     margins were 57.9% compared to 61.1% for the same period of 2006.
     Franchising margins for the six months ended June 30, 2007 reflect the
     impact of $3.7 million of termination benefits for certain executive
     officers in the first quarter of 2007. Franchising margins for the
     second quarter 2007 and year-to-date period ended June 30, 2007 also
     reflect the commencement of direct franchising operations in
     continental Europe.

  -- Interest and other investment income increased $1.9 million for second
     quarter 2007 compared to the same period of the prior year due to
     favorable performance of employee benefit plan investments.

  -- The company purchased approximately 0.7 million shares of its common
     stock at an average price of $38.72 for a total cost of $28.3 million
     under its share repurchase program during the second quarter 2007.
     Year-to-date through July 24, 2007, the company purchased approximately
     1.5 million shares of its common stock at an average price of $38.60
     for a total cost of $57.8 million under its share repurchase program.

"We continue to work closely with our franchisees to improve their unit profitability by driving incremental business to their hotels and providing them with targeted services and support to enhance property-level operating performance," said Charles A. Ledsinger, Jr., vice chairman and chief executive officer. "At the same time, we are committed to continuously improving brand quality and consistency by working collaboratively with our franchisees so that we are positioned to gain market share. This operating philosophy has proven successful for Choice, as over the last five years, we have increased our domestic market share of branded hotels by 350 basis points to nearly 17% of the market, as measured by room supply in the midscale & economy segments."

Items Affecting Comparability

Fourth Quarter 2006 Acquisition of Continental Europe Franchising Operations

During the fourth quarter of 2006, the company terminated the master franchising agreement covering continental Europe and acquired the direct franchising operations in this region from the former master franchisor. As a result of the acquisition, franchising revenues and selling, general and administrative costs for the three months ended June 30, 2007 increased approximately $1.1 million and $0.7 million, respectively, compared to second quarter 2006. Franchising revenues and selling, general and administrative costs for the six months ended June 30, 2007 increased approximately $1.8 million and $1.6 million, respectively, compared to the same period in 2006.

Outlook for 2007

The company's third quarter 2007 diluted EPS is expected to be at least $0.52. The company expects full year 2007 diluted EPS of $1.62. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for full-year 2007 is expected to be approximately $187.5 million. These estimates include the following assumptions.

  -- The company expects net domestic unit growth of approximately 4% in
     2007;
  -- RevPAR is expected to increase approximately 4.5% for third quarter
     2007 and approximately 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 an effective tax rate
     of 36.3% for third quarter 2007 and 36.5% for full year 2007;
  -- All figures assume approximately $3.7 million ($0.03 diluted EPS) of
     termination benefits expense resulting from the previously announced
     separations of certain executive officers.

  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, primarily through share repurchases and dividends.

For the three and six months ended June 30, 2007, the company paid $9.9 million and $19.8 million, respectively, of cash dividends to shareholders. The annual dividend rate per common share is $0.60.

For the three months ended June 30, 2007, the company purchased approximately 0.7 million shares of its common stock at an average price of $38.72 for a total cost of $28.3 million under its share repurchase program. For the six months ended June 30, 2007, the company purchased approximately 1.2 million shares of its common stock at an average price of $38.33 for a total cost of $46.1 million. At June 30, 2007, the company had authorization to purchase up to an additional 3.9 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 34.8 million shares of its common stock for a total cost of $758 million through June 30, 2007. Considering the effect of a two-for-one stock split in October 2005, the company has repurchased 67.8 million shares under the share repurchase program at an average price of $11.17 per share. Subsequent to June 30, 2007 through July 24, 2007, the Company has repurchased an additional 0.3 million shares of its common stock at a total cost of $11.8 million.

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 July 25, 2007 at 9:30 a.m. EDT to discuss the company's second quarter results. The call-in number to listen to the call is 1-888-423-3273. International callers should dial 612-332-0923. The conference call also will be Web cast simultaneously via the company's Web site, 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 www.choicehotels.com beginning at 1:00 p.m. EDT on July 25 and will be available through August 25 by calling 1-800-475-6701, access code 877036. International callers should dial 320-365-3844 and enter access code 877036.

About Choice Hotels

Choice Hotels International franchises more than 5,400 hotels, representing more than 445,000 rooms, in the United States and 38 countries and territories. As of June 30, 2007, 858 hotels are under development in the United States, representing 67,740 rooms, and an additional 85 hotels, representing 8,007 rooms, are under development in more than 20 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 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 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 for the company's revenue, earnings and other financial and operational measures, company debt levels, payment of stock dividends, and future operations. We caution you not to place undue reliance on any forward- looking statements, which are made as of the date of this press release. 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 Risk Factors section of the company's Form 10-K for the year ended December 31, 2006, filed with the Securities and Exchange Commission on March 1, 2007. 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

Franchising revenues, franchising margins, and EBITDA 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 total revenues, operating income, and operating margins. 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 June 30,
                                                               Variance
                                           2007     2006      $         %
  (In thousands, except per share
   amounts)

  REVENUES:

    Royalty fees                          $59,176  $53,146  $6,030     11%
    Initial franchise and relicensing
     fees                                   7,649    6,723     926     14%
    Brand solutions                         5,995    4,900   1,095     22%
    Marketing and reservation              81,810   72,742   9,068     12%
    Hotel operations                        1,193    1,180      13      1%
    Other                                   1,886    1,849      37      2%
          Total revenues                  157,709  140,540  17,169     12%

  OPERATING EXPENSES:

    Selling, general and administrative    25,605   22,242   3,363     15%
    Depreciation and amortization           2,137    2,642    (505)   (19%)
    Marketing and reservation              81,810   72,742   9,068     12%
    Hotel operations                          794      800      (6)    (1%)
      Total operating expenses            110,346   98,426  11,920     12%

  Operating income                         47,363   42,114   5,249     12%

  OTHER INCOME AND EXPENSES:
    Interest expense                        3,217    4,044    (827)   (20%)
    Interest and other investment
     (income) loss                         (1,721)     174  (1,895) (1089%)
    Equity in net income
     of affiliates                           (181)    (130)    (51)    39%
    Loss on extinguishment of debt            -        342    (342)  (100%)
    Total other income and expenses, net    1,315    4,430  (3,115)   (70%)

  Income before income taxes               46,048   37,684   8,364     22%
  Income taxes                             17,403   13,548   3,855     28%
  Net income                              $28,645  $24,136  $4,509     19%

  Weighted average shares outstanding-
   basic                                   65,475   65,356
  Weighted average shares outstanding-
   diluted                                 66,599   67,105
  Basic earnings per share                  $0.44    $0.37   $0.07     19%
  Diluted earnings per share                $0.43    $0.36   $0.07     19%


                                             Six Months Ended June 30,
                                                                Variance
                                            2007     2006       $       %
  (In thousands, except per share
   amounts)

  REVENUES:

    Royalty fees                          $102,504  $93,010  $9,494    10%
    Initial franchise and
     relicensing fees                       12,580   12,366     214     2%
    Brand solutions                          8,981    7,682   1,299    17%
    Marketing and reservation              143,851  130,718  13,133    10%
    Hotel operations                         2,289    2,160     129     6%
    Other                                    3,687    4,022    (335)   (8%)
          Total revenues                   273,892  249,958  23,934    10%

  OPERATING EXPENSES:

    Selling, general and administrative     49,505   40,517   8,988    22%
    Depreciation and amortization            4,252    4,991    (739)  (15%)
    Marketing and reservation              143,851  130,718  13,133    10%
    Hotel operations                         1,535    1,545     (10)   (1%)
    Total operating expenses               199,143  177,771  21,372    12%

  Operating income                          74,749   72,187   2,562     4%

  OTHER INCOME AND EXPENSES:
    Interest expense                         6,214    8,084  (1,870)  (23%)
    Interest and other investment
     (income) loss                          (2,322)    (530) (1,792)  338%
    Equity in net income of affiliates        (375)    (388)     13    (3%)
    Loss on extinguishment of debt             -        342    (342) (100%)
    Total other income and expenses, net     3,517    7,508  (3,991)  (53%)

  Income before income taxes                71,232   64,679   6,553    10%
  Income taxes                              26,272   22,878   3,394    15%
  Net income                               $44,960  $41,801  $3,159     8%


  Weighted average shares outstanding-
   basic                                    65,627   65,070
  Weighted average shares outstanding-
   diluted                                  66,823   66,925
  Basic earnings per share                   $0.69    $0.64   $0.05     8%
  Diluted earnings per share                 $0.67    $0.62   $0.05     8%


  Choice Hotels International, Inc.                               Exhibit 2
  Consolidated Balance Sheets

  (In thousands)                                 June 30,       December 31,
                                                   2007              2006
                                                (Unaudited)

  ASSETS

  Cash and cash equivalents                       $47,330           $35,841
  Accounts receivable, net                         45,995            41,694
  Deferred income taxes                             3,061             1,790
  Other current assets                             11,745             7,757
       Total current assets                       108,131            87,082

  Fixed assets and intangibles, net               143,164           144,124
  Receivable -- marketing fees                      7,139             6,662
  Investments, employee benefit plans,
   at fair value                                   37,426            31,529
  Other assets                                     36,184            33,912

             Total assets                         332,044           303,309


  LIABILITIES AND SHAREHOLDERS' DEFICIT

  Current portion of long-term debt                   -                 146
  Other current liabilities                       147,751           139,645
       Total current liabilities                  147,751           139,791

  Long-term debt                                  199,146           172,390
  Deferred compensation & retirement
   plan obligations                                41,067            40,101
  Other liabilities                                15,484            13,407

       Total liabilities                          403,448           365,689

       Total shareholders' deficit                (71,404)          (62,380)

             Total liabilities and
              shareholders' deficit              $332,044          $303,309


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

  (In thousands)                                 Six Months Ended June 30,

                                                   2007              2006
  CASH FLOWS FROM OPERATING ACTIVITIES:

  Net income                                     $44,960           $41,801

  Adjustments to reconcile net income
   to net cash provided
   by operating activities:
    Depreciation and amortization                  4,252             4,991
    Provision for bad debts                         (528)             (127)
    Non-cash stock compensation and
     other charges                                 7,263             5,550
    Non-cash interest and other income            (1,598)             (107)
    Loss on extinguishment of debt                   -                 342
    Dividends received from equity
     method investees                                295               169
    Equity in net income of affiliates              (376)             (388)

  Changes in assets and liabilities:
    Receivables                                   (3,654)           (3,414)
    Receivable - marketing and
     reservation fees, net                         1,731               670
    Accounts payable                                (277)            8,404
    Accrued expenses and other                   (11,031)           (7,549)
    Income taxes payable                          12,958             4,815
    Deferred income taxes                         (4,680)           (1,912)
    Deferred revenue                               1,817             3,603
    Other assets                                  (1,278)             (420)
    Other liabilities                              6,843             6,200

   NET CASH PROVIDED BY OPERATING
    ACTIVITIES                                    56,697            62,628

  CASH FLOWS FROM INVESTING ACTIVITIES:

  Investment in property and equipment            (5,786)           (4,045)
  Acquisitions, net of cash acquired                (343)              -
  Purchases of investments, employee
   benefit plans                                  (5,701)           (5,784)
  Proceeds from sales of investments,
   employee benefit plans                          1,551             1,387
  Issuance of notes receivable                    (3,255)           (1,277)
  Collections of notes receivable                    469               359
  Other items, net                                  (359)             (296)

   NET CASH USED IN INVESTING
    ACTIVITIES                                   (13,424)           (9,656)

  CASH FLOWS FROM FINANCING ACTIVITIES:

  Principal payments of long-term debt              (422)              (73)
  Net (repayments) borrowings pursuant
   to revolving credit facility                   27,000           (49,600)
  Debt issuance costs                                -                (472)
  Excess tax benefits from stock-based
   compensation                                    4,214            11,983
  Purchase of treasury stock                     (47,341)           (1,132)
  Dividends paid                                 (19,751)          (16,925)
  Proceeds from exercise of stock
   options                                         4,516             7,984

   NET CASH USED IN FINANCING
    ACTIVITIES                                   (31,784)          (48,235)

  Net change in cash and cash
   equivalents                                    11,489             4,737
  Cash and cash equivalents at
   beginning of period                            35,841            16,921

  CASH AND CASH EQUIVALENTS AT END OF
   PERIOD                                        $47,330           $21,658


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


                                        For the Six Months Ended June 30,
                                                      2007

                                            Average
                                             Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $73.42      57.6%      $42.29
  Comfort Suites                             85.64      62.4%       53.45
  Sleep                                      67.32      58.7%       39.55
    Midscale without Food & Beverage         75.19      58.8%       44.18

  Quality                                    66.62      49.6%       33.03
  Clarion                                    77.42      47.2%       36.57
    Midscale with Food & Beverage            69.18      49.0%       33.90

  Econo Lodge                                51.36      43.9%       22.52
  Rodeway                                    49.87      42.6%       21.23
    Economy                                  51.04      43.6%       22.24

  MainStay                                   67.91      64.0%       43.47
  Suburban                                   39.58      67.2%       26.59
    Extended Stay                            45.47      66.5%       30.23

  Total Domestic System                     $68.89      53.5%      $36.83


                                        For the Six Months Ended June 30,
                                                      2006

                                            Average
                                             Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $69.76      57.9%      $40.40
  Comfort Suites                             81.30      64.3%       52.24
  Sleep                                      64.64      58.6%       37.87
    Midscale without Food & Beverage         71.46      59.2%       42.34

  Quality                                    64.26      50.8%       32.63
  Clarion                                    77.11      48.1%       37.11
    Midscale with Food & Beverage            67.39      50.1%       33.77

  Econo Lodge                                50.52      43.3%       21.89
  Rodeway                                    48.57      41.9%       20.33
    Economy                                  50.18      43.1%       21.61

  MainStay                                   66.48      63.7%       42.33
  Suburban                                   38.02      73.1%       27.79
    Extended Stay                            42.93      71.3%       30.60

  Total Domestic System                     $66.16      54.3%      $35.90


                                                      Change

                                            Average
                                             Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                                5.2%       (30)bps     4.7%
  Comfort Suites                             5.3%      (190)bps     2.3%
  Sleep                                      4.1%        10 bps     4.4%
    Midscale without Food & Beverage         5.2%       (40)bps     4.3%

  Quality                                    3.7%      (120)bps     1.2%
  Clarion                                    0.4%       (90)bps    (1.5%)
    Midscale with Food & Beverage            2.7%      (110)bps     0.4%

  Econo Lodge                                1.7%        60 bps     2.9%
  Rodeway                                    2.7%        70 bps     4.4%
    Economy                                  1.7%        50 bps     2.9%

  MainStay                                   2.2%        30 bps     2.7%
  Suburban                                   4.1%      (590)bps    (4.3%)
    Extended Stay                            5.9%      (480)bps    (1.2%)

  Total Domestic System                      4.1%       (80)bps     2.6%



                                       For the Three Months Ended June 30,
                                                      2007

                                            Average
                                             Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $75.62      63.9%      $48.29
  Comfort Suites                             87.54      67.8%       59.36
  Sleep                                      69.74      65.4%       45.63
    Midscale without Food & Beverage         77.32      64.9%       50.18

  Quality                                    68.96      55.4%       38.19
  Clarion                                    80.13      53.1%       42.51
    Midscale with Food & Beverage            71.58      54.8%       39.24

  Econo Lodge                                52.85      48.4%       25.55
  Rodeway                                    51.47      46.1%       23.71
    Economy                                  52.56      47.8%       25.14

  MainStay                                   69.53      69.7%       48.43
  Suburban                                   40.39      70.7%       28.56
    Extended Stay                            46.65      70.5%       32.88

  Total Domestic System                     $70.98      59.1%      $41.92


                                       For the Three Months Ended June 30,
                                                      2006

                                            Average
                                             Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                               $71.84      64.0%      $45.97
  Comfort Suites                             83.04      69.5%       57.72
  Sleep                                      66.69      65.2%       43.47
    Midscale without Food & Beverage         73.42      65.2%       47.90

  Quality                                    66.18      56.5%       37.36
  Clarion                                    77.77      53.5%       41.63
    Midscale with Food & Beverage            69.01      55.7%       38.44

  Econo Lodge                                52.09      47.5%       24.75
  Rodeway                                    49.98      44.5%       22.23
    Economy                                  51.72      47.0%       24.29

  MainStay                                   67.43      70.3%       47.39
  Suburban                                   38.95      76.8%       29.91
    Extended Stay                            44.05      75.5%       33.27

  Total Domestic System                     $67.98      59.7%      $40.58


                                                      Change

                                            Average
                                             Daily
                                             Rate     Occupancy    RevPAR

  Comfort Inn                                5.3%      (10)bps      5.0%
  Comfort Suites                             5.4%     (170)bps      2.8%
  Sleep                                      4.6%       20 bps      5.0%
    Midscale without Food & Beverage         5.3%      (30)bps      4.8%

  Quality                                    4.2%     (110)bps      2.2%
  Clarion                                    3.0%      (40)bps      2.1%
    Midscale with Food & Beverage            3.7%      (90)bps      2.1%

  Econo Lodge                                1.5%       90 bps      3.2%
  Rodeway                                    3.0%      160 bps      6.7%
    Economy                                  1.6%       80 bps      3.5%

  MainStay                                   3.1%      (60)bps      2.2%
  Suburban                                   3.7%     (610)bps     (4.5%)
    Extended Stay                            5.9%     (500)bps     (1.2%)

  Total Domestic System                      4.4%      (60)bps      3.3%


                               For the Quarter          For the Six Months
                                   Ended                      Ended
                           06/30/2007  06/30/2006     06/30/2007  06/30/2006
  System-wide effective
   royalty rate                4.14 %     4.10 %         4.14 %      4.09 %



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

                                         June 30, 2007     June 30, 2006

                                         Hotels   Rooms    Hotels   Rooms

  Comfort Inn                            1,424   111,230   1,411   110,440
  Comfort Suites                           453    35,494     417    32,786
  Sleep                                    340    25,338     320    24,133
    Midscale without Food & Beverage     2,217   172,062   2,148   167,359

  Quality                                  783    75,840     692    68,407
  Clarion                                  161    23,378     157    23,262
    Midscale with Food & Beverage          944    99,218     849    91,669

  Econo Lodge                              819    49,882     825    50,673
  Rodeway                                  256    15,412     203    12,469
    Economy                              1,075    65,294   1,028    63,142

  MainStay                                  29     2,166      27     2,047
  Suburban                                  60     7,853      64     8,439
    Extended Stay                           89    10,019      91    10,486

  Cambria Suites                             1       119       -         -

  Domestic Franchises                    4,326   346,712   4,116   332,656

  International Franchises               1,148    99,114   1,168    98,818

  Total Franchises                       5,474   445,826   5,284   431,474


                                                     Variance

                                          Hotels   Rooms       %        %

  Comfort Inn                               13       790     0.9%     0.7%
  Comfort Suites                            36     2,708     8.6%     8.3%
  Sleep                                     20     1,205     6.3%     5.0%
    Midscale without Food & Beverage        69     4,703     3.2%     2.8%

  Quality                                   91     7,433    13.2%    10.9%
  Clarion                                    4       116     2.5%     0.5%
    Midscale with Food & Beverage           95     7,549    11.2%     8.2%

  Econo Lodge                               (6)     (791)   (0.7%)   (1.6%)
  Rodeway                                   53     2,943    26.1%    23.6%
    Economy                                 47     2,152     4.6%     3.4%

  MainStay                                   2       119     7.4%     5.8%
  Suburban                                  (4)     (586)   (6.3%)   (6.9%)
    Extended Stay                           (2)     (467)   (2.2%)   (4.5%)

  Cambria Suites                             1       119      NM       NM

  Domestic Franchises                      210    14,056     5.1%     4.2%

  International Franchises                 (20)      296    (1.7%)    0.3%

  Total Franchises                         190    14,352     3.6%     3.3%


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

                                        For the Six Months Ended June 30,
                                                       2007

                                               New
                                          Construction  Conversion    Total

  Comfort Inn                                   16          20          36
  Comfort Suites                                40           3          43
  Sleep                                         16           1          17
    Midscale without Food & Beverage            72          24          96

  Quality                                        5          63          68
  Clarion                                        4          21          25
    Midscale with Food & Beverage                9          84          93

  Econo Lodge                                    2          28          30
  Rodeway                                        -          39          39
    Economy                                      2          67          69

  MainStay                                       4           1           5
  Suburban                                       7           2           9
    Extended Stay                               11           3          14

  Cambria Suites                                15           -          15

  Total Domestic System                        109         178         287


                                         For the Six Months Ended June 30,
                                                       2006

                                               New
                                          Construction  Conversion    Total

  Comfort Inn                                  24           18           42
  Comfort Suites                               41            2           43
  Sleep                                        10            -           10
    Midscale without Food & Beverage           75           20           95

  Quality                                       5           57           62
  Clarion                                       1           18           19
    Midscale with Food & Beverage               6           75           81

  Econo Lodge                                   -           23           23
  Rodeway                                       1           48           49
    Economy                                     1           71           72

  MainStay                                      3            1            4
  Suburban                                      6            2            8
    Extended Stay                               9            3           12

  Cambria Suites                               15            -           15

  Total Domestic System                       106          169          275


                                                      % Change

                                               New
                                          Construction  Conversion    Total

  Comfort Inn                                  (33%)        11%        (14%)
  Comfort Suites                                (2%)        50%          0%
  Sleep                                         60%         NM          70%
    Midscale without Food & Beverage            (4%)        20%          1%

  Quality                                        0%         11%         10%
  Clarion                                      300%         17%         32%
    Midscale with Food & Beverage               50%         12%         15%

  Econo Lodge                                   NM          22%         30%
  Rodeway                                     (100%)       (19%)       (20%)
    Economy                                    100%         (6%)        (4%)

  MainStay                                      33%          0%         25%
  Suburban                                      17%          0%         13%
    Extended Stay                               22%          0%         17%

  Cambria Suites                                 0%         NM           0%

  Total Domestic System                          3%          5%          4%



                                         For the Three Months Ended June 30,
                                                         2007

                                               New
                                          Construction  Conversion    Total

  Comfort Inn                                  11          17            28
  Comfort Suites                               26           2            28
  Sleep                                         8           1             9
    Midscale without Food & Beverage           45          20            65

  Quality                                       4          28            32
  Clarion                                       2          15            17
    Midscale with Food & Beverage               6          43            49

  Econo Lodge                                   1          15            16
  Rodeway                                       -          28            28
    Economy                                     1          43            44

  MainStay                                      4           1             5
  Suburban                                      3           1             4
    Extended Stay                               7           2             9

  Cambria Suites                                9           -             9

  Total Domestic System                        68         108           176


                                        For the Three Months Ended June 30,
                                                         2006

                                               New
                                           Construction  Conversion    Total

  Comfort Inn                                   9            5          14
  Comfort Suites                               29            2          31
  Sleep                                         7            -           7
    Midscale without Food & Beverage           45            7          52

  Quality                                       3           32          35
  Clarion                                       -            9           9
    Midscale with Food & Beverage               3           41          44

  Econo Lodge                                   -           14          14
  Rodeway                                       1           33          34
    Economy                                     1           47          48

  MainStay                                      1            -           1
  Suburban                                      3            2           5
    Extended Stay                               4            2           6

  Cambria Suites                                5            -           5

  Total Domestic System                        58           97         155


                                                        % Change

                                              New
                                          Construction  Conversion    Total
  Comfort Inn                                  22%          240%       100%
  Comfort Suites                              (10%)           0%       (10%)
  Sleep                                        14%           NM         29%
    Midscale without Food & Beverage            0%          186%        25%

  Quality                                      33%          (13%)       (9%)
  Clarion                                      NM            67%        89%
    Midscale with Food & Beverage             100%            5%        11%

  Econo Lodge                                  NM             7%        14%
  Rodeway                                    (100%)         (15%)      (18%)
    Economy                                     0%           (9%)       (8%)

  MainStay                                    300%           NM        400%
  Suburban                                      0%          (50%)      (20%)
    Extended Stay                              75%            0%        50%

  Cambria Suites                               80%           NM         80%

  Total Domestic System                        17%           11%        14%


                      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.

                                                     June 30, 2007
                                                          Units

                                                           New
                                           Conversion Construction   Total

  Comfort Inn                                   42         121         163
  Comfort Suites                                 3         240         243
  Sleep Inn                                      -         108         108
     Midscale without Food & Beverage           45         469         514

  Quality                                       68          11          79
  Clarion                                       23           7          30
       Midscale with Food & Beverage            91          18         109

  Econo Lodge                                   44           4          48
  Rodeway                                       61           1          62
       Economy                                 105           5         110

  MainStay                                       1          33          34
  Suburban                                       5          30          35
       Extended Stay                             6          63          69

  Cambria Suites                                 -          56          56

                                               247         611         858



                                                  June 30, 2006
                                                      Units

                                                           New
                                            Conversion Construction   Total

  Comfort Inn                                   40         101         141
  Comfort Suites                                 4         202         206
  Sleep Inn                                      -          85          85
     Midscale without Food & Beverage           44         388         432

  Quality                                       55          14          69
  Clarion                                       18           4          22
       Midscale with Food & Beverage            73          18          91

  Econo Lodge                                   24           6          30
  Rodeway                                       50           1          51
       Economy                                  74           7          81

  MainStay                                       1          35          36
  Suburban                                       1          18          19
       Extended Stay                             2          53          55

  Cambria Suites                                 -          28          28

                                               193         494         687



                                                      Variance

                                                        New
                                          Conversion  Construction  Total

                                           Units  %   Units   %   Units  %

  Comfort Inn                               2    5%    20   20%    22   16%
  Comfort Suites                           (1) (25%)   38   19%    37   18%
  Sleep Inn                                 -   NM     23   27%    23   27%
     Midscale without Food & Beverage       1    2%    81   21%    82   19%

  Quality                                  13   24%    (3) (21%)   10   14%
  Clarion                                   5   28%     3   75%     8   36%
       Midscale with Food & Beverage       18   25%     -    0%    18   20%

  Econo Lodge                              20   83%    (2) (33%)   18   60%
  Rodeway                                  11   22%     -    0%    11   22%
       Economy                             31   42%    (2) (29%)   29   36%

  MainStay                                  -    0%    (2)  (6%)   (2)  (6%)
  Suburban                                  4  400%    12   67%    16   84%
       Extended Stay                        4  200%    10   19%    14   25%

  Cambria Suites                            -   NM     28  100%    28  100%

                                           54   28%   117   24%   171   25%



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

  CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS

                                    Three Months Ended   Six Months Ended
  (dollar amounts in thousands)          June 30,            June 30,

                                      2007      2006      2007      2006
    Franchising Revenues:

    Total Revenues                  $157,709  $140,540  $273,892  $249,958
    Adjustments:
         Marketing and reservation
          revenues                   (81,810)  (72,742) (143,851) (130,718)
         Hotel Operations             (1,193)   (1,180)   (2,289)   (2,160)
    Franchising Revenues             $74,706   $66,618  $127,752  $117,080

    Franchising Margins:

    Operating Margin:

    Total Revenues                  $157,709  $140,540  $273,892  $249,958
    Operating Income                 $47,363   $42,114   $74,749   $72,187
         Operating Margin               30.0%     30.0%     27.3%     28.9%

    Franchising Margin:

    Franchising Revenues             $74,706   $66,618  $127,752  $117,080

    Operating Income                 $47,363   $42,114   $74,749   $72,187
    Less: Hotel Operations               399       380       754       615
                                     $46,964   $41,734   $73,995   $71,572

         Franchising Margins            62.9%     62.6%     57.9%     61.1%



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

  (In thousands, except per share       Three Months Ended Six Months Ended
  amounts)                                   June 30,          June 30,

                                           2007     2006     2007     2006

  Net Income                             $28,645  $24,136  $44,960  $41,801
  Adjustments:
    Loss on Debt Extinguishment Costs        -        217      -        217
  Adjusted Net Income                    $28,645  $24,353  $44,960  $42,018

  Weighted average shares outstanding-
   diluted                                66,599   67,105   66,823   66,925

  Diluted Earnings Per Share               $0.43    $0.36    $0.67    $0.62
  Adjustments:
    Loss on Debt Extinguishment Costs        -        -                0.01
  Adjusted Diluted Earnings Per Share
   (EPS)                                   $0.43    $0.36    $0.67    $0.63



  EBITDA Reconciliation

  (in millions)
                                                          Full-Year
                                         Q2 2007  Q2 2006   2007
                                         Actuals  Actuals  Outlook

    Operating Income (per GAAP)            $47.4    $42.1   $178.5
    Depreciation and amortization            2.1      2.6      9.0
    Earnings before interest, taxes,
     depreciation & amortization (non-
     GAAP)*                                $49.5    $44.7   $187.5


  * Six months ended June 30, 2007 franchising margins, operating income
    and EBITDA include approximately $3.7 million of severance costs related
    to the previously announced termination of 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
David Peikin, Senior Director, Corporate Communications, +1-301-592-6361, both
of Choice Hotels International, Inc.

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The Radisson brands, including Park Plaza, Country Inn & Suites, and Park Inn by Radisson, are owned in the Americas regions by Choice Hotels.
Outside of the Americas, the brands are owned by Radisson Hotel Group, an unaffiliated company headquartered in Belgium.