PowerPoint Presentation

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Now is the time to invest in a Sleep Inn hotel

Industry demand is strong and growing while supply remains modestSleep Inn offers one of the lowest costs to build and superior performance vs. midscale competitorsNew construction brand leads to highly consistent productOpportunity to build with a proven leaderUnless otherwise noted, all statistics are from Choice Hotels International, Inc. internal data.

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Demand Continues to Outpace Supply

*Source: PKF Hospitality Research, Trends in the Hotel Industry, 2015 Edition**Source: Smith Travel Research U.S Hotel Industry Performance March 2015High occupancy levels creates the opportunity for more aggressive ADR growth,which drives higher profitability for hotels. Strong gains in lodging demand, combined with relatively low levels of new supply in most markets, have put the U.S. Lodging Industry on a trajectory towards all-time record levels of occupancy. PKF Hospitality Research*0.92015**

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Properties Open Worldwide80Properties Under Development WorldwideA Growing Brand

40%Pipeline Growth in 2014Successful system-wide brand renovation program adding hundreds of Designed to Dream locations *Hotels open or under development as of YE 2014.

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Country Inn & Suites

$55.89

$78,042Developed for OwnersSleep Inn is a new construction brand that offers one of the lowest cost to build and strongest performance among select competitors.0K10K20K30K40K50K60K70K80K90KConstruction Cost Per KeyAverage 2014 RevPAR0510152025303540455055 RevPAR v Construction Cost Comparison Construction CostRevPAR

Microtel

$41.88$47,000AmericInn

$51.14

$63,933

Baymont Inn & Suites$60,082

$38.02Red RoofInn

$36.87

$50,712

$55.55

$47,783Sleep Inn & Suites*Source: AmericInn Franchise Disclosure Document dated February 25, 2015, Items 7 and 19; Baymont Inn & Suites Franchise Disclosure Document dated April 1, 2015, Items 7 and 19; Country Inn & Suites Franchise Disclosure Document dated March 26, 2015, Items 7 and 19; Microtel Franchise Disclosure Document dated April 1, 2015, Items 7 and 19; Ramada Franchise Disclosure Document dated April 1, 2015, Items 7 and 19; Red Roof Inn Franchise Disclosure Document dated April 1, 2015, Items 7 and 19; Sleep Inn Franchise Disclosure Document dated April 1, 2015, Items 7 and 19. For the 26 hotels included in the Designed to Dream Performance Sample, 10 hotels or 38.5% met or exceeded the RevPAR provided. INDIVIDUAL RESULTS MAY VARY. Performance Samples and criteria may vary between different Franchise Disclosure Documents.

Developed for Efficiency38,430 sq ftBUILDING GROSS SQUARE FOOTAGE

84 roomsROOM COUNT1.46 acresDEVELOPMENT SITE AREAPrototype Highlights:

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Developed for Guests

Sleep Inn guests consistently rate their stay experience near the top of the segment which means they are not only likely to return, but they are also likely to recommend Sleep Inn properties to their friends, families and colleagues.

Guest ProfileEnergetic and optimistic business and leisure travelers who appreciate affordable style.

AmericInn

Baymont Inn & Suites

Microtel8.2

Red RoofInn

8.4025678910Likelihood to Recommend4318.07.77.6*Source: Medallia, Inc., As of December 31, 2014. The maximum score in each category is 10. The companys areas of expertise are in market research and software engineering designed for the lodging industry. www.medallia.com.

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In addition to keeping development costs low, the smart design of Sleep Inn Designed to Dream also keeps operating costs low.Developed to Keep Costs Low

61% Total Choice Reservation ContributionFor Newly Constructed Designed to Dream hotels!**Source: See Sleep Inn Franchise Disclosure Document dated April 1, 2015, Item 19. For the 26 hotels that were included in the performance sample, 12 hotels or 46.2%, met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.

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The Sleep Inn brand's upgraded look featuring Designed to Dream hotels and the Dream Better Here messaging is marketed across a variety of guest touch-points.SleepInn.com Sleep Inn Brand Marketing

Sleep Inn Making It

On Site Guest MaterialsTargeted Online & Mobile Advertising

Media SponsorshipSleepInn.com & Property PagesPaid & Organic SearchTargeted Online & Mobile AdvertisingDirect Email Marketing & Social MediaOnline VideoIn-Hotel Consumer TouchpointsSmartMarketing - an easy-to-use online toolkit of cost-effective, customizable marketing materials to help hotels drive local business. Create sales flyers, brochures, digital ads, billboards, Choice Privileges materials and more

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The Power of Choice Hotels

With more than 75 YEARSexperience andONE OF THE WORLDSLARGEST HOTEL COMPANIES1 in10is a Choice Hotels brand

hotels in the U.S.book a Choice hotel every yearmillion customers20

Welcome to More.* Figure reflects revenues delivered through the Choice Hotels Central Reservation System (CRS) as well as non-CRS marketing channels. More than6,900 hotels30+Open or under development incountries worldwideMore than in reservations delivered in 2014*$3.5B11 diversified brands

More Innovation

With a proven record of innovation, Choices strategic vision is to offer hotel investors a portfolio of preferred hotel brands that appeal to a new generation of franchisees and guests.We continue to be an industry leader due to our well-recognized brands combined with our strong distribution channels, franchisee services and innovative strategies that deliver more results for our franchisees. Steve Joyce, President & CEO, Choice Hotels International

Consider notes about article of new move.Notes should include Choice:1.) Financial Strengths2.) Market Cap3.) Been in business over 75 years13

More BookingsThird Party Distribution Preferred OTA and GDS relationshipsIndustry Leading agreementsChoiceHotels.com$1B in revenue 170 million visits Robust search efforts Verified reviewsMobile5 million+ app downloads Frequent updatesReservations & Customer Care 5M Calls Handled 45% Booking RateOnline Reputation Management Global Sales 640+ targeted corporate & government accounts Group and tour segments8+ Million room nights booked Pricing Optimization 48% of CH.com reservations booked at Best Available Rate

Revenue Management & Pricing SolutionsFigures are from the full calendar year ending December 31, 2014.Choice Privileges24+ million members and growing

New Point + Cash anddigital gift card redemption options

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More Loyalty Members24+ Million Members

Choice Privileges Contribution for Sleep Inn & Suites: 36.4%**Source: See Sleep Inn Franchise Disclosure Document dated April 1, 2015. For the 172 hotels that were included in the sample, 93 hotels or 54.1% met or exceeded the Choice Privileges contribution presented. Actual results may vary.

Rewards with AwardsThe Freddie Awards recognize the best of frequent traveler programs as voted on by each programs own members.*Airline and hotel credit cards are combined into one category and Choice Hotels had the highest rated hotel card.

HOTEL PROGRAM OF THE YEAR2nd Place2015BESTPROMOTION1st Place2015BESTREDEMPTION ABILTY2nd Place2015BEST CUSTOMER SERVICE2nd Place2015BEST ELITE PROGRAM2nd Place2015TOP HOTELLOYALTYCREDIT CARD*1st Place2015

More Support

Choice Hotels offers top-notch service and support to help drive performance.Global SalesDedicated Regional Teams

Incremental Corporate, Government & Group Reservations

Key Account Rate PlanschoiceADVANTAGECloud-Based Property Management System

24/7 Help Desk Support

Link to Central Reservations Systems

Rate & ReputationManagement ToolsField SupportField Based Area Directors (ADs) of Franchise Services

Support Growth of Revenue, Market Share & Guest Satisfaction

Customized Opening HelpTrainingOnline ChoiceU.com Training Programs

In-Person Workshops & Certification Programs

Gamification Tools to improve staff engagementProcurement & Design ServicesQualified Vendors Program

Simple Purchasing Process & Lower Costs

Procurement Manager Guidance

Interior Design Assistance

Reaching More Guests

Over $200 million spent system-wide on programs and promotions in 2014 designed to increase brand awareness and drive hotel reservations.

OBJECTIVESTRATEGYTARGETHIGHLIGHTSIncrease awareness and preference for Choice HotelsDrive incremental bookings Multi-channel campaignHigh reach, impact and equityChoice Privileges promotionsAge 35-64Travel Decision Makers$50k - $150K Annual IncomeBusiness vs. Leisure

Choice National Marketing Campaign

https://www.youtube.com/watch?v=oCKnHyNsd7U

Mobile

TVOnline USA TodayOnline - ESPN

Notes Sleep Inn has logo in national TV advertising while many competitors dont, such as Microtel, Country Inn & Suites, and others.19

Developed for Exceptional Value20

High Guest AppealProven PerformanceBacked by Choice HotelsNow is the right time to buildLower Cost to Build

New Construction Cash Incentives Available for Qualified Applicants

DFS Contact InfoTHANK YOUThis advertisement is not an offering. For New York: an offering can only be made by a prospectus filed first with the Department of Law in the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: Sleep Inn #F-1799. A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD 20850 or at development@choicehotels.com.

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22Sleep Inn MainStayDual Brand Hotel

More Reservations

ChoiceHotels.com

Customized Hotel Property Pages

Search Engine Optimized

170 Million Site Visits in 2014Mobile Channels

First Global Lodging Company iPhone App

84+ Million Mobile SiteVisits in 2014

Mobile & Global Positioning System (GPS)PresenceGlobal Distribution Systems (GDS)

Preferred Status with Major Travel Agencies

Galileo, Worldspan, Amadeus, SabreOnline Travel Agents

Preferred agreements with major OTAs and Metasearch sites Expedia, Booking.com, TripAdvisor and more

High OTA VisibilityCall Centers

Dedicated Toll-Free Number

Commission-Free Reservations

Global Locations

Call Forwarding Program

$3.5+ Billion in ReservationsDelivered in 2014** Figure reflects revenues delivered through the Choice Hotels Central Reservation System (CRS) as well as non-CRS marketing channels.

Choice Hotels - a leading global hospitality company with a proud legacyHelping to expand Cambria in the top North American urban marketsChoice Hotels has brought on institutional partners with real estate and hotel operations expertise to support brand growth and valueDedicated resources Cambria Sales Team, Digital Analysts, Area Directors, Revenue Management and Land Team

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Prototype Design Palettes245 Color Options for Designed to Dream PropertiesAbility to customize within consistent, timeless nature themes