Sleep Inn Launches Minority Incentive Program

Minimizes Upfront Development Costs; Provides Operational Support

(Wednesday, July 20, 2005) - Choice Hotels International, Inc., franchisor of all-new construction, midpriced Sleep Inn brand hotels, today launched a Sleep Inn Minority Incentive Program that offers qualified African American, Hispanic and Native American entrepreneurs a special development incentive with a value of up to $155,000.

"High upfront costs and lack of management experience are two of the primary barriers to entry for minority entrepreneurs interested in hotel development," said Brian Parker, vice president, emerging markets and new business development. "This incentive program is designed to combat the barriers to entry and demonstrate our commitment to increase minority ownership within the Choice Hotels system."

The Sleep Inn Minority Incentive Program features:

-- Feasibility Study Reimbursement - Choice Hotels will reimburse up to
$5,000 for a feasibility study - a critical, lender-required step to
hotel ownership.
-- A 50% Affiliation Fee Reduction - Reduced to $20,000 from $40,000
-- Grand Opening Incentive - $70,000 in the form of a fully forgivable
note at the grand opening of the hotel for any hotel related purpose.
-- Management Company Fee Contribution - Choice Hotels will contribute up
to $50,000 of the first year's cost for a professional management
company. The retention of a management company may increase financing
options for first-time hoteliers. It also enables developers to learn
best practice operations and may better position a hotel to achieve
fair market share soon after opening.
-- Bonus Support Services and Training - Developers will receive free
Profit Manager by Choice Hotels' property management system software.
This proprietary, Windows-based system provides state-of-the-art hotel
management functionality and integration with central reservation and
frequent guest systems - a $7,500 value. Plus developers will receive
three days of extra-customized performance-related training during the
first year of operations - a $2,500 value.

Sleep Inn properties' affordable development costs and return on investment (ROI) focus make the brand an attractive business opportunity for new hotel owners. The brand uses a contemporary room concept with upscale, state-of-the-art features to save labor and building costs, while delivering a consistent quality guest experience to value minded business and leisure travelers. A new, value-engineered prototype for the brand has reduced development costs to approximately $35,000 per key excluding land and soft costs.

"Choice Hotels is dedicated entirely to optimizing hotel performance. As a pure franchising company, our success is 100% contingent on the success of our franchisees-our passion is their profitability," Parker added*.

Worldwide lodging franchisor Choice Hotels International markets more than 5,000 hotels in over 40 countries under the brand names Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Econo Lodge and Rodeway Inn. The company's newest brand, Cambria Suites, launched in January 2005. For more information on Choice, visit the company's web site at www.choicehotels.com.

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

*Although Choice Hotels owns three hotels as a result of a transaction with a previous affiliate, at this time it does not intend to develop, own, or operate any other hotels.

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