1. CONFIDENTIAL1 Fall Promotion November 5, 2003

2. CONFIDENTIAL2 Fall Objectives u Promotion Objectives F Increase brand awareness for the Choice midscale brands F Protect Choice’s market share, while giving hotels a chance to significantly increase share F Provide an incentive that attracts both leisure and business travelers (medium and heavy users) F Be a market leader by not only having a breakthrough offer, but by offering the strongest program in the industry F Avoid the discounting trap by focusing on a value add that maintains rate integrity

3. CONFIDENTIAL3 Estimated System Impact

4. CONFIDENTIAL4 Hotel Performa

5. CONFIDENTIAL5 Next Steps u CP subcommittee to work with Choice staff to review bi-weekly promotion performance u At 60 days, CP subcommittee will recommend whether the fee structure is appropriate

6. CONFIDENTIAL6 Original Success Measures – 60 Day Review u Average Incremental Revenue Per Hotel – $2,000 Per Month u Average Incremental Hotel Sign-Ups – 20 Per Month

7. CONFIDENTIAL7 Additional Success Measures u Data used to illustrate gains in Promotion Months over Year-to-Date Totals  Same Store Sales  Research Results  Smith Travel Data  Reservation Volume

8. CONFIDENTIAL8 Current Fall Results (All Hotels) u Average Choice Privileges Hotel Revenue F September 2002- $10,213 F September 2003- $13,755 F October 2002- $8,425 F October 2003- $15,923 $3,542 (versus Goal of $2,000) $7,498 (versus Goal of $2,000)

9. CONFIDENTIAL9 Current Fall Results (All Hotels) u Average Hotel New Member Sign-ups F September 2002- 8.3 F September 2003- 61.5 F October 2002- 16.5 F October 2003- 48.1 53.2 (versus Goal of 20) 31.6 (versus Goal of 20)

10. CONFIDENTIAL10 CP Applications 2002 vs. 2003

11. CONFIDENTIAL11 CP Application Source Monthly Average CP Application Source Monthly Average

12. CONFIDENTIAL12 CP Application Statistics

13. CONFIDENTIAL13 Weekly CP Revenue

14. CONFIDENTIAL14 CP Monthly Revenue 2002 vs. 2003 CP Monthly Revenue 2002 vs. 2003

15. CONFIDENTIAL15 CP ADR 2002 vs. 2003

16. CONFIDENTIAL16 CP Revenue data- same store hotels* *2,017 hotels compared

17. CONFIDENTIAL17 CP ADR data- same store hotels* *2,017 hotels compared

18. CONFIDENTIAL18 CP Room Night Data- same store hotels* *2,017 hotels compared

19. CONFIDENTIAL19 Airline Stays 2002 vs. 2003 United, Southwest, and America West excluded from this analysis

20. CONFIDENTIAL20 Airline Stays 2002 vs. 2003 Includes all Airlines

21. CONFIDENTIAL21 Consumer Research Regarding Promotion ExistingNew Members Members Stayed due to promotion 17% 25% Would have stayed anyway 83% 75% Influence of Promotion on Hotel Selection Major Factor 34%51% Minor Factor 2419 Not a Factor 4230 Source: WRA Research Sample contains 418 interviews

22. CONFIDENTIAL22 Consumer Research Regarding Promotion Source: WRA Research Sample contains 418 interviews ExistingNewMembers This Promotion Compared to Other Hotel Promotions Much Better47%29% Somewhat Better2425 About the Same1418 Worse22 Not Sure1325

23. CONFIDENTIAL23 2003 Reservation System Bookings Growth October contains Preliminary data

24. CONFIDENTIAL24 CP Revenue vs. OSS Revenue % increase

25. CONFIDENTIAL25 Preliminary Performance Evaluation Same Store Analysis Includes Best Western, Days Inn, Fairfield, Hampton, Holiday Inn, Holiday Inn Express and Ramada Source: Smith Travel Research Sept 2003Change from 9/02 Jan-Aug 2003Difference Choice Midscale Occupancy57.9%+1.2%-2.3%+3.5% Competitive Set * Occupancy57.0+0.5-1.7%+2.1% Choice Midscale ADR$64.11-0.6%-0.1%-0.7% Competitive Set ADR$69.82+0.1-0.2%+0.3% Choice Midscale RevPar$37.12+0.7-2.2%+2.9% Competitive Set RevPar$39.79+0.6-1.9%+2.5% Choice midscale brands improved their occupancy performance versus competition in September 2003.

26. CONFIDENTIAL26 Preliminary September 2003 Performance