1. 1 Choice Hotels International Strategic Plan Overview December 14, 2003

2. 2 Vision and Mission u Our Vision: To generate the highest return on investment of any hotel franchise u Our Mission: Deliver a franchise success system of strong brands, exceptional services, vast consumer reach, and size, scale and distribution that delivers guests and reduces costs for our hotel owners u Our Passion: Customer Profitability

3. 3 Choice Strategic Vision Brand Growth/ Franchisee Profitability Increased Business Delivery Reduced Development and Operating Costs Franchise Success System Strong Brands Vast Consumer Reach Exceptional Services Size, Scale and Distribution Franchise Success System

4. 4 Measurement Success will be measured using the following indicators: þ Financial Performance þ Unit Growth þ RevPAR Performance þ Reservations Delivery þ Franchisee Satisfaction þ Guest Satisfaction

5. 5 Key Initiatives – Build Strong Brands  Improve Brand ROI  New Prototypes  Improve Brand Differentiation  Deliver a High Quality, Consistent Experience  Quality Assurance Improvements  Consider New Brands for Portfolio  Ensure No Impact Issues with Current Portfolio  Continue International Success

6. 6 Key Initiatives – Deliver Exceptional Services  Deliver More Valuable, Customized Revenue Enhancement Advice  RevPAR Advisor  Yield Management Technology  Provide Effective Technology Solutions  Profit Manager  CRM  Choice Privileges  Focus on Hotel Openings  Reduce Cycle Time  Reach Fair Market Share Quicker

7. 7 Key Initiatives – Reach More Consumers  Continue Highly Effective Multi-Brand Marketing Campaign  Build Awareness  Allocate More Funds to Advertising  Drive Reservations  Use Choice’s Brand Strength to Drive Reservations and Yield  Automate Distribution  Educate Franchisees  Build Choice Privileges  Sell Effectively to Intermediaries