Quality brand presentation

Quality® – Get Your Money’s Worth

About Quality Get Your Money’s Worth… Out of Your Existing Asset The Quality brand provides owners with great flexibility for quick conversions of existing hotel properties, offering a compelling value proposition.

As a premier midscale conversion brand, Quality puts a focus on what really matters to guests while offering multiple brand extensions to fit many product types.

Unless otherwise noted, all figures and statistics in this document are from the Quality Franchise Disclosure Document, dated April 1, 2014, or from internal data of Choice Hotels International, Inc. This 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: Quality #F-48. 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, franchise_sales@choicehotels.com.

2

Quality — A Global Brand With a distinguished heritage spanning over 70 years, Quality is one of the largest global hotel brands, with more than 1,500 locations open in 25 countries and territories worldwide.

Quality Global Brand Growth

Quality has grown steadily over the last decade, including through the recent economic downturn.

3

Quality — A Global Brand

• The Quality brand is well known among consumers, with a current brand awareness ranking of 84%, higher than competitors such as La Quinta Inn & Suites and Country Inn & Suites.*

• Quality properties also rank higher in guest likelihood-to-recommend scores compared to competitors such as Days Inn and Ramada.**

84%

BRAND AWARENESS

*Source: Millward Brown Advertising Tracking Study full-year 2013. Millward Brown is a global marketing research firm specializing in advertising, marketing, communications and brand equity research. **Source: Medallia Inc. Guest Insight System. As of December 31, 2013. Areas of expertise are in market research and software engineering designed for the lodging industry.

4

Quality — A Proven Winner Hotels converting to Quality get access to the Choice HotelsŽ Reservations System that generated $3.1 billion in system-wide reservations in 2013.*

Choice Hotels Delivers Reservations for the Quality brand!** Total Choice Contribution for Quality

*Source: Figure reflects the revenues delivered through the Choice Hotels Central Reservation System (CRS) and other non-CRS marketing channels in 2013. See the Quality Inn Franchise Disclosure Document dated April 1, 2014. **See Quality Franchise Disclosure Document dated April 1, 2014, Item 19. For the 271 hotels included in the performance sample, 125 hotels or 46.1% met of exceeded this amount INDIVIDUAL RESULTS MAY VARY.

5

A Focus on the Things That Matter FLEXIBILITY The Quality brand provides multiple brand extensions to fit a variety of property types and welcomes hotels that are either interior or exterior corridor.

6

A Focus on the Things That Matter VALUE Qs Consistency for the guest + Flexibility for you = Minimal expense with big impact

Free hot, fresh and healthy breakfast Premium mattress and linens

Branded bath amenities

A service culture focusing on professional, responsive and friendly service.

Free amenities, including high-speed Internet, newspaper, 24-hour coffee/tea, and local calls

7

A Focus on the Things That Matter SUPPORT Each opportunity starts with a customized approach.

1

Assessment of your property and market conditions.

2

Tailored property improvement plans designed to help increase the overall value of your asset long term.

3

The Power of Choice Hotels, including reservations delivery, field support, expert training, preferred vendors, and more!

8

BE Professional BE Responsive BE Friendly

• Aimed to inspire a culture among Quality properties • Inspires property staff to “be” rather than “do” – to live the brand promise • Win-Win-Win for the hotel, the brand, and the guest

9

Largest Quality Deal in History!

In 2012, Choice Hotels franchised 42 existing hotels, formerly operating as Jameson Inn properties, in a single transaction under the Quality brand, making it the largest single conversion transaction for the company to date.

10

Discounted Royalty Fees plus Cash Incentives For a limited time, qualified applicants can receive discounted royalty fees and cash incentive at opening!

Incentive Program Highlights* Discounted Affiliation Fee

Discounted Royalty Fee

Incentives

$25,000 Affiliation Fee

2.65% Royalty Fee for Quality, for the First Two Years (which is 2% less than the brand standard fee)

$35,000 Cash Incentive

(which is $10,000 off the brand standard fee)

If hotel opens within 3 months of contract execution

$25,000 Cash Incentive If hotel opens within 6 months of contract execution

*Terms and conditions apply: See Quality applicable Franchise Disclosure Document dated April 1, 2014, Item 10, for qualifications and details.

11

The Power of Choice Hotels Choice Hotels is one of the world’s largest lodging franchisors, with 75 years of experience and more than 6,800 properties open or under development in 35+ countries worldwide.

12

The Power of Global Reservations Systems

ChoiceHotels.com

Mobile Channels

Global Distribution Systems (GDS)

Customized Hotel Property Pages

Mobile & Global Positioning System (GPS) Presence

Travel Agency Preferred Status

Strong Search Engine Presence

First Global Lodging Company iPhone App

American Carlson Wagonlit Travel, Amadeus, Sabre, and more

More Than 150 Million Visits in 2013

50+ Million Total Mobile Site Visits

HelmsBriscoe Partnership

Express速,

Online Travel Agents High Third-Party Website Visibility Cost-Effective Scale-Driven Agreement with Booking.com, Travelocity, Orbitz, Hotels.com, and more

Call Centers Dedicated Toll-Free Number Commission-Free Reservations Global Locations Call Forwarding Program

13

The Power of Service & Support Choice Hotels offers top-notch service and support to drive performance.

Global Sales

choiceADVANTAGE速

Field Support

Training

Dedicated Sales Teams

Web-Based Property Management System

Revenue, Market Share & Guest Satisfaction Goals Assistance

Expert Training Programs

Incremental Corporate, Leisure & Group Reservations Direct Sales, Telesales & Sales Blitzes Targets Travel Planners Variable Key Account Rate Plans

Remote Web Access 24/7 Link to Central Reservations Systems Rate & Inventory Management 24/7 Help Desk Support

Virtual Franchise Services Assistance Operations Resource Center

Online ChoiceU.com Courses & Resources In-Person Workshops & Certification Programs

Field-Based Brand Performance Consultants (BPCs)

Procurement Services Qualified Vendors Program Simple Purchasing Process & Low Costs Procurement Manager Guidance Interior Design Assistance

14

The Power of ChoiceHotels.com

• More than 150 million visits to ChoiceHotels.com in 2013.

• ChoiceHotels.com continues to have high website conversion rates.

• ChoiceHotels.com drives an Average Daily Rate premium over reservations from other channels.**

ChoiceHotels.com, along with other Choice Hotels marketing channels, generated more than

$3.1 billion in system-wide gross room revenue in 2013.*

*Source: See Quality Franchise Disclosure Document dated April 1, 2014. Figure represents the revenues delivered through the Choice Hotels Central Reservations System (CRS) as well as non-CRS marketing channels. **Source: See Quality Franchise Disclosure Document dated April 1, 2014. Item 19 The average ADR for Quality hotels in 2012 was $76.33 while the average ADR through our Central Reservations System was $79.52. For the 271 hotels that were included in this performance sample, 94 hotels or 34.7% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.

15

The Power of Loyalty — Choice Privileges®

Membership has doubled since 2009.

Worldwide Members (millions) • More than 20 million members worldwide!

• Comprehensive loyalty program of Choice Hotels that rewards guests for their business.

• Designed to drive incremental business and improve guest loyalty.

16

The Power of Marketing Leading reservations to your hotel at every step.

• Industry-leading multi-brand marketing campaigns that are designed to tackle changing consumer buying patterns and deliver incremental business.

• More than $212 million spent system-wide on programs and promotions in 2013 designed to increase brand awareness and drive hotel reservations.* • More than 15 billion media impressions in 2013, driving users to visit ChoiceHotels.com.

*Source: Figure is based on accounting records of the System Fee in 2013 and has been compiled in a manner consistent with generally acceptable accounting principles. See applicable Franchise Disclosure Document dated April 1, 2014.

17

The Power of Quality Brand Marketing The Quality marketing program consistently communicates the “Get Your Money’s Worth” brand message.

SPECIFIC QUALITY BRAND INITIATIVES

QualityInn.com & Property Pages

Paid & Organic Search

TV & Online Commercials and Sponsorships

Online, Mobile and Tablet Advertising

In-Hotel Consumer Touch Points

SmartMarketing — a dynamic online toolkit of cost-effective professional materials and programs to help Quality brand hotels execute local marketing

18

Thank You ChoiceHotelsFranchise.com

franchise_sales@choicehotels.com

Š 2014 Choice Hotels International, Inc. All rights reserved. 14-162/05/14

19

CALL YOUR

Director of Franchise Sales TODAY!

Your Name

Choice Hotels Franchise Sales

Your State(s)/Territory

###.###.####

ChoiceHotelsFranchise.com

your_name@choicehotels.com

franchise_sales@choicehotels.com

Š 2014 Choice Hotels International, Inc. All rights reserved. 14-162/05/14

20