Suburban extended stay brand presentation

Suburban Extended Stay Hotel

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Choice Hotels Extended Stay Brands 速

Hotels for Real Life

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The Extended Stay Segment WHAT IS EXTENDED STAY? • One of the fastest-growing segments in the industry* • More cost-efficient to operate than traditional hotels* • Higher occupancy rates*

• Compact kitchens in every guestroom • Guest stays are typically 5 nights or longer

*Source: The Highland Group, 2014 U.S. Extended Stay Lodging Market Report. The Highland Group provides objective, independent research for the hospitality industry. www.highland-group.net.

Unless otherwise noted, all figures and statistics in this document are from the Suburban Franchise Disclosure Document, dated April 1, 2014, or from internal data of Choice Hotels International, Inc. This 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: Suburban Extended Stay Hotel #F-5274. 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.

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The Extended Stay Segment WHO ARE EXTENDED STAY GUESTS? Extended Stay hotels receive a mix of both transient (short-term) and extended-stay guests, leading to higher occupancies than traditional transient hotels.* They also appeal to business and leisure travelers, boosting their ability to attract demand.

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*Source: The Highland Group, 2014 U.S. Extended Stay Lodging Market Report. The Highland Group provides objective, independent research for the hospitality industry. www.highland-group.net.

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The Extended Stay Segment

BY THE NUMBERS

*Source: U.S. Hotel Industry performance data provided by Smith Travel Hotel in Review, year-end 2013. Smith Travel Research (STR) is leader in hotel benchmarking and tracks supply and demand data for the hotel industry. www.str.com. Extended Stay segment performance data provided by The Highland Group - 2014 U.S. Extended Stay Lodging Market Report. The Highland Group is a global business consulting firm. www.highland-group.net. INDIVIDUAL RESULTS MAY VARY.

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New Modern Bedding Packages

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Suburban Extended Stay Hotel — Hotels for Real Life

The Suburban Extended Stay Hotel® brand is designed to deliver lower investment requirements, higher occupancies and lower operating costs than other lodging industry segments.

HOTEL FEATURES • Guest laundry facility • Large vending area

GUESTROOMS • Studio single, queen suites and double-queen suites • Well-equipped kitchens in every room • Weekly housekeeping service • Free high-speed Internet access and cable TV

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Discounted Royalty Fees plus Cash Incentives Don’t miss out on huge upfront savings for Suburban!

Qualified applicants can receive discounted royalty fees plus a cash incentive at opening!*

THERE IS NO BETTER TIME TO JOIN THE CHOICE HOTELS FAMILY

Incentive Program Highlights* Discounted Affiliation Fee

Discounted Royalty Fee

Incentives

$15,000

3.0% for Two Years

$20,000 Cash Incentive

(which is $15,000 less than the brand standard fee)

(which is 2% less than the brand standard fee)

If hotel opens within 3 months of contract execution

$15,000 Cash Incentive If hotel opens within 6 months of contract execution *Source: Terms and Conditions apply. See Suburban Franchise Disclosure Document dated April 1, 2014 for qualifications and details.

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Exterior

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Public Spaces

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Guestrooms

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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.

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The Power of Global Reservations Systems

ChoiceHotels.com

Global Distribution Systems (GDS)

Mobile Channels

Customized Hotel Property Pages

Mobile & Global Positioning System (GPS) Presence

Strong Search Engine Presence

First Global Lodging Company iPhone App

More than 150 Million Visits in 2013

50+ Million Mobile Site Visits in 2013

Travel Agency Preferred Status Express®,

American Carlson Wagonlit Travel, Amadeus, Sabre, and more HelmsBriscoe Partnership

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

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

Global Sales

choiceADVANTAGE®

Field Support

Training

Dedicated Sales Teams

Web-Based Property Management System

Revenue, Market Share & Guest Satisfaction Goals Assistance

Dedicated Extended Stay Sales Training

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

Area Directors (ADs) of Franchise Services

Procurement Services Qualified Vendors Program Simple Purchasing Process & Low Costs Procurement Manager Guidance Interior Design Assistance 13

The Power of ChoiceHotels.com

• More than 150 million ChoiceHotels.com visits 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 Suburban 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 Suburban Franchise Disclosure Document dated April 1, 2014. The average ADR for Suburban hotels in 2013 was $53.68 while the average ADR through our Central Reservations System was $66.01. For the 21 hotels that were included in this performance sample, 9 hotels or 42.9% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.

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The Power of Loyalty — Choice Privileges®

Membership Membership has has doubled doubled in inthe thelast last5 5years years 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.

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

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

• Over $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 Suburban Franchise Disclosure Document dated April 1, 2014.

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Thank You ChoiceHotelsFranchise.com franchise_sales@choicehotels.com

Š 2014 Choice Hotels International, Inc. All rights reserved. 14-162/06/14

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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. 14-162/06/14

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