Suburban Extended Stay Brochure

Suburban Extended Stay Hotel Hotels for Real Life.® The Suburban Extended Stay Hotel® brand is in the economy extended stay segment, and provides guests the essentials of home at attractive long-term rates. Suburban® offers hotel owners operational efficiencies when guests stay for longer periods of time. By having welcoming residential/apartment style architecture, hotels can feature single suites, queen suites and double-queen suites, convenient on-site guest laundry and a large vending area. This flexible floor plan concept allows for conversions, easily adopting local market-driven design, guest room mix and suitable extended stay guestroom features, along with an optional fitness center, meeting space or swimming pool.

With 70 years experience, and over 6,600 properties open and under development worldwide, Choice Hotels® is one of the largest franchise organizations in the world.* We offer services, resources, field support, property management systems and ongoing training all designed to optimize hotel performance. In 2011, the total system-wide revenue generated from the Choice Hotels marketing and reservations channels was over $2.4 billion and over $202 million was spent system-wide on programs and promotions designed to increase brand awareness and drive hotel reservations.**

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800.547.0007

choicehotelsfranchise.com/suburban

BR AND HIG H LI G H TS · 87 Suburban brand properties open and under development worldwide in 2011.* · The Suburban brand contributed 38.9% of gross room revenue through the Choice Hotels Central Reservations System (CRS) and other non-CRS marketing channels.***

Suburban Delivers Support Suburban Extended Stay Hotel is supported by a nationwide team of Brand Performance Consultants (BPCs). Brand Performance Consultants provide local market assessments, pricing and rate structure support, and operational training – making sure you are adhering to the extended stay business model to monitor optimal hotel performance.

· Participation in the Choice Privileges® guest loyalty program, one of the fastest-growing rewards programs in the hotel industry with over 14 million members.* · With over 1,800 corporate accounts, the Choice Hotels Global Sales team delivers business travelers for our hotels.

Key Brand Standards/ Identifiers

· Choice Hotels has joined forces with the HelmsBriscoe Company, one of the world’s largest group business organizers with 1,200 agents in 49 countries. This agreement provides the opportunity for our hotels to tap additional group business leads (both corporate and leisure) to drive incremental business.

· Well-equipped kitchens in every room, including: · Refrigerator · Microwave · 2-burner cook-top · Sink · Coffee maker · Cookware and Utensils · Weekly housekeeping service · Guest laundry facility and Vending Area · Free high-speed internet access · Free cable TV, including premium movie channels

· Access to choiceADVANTAGE® – Choice Hotels award winning proprietary web-based property management system that provides effective rate and inventory management to drive higher yield.

*Source: Internal data as of December 31, 2011 **Source: Figure reflects the revenues delivered through the Choice Hotels Central Reservation System (CRS) and other non-CRS marketing channels in 2011. The spend figure is based on accounting records of the System Fee in 2011 and has been compiled in a manner consistent with generally accepted accounting principles. See applicable Franchise Disclosure Document dated April 1, 2012. ***Source: See Suburban Extended Stay Hotel Franchise Disclosure Document dated April 1, 2012. For the 18 hotels that were included in the sample, 9 hotels or 50.0% met or exceeded total Choice contribution. Actual results may vary.

Source: See Suburban Extended Stay Hotel Franchise Disclosure Document dated April 1, 2012. For the 18 hotels that were included in the sample, 9 hotels or 50.0% met or exceeded the Average Occupancy Rate. Actual results may vary.

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· 2nd highest average occupancy rate (64.9%) across all Choice Hotels brands.†

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: Suburban Extended Stay #F-5274.

For California: THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International at 10750 Columbia Pike, Silver Spring, MD 20901, 800.547.0007. © 2012 Choice Hotels International, Inc. All rights reserved. 12-248/03/12

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