Bell Enters Agreement to Build 50 Choice Hotels

Bell Hospitality Concurrently Executes Franchise Contracts For First Nine Hotels Under This Agreemen

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. October 14, 2008

JANUARY 29, 2008. Choice Hotels International (NYSE:CHH) and Bell Hospitality Group, LLC of Oklahoma City, Oklahoma today announced the execution of a development agreement under which Bell will build a minimum of 50 MainStay Suites and Suburban Extended Stay brand hotels, all of which are scheduled to be under development by October 31, 2009. The announcement was made in Los Angeles at the annual Americas Lodging Investment Summit.

The companies also announced that they have simultaneously executed the first nine franchise agreements under this contract for MainStay Suites hotels in Tulsa, Oklahoma (two), Kansas City, Missouri, Oklahoma City, Oklahoma, and Colorado Springs, Colorado and Suburban Extended Stay Hotels in four Louisiana markets - New Orleans, Baton Rouge, Lafayette and Lake Charles. All fifty hotels will be developed in the market areas of Oklahoma City, Oklahoma, Tulsa, Oklahoma, Kansas City, Missouri, Denver, Colorado, Colorado Springs, Colorado, Albuquerque, New Mexico, New Orleans, Louisiana, Baton Rouge, Louisiana, Alexandria, Louisiana, Lafayette, Louisiana, Lake Charles, Louisiana, Austin, Texas, and Houston, Texas

"The fundamental strength of the extended stay market, coupled with two well-segmented brands from Choice, is a powerful combination that has us poised for success in this dynamic segment," said Garland Bell, Chairman, Bell Hospitality, LLC. "We are also very confident that the MainStay Suites and Suburban brands will be natural fits within a number of our planned commercial mixed-use developments. We've enjoyed working with the Choice organization and we appreciate the great support we've received from the extended stay team."

MainStay Suites, the mid-market extended stay hotel brand from Choice, offers guests residential style amenities and affordable rates with both large rooms and studios. Travelers will find enough room for an extended stay, with separate areas for dressing, relaxing, sleeping and eating along with a full, well-equipped kitchen, and large work area. Suburban Extended Stay Hotel is the economy extended stay brand of Choice Hotels, providing guests a great value over a longer stay. Suburban brand hotels offer guests the essentials of home at affordable rates for weekly or extended stays. Both MainStay Suites and Suburban brand hotels participate in the Choice Privileges rewards program, which has over 6 million members worldwide.

"The commitment we are seeing from leading developers like Garland Bell underscores the strong appeal of our extended stay brands and highlights the market opportunity we have to dramatically increase their distribution," said Kevin Lewis, president, extended stay brands, Choice Hotels International. "We look forward to working with Bell Hospitality as we significantly increase our distribution in major markets from New Orleans to Houston to Denver - and a number of cities in between."