Winport to Develop 25 Choice Hotels in Canada

Companies Team Up To Target Largely Untapped Canadian Market for Mid-Scale and Economy Extended Stay

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. October 14, 2008

SILVER SPRING, MD / HALIFAX, NS, Canada, Nvoember 6, 2007. Choice Hotels International (NYSE: CHH) and Winport Developments, Inc. today announced the execution of a development agreement under which Winport will build a minimum of 25 MainStay Suites and Suburban Extended Stay hotels in Canada, all of which are anticipated to open by September 30, 2010. The companies also announced that they have simultaneously executed the first five franchise contracts under this agreement, with hotels under development in Ontario, Alberta and Atlantic Canada.

Extended stay hotels cater to long-term guests, and these properties typically enjoy greater operational efficiencies than traditional hotels due to their unique operating and staffing models. On account of these operational efficiencies, owners of extended stay hotels often see stronger margins and returns from their investments than owners of traditional hotels. Canadian consumers looking for mid-scale and economy extended stay lodging options are currently underserved, with very limited supply available in these segments. Frequently, these travelers have no option but to stay in transient hotels, which offer fewer home-style amenities that are desired by long-term guests.

"We are very excited to enter into this agreement with Choice Hotels International to help develop its MainStay Suites and Suburban Extended Stay brands throughout Canada," said Ted Good, president, Winport Developments, Inc. "With support from Choice's extended stay team in the areas of development, sales and marketing and operations and field support, we feel very confident about our prospects for continued growth and success in this dynamic segment."

MainStay Suites hotels offer a relaxing environment where guests can enjoy residential-style amenities. Each guest suite features a fully-equipped kitchen, a sleeper sofa, large work areas, free high-speed Internet access and free cable television. Guests also enjoy a complimentary continental breakfast, and the Canadian hotels will have an on-site fitness center. Suburban Extended Stay hotels provide the essentials of home at affordable rates. Each guest room features a well-equipped kitchen, free cable television, and free high-speed Internet access. The Suburban hotels in Canada will have on-site laundry facilities and a fitness center. Both MainStay Suites and Suburban hotels offer reduced rates for longer stays and participate in the Choice Privileges rewards program, which has over 6 million members worldwide.

"We are honored to work with such an esteemed organization as Winport Developments as we introduce our brands into the Canadian marketplace," said Kevin Lewis, president, extended stay brands, Choice Hotels International. "We look forward to a strong, long-term relationship with Winport as we embark upon this very exciting alliance that will enable us to establish a strong market presence in Canada."