Exhibit 99.1

For Immediate Release

CHOICE HOTELS REPORTS FIRST QUARTER 2011 ADJUSTED DILUTED EPS OF

$0.28, DOMESTIC UNIT GROWTH OF 1.3%

SILVER SPRING, MD. (April 28, 2011) – Choice Hotels International, Inc., (NYSE:CHH) today reported the following highlights for first quarter 2011:

• Adjusted diluted earnings per share (“EPS”) for first quarter 2011 were $0.28 compared to $0.27 for the same period of the prior year. Diluted EPS were $0.26 for first quarter 2011 compared to $0.26 for first quarter 2010. Adjusted diluted EPS for first quarter 2011 and 2010 exclude certain special items, as described below, totaling $0.02 and $0.01, respectively.

• Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $27.8 million for the three months ended March 31, 2011, compared to $26.4 million for the same period of 2010. Operating income increased 8% from $23.8 million for the three months ended March 31, 2010 to $25.7 million for the same period of the current year.

• Franchising revenues increased 8% from $47.7 million for the three months ended March 31, 2010 to $51.5 million for the same period of 2011. Total revenues for the three months ended March 31, 2011 increased 7% to $115.3 million compared to the same period of 2010.

• The effective income tax rate for the three months ended March 31, 2011 was 28.2% compared to 35.9% for the same period of the prior year. Excluding certain discrete items totaling $1.3 million (approximately $0.02 diluted earnings per share) recorded during the three months ended March 31, 2011, the company’s effective income tax rate was 34.4%.

• Domestic unit and room growth increased 1.3 percent and 0.8 percent, respectively, from March 31, 2010.

• Domestic system-wide revenue per available room (“RevPAR”) increased 5.5% for the first quarter of 2011 compared to the same period of 2010.

• The effective royalty rate increased 3 basis points to 4.35% for the three months ended March 31, 2011 compared to 4.32% for the same period of the prior year.

• The company executed 56 new domestic hotel franchise contracts for the three months ended March 31, 2011 compared to 55 contracts executed in the same period of the prior year.

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• The number of domestic hotels under construction, awaiting conversion or approved for development declined 23% from March 31, 2010 to 508 hotels representing 41,475 rooms; the worldwide pipeline declined 20% from March 31, 2010 to 606 hotels representing 49,908 rooms.

“While the franchise development environment remained challenging during the first quarter, we are pleased with our continued growth in domestic RevPAR, domestic net units and rooms and key financial metrics”, said Stephen P. Joyce, president and chief executive officer. “As the domestic RevPAR and hotel transaction environments continue to improve, Choice remains a top option for hotel developers thanks to our formidable position as the premier lodging franchisor in the mid-scale and economy segments with a mix of well-segmented, well-known brands suitable for new construction and conversion development opportunities.”

Special Items

During the three months ended March 31, 2011 and 2010, the company recorded employee termination benefits in selling, general and administrative expenses of approximately $0.1 million and $0.4 million, respectively. In addition, during the three months ended March 31, 2011, the company reduced the carrying amount of a parcel of land held for sale resulting in a loss of $1.8 million included in other gains and losses. These amounts represented diluted EPS of $0.02 and $0.01 for the three months ended March 31, 2011 and 2010, respectively.

Outlook for 2011

The company’s second quarter 2011 diluted EPS is expected to be at least $0.43. The company expects full-year 2011 adjusted diluted EPS to be between $1.73 and $1.75. Adjusted EBITDA for full-year 2011 are expected to be between $177 million and $179 million. These estimates include the following assumptions:

• The company expects net domestic unit growth to be relatively flat in 2011;

• RevPAR is expected to increase approximately 5% for the second quarter of 2011 and increase approximately 4% for full-year 2011;

• The effective royalty rate is expected to increase 1 basis points for full-year 2011;

• All figures assume the existing share count and an effective tax rate of 34.5% and 33.5% for the second quarter and full-year 2011, respectively;

• Adjusted EBITDA for the full year 2011 excludes $0.1 million of operating expenses related to employee termination benefits. Adjusted diluted EPS excludes the aforementioned employee termination benefits as well as a $1.8 million loss on land held for sale which together represent approximately $0.02 diluted EPS for full year 2011.

Use of Free Cash Flow

The company has historically used its free cash flow (cash flow from operations less capital expenditures) to return value to shareholders, primarily through share repurchases and dividends.

For the three months ended March 31, 2011 the company paid $11.0 million of cash dividends to shareholders. The current quarterly dividend rate per common share is $0.185, subject to declaration by our board of directors.

During the three months ended March 31, 2011, the company did not purchase shares of its common stock under the share repurchase program but still has authorization to purchase up to an additional 3.6 million shares under this program. We expect to continue making repurchases in the open market and through privately negotiated transactions, subject to market and other conditions. No minimum number of share repurchases has been fixed. Since Choice announced its stock repurchase program on June 25, 1998, the company has repurchased 43.2 million shares of its common stock for a total cost of $1 billion through March 31, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 76.2 million shares through March 31, 2011 under the share repurchase program at an average price of $13.35 per share.

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Our board of directors previously authorized us to enter into programs which permit us to offer financing, investment and guaranty support to qualified franchisees as well as to acquire and resell real estate to incent franchise development for certain brands in top markets. Over the next several years, we expect to continue to opportunistically deploy capital pursuant to these programs to promote growth of our emerging brands. The amount and timing of the investment in these programs will be dependent on market and other conditions. Our current expectation is that our annual investment in these programs will range between $20 million to $40 million. Notwithstanding these programs, the company expects to continue to return value to its shareholders through a combination of share repurchases and dividends, subject to market and other conditions.

Conference Call

Choice will conduct a conference call on Friday, April 29, 2011 at 10:00 a.m. EDT to discuss the company’s first quarter 2011 results. The dial-in number to listen to the call is 1-866-356-4123, and the access code is 79940540. International callers should dial 1-617-597-5393 and enter the access code 79940540. The conference call also will be Webcast simultaneously via the company’s Web site, www.choicehotels.com. Interested investors and other parties wishing to access the call via the Webcast should go to the Web site and click on the Investor Info link. The Investor Information page will feature a conference call microphone icon to access the call.

The call will be recorded and available for replay beginning at 1:00 p.m. EDT on April 29, 2011 through May 29, 2011 by calling 1-888-286-8010 and entering access code 21425981. The international dial-in number for the replay is 1-617-801-6888, access code 21425981. In addition, the call will be archived and available on www.choicehotels.com via the Investor Info link.

About Choice Hotels

Choice Hotels International, Inc. franchises more than 6,100 hotels, representing more than 490,000 rooms, in the United States and more than 30 other countries and territories. As of March 31, 2011, more than 500 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 40,000 rooms, and approximately 100 hotels, representing approximately 8,400 rooms, were under construction, awaiting conversion or approved for development in more than 20 other countries and territories. The company’s Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands serve guests worldwide. In addition, via its Ascend Collection membership program, travelers in the United States, Canada and the Caribbean have upscale lodging options at historic, boutique and unique hotels.

Additional corporate information may be found on the Choice Hotels International, Inc. Web site, which may be accessed at www.choicehotels.com.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the federal securities law. Generally, our use of words such as “expect,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “plan,” project,” “assume” or similar words of futurity identify statements that are forward-looking and that we intend to be included within the Safe Harbor protections provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of the company’s revenue, earnings and other financial and operational measures, company debt levels, payment of stock dividends, and future

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operations, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors.

Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions; operating risks common in the lodging and franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees; our ability to keep pace with improvements in technology utilized for reservations systems and other operating systems; fluctuations in the supply and demand for hotels rooms; and our ability to manage effectively our indebtedness. These and other risk factors are discussed in detail in the Risk Factors section of the company’s Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission on March 1, 2011. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Statement Concerning Non-GAAP Financial Measurements

Adjusted diluted EPS, adjusted EBITDA, adjusted SG&A, franchising revenues and adjusted franchising margins are non-GAAP financial measurements. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (GAAP), such as diluted earnings per share, operating income, total revenues and operating margins. The company’s calculation of these measurements may be different from the calculations used by other companies and therefore comparability may be limited. The company has included an exhibit accompanying this release that reconciles these measures to the comparable GAAP measurement. We discuss management’s reasons for reporting these non-GAAP measures below.

Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects earnings excluding the impact of interest expense, tax expense, depreciation and amortization. Our management considers EBITDA to be an indicator of operating performance because it can be used to measure our ability to service debt, fund capital expenditures, and expand our business. EBITDA is a commonly used measure of performance in our industry. In addition, it is used by analysts, lenders, investors and others, as well as by us, to facilitate comparisons between the company and its competitors because it excludes certain items that can vary widely across different industries or among companies within the same industry.

Franchising Revenues and Margins: The company reports franchising revenues and margins which exclude marketing and reservation revenues and hotel operations. Marketing and reservation activities are excluded from revenues and operating margins since the company is contractually required by its franchise agreements to use these fees collected for marketing and reservation activities. Cumulative reservation and marketing fees not expended are recorded as a payable on the company’s financial statements and are carried over to the next fiscal year and expended in accordance with the franchise agreements. Cumulative marketing and reservation expenditures in excess of fees collected for marketing and reservation activities are recorded as a receivable on the company’s financial statements. In addition, the company has the contractual authority to require that the franchisees in the system at any given point repay the company for any deficits related to marketing and reservation activities. Hotel operations are excluded since they do not reflect the most accurate measure of the company’s core franchising business. These non-GAAP measures are a commonly used measure of performance in our industry and facilitate comparisons between the company and its competitors.

Adjusted Diluted EPS, Adjusted EBITDA, Adjusted SG&A and Adjusted Franchising Margins: The company’s management also uses adjusted diluted EPS, adjusted EBITDA, adjusted SG&A and adjusted franchising margins which exclude employee termination benefits for the three months ended March 31, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the three months ended March 31, 2011. The company utilizes these non-GAAP measures to enable investors to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of on-going operations.

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Contacts

David White, Senior Vice President, Chief Financial Officer & Treasurer

(301) 592-5117

David Peikin, Senior Director, Corporate Communications

(301) 592-6361

Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn and Ascend Collection are proprietary trademarks and service marks of Choice Hotels International.

© 2011 Choice Hotels International, Inc. All rights reserved.

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Exhibit 1

Choice Hotels International, Inc.

Consolidated Statements of Income

(Unaudited)

	Three Months Ended March 31,
							Variance
	2011			2010			$			%
(In thousands, except per share amounts)
REVENUES:
Royalty fees	$	44,240		$	41,021		$	3,219			8%
Initial franchise and relicensing fees		2,614			1,912			702			37%
Procurement services		3,165			3,245			(80	)		(2%)
Marketing and reservation		62,967			58,840			4,127			7%
Hotel operations		864			867			(3	)		(0%)
Other		1,431			1,536			(105	)		(7%)
Total revenues		115,281			107,421			7,860			7%
OPERATING EXPENSES:
Selling, general and administrative		23,847			21,816			2,031			9%
Depreciation and amortization		1,955			2,172			(217	)		(10%)
Marketing and reservation		62,967			58,840			4,127			7%
Hotel operations		833			756			77			10%
Total operating expenses		89,602			83,584			6,018			7%
Operating income		25,679			23,837			1,842			8%
OTHER INCOME AND EXPENSES:
Interest expense		3,224			621			2,603			419%
Interest income		(210	)		(60	)		(150	)		250%
Other (gains) and losses		1,043			(1,017	)		2,060			(203%)
Equity in net income of affiliates		(301	)		(353	)		52			(15%)
Total other income and expenses, net		3,756			(809	)		4,565			(564%)
Income before income taxes		21,923			24,646			(2,723	)		(11%)
Income taxes		6,193			8,853			(2,660	)		(30%)
Net income	$	15,730		$	15,793		$	(63	)		(0%)
Basic earnings per share	$	0.26		$	0.27		$	(0.01	)		(4%)
Diluted earnings per share	$	0.26		$	0.26		$	—			0%

Exhibit 2

Choice Hotels International, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)	March 31, 2011			December 31, 2010
	(Unaudited)
ASSETS
Cash and cash equivalents	$	76,405		$	91,259
Accounts receivable, net		48,279			47,638
Deferred income taxes		429			429
Other current assets		22,755			24,256
Total current assets		147,868			163,582
Fixed assets and intangibles, net		140,300			142,528
Receivable – marketing and reservation fees		54,719			42,507
Investments, employee benefit plans, at fair value		24,728			23,365
Other assets		44,758			39,740
Total assets	$	412,373		$	411,722
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Accounts payable and accrued expenses	$	67,693		$	88,986
Deferred revenue		72,039			67,322
Deferred compensation & retirement plan obligations		2,573			2,552
Current portion of long-term debt		508			420
Revolving credit facility		—			200
Other current liabilities		6,928			5,778
Total current liabilities		149,741			165,258
Long-term debt		260,007			251,554
Deferred compensation & retirement plan obligations		34,660			35,707
Other liabilities		16,995			17,274
Total liabilities		461,403			469,793
Common stock, $0.01 par value		598			596
Additional paid-in-capital		92,019			92,774
Accumulated other comprehensive loss		(6,482	)		(7,192	)
Treasury stock, at cost		(867,960	)		(872,306	)
Retained earnings		732,795			728,057
Total shareholders’ deficit		(49,030	)		(58,071	)
Total liabilities and shareholders’ deficit	$	412,373		$	411,722

Exhibit 3

Choice Hotels International, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)	Three Months Ended March 31,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	15,730		$	15,793
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization		1,955			2,172
Provision for bad debts		778			856
Non-cash stock compensation and other charges		4,513			2,670
Non-cash interest and other (income) loss		(350	)		(987	)
Equity in net income of affiliates		(301	)		(353	)
Changes in assets and liabilities, net of acquisitions:
Receivables		(1,250	)		(435	)
Receivable - marketing and reservation fees, net		(8,979	)		(10,909	)
Accounts payable		(1,775	)		3,294
Accrued expenses		(18,931	)		(10,611	)
Income taxes payable/receivable		1,182			4,667
Deferred income taxes		(12	)		(65	)
Deferred revenue		4,709			9,138
Other assets		(1,147	)		(6,898	)
Other liabilities		(1,339	)		(1,352	)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES		(5,217	)		6,980
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment		(1,835	)		(4,558	)
Equity method investments		(1,600	)		—
Acquisitions, net of cash acquired		—			(466	)
Purchases of investments, employee benefit plans		(897	)		(1,104	)
Proceeds from sales of investments, employee benefit plans		310			522
Issuance of notes receivable		(1,477	)		(534	)
Collections of notes receivable		7			10
Other items, net		(95	)		(124	)
NET CASH USED IN INVESTING ACTIVITIES		(5,587	)		(6,254	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings pursuant to revolving credit facilities		7,900			16,200
Repayments of long-term debt		(5	)		—
Purchase of treasury stock		(2,207	)		(8,936	)
Dividends paid		(10,950	)		(10,945	)
Excess tax benefits from stock-based compensation		834			49
Debt issuance costs		(2,207	)		—
Proceeds from exercise of stock options		2,238			648
NET CASH USED IN FINANCING ACTIVITIES		(4,397	)		(2,984	)
Net change in cash and cash equivalents		(15,201	)		(2,258	)
Effect of foreign exchange rate changes on cash and cash equivalents		347			(19	)
Cash and cash equivalents at beginning of period		91,259			67,870
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	76,405		$	65,593

Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL OPERATING INFORMATION

DOMESTIC HOTEL SYSTEM

(UNAUDITED)

	For the Three Months Ended March 31, 2011*						For the Three Months Ended March 31, 2010*						Change
	Average Daily Rate		Occupancy		RevPAR		Average Daily Rate		Occupancy		RevPAR		Average Daily Rate		Occupancy		RevPAR
Comfort Inn	$	72.21		44.3%	$	32.00	$	71.02		42.8%	$	30.36		1.7%		150 bps		5.4%
Comfort Suites		79.08		47.0%		37.18		79.21		43.7%		34.64		(0.2%)		330 bps		7.3%
Sleep		64.94		42.2%		27.43		64.76		41.2%		26.67		0.3%		100 bps		2.8%
Quality		61.58		38.6%		23.80		61.59		37.0%		22.77		(0.0%)		160 bps		4.5%
Clarion		67.72		36.6%		24.75		69.45		33.6%		23.32		(2.5%)		300 bps		6.1%
Econo Lodge		49.61		37.3%		18.49		49.58		35.6%		17.65		0.1%		170 bps		4.8%
Rodeway		45.77		38.6%		17.65		45.44		36.3%		16.51		0.7%		230 bps		6.9%
MainStay		60.97		53.9%		32.85		63.11		52.1%		32.86		(3.4%)		180 bps		(0.0%)
Suburban		38.29		60.7%		23.24		37.22		58.8%		21.89		2.9%		190 bps		6.2%
Ascend Collection		98.46		49.9%		49.09		97.33		42.3%		41.21		1.2%		760 bps		19.1%
Total	$	65.69		42.0%	$	27.58	$	65.22		40.1%	$	26.13		0.7%		190 bps		5.5%

	For the Quarter Ended*
	3/31/2011			3/31/2010
System-wide effective royalty rate		4.35	%		4.32	%

* Operating statistics represent hotel operations from December through February

Exhibit 5

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA

(UNAUDITED)

	March 31, 2011				March 31, 2010				Variance
	Hotels		Rooms		Hotels		Rooms		Hotels			Rooms			%		%
Comfort Inn		1,422		110,932		1,445		113,266		(23	)		(2,334	)		(1.6%)		(2.1%)
Comfort Suites		621		48,096		620		48,180		1			(84	)		0.2%		(0.2%)
Sleep		397		28,895		389		28,377		8			518			2.1%		1.8%
Quality		1,015		88,967		976		88,394		39			573			4.0%		0.6%
Clarion		192		28,259		168		24,336		24			3,923			14.3%		16.1%
Econo Lodge		779		48,245		786		48,519		(7	)		(274	)		(0.9%)		(0.6%)
Rodeway		381		20,940		373		21,118		8			(178	)		2.1%		(0.8%)
MainStay		38		2,943		36		2,797		2			146			5.6%		5.2%
Suburban		63		7,543		62		7,474		1			69			1.6%		0.9%
Ascend Collection		42		3,259		30		2,459		12			800			40.0%		32.5%
Cambria Suites		20		2,328		20		2,326		—			2			0.0%		0.1%
Domestic Franchises		4,970		390,407		4,905		387,246		65			3,161			1.3%		0.8%
International Franchises		1,158		102,326		1,127		100,018		31			2,308			2.8%		2.3%
Total Franchises		6,128		492,733		6,032		487,264		96			5,469			1.6%		1.1%

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL INFORMATION BY BRAND

DEVELOPMENT RESULTS — DOMESTIC NEW HOTEL CONTRACTS

(UNAUDITED)

	For the Three Months Ended March 31, 2011						For the Three Months Ended March 31, 2010						% Change
	New Construction		Conversion		Total		New Construction		Conversion		Total		New Construction		Conversion		Total
Comfort Inn		2		7		9		1		8		9		100%		(13%)		0%
Comfort Suites		—		2		2		2		—		2		(100%)		NM		0%
Sleep		2		—		2		2		—		2		0%		NM		0%
Quality		—		24		24		1		11		12		(100%)		118%		100%
Clarion		—		5		5		—		3		3		NM		67%		67%
Econo Lodge		—		6		6		—		10		10		NM		(40%)		(40%)
Rodeway		—		5		5		1		11		12		(100%)		(55%)		(58%)
MainStay		1		—		1		2		—		2		(50%)		NM		(50%)
Suburban		—		—		—		1		—		1		(100%)		NM		(100%)
Ascend Collection		—		1		1		—		2		2		NM		(50%)		(50%)
Cambria Suites		1		—		1		—		—		—		NM		NM		NM
Total Domestic System		6		50		56		10		45		55		(40%)		11%		2%

Exhibit 7

CHOICE HOTELS INTERNATIONAL, INC.

DOMESTIC HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT

(UNAUDITED)

A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.

													Variance
	March 31, 2011 Units						March 31, 2010 Units						Conversion					New Construction					Total
	Conversion		New Construction		Total		Conversion		New Construction		Total		Units			%		Units			%		Units		%
Comfort Inn		31		58		89		43		81		124		(12	)		(28%)		(23	)		(28%)		(35)		(28%)
Comfort Suites		3		117		120		—		154		154		3			NM		(37	)		(24%)		(34)		(22%)
Sleep Inn		—		70		70		1		115		116		(1	)		(100%)		(45	)		(39%)		(46)		(40%)
Quality		47		6		53		39		13		52		8			21%		(7	)		(54%)		1		2%
Clarion		20		2		22		16		6		22		4			25%		(4	)		(67%)		—		0%
Econo Lodge		35		2		37		39		4		43		(4	)		(10%)		(2	)		(50%)		(6)		(14%)
Rodeway		14		2		16		33		3		36		(19	)		(58%)		(1	)		(33%)		(20)		(56%)
MainStay		2		39		41		—		39		39		2			NM		—			0%		2		5%
Suburban		—		20		20		—		26		26		—			NM		(6	)		(23%)		(6)		(23%)
Ascend Collection		4		4		8		4		4		8		—			0%		—			0%		—		0%
Cambria Suites		—		32		32		—		37		37		—			NM		(5	)		(14%)		(5)		(14%)
		156		352		508		175		482		657		(19	)		(11%)		(130	)		(27%)		(149)		(23%)

Exhibit 8

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

(UNAUDITED)

CALCULATION OF FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS

(dollar amounts in thousands)	Three Months Ended March 31,
	2011			2010
Franchising Revenues:
Total Revenues	$	115,281		$	107,421
Adjustments:
Marketing and reservation revenues		(62,967	)		(58,840	)
Hotel operations		(864	)		(867	)
Franchising Revenues	$	51,450		$	47,714
Franchising Margins:
Operating Margin:
Total Revenues	$	115,281		$	107,421
Operating Income	$	25,679		$	23,837
Operating Margin		22.3%			22.2%
Adjusted Franchising Margin:
Franchising Revenues	$	51,450		$	47,714
Operating Income	$	25,679		$	23,837
Employee termination benefits		70			352
Hotel operations		(31)			(111)
	$	25,718		$	24,078
Adjusted Franchising Margins		50.0%			50.5%

CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS

(dollar amounts in thousands)	Three Months Ended March 31,
	2011			2010
Selling, general and administrative costs	$	23,847		$	21,816
Employee termination benefits		(70	)		(352	)
Adjusted Selling, General and Administrative Costs	$	23,777		$	21,464

CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)

(In thousands, except per share amounts)	Three Months Ended March 31,
	2011		2010
Net Income	$	15,730	$	15,793
Adjustments:
Loss on land held for sale		1,111		—
Employee termination benefits		44		220
Adjusted Net Income	$	16,885	$	16,013
Weighted average shares outstanding-diluted		59,825		59,600
Diluted Earnings Per Share	$	0.26	$	0.26
Adjustments:
Loss on land held for sale		0.02		—
Employee termination benefits		—		0.01
Adjusted Diluted Earnings Per Share (EPS)	$	0.28	$	0.27

Adjusted EBITDA Reconciliation

(in millions)

	Q1 2011 Actuals		Q1 2010 Actuals		Full-Year  2011 Outlook
Operating Income (per GAAP)	$	25.7	$	23.8	$	168.1-$170.1
Employee termination benefits		0.1		0.4		0.1
Depreciation and amortization		2.0		2.2		8.8
Adjusted Earnings before interest, taxes, depreciation & amortization (non-GAAP)	$	27.8	$	26.4	$	177-$179