UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 13)*
CHOICE HOTELS INTERNATIONAL, INC.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
169905-10-6
(CUSIP Number)
Christine A. Shreve 240-295-1600
8171 Maple Lawn Blvd, Suite 375, Fulton, MD 20759
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
January 17, 2020
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b) (3) or (4), check the following box ☐.
* | The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. |
The information required in the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
13D
CUSIP No. 169905-10-6 | Page 2 of 5 |
1 | Name of Reporting Person
Stewart W. Bainum, Jr (Mr. Bainum, Jr. or the Reporting Person) | |||||
2 | Check the Appropriate Box if a Member of a Group* (a) ☐ (b) ☐
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3 | SEC Use Only
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4 | Source of Funds
00 | |||||
5 | Check Box if Disclosure of Legal Proceeding is Required Pursuant to Items 2(C) or 2(E) ☐
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6 | Citizenship or Place of Organization
USA | |||||
Number of Shares Beneficially Owned by Each Reporting Person with:
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7 | Sole Voting Power
3,257,581 | ||||
8 | Shared Voting Power
7,800,056 | |||||
9 | Sole Dispositive Power
3,257,581 | |||||
10 | Shared Dispositive Power
7,800,056 | |||||
11 |
Aggregate Amount Beneficially Owned by Each Reporting Person
11,057,637 | |||||
12 | Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
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13 | Percent of Class Represented by Amount in Row (11)
19.85% | |||||
14 | Type of Reporting Person
IN |
13D
CUSIP No. 169905-10-6 | Page 3 of 5 |
Item 1. Security and Issuer
(a) | Name of Issuer: |
Choice Hotels International, Inc. (The Company) |
(b) | Address of Issuers Principal Executive Offices: |
1 Choice Circle, Suite 400 |
Rockville, MD 20850 |
(c) | Title and Class of Securities: |
Common Stock |
Item 2. Identity and Background
(a) | Name: |
Stewart W. Bainum, Jr. |
(b) | Business Address: |
8171 Maple Lawn Blvd, Suite 375 |
Fulton, MD 20759 |
(c) | Present Employment and Address: |
Chairman, Choice Hotels International |
1 Choice Circle, Suite 400, Rockville, MD 20850 |
(d) | Record of Convictions: |
During the last five years, the Reporting Person has not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). |
(e) | Record of Civil Proceedings: |
During the last five years, the Reporting Person was not a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating such activities subject to, federal or state securities laws or finding any violation with respect to such laws. |
(f) | Citizenship: |
USA |
Item 3. Source and Amount of Funds or Other Consideration
N/A
Item 4. Purpose of Transaction
On January 17, 2020 and January 21, 2020, Mr. Bainum, Jr. as Trustee of several family trusts, engaged in transactions in respect of shares owned by the trusts as part of tax and estate planning for the trusts. The transfers involved no consideration.
On January 17, 2020 the Jane Bainum Declaration of Trust, a trust for the benefit of Mr. Bainum, Jr.s mother for which Mr. Bainum, Jr. serves as Co-Trustee, made gifts aggregating 2,097,281 shares of common stock of the Issuer to five tax exempt organizations created by Mr. Bainum, Jr., his siblings and family members. Mr. Bainum, Jr. is a Director and has sole voting authority for Fund for the Common Good, which is one of the exempt organizations which received 281,818 of the shares gifted by the Jane Bainum Declaration of Trust.
On January 21, 2020, two trusts for the benefit of the descendants of Mr. Bainum, Jr.s brother, Bruce Bainum, for which Mr. Bainum, Jr. serves as Trustee received distributions of 379,528 shares of common stock of the Issuer from an LLC wholly owned by Bruce Bainum and his family in redemption of the trusts interests in the LLC.
13D
CUSIP No. 169905-10-6 | Page 4 of 5 |
Item 5. Interest in Securities of the Issuer
(a) | Amount and percentage beneficially owned: |
Reporting Person: |
The aggregate number and percentage of shares identified pursuant to Item 1 beneficially owned by the Reporting Person is 11,057,637 (19.85%) shares, including 1,000,222 shares owned by the Stewart Bainum, Jr. Declaration of Trust (SBJTrust) of which Mr. Bainum, Jr. is the sole trustee and beneficiary. The aggregate number referred to in the preceding sentence also includes 1,417,056 shares owned by Leeds Creek Holdings, LLC whose only member is SBJTrust; 978,482 shares owned by Mid Pines Associates Limited Partnership, in which the SBJTrust is managing general partner and has shared voting authority; 6,821,574 shares owned by Realty Investment Company, Inc., a private family company in which SBJTrust owns voting stock and has shared voting authority; 175,654 shares owned by the Foundation for the Greatest Good, a private foundation for which Mr. Bainum, Jr. is a Director and has sole voting and dispositive authority; 281,818 shares owned by Fund for the Common Good, a tax exempt organization for which Mr. Bainum, Jr. is a Director and has sole voting and dispositive authority; 15,207 shares owned by the Bruce Bainum 2009 Family Trust and 364,321 shares owned by the Bruce Bainum 2012 Non Exempt Family Trust, each of which is a trust for the benefit of descendants of Mr. Bainum Jr.s brother, Bruce Bainum, for which Mr. Bainum, Jr. is trustee and has voting and dispositive authority; and 3,303 shares which Mr. Bainum, Jr has the right to acquire pursuant to stock options which are exercisable in equal installments during the period 2020-2022. |
(b) | Number of shares as to which such person has: |
(i) | Sole Voting Power 3,257,581 |
(ii) | Shared Voting Power 7,800,056 |
(iii) | Sole Dispositive Power 3,257,581 |
(iv) | Shared Dispositive Power 7,800,056 |
(c) | A schedule of transactions effected in the last sixty days is as follows: |
Other than the tax and estate planning transactions described in Item 4 above, Mr. Bainum, Jr. engaged in no other transactions in the last 60 days. |
(d) | Ownership of more than five percent on behalf of Another Person: |
To the extent that shares of the Issuer identified in Item 5(a) are held by corporations or partnerships, other shareholders and partners, respectively, have the right to receive dividends from, or the proceeds from the sale of the shares to the extent of their proportionate interests in such entities. To the best of the Reporting Persons knowledge, other than Stewart Bainum, Jr., Bruce Bainum, Roberta Bainum and Barbara Bainum, no other person has such interest relating to more than 5% of the outstanding class of securities. |
(e) | Ownership of Less than Five Percent: |
N/A |
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
None
Item 7. Material to be Filed as Exhibits
None
13D
CUSIP No. 169905-10-6 | Page 5 of 5 |
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: January 23, 2020
/s/ Stewart Bainum, Jr | ||
Stewart Bainum, Jr. | ||
BY: | /s/ Christine A. Shreve | |
Christine A. Shreve, Attorney-in-fact |