Comfort InnTruly Yours.™

Comfort Inn® is the largest Choice Hotels® brand and one of the industry’s most recognized brands.* It offers our owners and developers a strong potential return on investment through the powerful equity of our flagship brand due to its wide distributionand awareness. Committed to driving performance, the Comfort Inn brand has developed a new cost-effective prototype designed to deliver an increase in intent to stay. Fully tested with guests, owners and developers, they appreciate the cohesive, integrated and efficient design — intended to drive long-term brand performance, guest loyalty, and return on investment.

With 70 years experience, Choice Hotels is one of the largest franchise organizations in the world, with over 6,700 properties open and under development worldwide.** We offer services, resources, field support, property management systems and ongoing training all designed to optimize hotel performance. In 2010, the total system-wide revenue generated from the Choice Hotels marketing and reservations channels was over $2.1 billion and over $190 million was spent system-wide on programs and promotions designed to increase brand awareness and drive hotel reservations.***

800.547.0007choicehotelsfranchise.com

brand HigHligHts

· Over 2,100 Comfort inn properties open and under development worldwide in 2010.*

· High brand awareness and consumer recognition – 99% brand awareness.*

· the Comfort inn brand contributed 53.5% ofgross room revenue through the Choice Hotels Central reservations system (Crs) and othernon-Crs marketing channels.†

· Participation in the Choice Privileges® guest loyalty program that has over 12 million members driving room reservations.† †

· a global sales team dedicated to driving incremental corporate, leisure, and group reservations for our franchisees.

· access to choiceadVantagE® – Choice Hotels proprietary web-based property management system that provides effective rate and inventory management to drive higher yield.

*Millward Brown Advertising Tracking Study 2010. Comfort Inn has a brand awareness rating of 99%. Millward Brown is a global marketing research firm specializing in advertising, marketing communications and brand equity research.

**Source: Internal data as of December 31, 2010.

**Source: Figure reflects the revenues delivered through the Choice Hotels Central Reservations System (CRS) and other non-CRS marketing channels in 2010. The spend figure is based on accounting records of the System Fee in 2010 and has been compiled in a manner consistent with generally acceptable accounting principles. See applicable Franchise Disclosure Document dated April 1, 2011.† Source: See Comfort Inn Franchise Disclosure Document dated April 1, 2011. The hard construction and FF&E/interior costs provided are for the current design, not the new prototype shown in imagery. † † Source: Internal data as of 4/31/11.

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: Comfort Inn and Comfort Suites #F-3577.

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.

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

Architectural & Design FeaturesThe new look of Comfort Inn is a proven design. We conducted comprehensive research and testing with guests at every step of the design process. The warm, inviting, distinctive new look makes Comfort Inn even more competitive in the midscale space and is designed to drive a stronger return on investment for our owners. The brand extension, Comfort Inn & Suites®, provides owners the flexibility to include 25-50% suites to their room count. The new design enhances every aspect of the guest experience and includes:

Your First Impression: RelAx· Warm and inviting exterior including

signature lighting and entry· Signature welcome wall behind front

desk with warm lighting

Your Retreat: ResToRe· Guestroom design that blends warm

neutrals and subtle textures · Fresh and inviting new

bedding package · Custom crafted artwork that echoes

the brand· Spa-like guest bath

Your Morning: Renew· Breakfast area and pool designed

to refresh the guest

Value engineered Design †

· Hard Construction Costs – approximately $55,000 – $65,000/Room

· FF&e/Interior Cost – approximately $5,500 – $7,500/Room

Key Brand standards/Identifiers

· Free breakfast with hot meat, hot eggs, fresh fruit and a choice of hot waffle flavors

· Free high-speed Internet· Pool or exercise facilities· Free newspaper

Fees †

· Initial Fee – $500 per room, $50,000 minimum

· Royalty Fee – A monthly fee of 5.65% of gross room revenues

· system Fee – A monthly fee of 3.85% of gross room revenues

· Terms – Standard term of the agreement is 10 years. For hotels that are not new construction, there is a mutual termination date at year 5 of the opening date.