QualityGet your money’s worth out of your existing asset.

By becoming a Quality® franchise owner your hotel instantly gains vast exposure as being one of the most recognized brands in the lodging industry.* Quality is Choice Hotels® largest conversion brand, and provides hotel owners a great opportunity for an existing asset looking to strengthen its market position and to drive return. Your hotel will be strengthened during conversion using our streamlined, value-oriented programs to provide great value and satisfaction to guests with a minimal investment by you. Our programs demonstrate we are committed to our franchisees by growing our presence and reputation in everything we do.

With 70 years experience, and over 6,600 properties open and under development worldwide, Choice Hotels is one of the largest franchise organizations in the world.** In 2011, the total system-wide revenue generated from the Choice Hotels marketing and reservations channels was over $2.4 billion and over $202 million was spent system-wide on programs and promotions designed to increase brand awareness and drive hotel reservations.***

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*Source: Millward Brown Advertising Tracking Study 2011. Quality Inn has a brand awareness rating of 87%. Millward Brown is a global marketing research fi rm specializing in advertising, marketing communications and brand equity research.

**Source: Internal data as of December 31, 2011

***Source: Figure refl ects the revenues delivered through the Choice Hotels Central Reservation System (CRS) and other non-CRS marketing channels in 2011. The spend fi gure is based on accounting records of the System Fee in 2011 and has been compiled in a manner consistent with generally accepted accounting principles. See applicable Franchise Disclosure Document dated April 1, 2012.

†Source: See Quality Inn Franchise Disclosure Document dated April 1, 2012. For the 252 hotels that were included in the sample, 109 hotels or 43.3% met or exceeded total Choice contribution. Actual results may vary.

††Source: Smith Travel Research Best Performing Hotel Awards 2010. Quality Suites Oceanfront in Jacksonville, FL was the winner in the midscale with food & beverage segment. The winners were determined based on a number of criteria, including the following metrics: occupancy, ADR and RevPAR in year-over-year comparisons (2009 vs. 2008). Smith Travel is one of the leading sources for hotel performance trends.www.strglobal.com

†††Choice Hotels was presented with the 2011 Hospitality Technology Visionary Award in the Infrastructure and Back-offi ce Technology category for its innovation, thought leadership, execution, and forward-thinking vision for choiceADVANTAGE. The Visionary Awards honor hotel companies for their outstanding vision and achievement in delivering technological excellence. Hospitality Technology is a publication dedicated to covering the role of information technology in improving business performance for hotel and restaurant operators. www.htmagazine.com.

This advertisement is not an offering. For New York: an offering can only be made by a prospectus fi led fi rst with the Department of Law in the State of New York. Such fi ling does not constitute approval by the Department of Law. For Minnesota: Quality Inn #F-48.

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.

© 2012 Choice Hotels International, Inc. All rights reserved. 12-248/03/12

BRAND HIGHLIGHTS

· Over 1,470 Quality properties open and under development worldwide in 2011.**

· The Quality Inn brand contributed 47.6% of gross room revenue through the Choice Hotels Central Reservations System (CRS) and other non-CRS marketing channels.†

· In 2010, Smith Travel Research rated a Quality branded property in Florida as the Best Performing Hotel in the midscale without F&B segment.††

· Participation in the Choice Privileges® guest loyalty program, one of the fastest-growing rewards programs in the hotel industry with over 14 million members.**

· With over 1,800 corporate accounts, the Choice Hotels Global Sales team delivers business travelers for our hotels.

· Choice Hotels has joined forces with the HelmsBriscoe Company, one of the world’s largest group business organizers with 1,200 agents in 49 countries. This agreement provides the opportunity for our hotels to tap additional group business leads (both corporate and leisure) to drive incremental business.

· Access to choiceADVANTAGE® – Choice Hotels award winning proprietary web-based property management system that provides effective rate and inventory management to drive higher yield.†††

Conversion FlexibilityEach opportunity starts with a customized approach, assessing your property and market conditions, and then tailoring improvement plans to help increase the value of your asset over the long term. Since Quality embraces product diversity, through brand hallmarks, we provide a cost effective way to provide brand consistency and to market the strong value proposition of Quality. Our brand is centered on the “Value Q’s”, which focuses on consistency in these key drivers of guest purchase and satisfaction and allows for more fl exibility in physical plant and design/decor. Offering multiple brand extensions, the Quality family of brands is a cost effective conversion opportunity for owners looking to optimize their return on investment.

Key Brand Standards/Identifi ersWe deliver quality where it counts through our brand hallmarks, the fi ve “Value Qs.” These fi ve areas are what consumers care most about and include our Q Bed, Q Breakfast, Q Shower, Q Service, and Q Value. The reason Quality is such a strong brand is because we are known for giving our guests great value for their hard earned money.

· Q Bed – Premium mattress and bedding, with traditional or triple sheeting options

· Q Breakfast – Free Q Corner Café breakfast bar, or sit down restaurant serving full hot breakfast

· Q Shower – Consumer and operations-tested; plush bath rug and upgraded amenities

· Q Service – Friendly and caring staff· Q Value – Amenities, including high-speed Internet access, free daily paper, 24-hour coffee and tea in the lobby and rooms, and local calls (U.S. locations); swimming pool or exercise room

800.547.0007choicehotelsfranchise.com/qualityinn

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