Cover About Us Letter To Shareholders A Choice Year In Review Financial Highlights Management's Discussion and Analysis of Financial Condition and...    Overview    Comparison of 2004 Operating Results and 2003 Operating Results    Comparison of 2003 Operating Results and 2002 Operating Results    Liquidity and Capital Resources    Critical Accounting Policies    Forward-Looking Statements Management's Report on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Statements of Income Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Shareholders' Deficit and... Notes to Consolidated Financial Statements Corporate Information Back Cover

CORPORATE INFORMATION BOARD OF DIRECTORS Stewart Bainum Jr. Chairman of the Board,     Sunburst Hospitality Corporation Fiona Dias Senior Vice President,     Circuit City Stores, Inc., and President, Circuit City Direct Charles A. Ledsinger, Jr. President and Chief Executive Officer:     Choice Hotels International Director:     FelCor Lodging Trust, Inc.     TBC Corporation Larry R. Levitan IRS Oversight Board Retired Managing Partner,     Andersen Consulting     Worldwide Communications     Industry Group Trustee, FBR Funds Raymond E. Schultz Chairman,     RES Investments, LLC Director:     Equity Inns, Inc.     TBC Corporation Ervin R. Shames Independent Management Consultant Lecturer, University of Virginia     Darden Graduate School of Business Director:     OnLine Resources Corporation     Select Comfort Corporation Gordon A. Smith President, Consumer Card Services Group     American Express Travel Related     Services, Inc. William L. Jews* President and Chief Executive Officer     CareFirst, Inc. Director:     Ecolab, Inc.     MBNA     Ryland Group, Inc. Jerry E. Robertson, Ph.D.* Retired Executive Vice President:     3M Life Sciences Sector and     Corporate Services Director:     Steris Corp. * Retiring in May 2005 CORPORATE EXECUTIVE OFFICERS Stewart Bainum Jr. Chairman of the Board Charles A. Ledsinger, Jr. President and Chief Executive Officer Joseph M. Squeri Executive Vice President, Chief Financial Officer and Treasurer Wayne W. Wielgus Executive Vice President and Chief Marketing Officer Michael J. DeSantis Senior Vice President, General Counsel and Secretary David Goldberg Senior Vice President, Corporate and Brand Strategy Bruce N. Haase Senior Vice President, International Thomas Mirgon Senior Vice President, Human Resources and Administration Janna Morrison Senior Vice President, Franchise Services David A. Pepper Senior Vice President, Franchise Development Daniel K. Rothfeld Senior Vice President, Partner Services Group Gary R. Thomson Senior Vice President and Chief Information Officer ANNUAL MEETING Choice Hotels International will hold its Annual Meeting of Stockholders on Tuesday, May 3, 2005, at 9:00 a.m. in The Chesapeake Room of the Learning Center, 10720 Columbia Pike, Silver Spring, Maryland. COMPANY INFORMATION Stock Listing Choice Hotels International common stock trades on the New York Stock Exchange under the ticker symbol CHH. Transfer Agent & Registrar SunTrust Bank P.O. Box 4625 Atlanta, GA 30302-4625 1-800-568-3476 Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP Washington, D.C. Certifications Choice Hotels has included as Exhibit 31 to its Annual Report on Form 10-K for fiscal year 2004 filed with the Securities and Exchange Commission certificates of the Company's Chief Executive Officer and Chief Financial Officer certifying the quality of the company's public disclosure. The Company's Chief Executive Officer has also submitted to the New York Stock Exchange (NYSE) a certificate certifying that he is not aware of any violations by Choice Hotels International of the NYSE corporate governance listing standards. Form 10-K A stockholder may receive without charge a copy of the Form 10-K Annual Report filed with the Securities and Exchange Commission by written request to the Corporate Secretary at the corporate headquarters. The Form 10-K also is available at www.choicehotels.com. Click on "Investor Info," then on "SEC Filings." Corporate Headquarters Choice Hotels International 10750 Columbia Pike Silver Spring, MD 20901 General Inquiries: (301) 592-5000 Franchise Sales: (800) 547-0007 Investor Inquiries: (301) 592-5026 E-mail: investor_relations@choicehotels.com Media Relations: (301) 592-5032 Corporate Web Site: www.choicehotels.com Copies of the company's public filings as well as its Corporate Governance Guidelines, Corporate Ethics Policy and Board of Directors committee charters are available on www.choicehotels.com under the "Investor Info" link. © Copyright 2005 Choice Hotels International, Inc.