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| R E P O R T O F I N D E P E N D E N T P U B L I C A C C O U N T A N T S |
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To Choice Hotels International, Inc. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Choice Hotels International, Inc. and subsidiaries as of December 31, 1999 and 1998, and the consolidated results of their operations and their consolidated cash flows for the years ended December 31, 1999 and 1998, the seven months ended December 31, 1997 and the fiscal year ended May 31, 1997, and the consolidated statements of shareholders' equity and comprehensive income for the period from October 15, 1997 (inception) to December 31, 1997 and the years ended December 31, 1998 and 1999, in conformity with accounting principles generally accepted in the United States. 
Vienna, Virginia |
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have audited the accompanying consolidated balance sheets of Choice
Hotels International, Inc. and subsidiaries, as defined under "Background
and Basis of Presentation" in the Notes to Consolidated Financial
Statements, as of December 31, 1999 and 1998, and the related consolidated
statements of income and cash flows for the years ended December
31, 1999 and 1998, the seven months ended December 31, 1997 and
the fiscal year ended May 31, 1997, and the consolidated statements
of shareholders' equity and comprehensive income for the period
from October 15, 1997 (inception) to December 31, 1997 and the years
ended December 31, 1998 and 1999. These consolidated financial statements
are the responsibility of Choice Hotels International, Inc.'s management.
Our responsibility is to express an opinion on these consolidated
financial statements based on our audits. 
