Exhibit 99.1

DISCLAIMER

Certain matters discussed throughout all of this presentation constitute forward-looking statements within the

meaning of the federal securities law. Generally, our use of words such as “expect,” “estimate,” “believe,”

“anticipate,” “will,” “forecast,” “plan,” “project,” “assume” or similar words of futurity identify statements that are

forward-looking and that we intend to be included within the Safe Harbor protections provided by Section 27A

of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Such forward-looking

statements are based on management’s current beliefs, assumptions and expectations regarding future

events, which in turn are based on information currently available to management. Such statements may relate

to projections for the company’s revenue, earnings and other financial and operational measures, company

debt levels, payment of stock dividends, and future operations. We caution you not to place undue reliance on

any forward-looking statements, which are made as of the date of this presentation. Forward-looking

statements do not guarantee future performance and involve known and unknown risks, uncertainties and

other factors.

Several factors could cause actual results, performance or achievements of the company to differ materially

from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not

limited to, changes to general, domestic and foreign economic conditions; operating risks common in the

lodging and franchising industries; changes to the desirability of our brands as viewed by hotel operators and

customers; changes to the terms or termination of our contracts with franchisees; our ability to keep pace with

improvements in technology utilized for reservations systems and other operating systems; fluctuations in the

supply and demand for hotel rooms; and our ability to manage effectively our indebtedness. These and other

risk factors are discussed in detail in the Risk Factors section of the company’s Form 10-K for the year ended

December 31, 2008, filed with the Securities and Exchange Commission on March 2, 2009. We undertake no

obligation to publicly update or revise any forward-looking statement, whether as a result of new information,

future events or otherwise.

CHOICE HOTELS OVERVIEW

Leading gainer of US hotel market share*

–

9.5% share of branded US hotels (+160

basis points over trailing 5 years)*

–

2nd largest U.S. hotelier

65+ year-old hotel distribution company

with well-known, diversified brands

suitable for various stages of hotel life

cycle

Core competencies and services drive

demand for our brands and deliver

business for our franchisees

Global pipeline of 860 hotels under

construction, awaiting conversion or

approved for development.

Source: Choice Internal Data, September 30, 2009

* Based on number of hotels as of November 30, 2009 (Smith Travel Research)

Fee-for-service business model

Predictable, profitable, long-term growth

in a variety of lodging and economic

environments

Cumulative free cash flows of more than

$1 billion since 1997

–

>99% returned to shareholders through

share repurchases and dividends

Capital “light”

model generates strong

after-tax returns on invested capital

Long-term franchise contracts and scale

represent barriers to entry

Strong, Growing, Global Hotel

Franchising Business

Highly Attractive Business Model

With Strong Financial Returns

Source: Smith Travel Research, Choice Internal Data, November 30, 2009

SIGNIFICANT GROWTH OPPORTUNITIES REMAIN IN

LARGE CONVERSION MARKET

2,042

1,886

1,719

1,690

1,674

753

743

619

543

362

297

166

309

342

755

794

969

349

975

375

Chart does not include

17,000+ independent hotels

in budget, economy and

mid-scale segments

Domestic Hotels

Hampton Inn/

Hampton Inn

& Suites

Holiday Inn

Express

Days Inn

Motel 6

America’s Best

Value Inn

Holiday

Inn/Holiday Inn

Select

La Quinta

Inn/La Quinta

Inn & Suites

Fairfield

Inn

Ramada/Ramada

Limited

Travelodge

Red

Roof

Inn

Howard

Johnson

Knight’s

Inn

Microtel

Best

Western

Super 8

278 hotels

Canada

18 hotels

Mexico

239 hotels

Continental

Europe, UK

& Ireland

162 hotels

Scandinavia

54 hotels

Brazil

59 hotels

Japan

3 hotels

China

1 hotel

Malaysia

1 hotel

Lebanon

29 hotels

India

1,125 properties in

more than 35

countries and

territories on 5

continents.

Multi-year investments

in IT and marketing

planned to enhance

value proposition for

international hotels.

Significant long-term

growth opportunity in

underrepresented

regions/countries.

Source: Choice Internal Data, November 30, 2009

STRONG PRESENCE IN MAJOR

TRAVEL MARKETS OUTSIDE OF THE U.S.

13 hotels

Central

America

1 hotel

Singapore

267 hotels

Australia,

New Zealand

& Papa New

Guinea

SERVICES LIFECYCLE IMPROVES

BRANDS AND PROPERTY PERFORMANCE

FRANCHISED

PROPERTIES

RETURN ON

INVESTMENT

Brand Planning

and Management

•

Targeted, differentiated

programs, amenities and

services for each brand

Brand Performance

•

Revenue and guest service

consulting

•

Inventory and rate

management

•

Local sales and marketing

•

Independent third-party quality

assurance

Training

•

On-site

•

Regional

•

Web-based

•

GM Certification

Opening Services

•

Ensure hotels open

successfully and meet or

exceed brand standards

Portfolio

Management

•

Repositioning

•

Relicensing

•

Termination

Procurement

Services

•

Value-engineered

prototypes and

design packages

•

Negotiated vendor

relationships

STRONG, GROWING LOYALTY PROGRAM

Comprehensive loyalty rewards program

than

million

members

worldwide

–

contribute

nearly 1/4th of domestic gross room revenues

More than 1.75 million members added in 2009

Delivers incremental business to all Choice brand

hotels

Important selling point for franchise sales

Source: Choice Internal Data, November 2009

Choice Privileges Revenue as Percent

of Domestic Gross Room Revenues

8.3%

10.0%

12.2%

15.3%

16.2%

17.9%

20.3%

24.6%

21.8%

2001

2002

2003

2004

2005

2006

2007

2008

2009 YTD

08/31/09

TRACK RECORD OF STRONG

EARNINGS PER SHARE PERFORMANCE

$0.40

$0.51

$0.58

$0.76

$0.93

$1.07

$1.26

$1.49

$1.74

$1.75

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Source: Choice Internal Data, December 2008, Per Share Amounts Retroactively Adjusted For 2005 Stock Split

Adjusted Diluted Earnings Per Share

Note: See appendix for reconciliation of adjusted diluted earnings per share to diluted earnings per share. To improve comparability certain employee severance

amounts included in the determination of adjusted diluted earnings per share in this presentation for 2008 and 2007 differ from amounts reported in exhibit 8 of our

February 10, 2009 earnings announcement.

2.1

7.9

7.2

24.0

10.8

5.7

6.4

4.9

3.2

1.6

2.2

10.3 x

10.2 x

14.8 x

20.3 x

17.0 x

14.9 x

11.0 x

11.9 x

10.2 x

8.6 x

11.3 x

11.9 x

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

YTD

12/31/09

Millions of Shares Repurchased

Avg. TEV/EBITDA

Source: Capital IQ, December 29, 2009, Choice Internal Data, December 31, 2009. Share amounts for 2005 and prior years retroactively adjusted for 2005

two-for-one stock split

Remaining authority on current authorization –

3.8 million shares as of December 31, 2009

OPPORTUNISTIC SHARE REPURCHASES KEY

PART OF CAPITAL ALLOCATION STRATEGY

STRATEGY FOR CHOICE’S BRANDS, GROWTH AND

SHAREHOLDERS

Grow and Improve Brands

Continue progress toward long-term goal of domestic market share leadership

Increase portfolio profitability of the Comfort brand family

Refresh Sleep Inn to improve long-term brand growth potential

Invest

and

expand

emerging

brands/segments

–

Cambria,

Ascend,

Extended

Stay,

International

Enhance Reservations Delivery

Grow

Choice

Privileges

loyalty

program

–

target

+2.5

million

new

members

2010

Enhance global sales strategy

Deploy revenue management tools designed to improve franchise performance

Allocate Free Cash Flows To “Best And Highest”

Use

Continue shareholder-friendly capital allocation policies

Leverage financial capacity/strength to support expansion of emerging brands

Evaluate opportunities to enter new segments

Invest in IT infrastructure to shore up value proposition for international properties.

Source: Choice Internal Data, January 5, 2010

FINANCIAL PROJECTIONS

Gross Domestic Unit Openings

–

2009E –

297 Conversion Units (67%), 146 New Construction Units (33%);

–

2010E –

332 Conversion Units (86%), 56 New Construction Units (14%).

The Company’s existing $350 million revolving credit facility carries an interest rate of LIBOR plus approximately 50 basis points

and matures in June 2011. The full year 2010 projections above assume that this existing facility remains in place for full year

2010. Based on current credit conditions, the Company estimates that refinancing this facility during 2010 would result in dilution

to the full year 2010 diluted EPS projections above.

Adjusted diluted earnings per share projections assume no share repurchases subsequent to December 31, 2009 and

outstanding basic shares of approximately 59.5 million as of December 31, 2009.

Full Year 2009 Outlook

Target

2% RevPAR

Sensitivity

Unit Growth

4.0%

2.0%

RevPAR

Decline

-14.4%

-2.0%

-4.0%

Effective Royalty Rate Improvement

6 bps

7 bps

Adjusted EBITDA (in millions)

$164.5

(1)

$170.0

$166.0

Adjusted Diluted EPS

$1.68

(1)

$1.70

$1.65

Effective Tax Rate

36.0%

36.5%

(1)

Adjusted EBITDA and Diluted EPS for 2009 excludes $4.3 million of termination benefits ($0.05 per share),

$1.5 million related to a loss on sublease of office space ($0.01 per share) and a $1.3 million charge

related to the curtailment of the Company's supplemental executive retirement plan ("SERP") ($0.01 per share).

Current Projections

Full Year 2010

ROYALTY FEE “LEVERS”

Domestic Royalty Impact

Estimated

Impact on Full

Year

Royalties

Estimated

Impact on Full

Year

Diluted EPS

2,3

RevPAR

Improvement

1% =

$2.0 million

$0.02

5% =

$10.1 million

$0.11

New Franchise Growth

1% (49 units) =

$2.0 million

$0.02

5% (245 units) =

$10.1 million

$0.11

Improvement in

Royalty Rate

1 bps increase =

$0.5 million

$0.005

5 bps increase =

$2.3 million

$0.02

(1) Based

the

2010

annual

RevPAR

forecast

December

31,

2009

(2) Assumes outstanding weighted average diluted shares of 59.9 million

(3) Assumed tax rate of 37.2%

Source: Choice Internal Data, December 2009

DISCLAIMER

Adjusted

franchising

margins,

adjusted

earnings

before

interest,

taxes

depreciation

and

amortization (EBITDA), adjusted net income, adjusted diluted earnings per share (EPS),

franchising revenues, net operating profit after tax (NOPAT), return on average invested

capital (ROIC) and free cash flows are non-GAAP financial measurements. These

financial

measurements

are

presented

supplemental

disclosures

because

they

are

used by management in reviewing and analyzing the company’s performance. This

information should not be considered as an alternative to any measure of performance

promulgated

under

accounting

principles

generally

accepted

the

United

States

(GAAP), such as operating income, net income, diluted earnings per share, total

revenues or net cash provided by operating activities. The calculation of these non-

GAAP measures may be different from the calculation by other companies and therefore

comparability may be limited. The company has included the following appendix which

reconcile these measures to the comparable GAAP measurement.

FRANCHISING REVENUES AND ADJUSTED

FRANCHISING MARGINS

Source: Choice Internal Data, December 2008

Note: To improve comparability certain employee severance amounts included in the determination of adjusted franchising margins in this presentation for 2008

and 2007 differ from amounts reported in exhibit 8 of our February 10, 2009 earnings announcement.

($ amounts in thousands)

Year Ended

December 31,

2008

2007

2006

2005

2004

2003

Total Revenues

641,680

615,494

539,903

472,098

428,208

385,866

Adjustments:

Marketing and Reservation

(336,477)

(316,827)

(273,267)

(237,822)

(220,732)

(195,219)

Product Sales

Hotel Operations

(4,936)

(4,692)

(4,505)

(4,293)

(3,729)

(3,565)

Franchising Revenues

300,267

293,975

262,131

229,983

203,747

187,082

Operating Income

174,596

185,199

166,625

143,750

124,983

113,946

Adjustments

Hotel Operations

(1,502)

(1,451)

(1,311)

(1,068)

(725)

(842)

Acceleration of Management Succession Plan

6,605

Executive Termination Benefits

3,690

Loan Reserves Related to Impaired Notes Receivable

7,555

Product Sales

Impairment of Friendly Investment

Net

187,254

187,438

165,314

142,682

124,258

113,104

Adjusted Franchising Margin

62.4%

63.8%

63.1%

62.0%

61.0%

60.5%

FRANCHISING REVENUES AND ADJUSTED

FRANCHISING MARGINS (CONTINUED)

Source: Choice Internal Data, December 2008

($ amounts in thousands)

Year Ended

December 31,

2002

2001

2000

1999

1998

1997

Total Revenues

365,562

341,428

352,841

324,203

165,474

175,416

Adjustments:

Marketing and Reservation

(190,145)

(168,170)

(185,367)

(162,603)

Product Sales

(3,871)

(20,748)

(23,806)

Hotel Operations

(3,331)

(3,215)

(1,249)

(1,098)

(17,303)

Franchising Revenues

172,086

170,043

166,225

157,729

143,628

134,307

Operating Income

104,700

73,577

92,427

94,170

85,151

77,068

Adjustments

Hotel Operations

(385)

(714)

(640)

(1,679)

Acceleration of Management Succession Plan

Executive Termination Benefits

Loan Reserves Related to Impaired Notes Receivable

Product Sales

(1,216)

(1,037)

Impairment of Friendly Investment

22,713

Net

104,315

95,576

91,787

94,182

83,970

74,352

Adjusted Franchising Margin

60.6%

56.2%

55.2%

59.7%

58.5%

55.4%

RETURN ON INVESTED CAPITAL

Source: Choice Internal Data, September 2009

(a) Operating income and tax rate for the year ended December 31, 2001 have been adjusted to exclude the effect

of a $22.7 million impairment charge related to the write-off of the company’s investment in Friendly Hotels.

Year Ended

($ in millions)

December 31,

1998

1999

2000

2001

2002

Operating Income (a)

$85.2

$94.2

$92.4

$96.3

$104.7

Tax Rate(a)

41.7%

39.5%

39.0%

35.0%

36.5%

After-Tax Operating Income

49.7

57.0

56.4

62.6

66.5

+ Depreciation & Amortization

6.7

7.7

11.6

12.5

11.3

- Maintenance CAPEX

6.7

7.7

11.6

12.5

11.3

Net Op. Profit After-tax (NOPAT)

$49.7

$57.0

$56.4

$62.6

$66.5

Total Assets

398.2

464.7

484.1

321.2

316.8

- Current Liabilities

64.7

88.7

93.8

71.2

84.3

Invested Capital

333.6

375.9

390.3

250.0

232.5

Return on Average Invested Capital

15.2%

16.1%

14.7%

19.5%

27.6%

RETURN

INVESTED

CAPITAL

(CONTINUED)

Source: Choice Internal Data, September 2009

Trailing Twelve

Year Ended

Months

($ in millions)

December 31,

September 30,

2003

2004

2005

2006

2007

2008

2009

Operating Income (a)

$113.9

$125.0

$143.8

$166.6

$185.2

$174.6

$148.1

Tax Rate(a)

36.1%

35.1%

33.0%

27.4%

36.0%

36.3%

35.3%

After-Tax Operating Income

72.8

81.1

96.3

121.0

118.5

111.2

95.8

+ Depreciation & Amortization

11.2

9.9

9.1

9.7

8.6

8.2

8.3

Maintenance CAPEX

11.2

9.9

9.1

9.7

8.6

8.2

8.3

Net Op. Profit After-tax (NOPAT)

$72.8

$81.1

$96.3

$121.0

$118.5

$111.2

$95.8

Total Assets

267.3

263.4

265.3

303.3

328.4

328.2

353.0

Current Liabilities

102.2

102.1

120.3

139.8

147.5

135.1

149.2

Invested Capital

165.1

161.3

145.0

163.5

180.9

193.1

203.8

Return on Average Invested Capital

36.7%

49.7%

62.9%

78.5%

68.8%

59.5%

47.8%

FREE CASH FLOWS

Source: Choice Internal Data, September 2009

Trailing

Twelve Months

Year Ended

September 30,

December 31,

($ in thousands)

2009

2008

2007

2006

2005

2004

Net Cash Provided by Operating Activities

91,974

104,399

145,666

153,680

133,588

108,908

Net Cash Provided (Used) by Investing Activities

(4,260)

(20,265)

(21,284)

(17,244)

(24,531)

(14,544)

Free Cash Flows

87,714

84,134

124,382

136,436

109,057

94,364

FREE CASH FLOWS (continued)

Source: Choice Internal Data, September 2009

Year Ended

December 31,

($ in thousands)

2003

2002

2001

2000

1999

1998

Net Cash Provided by Operating Activities

115,304

99,018

101,712

53,879

65,040

38,952

Net Cash Provided (Used) by Investing Activities

27,784

(14,683)

87,738

(16,617)

(36,031)

(9,056)

Free Cash Flows

143,088

84,335

189,450

37,262

29,009

29,896

ADJUSTED EBITDA

Source: Choice Internal Data, December 2009

Note: To improve comparability certain employee severance amounts included in the determination of adjusted EBITDA in this presentation for 2008

and 2007 differ from amounts reported in exhibit 8 of our February 10, 2009 earnings announcement.

Outlook

Year Ended

($ in thousands)

2% RevPAR

December 31,

Target

Sensitivity

2009

2008

2007

2006

2005

2004

Operating Income

161,846

157,812

149,080

174,596

185,199

166,625

143,750

124,983

Adjustments

Acceleration of Management Succession Plan

6,605

Loss on Sublease of Office Space

1,503

Executive Termination Benefits

4,330

3,690

Curtailment of SERP

1,285

Loan Reserves Related to Impaired Notes Receivable

7,555

Product Sales

Impairment of Friendly investment

Depreciation and Amortization

8,155

8,303

8,184

8,637

9,705

9,051

9,947

Adjusted EBITDA

170,001

165,967

164,501

196,940

197,526

176,330

152,801

134,930

Projected Year Ended,

December 31, 2010

ADJUSTED

EBITDA

(CONTINUED)

Source: Choice Internal Data, December 2009

Year Ended

($ in thousands)

December 31,

2003

2002

2001

2000

1999

1998

1997

Operating Income

113,946

104,700

73,577

92,427

94,170

85,151

77,068

Adjustments

Acceleration of Management Succession Plan

Loss on Sublease of Office Space

Executive Termination Benefits

Curtailment of SERP

Loan Reserves Related to Impaired Notes Receivable

Product Sales

(1,216)

(1,037)

Impairment of Friendly investment

22,713

Depreciation and Amortization

11,225

11,251

12,452

11,623

7,687

6,710

9,173

Adjusted EBITDA

125,171

115,951

108,742

104,050

101,869

90,645

85,204

ADJUSTED DILUTED EARNINGS PER SHARE

Source: Choice Internal Data, December 2009

Note: To improve comparability certain employee severance amounts included in the determination of adjusted diluted earnings per share in this presentation for 2008

and 2007 differ from amounts reported in exhibit 8 of our February 10, 2009 earnings announcement.

Outlook

Year Ended

2% RevPAR

December 31,

(In thousands, except per share amounts)

Target

Sensitivity

2009

2008

2007

2006

2005

Net Income

101,615

99,081

96,760

100,211

111,301

112,787

87,565

Adjustments:

Loss(Gain) on Extinguishment of Debt, Net of Taxes

217

Acceleration of Management Sucession

Plan, Net of Taxes

4,135

Executive Termination Benefits, Net of Taxes

2,719

2,310

Loss on Sublease of Office Space, Net of Taxes

944

Curtailment of SERP, Net of Taxes

807

Loan Reserves Related to Impaired Notes Receivable, Net of Taxes

4,729

Resolution of Provisions for Income Tax Contingencies

(12,791)

(4,855)

Income Tax Expense Incurred Due to Foreign Earnings Repatriation

1,192

Loss(Gain) on Sunburst Note Transactions, Net of Taxes

Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes

Adjusted Net Income

101,615

99,081

101,230

109,075

113,611

100,213

83,902

Weighted Average Shares Outstanding-Diluted

59,941

60,225

62,521

65,331

67,050

66,336

Diluted Earnings Per Share

1.70

1.65

1.61

1.60

1.70

1.68

1.32

Adjustments:

Loss(Gain) on Extinguishment of Debt, Net of Taxes

Acceleration of Management Sucession

Plan, Net of Taxes

0.07

Executive Termination Benefits, Net of Taxes

0.05

0.04

Loss on Sublease of Office Space, Net of Taxes

0.01

Curtailment of SERP, Net of Taxes

0.01

Loan Reserves Related to Impaired Notes Receivable, Net of Taxes

0.08

Resolution of Provisions for Income Tax Contingencies

(0.19)

(0.08)

Income Tax Expense Incurred Due to Foreign Earnings Repatriation

0.02

Loss(Gain) on Sunburst Note Transactions, Net of Taxes

Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes

Adjusted Diluted Earnings Per Share (EPS)

1.70

1.65

1.68

1.75

1.74

1.49

1.26

Projected Year Ended

December 31, 2010

ADJUSTED DILUTED EARNINGS PER SHARE

(CONTINUED)

Source: Choice Internal Data, December 2009

Year Ended

December 31,

(In thousands, except per share amounts)

2004

2003

2002

2001

2000

1999

1998

Net Income

74,345

71,863

60,844

14,327

42,445

57,155

55,305

Adjustments:

Loss(Gain) on Extinguishment of Debt, Net of Taxes

433

(7,232)

Acceleration of Management Sucession

Plan, Net of Taxes

Executive Termination Benefits, Net of Taxes

Loss on Sublease of Office Space, Net of Taxes

Curtailment of SERP, Net of Taxes

Loan Reserves Related to Impaired Notes Receivable, Net of Taxes

Resolution of Provisions for Income Tax Contingencies

(1,182)

Income Tax Expense Incurred Due to Foreign Earnings Repatriation

Loss(Gain) on Sunburst Note Transactions, Net of Taxes

(3,383)

4,721

Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes

37,166

7,532

Adjusted Net Income

73,596

68,480

60,844

51,493

54,698

57,155

48,073

Weighted Average Shares Outstanding-Diluted

69,000

73,349

80,114

89,144

106,506

111,334

119,096

Diluted Earnings Per Share

1.08

0.98

0.76

0.16

0.40

0.51

0.46

Adjustments:

Loss(Gain) on Extinguishment of Debt, Net of Taxes

0.01

(0.06)

Acceleration of Management Sucession

Plan, Net of Taxes

Executive Termination Benefits, Net of Taxes

Loss on Sublease of Office Space, Net of Taxes

Curtailment of SERP, Net of Taxes

Loan Reserves Related to Impaired Notes Receivable, Net of Taxes

Resolution of Provisions for Income Tax Contingencies

(0.02)

Income Tax Expense Incurred Due to Foreign Earnings Repatriation

Loss(Gain) on Sunburst Note Transactions, Net of Taxes

(0.05)

0.04

Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes

0.42

0.07

Adjusted Diluted Earnings Per Share (EPS)

1.07

0.93

0.76

0.58

0.51

0.40