Press Release: Choice Hotels
July 2, 2002
SILVER SPRING, MD -- Choice Hotels International, Inc., (NYSE:CHH) yesterday announced it has acquired controlling
interest in Melbourne-based Flag Choice Hotels, its franchising partner in Australia.
"By acquiring the controlling interest in Flag Choice Hotels, we will be able to implement a comprehensive
business plan designed to improve franchise services, enhance marketing programs, and build a strong base for the
Choice brands in the Pacific," said Charles A. Ledsinger, Jr., president and chief executive officer.
Under the terms of the agreement with Flag International Ltd., Choice has acquired a 55% controlling interest in
Flag Choice Hotels (FCH) and was granted an option to purchase the remaining 45% over a five year period from closing.
Assuming the option is exercised, the total consideration for the transaction will be US$3.5 million.
FCH currently franchises approximately 400 properties in Australia and New Zealand under the Flag, Comfort, Quality,
and Clarion brands and is the largest hospitality franchisor in those countries. Concurrently with completion of
the transaction, more than half of the Flag branded properties in Australia will convert to the Choice brands.
As a result of the transaction, Choice will integrate FCH's Melbourne call center to its worldwide reservations
network.
Choice Hotels International franchises more than 5,000 hotels open or under development worldwide under the Comfort
Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brands.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of
the federal securities law. Such statements are based on management's beliefs, assumptions and expectations, which
in turn are based on information currently available to management.
Actual performance and results could differ from those express in or contemplated by the forward-looking statements
due to a number of risks, uncertainties and other factors, many of which are beyond Choice's ability to predict
or control.
For further information on factors that could impact Choice and the statements contained therein, we refer you
to the filings made by Choice with the Securities and Exchange Commission, including its registration statement
on Form S-4 and report on Form 10-Q for the period ended September 30, 2001.
Additional corporate information may be found on the Choice Hotels' Internet site, which may be accessed at www.choicehotels.com.
Comfort, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Choice Privileges,
EA$Y CHOICE and ChoiceBuys.com are registered trademarks, service marks and trade names of Choice Hotels International,
Inc. Choice Hotels also owns and uses common law marks, including Profit Manager.
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Contact:
Choice Hotels
John Hawkins, 301/592-5075
Fax: 301/592-6177
John_hawkins@choicehotels.com