Company Press Release
May 11, 2000
SILVER SPRING, MD -- Choice Hotels International (NYSE:CHH) yesterday announced the launch of Stay Connect, Inc.,
a hospitality technology services company created to provide high-speed Internet access for both in-room PCs and
laptops to the lodging industry. The new company plans to install Stay Connect services in approximately 50,000
hotel rooms by the end of 2001.
Backed by one of the largest lodging franchisors in the world with a minority investment by Baron Capital, the
prominent New York based investment advisor, on behalf of its investment advisory clients, Stay Connect is the
first hospitality technology company of its kind to be launched by a hotel corporation. This company is also in
the forefront of offering Internet access to all types of travelers, even those who travel without laptops.
As an endorsed supplier of Choice, Stay Connect has immediate and direct access to 3700 domestic Comfort, Quality,
Clarion, Sleep, Econo Lodge, Rodeway Inn and MainStay Suites brand hotels.
Addressing Guests' Demand for Innovative Amenities
The initiative to launch Stay Connect follows a previous test of in-room PCs by Choice, which indicated a strong
demand for the amenity. Results revealed a 52% daily usage of in-room PCs for approximately 67 minutes per session
- more than double the average online time of a typical Internet user session and more than the average time spent
monthly on most Internet portals.
``When Choice first evaluated the demand for Internet connectivity from guests last fall, we recognized a huge
- and untapped - business potential,'' said Charles A. Ledsinger, Jr., president and chief executive officer of
Choice. ``Less than one percent of the U.S.'s four million hotel rooms provide high-speed Internet access or in-room
computers. To capitalize on this vast potential, we created a turn-key solution that provides guest room Internet
services, including in-room PCs, to the entire lodging industry.''
Daniel Rothfeld, senior vice president, e-commerce and emerging business opportunities at Choice, added, ``Choice
is strongly focused on developing business opportunities for the industry. Our ongoing research clearly indicates
that the growing demand for in-room PCs and Internet access simply is not being satisfied by existing solutions.
Being able to access the Internet is quickly becoming as basic to hotel rooms as refreshments, telephones and televisions,
yet it is imperative to meet this fundamental need in a sustainable way that works for both guests and hotel owners.
We believe Stay Connect provides the right solution for the whole industry.''
Delivering Benefits to Lodging Industry
Stay Connect offers complete turn-key services from installation to in-room Internet PCs and a 24x7 help desk for
a single low monthly fee. In addition, Stay Connect is in the process of developing its own Internet portal to
create an added value for the hotel owner and guest.
David Goldberg, vice president, operations at Stay Connect, said, ``There is no limit to the value proposition
the Stay Connect solution brings to hotel owners. By meeting customer demand and providing a highly valued amenity,
hotel owners can simultaneously increase room rates and raise occupancy levels. Our services provide all guests
the ability to access all the Internet has to offer whether or not they travel with a laptop.''
Partnering for Success
Stay Connect has selected premier partners to provide a quality end-to-end solution to hotel owners and guests.
Darwin Networks, a leading broadband solutions company, is managing the ``nerve center'' of the Stay Connect service?
- providing the entire telecommunications infrastructure.
David Wigglesworth, president of Darwin's hospitality division, said, ``We are delighted to be working with Stay
Connect on this important business initiative for the industry. Their research, expertise and focus, coupled with
a real understanding of the hospitality business and the needs of individual hotel owners, complements our strategy
of delivering best practices in the business.''
In-room Internet PCs are being provided by Compaq (NYSE: CPQ - news). The stylish new `iPAQ' Desktop PC offering
one-touch Internet access will be installed in at least a third of all rooms in Stay Connect enabled hotels.
``We're proud to be selected by Stay Connect as their technology solutions partner for equipping hotels across
the U.S. with iPAQ desktop PCs,'' said Mike Winkler, Senior Vice President and Group General Manager, Commercial
PC Group, Compaq Computer Corporation. ``Because of its simple design and small form factor, the iPAQ is the ideal
platform for in-room computing, providing guests with anywhere-access to business applications, email and the Internet.
As evidence of our goal to take everything to the Internet, we are pleased to provide Program Management Services
and iPAQ desktop PCs to assist Stay Connect in their new venture to supply every customer with this high quality,
reliable and valuable amenity.''
Editor's Note: For photos of Choice and Stay Connect executives, and iPAQ desktop PC please contact Christiana
Campos at 202/452-9489.
About Choice Hotels International
Choice Hotels International of Silver Spring, MD, is one of the largest hotel franchise companies in the world
with almost 5,000 hotels currently open or under development in 37 countries. Choice franchises hotels under the
Clarion, Comfort, Quality, Econo Lodge, MainStay Suites, Sleep and Rodeway Inn brands. For more information about
Choice, visit www.choicehotels.com.
About Stay Connect
Headquartered in Silver Spring, MD, Stay Connect is an independent operating company owned by Choice Hotels International
with a minority investment by Baron Capital on behalf of its investment advisory clients. Stay Connect will equip
guest rooms in hotels nationwide with state-of-the-art in-room computers and high-speed Internet access for laptops.
The company plans to install approximately 50,000 hotel rooms with the Stay Connect service by the end of 2001.
For further information please visit www.stayconnect.com or call 1 888-304-STAY.
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 expressed 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 statements on Form S-4 and report on Form
10-Q for the period ended June 30, 1999.
Comfort, Quality, Clarion, Sleep, Econo Lodge, Rodeway Inn and MainStay Suites are registered trademarks and service
marks of Choice Hotels International, Inc.
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Contact:
Choice Hotels International
Anne Papa Curtis, 301/592-5155
or
Ogilvy Public Relations Worldwide
Christiana Campos, 202/452-9489