Choice Hotels Reports First Quarter Net Income Grew 47% to $17.7 million Compared to the Same Period Last Year; Domestic Hotel Franchise Contracts Up 17% / Brand Operating Data / April 2006

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Choice Hotels Reports First Quarter Net Income Grew 47% to $17.7 million
Compared to the Same Period Last Year; Domestic Hotel Franchise
Contracts Up 17% / Brand Operating Data

Company Raises 2006 Earnings Guidance

SILVER SPRING, Md., April 25, 2006 - Choice Hotels International, Inc., (NYSE: CHH) today reported the following highlights for the first quarter of 2006:

* Diluted earnings per share (EPS) increased 44% to $0.26, compared to
$0.18 for first quarter 2005.

* Net income grew 47% from $12.0 million in first quarter 2005 to $17.7
million in the same period of this year.

    * Earnings before interest, taxes, depreciation and amortization
       ("EBITDA") increased 32% to $32.4 million from $24.6 million in first
       quarter 2005.

* Operating income increased 35% to $30.1 million, compared to $22.3
million for the same period in 2005.

* Total revenues increased 20% to $109.4 million compared to the first
quarter of 2005.

* Domestic system-wide revenue per available room (RevPAR) increased 9.4%
compared to the first quarter of 2005.

    * Domestic unit growth increased 5.2% compared to the first quarter 2005
       (excluding the acquisition of Suburban, domestic unit growth increased
       3.6%).

    * Year-to-date new domestic hotel franchise contracts were up 17% to 120,
       with new construction contracts increasing 41 percent to 48, as
       compared to 34 in first quarter 2005, including 10 contracts for the
       new Cambria Suites brand, as compared to 13 for the full year 2005.

* Franchising revenues were up 22% for first quarter.

    * The domestic hotel pipeline of hotels under construction, awaiting
       conversion or approved for development increased more than 60% to 653
       hotels, representing 51,157 rooms; an additional 69 hotels,
       representing 6,223 rooms, were in the worldwide pipeline at March 31,
       2006.

"Choice's franchising business model continues to deliver strong revenue and earnings growth, as evidenced by our track record of outstanding results and total returns to shareholders, which have been in excess of 45% on an annualized basis over the past five years," said Charles A. Ledsinger, Jr., president and chief executive officer. "Choice has shown that it can generate solid, predictable growth in a wide variety of economic conditions and industry cycles, further underscoring the strength of our business model and the predictability of our business. As a result, we are confident that the combination of our sound operating strategies and the strength of the lodging and hospitality industry positions us well for continued top-line and bottom- line growth."

"We also are quite pleased with the significant increase in our new construction projects, particularly our new upscale Cambria Suites brand," continued Ledsinger. "Since we introduced the brand a little over a year ago, we have executed 23 contracts, including 10 in the first quarter of this year."

Outlook for 2006

The company's second quarter 2006 diluted EPS is expected to be $0.36 to $0.39. Full-year 2006 diluted EPS is expected to be $1.46 to $1.49. Earnings before interest, taxes, depreciation and amortization ("EBITDA") is expected to be $175 million to $179 million for full-year 2006. These estimates include the following assumptions.

* The company expects net domestic unit growth of approximately 4% in
2006;

* RevPAR is expected to increase 6% to 7.5% for second quarter 2006 and
5.5% to 7% for full-year 2006;

* The effective royalty rate is expected to increase 3 basis points for
full-year 2006;

    * All figures assume the existing share count, include stock-based
       compensation expense and assume an effective tax rate of 36.5% for
       full-year 2006.

Use of Free Cash Flow

The company has consistently used its free cash flow (cash flow from operations less capital expenditures) generated from its operations to return value to shareholders. This is primarily achieved through share repurchases and dividends.

For the quarter ended March 31, 2006, the company paid $8.4 million of cash dividends to shareholders. The annual dividend rate per common share is $0.52.

The company has remaining authorization to purchase up to 5.1 million shares under the share repurchase program. Repurchases will continue to be made in the open market and through privately negotiated transactions subject to market and other conditions. No minimum number of shares has been fixed. Since Choice announced its stock repurchase program on June 25, 1998, the company has repurchased 33.6 million shares of its common stock for a total cost of $711.9 million through April 25, 2006. Considering the effect of the two-for-one stock split in October 2005, the company has repurchased 66.6 million shares at an average price of $10.69 per share.

The company expects to continue to return value to its shareholders through a combination of share repurchases and dividends, subject to market and other conditions.

Conference Call

Choice will conduct a conference call on Wednesday, April 26, 2006, at 10 a.m. EDT to discuss the company's first quarter 2006 results. The call-in number to listen to the call is 1-800-553-0351. The conference call also will be Web cast simultaneously via the company's Web site, http://www.choicehotels.com. Interested investors and other parties wishing to access the call on the Web should go to the Web site and click on the Investor Info link. The Investor Information page will feature a conference call microphone icon to access the call.

The audio of the call will be archived and available on http://www.choicehotels.com for those unable to listen to the call on April

26. The call will also be available for replay until May 26, 2006, by calling 1-800-475-6701 (access code 824816).

Items Impacting Comparability

Acquisition of Suburban

During 2005, the company acquired Suburban Franchise Holding Company, Inc. ("Suburban"), which included 67 Suburban Extended Stay Hotel units open and operating in the United States. The results of operations for Suburban have been included in the company's results of operations since September 28, 2005.

Two-for-One Stock Split

In October 2005, the company effected a two-for-one stock split of its outstanding shares of common stock, par value $.01 per share. Unless otherwise noted, all share information in this release and in the accompanying exhibits, including per share amounts, have been proportionally adjusted as if the two- for-one stock split had been effective as of the date or period presented.

                      Choice Hotels International, Inc.
                      Consolidated Statements of Income
                                 (Unaudited)

                                             Three Months Ended March 31,
                                                                 Variance
                                            2006      2005       $       %
    (In thousands, except per share
     amounts)

REVENUES:

      Royalty fees                         $39,864   $33,642   $6,222     18%
      Initial franchise and relicensing
       fees                                  5,643     4,311    1,332     31%
      Partner services                       2,782     2,640      142      5%
      Marketing and reservation             57,976    49,043    8,933     18%
      Hotel operations                         980       920       60      7%
      Other                                  2,173       612    1,561    255%
          Total revenues                   109,418    91,168   18,250     20%

OPERATING EXPENSES:

      Selling, general and administrative   18,275    16,753    1,522      9%
      Depreciation and amortization          2,349     2,325       24      1%
      Marketing and reservation             57,976    49,043    8,933     18%
      Hotel operations                         745       748       (3)    (0%)
          Total operating expenses          79,345    68,869   10,476     15%

Operating income 30,073 22,299 7,774 35%

    OTHER INCOME AND EXPENSES:
      Interest expense                       4,040     3,607      433     12%
      Interest and other investment
       (income) loss                          (704)      131     (835)   637%
      Equity in net income of affiliates      (258)     (199)     (59)    30%
      Other                                      -      (133)     133   (100%)
          Total other income and
           expenses, net                     3,078     3,406     (328)   (10%)

    Income before income taxes              26,995    18,893    8,102     43%
    Income taxes                             9,330     6,894    2,436     35%
    Net income                             $17,665   $11,999   $5,666     47%

Weighted average shares outstanding-
basic 64,781 64,141

Weighted average shares outstanding-
diluted 66,728 66,643

Basic earnings per share $0.27 $0.19 $0.08 42%

Diluted earnings per share $0.26 $0.18 $0.08 44%

Choice Hotels International, Inc.
Consolidated Balance Sheets

    (In thousands)                                March 31,       December 31,
                                                    2006              2005
                                                 (Unaudited)

ASSETS

    Cash and cash equivalents                       $19,936           $16,921
    Accounts receivable, net                         34,313            37,155
    Deferred income taxes                             2,607             2,616
    Other current assets                              5,500             6,308
         Total current assets                        62,356            63,000

    Fixed assets and intangibles, net               147,689           150,376
    Receivable -- marketing fees                     22,875            13,225
    Investments, employee benefit plans,
     at fair value                                   27,441            23,337
    Other assets                                     13,569            15,162

Total assets $273,930 $265,100

LIABILITIES AND SHAREHOLDERS' DEFICIT

    Current portion of long-term debt               $10,146              $146
    Other current liabilities                       120,292           119,999
         Total current liabilities                  130,438           120,145

    Long-term debt                                  249,151           273,972
    Deferred compensation & retirement
     plan obligations                                33,308            28,987
    Other liabilities                                 8,643             9,172

Total liabilities 421,540 432,276

Total shareholders' deficit (147,610) (167,176)

Total liabilities and
shareholders' deficit $273,930 $265,100

                      Choice Hotels International, Inc.
                    Consolidated Statements of Cash Flows
                                 (Unaudited)

(In thousands) Three Months Ended March 31,

2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $17,665 $11,999

    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
      Depreciation and amortization                  2,349             2,325
      Gain on sale of assets                             -              (133)
      Provision for bad debts                         (409)               15
      Non-cash stock compensation                    3,369             1,182
      Non-cash interest and other
       investment (income) loss                       (505)              289
      Equity in net income of affiliates              (258)             (199)

    Changes in assets and liabilities,
     net of acquisitions:
      Receivables                                    3,231            (2,021)
      Receivable - marketing and
       reservation fees, net                        (8,319)           (7,396)
      Accounts payable                               5,785             4,820
      Accrued expenses and other                    (8,665)           (3,595)
      Income taxes payable                             708             3,597
      Deferred income taxes                          1,799             1,542
      Deferred revenue                               2,450             2,023
      Other current assets                             808            (1,297)
      Other liabilities                              4,275             3,716

NET CASH PROVIDED BY OPERATING
ACTIVITIES 24,283 16,867

CASH FLOWS FROM INVESTING ACTIVITIES:

    Investment in property and equipment            (1,193)           (2,993)
    Proceeds from disposition of assets                -               1,706
    Issuance of notes receivable                      (649)             (264)
    Proceeds from sales of investments                 859               941
    Purchases of investments                        (4,353)           (3,604)
    Other items, net                                   131              (266)

NET CASH USED IN INVESTING
ACTIVITIES (5,205) (4,480)

CASH FLOWS FROM FINANCING ACTIVITIES:

    Principal payments of long-term debt               (37)              (36)
    Net (repayments) borrowings pursuant
     to revolving credit facility                  (14,800)            4,097
    Stock-based compensation windfall tax
     benefits                                        5,050                 -
    Purchase of treasury stock                      (1,277)          (14,052)
    Dividends paid                                  (8,436)           (7,235)
    Proceeds from exercise of stock
     options                                         3,437             4,944

NET CASH USED IN FINANCING
ACTIVITIES (16,063) (12,282)

    Net change in cash and cash
     equivalents                                     3,015               105
    Cash and cash equivalents at
     beginning of period                            16,921            28,518

CASH AND CASH EQUIVALENTS AT END OF
PERIOD $19,936 $28,623

CHOICE HOTELS INTERNATIONAL, INC.
                      SUPPLEMENTAL OPERATING INFORMATION
                            DOMESTIC HOTEL SYSTEM
                                 (UNAUDITED)

For the Three Months Ended March 31, 2006

Average Daily
Rate Occupancy RevPAR

COMFORT INN $67.12 51.7% $34.70

COMFORT SUITES 79.18 58.8% 46.58

QUALITY 61.79 44.9% 27.77

CLARION 76.25 42.5% 32.44

SLEEP 62.00 51.8% 32.14

MAINSTAY 65.31 57.0% 37.23

ECONO LODGE 48.54 39.0% 18.92

RODEWAY 46.80 39.0% 18.23

TOTAL DOMESTIC SYSTEM* $64.93 48.1% $31.23

For the Three Months Ended March 31, 2005

Average Daily
Rate Occupancy RevPAR

COMFORT INN $63.34 49.5% $31.37

COMFORT SUITES 73.50 55.5% 40.77

QUALITY 59.22 43.7% 25.87

CLARION 69.98 41.8% 29.24

SLEEP 57.69 50.1% 28.90

MAINSTAY 60.62 54.3% 32.92

ECONO LODGE 46.16 38.8% 17.92

RODEWAY 45.34 39.4% 17.87

TOTAL DOMESTIC SYSTEM* $61.21 46.6% $28.54

Change

Average Daily
Rate Occupancy RevPAR

COMFORT INN 6.0% 220 bps 10.6%

COMFORT SUITES 7.7% 330 bps 14.3%

QUALITY 4.3% 120 bps 7.3%

CLARION 9.0% 70 bps 10.9%

SLEEP 7.5% 170 bps 11.2%

MAINSTAY 7.7% 270 bps 13.1%

ECONO LODGE 5.2% 20 bps 5.6%

RODEWAY 3.2% -40 bps 2.0%

TOTAL DOMESTIC SYSTEM* 6.1% 150 bps 9.4%

    * Amounts exclude Suburban activity from January 1, 2006 through March 31,
      2006 because comparable pre-acquisition data for Q1 2005 is not
      available

For the Three Months Ended
03/31/2006 03/31/2005

System-wide effective royalty rate* 4.09% 4.08%

                        CHOICE HOTELS INTERNATIONAL, INC.
                     SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
                                   (UNAUDITED)

March 31, 2006 March 31, 2005

Hotels Rooms Hotels Rooms

COMFORT INN 1,418 111,032 1,430 112,461

COMFORT SUITES 415 32,666 393 31,021

QUALITY 670 66,657 594 60,545

CLARION 151 23,157 154 23,058

SLEEP 322 24,384 316 24,133

MAINSTAY 27 2,047 27 2,150

SUBURBAN 64 8,460 - -

ECONO LODGE 818 50,144 788 49,043

RODEWAY 185 11,387 166 10,219

DOMESTIC FRANCHISES 4,070 329,934 3,868 312,630

INTERNATIONAL FRANCHISES 1,168 98,456 1,140 94,679

TOTAL FRANCHISES 5,238 428,390 5,008 407,309

Variance

Hotels Rooms % %

COMFORT INN (12) (1,429) (0.8%) (1.3%)

COMFORT SUITES 22 1,645 5.6% 5.3%

QUALITY 76 6,112 12.8% 10.1%

CLARION (3) 99 (1.9%) 0.4%

SLEEP 6 251 1.9% 1.0%

MAINSTAY - (103) 0.0% (4.8%)

SUBURBAN 64 8,460 NM NM

ECONO LODGE 30 1,101 3.8% 2.2%

RODEWAY 19 1,168 11.4% 11.4%

DOMESTIC FRANCHISES 202 17,304 5.2% 5.5%

INTERNATIONAL FRANCHISES 28 3,777 2.5% 4.0%

TOTAL FRANCHISES 230 21,081 4.6% 5.2% 5.2%

                        CHOICE HOTELS INTERNATIONAL, INC.
                        SUPPLEMENTAL INFORMATION BY BRAND
                    DEVELOPMENT RESULTS -- NEW HOTEL CONTRACTS
                                   (UNAUDITED)

                          For the Three                   For the Three
                           Months Ended                   Months Ended
                          March 31, 2006                 March 31, 2005

New New
Construction Conversion Total Construction Conversion Total

COMFORT INN 15 13 28 8 10 18

COMFORT SUITES 12 - 12 13 - 13

QUALITY 2 25 27 1 30 31

CLARION 1 9 10 1 3 4

SLEEP 3 - 3 7 1 8

MAINSTAY 2 1 3 - - -

SUBURBAN 3 - 3 - - -

CAMBRIA 10 - 10 1 - 1

ECONO LODGE - 9 9 3 16 19

RODEWAY - 15 15 - 9 9

TOTAL DOMESTIC
SYSTEM 48 72 120 34 69 103

% Change

New
Construction Conversion Total

COMFORT INN 88% 30% 56%

COMFORT SUITES (8%) NM (8%)

QUALITY 100% (17%) (13%)

CLARION 0% 200% 150%

SLEEP (57%) (100%) (63%)

MAINSTAY NM NM NM

SUBURBAN NM NM NM

CAMBRIA 900% NM 900%

ECONO LODGE (100%) (44%) (53%)

RODEWAY NM 67% 67%

TOTAL DOMESTIC SYSTEM 41% 4% 17%

                         CHOICE HOTELS INTERNATIONAL, INC.
                    SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
                                    (UNAUDITED)

CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS

    (dollar amounts in thousands)         Three Months Ended March 31,
                                               2006        2005
      Franchising Revenues:

      Total Revenues                         $109,418     $91,168
      Adjustments:
           Marketing and reservation
            revenues                          (57,976)    (49,043)
           Hotel Operations                      (980)       (920)
      Franchising Revenues                    $50,462     $41,205

Franchising Margins:

Operating Margin:

      Total Revenues                         $109,418     $91,168
      Operating Income                        $30,073     $22,299
           Operating Margin                     27.5%       24.5%

Franchising Margin:

Franchising Revenues $50,462 $41,205

      Operating Income                        $30,073     $22,299
      Less: Hotel Operations                      235         172
                                              $29,838     $22,127

Franchising Margins 59.1% 53.7%

EBITDA Reconciliation

    (in millions)
                                                                   Full-Year
                                            Q1 2006     Q1 2005      2006
                                            Actuals     Actuals     Outlook

      Operating Income (per GAAP)            $30.1       $22.3    $165 - $169
      Depreciation and amortization            2.3         2.3             10
      Earnings before interest, taxes,
       depreciation & amortization
       (non-GAAP)                            $32.4       $24.6    $175 - $179

About Choice Hotels
Choice Hotels International franchises more than 5,200 hotels, representing more than 425,000 rooms, in the United States and more than 40 countries and territories. As of March 31, 2006, 653 hotels are under development in the United States, representing 51,157 rooms, and an additional 69 hotels, representing 6,223 rooms, are under development in more than 20 countries and territories. The company's Cambria Suites, Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites and Suburban Extended Stay Hotel brands serve guests worldwide.

Forward-Looking Statements
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 the statements contained therein, we refer you to the filings made by Choice with the Securities and Exchange Commission, including its form 10-K for the period ended December 31, 2005.

Contact:

Choice Hotels International
http://www.choicehotels.com

Also See:	Choice Hotels Reports Full Year 2005 Net Income of $87.6 million Compared to Prior Year Net Income of $74.3 million; Executes 639 New Domestic Hotel Franchise Contracts / Hotel Operating Stats / February 2006
	Choice Hotels Acquires Suburban Franchise Systems, Inc. for Approximately $10.5 million; Suburban Extended Stay Hotels Becomes the Tenth Brand in the Choice Hotels System / September 2005

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