With plans to develop 140 Choice hotels in South America over the next five years, Choice Atlantica Hotels holds the master franchise agreement in Brazil, Argentina, Chile, Peru, Ecuador, Paraguay, Uruguay and Bolivia.  Earlier this year, the company sold its operation in Eastern Europe � Croatian Hotels & Resorts � in order to exclusively focus on activities in South America, where executives believe markets are ripe for development of quality, affordable hotels.

�Despite the reservations voiced by some pundits regarding the economic outlook in Latin America, we believe that there are tremendous opportunities in these markets over the long term,� said Sistare. �By dropping the Barrington name and exclusively using Choice Atlantica Hotels in the future, we are essentially putting our �mouth where our money is.� Along with our investment partners, we are committed to raising the quality of lodging offerings in South America one hotel at a time over the next five years.�

Choice Atlantica Hotels works with individual and institutional hotel owners, operators and investors to develop Choice products, grant franchise licenses and, in most cases, manage the properties once they open.

Development activities have been stepped up considerably over the past several months.  Earlier this month, Choice announced the conversion of a Sao Paulo, Brazil hotel into the Comfort Hotel & Suites - Trianon Park. Other Choice properties presently operating in South America include the Clarion Hotel Principado, Quality Bonaparte Hotel and Quality El Conquistador, all in Santiago. A Sleep Inn � the first in South America � will open in Miraflores, an affluent suburb of Lima, Peru, in January 1999.

Choice Hotels International (NYSE: CHH) has more than 4,000 hotels, inns, all-suite hotels and resorts open and under development in 34 countries and was recently named the #1 lodging company by Entrepreneur magazine in the publication�s annual Franchise 500 ranking.

A reservations office in Buenos Aires will open during the first quarter of 1999 for travelers and travel professionals calling from the country of Argentina.  All the reservations centers use the �Choice 2001� reservations system which confirms instantly reservations at Choice hotels worldwide.  Choice Atlantica Hotels has offices in Fort Lauderdale, Sao Paulo, Buenos Aires and Santiago.