SILVER SPRING, Md. - July 16, 2002 - Choice Hotels International, Inc. (NYSE:CHH) today announced a new minority incentive plan to encourage franchise sales to African-American, Hispanic and Native American developers.

�This plan specifically aims to increase the number of Choice franchisees among African-Americans, Hispanics and Native Americans, three traditionally under-represented groups in the hospitality industry,� said Paul Sterbini, vice president, franchise development. �We want to encourage their participation in hotel ownership and to introduce them to the incredible opportunities that entrepreneurs in our industry enjoy.�

The program seeks to attract minority entrepreneurs who wish to build a Choice-branded hotel, purchase an existing Choice-branded hotel or convert an existing hotel to a Choice brand. Under the program, Choice will provide $1,500 per room, up to $200,000 per hotel, for development of mid-scale brand hotels or $750 per room, up to $50,000, for development of economy brand hotels. To be eligible for the incentive, African-American, Hispanic and Native American owners must hold a 51% ownership stake and meet all other franchise criteria, with the allowance payable upon official opening of the hotel.

Choice Hotels International is the world�s second largest lodging franchisor, marketing more than 5,000 hotels open or under development in 46 countries under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, MainStay Suites and Rodeway Inn brand names.