�But most significantly, this surge in development activity is due to the exceptional demand for our brands in the marketplace,� Squeri said.  �For both new construction hotels and conversion projects, we offer brand names that are recognized and respected throughout the world � and that are backed by Choice Hotels� exceptional services, marketing power and reservations delivery.�

Growth among Choice Hotels� new construction brands was extraordinarily strong, with Sleep Inn experiencing a 225 percent increase in year-to-date sales versus 2003 and Comfort Suites experiencing a 67 percent increase.   According to David Pepper, vice president, franchise sales, these results are particularly notable when measured against the industry.  �According to Smith Travel Research, total development of new hotels was down almost 19 percent for the first four months of 2004 when compared to the same period in 2003,� Pepper said.  �This makes it particularly gratifying to see a 25 percent increase in new construction contracts for our brands thus far this year.�

Ron Burgett, vice president franchise sales for Choice�s fullservice and economy brands, reports similarly robust system growth for conversion brands.  �We�ve seen a 38 percent increase in conversions to the Econo Lodge brand  � with June going into the record books as the strongest month for Econo Lodge sales in Choice Hotels� history as a public company,� he said.  �Quality and Clarion also had tremendous growth in the first half of 2004, with 33 percent and 23 percent increases, respectively.�

Choice Hotels International franchises more than 4,800 hotels open in the United States and 41 other countries and territories under the Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge, and Rodeway Inn brand names.