Econo lodge brand presentation

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Econo Lodge® — Easy Stop On The Road


About Econo Lodge Econo Lodge is the Choice Hotels® premier economy brand that provides hoteliers a well-established, high-value brand for conversion opportunities. The Econo Lodge brand is focused on being the best brand in the economy segment and is dedicated to owners’ return on investment, growing the brand, and maintaining strong consumer appeal.

Unless otherwise noted, all figures and statistics in this document are from the Econo Lodge Franchise Disclosure Document, dated April 1, 2013, or from internal data of Choice Hotels International, Inc. This advertisement is not an offering. For New York: an offering can only be made by a prospectus filed first with the Department of Law in the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: Econo Lodge #F-3576. A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International at 1 Choice Hotels Circle, Suite 400, Rockville, MD, 20850, franchise_sales@choicehotels.com.

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Econo Lodge Is a Leading Economy Brand Econo Lodge has 92% brand awareness among consumers.*

ECONO LODGE PROPERTIES OPEN WORLDWIDE

2014

Econo Lodge continues to expand worldwide even in challenging economic times.

Open & Under Development

954

*Source: Millward Brown Advertising Tracking Study full-year 2013. Millward Brown is a global marketing research firm specializing in advertising, marketing, communications and brand equity research.

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An Econo Lodge Conversion Means‌ Flexibility

The Econo Lodge brand uses a customized approach for each opportunity, assessing property and market conditions, and tailoring property improvement plans designed to help increase the value of an asset over the long term.

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An Econo Lodge Conversion Means‌ Product Diversity

The Econo Lodge brand embraces product diversity while consistently delivering an affordable, reliable stay experience.

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Room to be Green Econo Lodge is positioning itself as the first national hotel chain in the economy segment to promote green practices across the entire portfolio.

Econo Lodge Room to be Green Program Elements 1

Energy Conservation

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Water Conservation

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Recycling & Waste Reduction

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Employee Engagement & Operational Excellence

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Smart, Safe & Sustainable Product Usage

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Room to be Green Econo Lodge franchise owners can save 6 million gallons of water and 21 million kilowatts of electricity on average per year systemwide...and that can translate to BIG savings!

If all Econo Lodge owners "Support Green Practices"

THAT COULD TRANSLATE TO AN ESTIMATED

$2 million IN SAVINGS SYSTEMWIDE PER YEAR

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Discounted Royalty Fees plus Cash Incentives For a limited time, qualified applicants can receive discounted royalty fees and cash incentive at opening!

Incentive Program Highlights* Discounted Affiliation Fee

Discounted Royalty Fee

Incentives

$15,000 Affiliation Fee

2.5% Royalty Fee for the First Two Years

$20,000 Cash Incentive

(which is $10,000 less than the brand standard fee)

(which is 2% less than the brand standard fee)

If hotel opens within 3 months of contract execution

$15,000 Cash Incentive If hotel opens within 6 months of contract execution

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*Terms and conditions apply; see Econo Lodge Franchise Disclosure Document dated April 1, 2014, Item 10, for qualifications and details.

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The Power of Choice Hotels Choice Hotels is one of the world’s largest lodging franchisors, with 75 years of experience and more than 6,800 properties open or under development in 35+ countries worldwide.

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The Power of Global Reservations Systems

ChoiceHotels.com

Mobile Channels

Global Distribution Systems (GDS)

Customized Hotel Property Pages

Mobile & Global Positioning System (GPS) Presence

Strong Search Engine Presence

First Global Lodging Company iPhone App

American Express速, Carlson Wagonlit Travel, Amadeus, Sabre, and more

More Than 150 Million Visits in 2013

50+ Million Total Mobile Site Visits in 2013

HelmsBriscoe Partnership

Travel Agency Preferred Status

Online Travel Agents High Third-Party Website Visibility Cost-Effective Scale-Drive Agreement with Booking.com, Travelocity, Orbitz, Hotels.com, and more

Call Centers Dedicated Toll-Free Number Commission-Free Reservations Global Locations Call Forwarding Program

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The Power of Service & Support Choice Hotels offers top-notch service and support to drive performance.

Global Sales

choiceADVANTAGE速

Field Support

Training

Dedicated Sales Teams

Web-Based Property Management System

Revenue, Market Share & Guest Satisfaction Goals Assistance

Expert Training Programs

Incremental Corporate, Leisure & Group Reservations Direct Sales, Telesales & Sales Blitzes Targets Travel Planners Variable Key Account Rate Plans

Remote Web Access 24/7 Link to Central Reservations Systems Rate & Inventory Management

Virtual Franchise Services Assistance Field-Based Brand Performance Consultants (BPCs)

Online ChoiceU.com Courses & Resources In-Person Workshops & Certification Programs

24/7 Help Desk Support

Procurement Services Qualified Vendors Program Simple Purchasing Process & Low Costs Procurement Manager Guidance Interior Design Assistance 11


The Power of ChoiceHotels.com

• More than 150 million ChoiceHotels.com visited in 2013.

• ChoiceHotels.com continues to have high website conversion rates.

• ChoiceHotels.com drives an Average Daily Rate premium over reservations from other channels.**

ChoiceHotels.com, along with other Choice Hotels marketing channels, generated more than

$3.1 billion in system-wide gross room revenue in 2013.*

*Source: See Econo Lodge Franchise Disclosure Document dated April 1, 2014. Figure represents the revenues delivered through the Choice Hotels Central Reservations System (CRS) as well as non-CRS marketing channels. **Source: See Econo Lodge Franchise Disclosure Document dated April 1, 2014. The average ADR for Econo Lodge hotels in 2013 was $63.35 while the average ADR through our Central Reservations System was $66.42. For the 202 hotels that were included in this performance sample, 73 hotels or 36.1% met or exceeded this amount. INDIVIDUAL RESULTS MAY VARY.

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The Power of Loyalty — Choice Privileges®

Membership has doubled since 2009. Worldwide Members (millions) •  More than 19 million members worldwide! •  Comprehensive loyalty program of Choice Hotels that rewards guests for their business. •  Designed to drive incremental business and improve guest loyalty.

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The Power of Marketing Leading reservations to your hotel at every step.

•  Industry-leading multi-brand marketing campaigns that are designed to tackle changing consumer buying patterns and deliver incremental business. •  More than $212 million spent system-wide on programs and promotions in 2013 designed to increase brand awareness and drive hotel reservations.* •  More than 15 billion media impressions in 2013, driving users to visit ChoiceHotels.com.

*Source: Figure is based on accounting records of the System Fee in 2013 and has been compiled in a manner consistent with generally acceptable accounting principles. See Econo Lodge Franchise Disclosure Document dated April 1, 2014.

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The Power of Econo Lodge Brand Marketing The Econo Lodge brand marketing program consistently communicates the brand’s “Easy Stop On The Road” message among target audiences.

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Thank You ChoiceHotelsFranchise.com franchise_sales@choicehotels.com

Š 2014 Choice Hotels International, Inc. All rights reserved. 14-162/06/14

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CALL YOUR

Director of Franchise Sales TODAY!

Your Name

Choice Hotels Franchise Sales

Your State(s)/Territory

###.###.####

ChoiceHotelsFranchise.com

your_name@choicehotels.com

franchise_sales@choicehotels.com

Š 2014 Choice Hotels International, Inc. All rights reserved. 14-162/06/14

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