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Introducing The New Sleep Inn & Suites速


Sleep Overview • Established in 1988, Sleep® has earned a solid reputation as a leading hospitality brand in the midscale segment with one of the highest guest satisfaction ratings.* • Sleep is a highly consistent, new construction brand that offers developers an exceptional value proposition, leading to a rapidly growing system.

System Size**

400 380 360 340

311

319

327

346

365

392

4.7% annualized growth over the past 5 years

320 300 280

2004

2005

2006

2007

2008

2009

*Source: Guest Insight Surveys. Medallia Inc. areas of expertise are in market research and software engineering designed for the lodging industry. **Sources: Internal data as of 12/31/09 - Domestic. See Sleep Inn Franchise Disclosure Document dated April 1, 2010, as amended on September 1, 2010.

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Sleep Rapid Growth With over 100 approved locations, Sleep速 is well positioned for continued strong growth. Moreover, with a newly launched prototype and major reimaging of the existing portfolio, the Sleep brand is on the move!*

Open Source: Internal Data.

Under Development (UD) 3


NEW Sleep Inn & Suites速 Prototype

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Your Portfolio

The Sleep Inn速 brand has an attractive new prototype that is designed to provide strong guest satisfaction and guest loyalty. Our new hotel design makes simply stylish accommodations accessible at an affordable price. Plus, its efficient layout and operational model creates real savings for the owner. Now is the time to develop the fresh, new Sleep Inn design and set yourself apart from dated midscale competition.

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Prototype Design High Quality/Low Cost Design

Development Site Area: 1.3 acres Height: 3 Stories Room Count: 70 Rooms Building gross square footage: 32,904sf Great value. Low cost to construct. Impressive revenue per available room.* *Source: See Sleep Inn Franchise Disclosure Document dated April 1, 2010, as amended September 1, 2010. For the one-year period ending December 31, 2009, the average revenue per available room for Sleep Inn & Suites® properties was $39.63. For the 123 hotels that were included in the sample, 49 hotels or 39.8% met or exceeded the this amount.

• Flexible, innovative and contemporary design • Simply stylish and inviting décor • Residential experience conducive to a restful and productive stay • Fresh and bright color palette • Comfortable and relaxing bedding • Large Sleep Inn shower • Oversized well-lit work desk and comfortable desk chair • Flat screen television • Warm exterior with unique Sleep Inn® signature tower Amenities • Free Wi-Fi in lobby • Free in-room high-speed Internet access • Complimentary breakfast • In-room coffee • Fitness Center • Optional pool and meeting space 6


Exterior

Our new Sleep Inn & SuitesŽ offers state-of-the-art features, with a consistent contemporary design aimed at value-minded business and leisure travelers. The building’s warm and unique exterior, combined with elegant interiors, creates an excellent opportunity to drive guest loyalty. 7


Prototype Design High Quality/ Low Cost By squeezing efficiencies out of every square foot, it may allow you to lower:

Typical Floor Plan ELEC VENDING QUEEN/QUEEN GUESTROOM 9

QUEEN/QUEEN GUESTROOM 10

QUEEN/QUEEN GUESTROOM 11

KING GUESTROOM 1

KING GUESTROOM 2

KING GUESTROOM 3

KING GUESTROOM 4

KING GUESTROOM 5

KING GUESTROOM 6

KING GUESTROOM 7

QUEEN/QUEEN GUESTROOM 12

LAUNDRY

KING GUESTROOM 8

KING GUESTROOM 9

LINEN CHUTE

• Insurance cost • Property taxes • Development cost • Utility cost • And more…

STORAGE

QUEEN/QUEEN GUESTROOM 13

QUEEN/QUEEN GUESTROOM 14

QUEEN/QUEEN GUESTROOM 15

QUEEN/QUEEN GUESTROOM 16

QUEEN/QUEEN GUESTROOM 17

QUEEN/QUEEN GUESTROOM 18

KING SHOWER ACCESSIBLE GUESTROOM 2

QUEEN/QUEEN GUESTROOM 18

QUEEN/QUEEN GUESTROOM 19

KING SUITE 1

KING SUITE 2

KING SUITE 3

KING SUITE 4

KING SUITE 5

QUEEN/QUEEN ACCESSIBLE GUESTROOM 1

First Floor - Indoor Pool MENS QUEEN/QUEEN GUESTROOM 1

QUEEN/QUEEN GUESTROOM 2

QUEEN/QUEEN GUESTROOM 3

KING GUESTROOM 1

KING GUESTROOM 2

KING GUESTROOM 3

MECHANICAL/ ELECTRICAL/ ELEV. MECH

STORAGE MENS QUEEN/QUEEN GUESTROOM 2

QUEEN/QUEEN GUESTROOM 3

POOL EQUIPMENT & STORAGE

WOMENS MECHANICAL/ ELECTRICAL/ ELEV. MECH

POOL [4 GUESTROOMS OPTIONAL]

STORAGE

QUEEN/QUEEN GUESTROOM 4

QUEEN/QUEEN GUESTROOM 5

QUEEN/QUEEN GUESTROOM 6

QUEEN/QUEEN GUESTROOM 7

QUEEN/QUEEN GUESTROOM 8

KING ACCESSIBLE GUESTROOM 1

QUEEN/QUEEN GUESTROOM 9

ELEV. LOBBY

ELEV.

LAUNDRY

LINEN STORAGE

EMP, RSTRM

COFFEE BAR

WORK ROOM

STAIR

KITCHEN

LAUNDRY

LINEN STORAGE

EMP, RSTRM

COFFEE BAR

WORK ROOM

HOST

ELEV.

BREAK ROOM

STAIR

STORAGE

KITCHEN

PBX ROOM STORAGE

ELEV. LOBBY

BREAK ROOM

PBX ROOM

FITNESS CENTER

VENDING

STAIR

FITNESS CENTER

VENDING

STAIR

QUEEN/QUEEN GUESTROOM 1

WOMENS

KING GUESTROOM 4

LOBBY

QUEEN/QUEEN GUESTROOM 4

QUEEN/QUEEN GUESTROOM 5

QUEEN/QUEEN GUESTROOM 6

QUEEN/QUEEN GUESTROOM 7

QUEEN/QUEEN GUESTROOM 8

KING ACCESSIBLE GUESTROOM 1

QUEEN/QUEEN GUESTROOM 9

HOST

LOBBY

BREAKFAST/SERVERY

OFFICE OFFICE

BUSINESS KIOSK

COMMUNITY ROOM BREAKFAST/SERVERY

OFFICE OFFICE

OPTIONAL DOOR FOR EXTERIOR PATIO

BUSINESS KIOSK

OPTIONAL DOOR FOR EXTERIOR PATIO VESTIBULE

COMMUNITY ROOM

VESTIBULE

PORTE COCHERE

PORTE COCHERE

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Breakfast

Guests will enjoy the Sleep Inn速 Morning Medley Breakfast. 9


Guest Rooms

King Suite

King Suite

Queen Queen Room

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Other Features

May Include: • Indoor or Outdoor Pool • Business Center • Meeting Space • Outdoor Patio 11


Prototype Design - Pallettes

sprout

summer

sky

grove

terra cotta

5 Standard Color and Design Schemes for Sleep Inn.

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Customer Satisfaction is on the Rise! Guest tracking scores for the Sleep brand have been steadily increasing and as the newly opened and remodeled properties come on line, we expect a further boost in the coming years.

Likelihood to Recommend* Experience*

Overall Room Condition*

Overall

(Ratings out of 10)

(Ratings out of 10)

(Ratings out of 10)

10

8.1

8.2 8.3

8.5

10

8.2

8.3 8.4

8.5

10

8

8

8

6

6

6

2006 2007 2008 2009

2006 2007 2008 2009

8.1

8.2 8.3

8.4

2006 2007 2008 2009

*Source: Medallia Inc. Guest Insight System (GIS) Scores for Sleep Inn. The company’s areas of expertise are in market research and software engineering designed for the lodging industry.

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Owner Testimonial

FPO

VIDEO TESTIMONIALS

Peter Sun

Director of Operations

Fredericksburg, VA

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Who is Choice Hotels?

A Powerful Enterprise... Choice Hotels速 is one of the largest lodging franchisors in the world, with over 6,750 properties open and under development worldwide.* Choice Hotels has over 65 years of experience in hotel development services, resources, field support, property management systems, advertising, marketing and ongoing training designed to optimize hotel performance.

*Source: Internal Data as of 6/30/10.

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A Powerful Enterprise…

Hotel Distribution*

Brand Portfolio

Loyalty Program*

Over 6,000 hotels open and over 680 under development world-wide

Products ranging from limited to full service hotels in the economy, midscale and upscale segments.

10.3MM Choice Privileges® members

Channel Delivery**

Web Presence+

Over $1.7B in gross room revenue system-wide

Choice Hotels® System

#2 Hotel Company Website

Reservations Contribution***

Market Coverage*

Sales Force*

35 countries and territories

Global team of over 100 Sales Professionals

Approximately one-third of Gross Room Revenue

*Source: Internal data as of 6/30/10. **Source: Figure is based on our accounting records and has been compiled in a manner consistent with generally acceptable accounting principles. It reflects the revenues delivered through our Central Reservations System in 2009, excluding Cambria Suites® and Ascend Collection®. See applicable Franchise Disclosure Document dated April 1, 2010 , as amended on September 1, 2010. ***See applicable Franchise Disclosure Document dated April 1, 2010, as amended on September 1, 2010. + Source: Hitwise – June 2010. This rating lists the top 20 websites for the past month in the Travel – Top 300 Destinations and Accommodation, a custom category configured by Hitwise to include all Choice Hotels brands, all Hilton Hotel brands, and all Wyndham Hotel Brands market share. The market share is discounted to remove the duplicate traffic generated between the grouped brand websites. Hitwise provides ratings of popular web sites based on set categories. www.hitwise.com

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Second Largest Global Lodging Company Choice Hotels has over 6,000 open hotels worldwide, representing more than 490,000 rooms, making it the second largest global lodging company.*

** 7,161 6,074

4,503

4,032 3,626

3,420

* Source: Internal data as of 6/30/10. ** Source: Hotel & Motel Management (H&MM) Trade Publication - September 2010 issue. H&MM’s 2010 Top U.S. Hotel Companies Survey. The H&MM top hotel companies list was compiled from surveys e-mailed in the August 2010 Report. H&MM is a publication of the HotelWorld Network. H&MM covers in-depth news analysis, trends, and people from all levels of hospitality operations. www.hotelworldnetwork.com

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Choice Hotels Global Reservations System

ChoiceHotels.com & SleepInn.com

Call Centers • Dedicated toll-free number • High conversion rates • Commission free reservations • Call Forwarding Program • Centers around the globe

Emerging Channels iPhone/iPod • Mobile • GPS Device 18


Choice Hotels Global Reservations System

Global Distribution Systems Preferred status with influential corporate travel management companies.

Amadeus • Sabre • Galileo • Worldspan • Pegasus

Online Travel Agents • High visibility with top 3rd party websites. • Cost-effective agreements due to our scale.

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Global Channel Support Choice Hotels booked over $1.7 billion system-wide in gross room revenue, while backing all Choice Hotels properties with $179 Million in powerful marketing support in 2009.* One of the Top Hotel Company Websites**

* Source: Figures are based on our accounting records and have been compiled in a manner consistent with generally acceptable accounting principles. It reflects the revenues delivered through our Central Reservations System in 2009, excluding Cambria Suites® and Ascend Collection®, and the System Fee in 2009. See applicable Franchise Disclosure Document dated April 1, 2010, as amended September 1, 2010. ** Source: Hitwise – June 2010. This rating lists the top 20 websites for the past month in the Travel – Top 300 Destinations and Accommodation, a custom category configured by Hitwise to include all Choice Hotels brands, all Hilton Hotel brands, and all Wyndham Hotel Brands market share. The market share is discounted to remove the duplicate traffic generated between the grouped brand websites. Hitwise provides ratings of popular websites based on set categories. www.hitwise.com

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Award Winning Choice Privileges® Rewards Program 11.7 (Forecasted) Membership (Millions)**

11 10 Choice Privileges is Choice Hotels award-winning rewards program with over 10 million members worldwide. * ®

9.6

®

9 8

• Primary mission for Choice Privileges is to drive incremental business and create higher revenue contributions to your hotels.

• Members earn reward nights and become advocates for your hotel.

• Inclusion in Choice Hotels national promotions that are all driven through the loyalty program infrastructure.

5.4

5

4.5

4

3.4

3

2.3

2 1 0.5 0

0.9 1.2

1.5

10 20 09 20 08 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 00

• Strive to make our program more compelling to existing and potential members by adding new program features, new member affiliates, benefits and continuing our global expansion.

6

20

6.5

99

• In 2009, Choice Privileges enrolled 2 million new members and our 2010 goal is to increase that number.

7

19

7.5

* Source: In 2006, the Choice Privileges rewards program received a Freddie Award for being voted #1 in Best Award. The award is given to the program that has the best flexibility and value for its members. The Freddies allow frequent travelers to rate airline and hotel programs resulting in identifying the best frequent travel programs via the Freddie Awards. www.freddieawards.com. ** Source: Internal data as of 06/30/10.

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Property Management System choiceADVANTAGE - Full-featured property management system

• Innovative, web-based property management system (PMS)

• Ability to access system remotely

• Cost-effective solution - choiceADVANTAGE doesn’t require expensive servers at the hotel.

• Seamless link with central reservation system providing access to call centers, travel agents, GDS and Internet distribution channels

• Effective rate and inventory management

• Toll-free 24.7 Help Desk support

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Valuable Services & Resources

Field Support

• Field-based Brand Performance Consultants (BPCs): Assist regional hotels to achieve performance metrics in revenue, market share, guest satisfaction & brand standards compliance. • Virtual Franchise Service Assistance – staffed by a team of three BPCs.

• The Operations Resource Center (ORC) - provides various other franchise services to you and your hotel staff.

Training We offer exceptional training options at our corporate office, on-line, as well as training in your market or at your hotel. Here are just a few of our programs:

ChoiceUniversity.net - Online training & educational resource center.

Hospitality Operations Success Training (HOST) - 5-day certification session for managers of Choice brand properties. C.H.E.S.S. (Choice Hotels Effective Sales System) – A 3 1/2-day sales training workshop designed to help sales professionals sharpen their skills.

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Valuable Services & Resources

Procurement Services Provides purchasing services that: • Enhance brand consistency. • Help hotel owners with the purchasing process while lowering costs. • Strive to improve owner performance. • Simplifies purchasing decisions by selecting qualified vendors who guarantee their products and services. • Provides field support of procurement managers to guide franchisees through large projects such as renovations and new construction.

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Choice Hotels Franchise Sales 800.547.0007

Bill Balletto IL, KS, KY, MO 847.489.7825

Steve Youchak MD, DE, WV, PA, NJ 412.848.8907

Dennis Wynn GA, FL 770.377.0897

Chris Mahaney AK, Northern CA, ID, Northern NV, OR, WA 360.606.6505

Mark Zach IA, MN, ND, SD, WI 913.908.0246

Doug Rawson CT, MA, ME, NH, NY, RI, VT 518.915.8603

Joe Dreiske AR, OK, TX 214.505.0092

John Slaughter CO, MT, NE, NM, UT, WY 303.667.9142

Barry Morris AZ, Southern CA, Southern NV 310.614.9909

Nathan Simon SC, NC, VA, DC 865.591.6555

Dennis Daughety LA, MS, AL, TN 205.422.5661 Dave Harjung MI, IN, OH 630.215.6078

Call your Director of Franchise Sales today. 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: Sleep Inn #F-1799. For California: THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF

CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. A copy of the Franchise Disclosure Document may be obtained through contacting Choice Hotels International at 10750 Columbia Pike, Silver Spring, MD 20901, 800.547.0007. Š 2010 Choice Hotels International, Inc. All rights reserved. 10-442/07/10

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Sleep Inn Webinar PDF