Choice Hotels Reports 3rd Quarter Earnings Per Share Gain of 11% and Operating Income Increase of 7%.

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Choice Hotels Reports 3rd Quarter Earnings Per Share Gain of 11% and Operating Income Increase of 7%.

SILVER SPRING, Md. -- Domestic Unit Growth Rises 5.4%; New Domestic Hotel Franchise Contracts Exceed 350 Year to Date, up 20%

Choice Hotels International, Inc. (NYSE:CHH) today reported the following highlights for the third quarter of 2004:

--Diluted earnings per share for the third quarter was $0.73, an 11% increase compared to $0.66 in the third quarter of 2003;

--Adjusted diluted EPS for the third quarter up 16% to $0.74, excluding the effects of third quarter 2004 debt extinguishment costs, compared to $0.64 for third quarter 2003, excluding interest earned in that quarter related to a note receivable from Sunburst, which was repaid in December 2003;

--Domestic unit growth of 5.4%;

--Year-to-date net domestic property additions were 160 hotels, up 34%;

--Year-to-date new domestic hotel franchise contracts up 20% to 354;

--The domestic hotel pipeline is up more than 17% to 397 hotels representing 30,776 rooms; the worldwide pipeline grew 15% to 492 hotels, representing 39,127 rooms;

--Year-to-date royalty revenues up 10%;

--Year-to-date total revenues up 11%;

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