Choice Hotels International, Inc.(NYSE:CHH), announced today a strategic relationship with Akkeron Hotels Group Limited, a well-known regional hotel operator in the United Kingdom, that is expected to initially result in nine Akkeron hotels operating under Choice Hotels franchise agreements in the UK, representing an almost 25% increase in the Choice Hotels UK hotel portfolio and an additional 611 rooms.

This agreement forms a critical part of Choice Hotels' growth strategy to offer financial support to boost development in key international markets, such as Europe, by using the company's capital as a targeted incentive to hotel developers and operators to enter into franchise agreements located in strategic locations and markets.

Under the agreement, five Akkeron hotels in Bristol, Bury St. Edmunds, Colchester, Peterborough and Kings Lynn will be rebranded under the Quality brand and another four hotels located in Winchester, Darlington, Ringwood and Stevenage will operate under the Clarion Collection brand. The newly branded Choice hotels, Quality Hotel Bury St. Edmunds, Quality Hotel Peterborough and Clarion Collection Cromwell Stevenage, are anticipated to come online within the Choice Hotels Europe system by the end of February. The remaining Quality and Clarion Collection brand hotels are expected to come online throughout 2013.

"We are delighted to have entered into this relationship with Akkeron Hotels Group Limited. Akkeron is a strong hotel operator and an ideal company for Choice Hotels Europe to work with and grow its presence in the UK. The agreement initially will focus on rebranding nine hotels with the opportunity to discuss rebranding further Akkeron hotels in the future," commented Duncan Berry, UK CEO, Choice Hotels Europe.

"Our relationship with Choice Hotels is about developing a long term strategy of increasing UK marketshare for both companies. It is clear that Choice Hotels is prepared to invest in the UK market in terms of brand and distribution. Alongside the change in brand comes a significant investment into the nine hotels to reposition those businesses along with the conversion to the Clarion Collection and Quality brands," added Matthew Welbourn, MD of Akkeron Hotels Group Limited.

"This agreement underscores the fact that Europe is a key focus of growth for Choice Hotels, and in order to substantially increase the size of the portfolio we have made significant investments in technology in the European marketplace, " said Mark Pearce, senior vice president, International Division, Choice Hotels International. "This includes introducing choiceADVANTAGE, our cloud-based hotel property management system in the UK and Europe which provides our franchisees with a fully integrated solution to manage guest interaction from the moment a reservation is made through check-out and even after the stay."

The Choice Hotels European portfolio of franchised hotels offers business and leisure travelers a full spectrum of premium economy to luxury hotels. Choice Hotels Europe franchises nearly 500 hotels across Europe alone. Brands franchised by Choice Hotels Europe include Clarion, which is described as four to five star rated; Quality, which is three star rated and provides a mid-scale full service offering and Comfort, which is two to three star rated and is Choice Hotel's largest brand worldwide, known for value, customer service and reliability.

Benefits of operating under a Comfort, Quality or Clarion brand include increased reservations delivered through Choice Hotels International's central online booking system and third-party travel websites, the choiceADVANTAGE property management system, Choice's marketing support and powerful seasonal and national advertising campaigns, as well as the company's large and experienced sales force which is able to negotiate with major travel agents. Choice Hotels International also operates an award-winning global loyalty rewards program with more than 16.5 million Choice Privileges members.

About Akkeron Hotels Group Limited

Akkeron Hotels Group Limited is a growing UK focused mid-market and regional hotel business comprising 3* and 4* hotels. The Company intends to build a portfolio of up to 150 regional hotels and it is expected that Akkeron's interests in these will comprise a blend of freehold ownerships, leases and management contracts. Akkeron Hotels' portfolio consists of 34 hotels, employing 1,630 people, with a combined turnover of c£62m making it one of the largest regional hotel operators in the UK. Akkeron Group was formed in 2008 by James Brent, previously Global Head of Real Estate & Lodging Investment Banking at Citigroup, with a focus on real estate-based operational businesses.
Akkeron's key areas of activity include: Management-intensive real estate portfolios e.g. hotels, Urban regeneration focused on the South and South West of the UK and  Large-scale agriculture in emerging markets. Akkeron pursues a partnership approach to its investment programme, leveraging its skills across real estate, development, financing and corporate finance.

About Choice Hotels®

Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in the upscale segment and a leader in midscale and extended stay, Choice® has over 7,500 hotels, representing more than 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

Forward-Looking Statements This communication includes "forward-looking statements" about future events, including anticipated development and hotel openings. Such statements are subject to numerous risks and uncertainties, including construction delays, availability and cost of financing and the other "Risk Factors" described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, any of which could cause actual results to be materially different from our expectations.