SILVER SPRING, Md. (May 7, 2001) - Choice Hotels International, Inc., (NYSE:CHH) today acknowledged confirmation of its investment grade debt ratings and an upgrade in its rating outlook from negative to stable by Moody`s Investor Service.

“We are pleased that Moody`s has confirmed our investment grade debt ratings and changed its outlook to stable, reflecting Choice`s strong cash flow and improved financial performance,” said Charles A. Ledsinger, Jr., president and chief executive officer.

He added, “The successful monetization of a receivable note from Sunburst Hospitality Corporation at the end of last year strengthened our already solid financial base. In addition, we believe our large, stable franchisee base will continue to generate significant revenues, offering us a level of predictability not enjoyed by many other businesses.”

Moody`s confirmed Choice`s ratings on its guaranteed revolving credit facility, its guaranteed term loan and guaranteed senior notes all at the Baa3 investment grade level.

Choice Hotels International is the second largest hotel franchisor in the world with 4,390 hotels open, representing 349,994 rooms, and another 684 hotels under development, representing 59,230 rooms, in 43 countries. Its Comfort, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brands serve guests worldwide.

——-