Choice Hotels International, Inc. · NYSE:CHH

Choice Hotels International — Investor Presentation (December 2015)

27 slides from Choice Hotels International's investor presentation, Dec 8, 2015

  1. Slide 1: Investor Presentation December 2015

    Exhibit 99.1 Investor Presentation December CHOICE COMFORT HOTELSTM 2015 SUITES SLEEP Ascend INN HOTEL QUALITY COLLECTION Clarion MainStay CAMBRIA Suites Comfort Suburban INNEcono LodgE RODEWAY INN

  2. Slide 2: Disclaimer

    Certain Disclaimer “expect,” on company’s caution Several limited customers; fluctuations operations; ended information, Page Investor CHOICE management’s 2December to, matters you factors Presentation HOTELSTM “estimate,” changes changes revenue, the not in future the outcome could discussed to31,

  3. Slide 3: Company Overview

    Company Page Investor CHOICE 3 Presentation HOTELSTM Overview

  4. Slide 4: Choice Hotels: Strong, Growing, Well-known, Global

    Choice Strong, Growing Well-known, Global Geographic South Mexico Asia Middle 9.30% Europe 5.23% Canada 4.19% States United 0.29% America Central 0.03% Highly 78.70% Caribbean Stable, –Cumulative Capital Chain Extended 2.70% Upper 20.17% Economy Source: 33.47% Midscale 40.55% *Based **Free Page 9.8%

  5. Slide 5: Diversified Global Footprint

    Diversified Canada Europe United Central Asia Mexico Middle South Hotels Source: The PageCompany Pacific 5America open Investor States America East Choice global 324 404 5,226 13 317 128 65 & Hotels includes Hotels Internal Presentation Caribbean Hotels footprint Hotels under under its under Data un

  6. Slide 6: Portfolio by Brand and Segment

    Portfolio Upscale Brand Ascend CAMBRIA COMFORT CLARION SLEEP QUALITY MAINSTAY SUBURBAN ECONOLODGE RODEWAY International Total (a) September Source: PageStatistics 66,379 / Number Average Investor INN COLLECTION Company’s Upper Overview 30, 1,325 176 504,357 24 INN SUITES INN 374 for SUITES 1,153 63

  7. Slide 7: Franchise Growth and Domestic Pipeline

    Franchise 6,500 6,021 6,142 6,178 6,340 6,379 Worldwide Executed Domestic New 102 76 39 55 61 34 CAMBRIA 11 14 Upscale Current 337 203 *As Page 72 46 30 hotels of Construction 79/30/15 6,400 2009 2010 2011 6,243 2014 Investor September domestic Midscale apipeline* Portfolio under awaiting total hote

  8. Slide 8: Strategy

    Strategy Improve Capture –Allocate Page Increase Refresh Invest Grow Improve Leverage Continue 8 Investor Choice Greater in for Free and Sleep portfolio property-level and effective to financial Choice’s Grow Cash enhance evaluate expand Privileges Presentation Inn Share Brands Flows profitability t

  9. Slide 9: Investment Highlights

    Investment Page 9 Investor Highlights Presentation CHOICE HOTELSTM

  10. Slide 10: Investment Highlights

    Investment Established Resilient Asset Strong, Strong Effective Page improves CHOICE 10 light and pipeline growing Investor fee-for central HOTELSTM franchising growing Highlights hotelexpected loyalty service reservation Presentation franchising brand model program business toawareness continue sys

  11. Slide 11: Established Franchising Platform with Global Scale

    Established 9,000 8,000 7,000 6,000 5,000 2,000 3,000 4,000 3,717 1,000 W ... 800,000 700,000 505,278 #600,000 400,000 200,000 300,000 0H 100,000 Source: Page ilton of YN with hotels rooms 11 One 7,645 6,379 4,840 1,222 587 CHH MAR aVarious Investor 715,062 660,826 482,296 354,200 155,265 significan

  12. Slide 12: Resilient Cash Flows

    Resilient cash 15.0% 10.0% (15.0%) $100 (10.0%) $150 (5.0%) $200 0.0% $250 5.0% $300 (20.0%) 1998 CHH Source: Page flows 12 1999 RevPAR $400 $350 Smith Investor $50 $0 fee-for-service 2000 Travel STR 2001 Presentation Chain Research, 2002 business Scale 2003 CHOICE Management (Supply 2004 model2005

  13. Slide 13: Strong, Growing Loyalty Program

    Strong, Comprehensive ~2.7 Delivers Important Loyalty (members 84 45 50 21 39 IHG Choice of 31.5% 28.7% 25.6% 20.3% 15.3% 8.3% 12.2% 2001 Source: Page domestic million 44 18MAR million 13 2002 10.0% 18 31.0% 28.9% 27.1% 22.0% 16.2% Privileges growing Company’s program Investor incremental selling in

  14. Slide 14: Effective Central Reservation System

    Effective Consists Description Central Offers Size, Expertise Powerful Focus Facilitate Reservation Over Travel Voice Internet Direct Domestic $1,410 $1,660 $1,876 $2,022 $2,375 2009 Source: Page 14 scale $400 2010 (call on Reservation rooms agent $1,501 Reservation Company’s 29.7% Investor of drivi

  15. Slide 15: Strong Domestic and International Pipeline

    Strong 500 450 350 400 300 250 200 Domestic 100 60 50 51 42 40 International 0C 10 20 2010 Comfort Source: Page onv. 54 45 40 34 Historical 380 326 277 240 136 15 2011 Historical 47 43 36 New pipeline Company’s Investor 240 154 Inn pipeline 2012 Const. Comfort 158 pipeline domestic expected internat

  16. Slide 16: Asset Light Model Generates Strong Returns

    Asset investment 15% 80% (% 46% 100% 60% 40% 20% 48% CHH 0% Franchised Capital 62.9% 68.8% 78.5% 45.9% 49.7% 36.7% 15.2% 27.6% 1998 Source: Page of43% 13% 28% 85% 16 1999 WYN light total of 1% 99% 59.5% 45.0% 38.0% 16.1% light Company’s Investor the 2% 12% 36% 70% 41% 2000 properties) franchising Ma

  17. Slide 17: Strong and Growing Brand Awareness

    Strong 98% 89% 92% 77% 53% 57% 72% 14% 18% 22% 29% 43% 2014 NA RODEWAY COMFORT *Source: Page Econo NA98% 87% 79% 53% 13% 17and NA Millward Investor Lodge, 87% 2001 growing NA INN INNRodeway Presentation ® ®Brown, COMFORT MAINSTAY brandDecember Inn awareness CHOICE and SUITES SUITES Suburban 2014. HO

  18. Slide 18: Financial Overview

    Financial Page 18 Investor Overview Presentation CHOICE HOTELSTM

  19. Slide 19: Recent Performance: Revenue and Adjusted EBITDA

    Recent (Choice’s $361.6 Choice LTM ($ Quarterly $235.6 3Q13 Domestic Strong Source: Page $in inmillions) 19 Adjusted Franchising millions) 4Q13 and $355.4 $228.0 performance has Company’s Investor franchise CAGR: and predictable experienced 1Q14 international $350.6 $223.9$224.6 EBITDA Presentation

  20. Slide 20: Historical RevPAR, Rooms and Occupancy Metrics

    Historical $60.00 51.5% $36.29 70.0% RevPAR Total (thousands 508 495 2010 Source: Page506 497 20 2011 worldwide 53.7% 60.0% $50.00 $38.63 Company’s Investor 504 499 RevPAR (domestic) Operating 2012 of506 502 55.6% 50.0% rooms) $40.00 $40.94 2013 rooms Presentation 500 505 &public Occupancy Metrics o

  21. Slide 21: Historical Franchising Revenue and Adjusted EBITDA

    Historical Franchising $400.0 $263.7 LTM Adjusted ($ $250.0 $169.2 2010 Source: Page in millions) 21 2011 Q3$180.0 $350.0 $286.5 $200.0 Company’s Investor 2015 EBITDA Financial 2012 Revenue $300.0 $303.1 $150.0 $201.2 2013 Presentation public Overview 2014 $250.0 $317.0 $100.0 $205.3 filings. LTM$20

  22. Slide 22: Historical Capital Expenditures

    Historical Capital $40.0 $24.4 2010 *Capital Capex during Source: Page 22 2011 $35.0 $10.9 2010 Expenditure Company’s Investor expenditures Financial 2012 $30.0 $15.4 and 2013 Presentation $25.0 $33.4 public Overview Overview* 2014 reflect respectively. $20.0 $20.9 filings LTM tenant CHOICE $15.0 $3

  23. Slide 23: Questions and Answers

    Questions Page 23 Investor and Answers Presentation CHOICE HOTELSTM

  24. Slide 24: Adjusted Financial Measurements Disclaimer

    Adjusted Disclaimer financial alternative activities. reconcile Page 24 Investor measurements earnings these The to any calculation measures Presentation measure beforeare to interest, of ofpresented the these performance CHOICE comparable taxes non-GAAP asdepreciation HOTELSTM supplemental asGAAP p

  25. Slide 25: Franchising Revenues Reconciliation

    ($ in Ended LTM Year Total Adjustments: Marketing Product SkyTouch Franchising Page thousands) 25 3Q Revenues Sales Investor 2015 & and December Revenues Other -- Reservation --$834,329 --Presentation -- (2,859) -- -- $361,578 31,$757,970 2014 (600) (469,892) CHOICE Year $344,751 (33) $724,650 Ended

  26. Slide 26: Return on Invested Capital Reconciliation

    ($Current Year Operating Tax After-Tax + Net -Total Invested Return Page Maintenance Depreciation inOp. Rate Ended thousands) 26 Assets on Profit Investor Capital 30.1% Liabilities Operating Average Invested Income December $647.3 After-tax CAPEX &28.6% $447.2 Presentation Amortization $214.6 Invest

  27. Slide 27: Adjusted EBITDA Reconciliation

    ($ in thousands) Income Interest Loss Other Equity Depreciation Adjusted Page on 27 (gains) inTaxes from Expense Income Extinguishment Investor EBITDA net and (income) Continuing and 58,084 (1,538) LTM 42,167 Presentation Amortization losses $235,636 52,285 Q3 loss (1,761) 41,486 346 of Operations 2

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