Comfort Inn 2004 Annual Report Download - page 22

FORWARD-LOOKING STATEMENTS
Certain statements contained in this annual report, including those in the section entitled Management’s
Discussion and Analysis of Financial Condition and Results of Operation, that are not historical facts constitute
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. Words such as
“believes,” “anticipates,” “expects,” “intends,” “estimates,” “projects,” and other similar expressions, which are
predictions of or indicate future events and trends, typically identify forward-looking statements. Such statements
are subject to a number of risks and uncertainties which could cause actual results to differ materially from those
projected, including: competition within each of our business segments; business strategies and their intended
results; the balance between supply of and demand for hotel rooms; our ability to obtain new franchise
agreements; our ability to develop and maintain positive relations with current and potential hotel owners; the
effect of international, national and regional economic conditions and geopolitical events such as acts of god, acts
of war, terrorism or epidemics; the availability of capital to allow us and potential hotel owners to fund
investments and construction of hotels; the cost and other effects of legal proceedings; and other risks described
from time to time in our filings with the Securities and Exchange Commission, including those set forth under
the heading “Risk Factors” in this annual report. Given these uncertainties, you are cautioned not to place undue
reliance on such statements. We also undertake no obligation to publicly update or revise any forward-looking
statement to reflect current or future events or circumstances.
Management’s Report on Internal Control Over Financial Reporting
The management of Choice Hotels International, Inc. and its subsidiaries (together “the Company”) is
responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s
internal control over financial reporting was designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2004. In making this assessment, management used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.
Based on management’s assessment under those criteria, management concluded that the Company’s internal
control over financial reporting was effective as of December 31, 2004.
Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as
of December 31, 2004 has been audited by PricewaterhouseCoopers LLP, an independent registered public
accounting firm, as stated in their report which appears herein.
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