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CHOICE HOTELS INTERNATIONAL 2005 ANNUAL REPORT 5
assurance and guest satisfaction; revenue management support to help our properties establish competitive rates;
and enhanced support from our reservation call centers in order to help maximize occupancy levels.
IMPROVE BRAND RECOGNITION AND BUSINESS DELIVERY
We will continue to leverage the strength of our multi-brand marketing strategy and use single-branded
messaging where it makes sense. In total our marketing approach has signifi cantly enhanced our brand
recognition as we have made inroads not only in national television advertising but also in a variety of
programs including Internet marketing, corporate partnerships, special promotions and our Choice
Privileges frequent traveler program which now has more than 4.4 million members.
MAXIMIZE FINANCIAL AND SHAREHOLDER RETURNS
These strategic initiatives will aid us in our overall drive to continue to build shareholder value. In the past year,
we have taken several key steps to deliver more value to you, our shareholders. Foremost among these was the
decision by the Board of Directors to undertake a two-for-one stock split. At the same time, the Board elected
to raise the dividend by more than 15% to a post-split payout of 13 cents per share per quarter.
The Board also authorized an additional three million shares of common stock for the share repurchase program
fi rst begun in 1998. Since it was fi rst authorized in June of that year, the company has purchased more than 33
million shares of common stock at an average price of $21.16 per share and a total cost of $711.9 million.
Our management team remains committed to returning value to shareholders through a combination of
dividends and share repurchases, as market conditions allow.
Since I arrived at Choice in the fall of 1998, I have had the good fortune of having a strong Board of Directors
to rely on for guidance and support. In the past year, we strengthened the Board with the addition of John T.
Schweiters, and recently we announced that lodging industry veteran David Sullivan joined the Board and
that health care executive William Jews has returned to our Board.
I would also like to take this opportunity to thank Raymond Schultz, who announced his retirement from
the board effective May 2006, for the contributions he has made to Choice over the years. We appreciate
the counsel he provided to us, and we wish him all the best.
In December 2005, the Board announced the extension of my employment agreement for four years. I
appreciate their confi dence in my leadership and in the strategy we have established to guide the company.
We’ve been able to achieve great progress for Choice during my tenure, thanks to the support of the Board,
a very talented senior management team and dedicated associates whose pride in their work is demonstrated
every day, as well as a vibrant and growing base of hotel owners.
Choice has enormous potential for even greater growth ahead. A sound economy, growing travel demand
and our ability to offer more rooms, in more places at many price points positions us extremely well
for another great year in 2006. I look forward to the future as Choice continues to evolve into a global
franchising powerhouse.
Charles A. Ledsinger, Jr.
President and Chief Executive Offi cer
March 2006