Comfort Inn 2011 Annual Report Download - page 15

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Table of Contents
stay and Cambria Suites brands in Canada through its wholly-owned subsidiary, Choice Hotels International Licensing ULC, and had four properties open
and operating at December 31, 2011.
India. Prior to 2010, the Company had a 40% equity interest in our master franchisee, Choice Hospitality (India) Ltd (“CHN”). In the first quarter of
2010, we acquired the remaining 60% ownership interest in CHN. Prior to our acquisition, CHN conducted franchising operations for our Quality, Comfort,
Clarion and Sleep brands in the Republics of India, Sri Lanka, Maldives and the Kingdom of Nepal under a master franchise agreement. In connection with
our acquisition, CHN was converted into a private company, Choice Hospitality (India) Private Ltd, the master franchise agreement was terminated and all
future franchise development rights possessed by CHN reverted to Choice BV. Choice BV now acts as the franchisor of our Comfort, Quality and Sleep
brands in India. Furthermore, Choice BV entered into a 20-year master franchise agreement with Inovoa Hotels and Resorts Private Limited (“IHR”) to
franchise our Clarion brand in India. As of December 31, 2011, Choice BV/CHN and IHR had 25 and 2 properties open and operating, respectively.
Australasia. The Company conducts direct franchising operations in Australia, New Zealand, Singapore and Papau New Guinea through a wholly-
owned subsidiary, Choice Hotels Australasia Pty. Ltd. (“CHA”). As of December 31, 2011, CHA had 275 franchised properties open and operating in
Australasia.
Mexico. The Company’s wholly-owned subsidiary Choice Hotels Mexico S. de R.L. de C.V. (“CHM”) conducts direct franchising operations in Mexico
on behalf of Choice BV, which acts as the franchisor in Mexico. CHM is focused on establishing Clarion, Quality, Sleep and Comfort brands through
conversion of hotels in Mexico. At December 31, 2011, the Company’s subsidiary had 23 properties open and operating.
South America. We conduct our operations in Brazil and certain other South American territories through a non-exclusive master franchise relationship
with Atlantica Holdings International, Ltd. (“Atlantica”). As of December 31, 2011, Atlantica had 60 open properties in its development territory, which in
addition to Brazil includes Argentina, Chile and Uruguay. The Company’s master franchise agreement with Atlantica grants rights to the Comfort, Quality,
Sleep and Clarion brands. The agreement was executed in 2001 and has a term of twenty years with certain rights by both parties to terminate the contract on
the 15th anniversary.
Central America. We conduct our operations in certain Central American territories through an exclusive master franchise relationship with Real Hotels
and Resorts, Inc. (“Real”). As of December 31, 2011, Real had 15 open properties in its development territory which consists of Costa Rica, Dominican
Republic, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Company’s master franchise agreement with Real grants rights to the Comfort,
Quality, Sleep and Clarion brands. The agreement was executed in 1994 and has a term of twenty years. Through a separate agreement signed in 2011, we
have also granted Real limited non-exclusive rights to franchise Ascend Collection hotels in Costa Rica, Honduras and Panama.
Other International Relationships . We also have non-exclusive master development and area representative arrangements in place with local hotel
management and franchising companies doing business in China. In addition, the Company has direct franchise relationships with properties in Malaysia
and Jordan.
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