Comfort Inn 2011 Annual Report Download - page 31

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Table of Contents
both in the United States and in the international jurisdictions in which we operate. If the Company fails to maintain compliance with the various United
States. and international laws and regulations applicable to the protection of such data or with the Payment Card Industry (“PCI”) data security standards, the
Company’s ability to process such data could be adversely impacted and expose the Company to fines, litigation or other expenses or sanctions.

We rely on a variety of direct marketing techniques, including telemarketing, email, marketing and postal mailings. Any future restrictions in laws such
as Telemarketing Sales Rule, CANSPAM Act, and various United States state laws, or new federal laws regarding marketing and solicitation or international
data protection laws that govern these activities could adversely affect the continuing effectiveness of telemarketing, email and postal mailing techniques and
could force changes in our marketing strategies. If this occurs, we may not be able to develop adequate alternative marketing strategies, which could impact the
amount and timing of our revenues. We also obtain access to potential customers from travel service providers and other companies with whom we have
substantial relationships and market to some individuals on these lists directly or by including our marketing message in the other company’s marketing
materials. If access to these lists was prohibited or otherwise restricted, our ability to develop new customers and introduce them to our products could be
impaired.

The Company utilizes third party operators to provide significant franchise services, such as providing general reservation call center services and
inspecting its franchisees. The failure of any third-party operator to make decisions, perform their services, discharge their obligations, deal with regulatory
agencies, and comply with laws, rules and regulations could result in material adverse consequences to our business.
 
None.
 
Our principal executive offices are located at 10750 Columbia Pike, Silver Spring, MD 20901. The offices are leased from a third party. We lease one
office building and own a second office building in Phoenix, AZ, which houses our reservation and property systems’ information technology operations. The
Company owns a reservation center in Grand Junction, CO. We also lease office space in Australia, England, Canada, Germany, Italy, France, India and
Mexico and Chevy Chase, Maryland. During the year ended December 31, 2011, the Company entered into a new lease agreement to move its principal
executive offices to Rockville, MD and expects to relocate its principal office to this new location during 2013. Management believes that the Company’s
existing properties are sufficient to meet its present needs and does not anticipate any difficulty in securing additional or alternative space, as needed, on terms
acceptable to the Company.
We own three MainStay Suites hotels located in Brentwood, TN, Pittsburgh, PA and Greenville, SC. In addition, the Company owns various parcels of
real estate held for sale to third-party developers for the potential development of Cambria Suites hotels in El Segundo, CA, Rockland MA, Plano, TX and
Orlando, FL. In addition, during 2011, the Company entered into an 80.5 year ground lease with the state of Arizona for 2.5 acres of land for potential
development of a Cambria Suites hotel.
 
The Company is not a party to any litigation other than routine litigation incidental to its business. The Company’s management does not expect that the
outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material adverse effect on the Company’s financial
condition, results of operations or cash flow.
 
None

 
The shares of the Company’s common stock are listed and traded on the New York Stock Exchange. The following table
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