Comfort Inn 2002 Annual Report Download - page 5

We already have a broad portfolio of well-recognized brands that offer franchisees excellent
opportunities for success. Part of building strong brands is our emphasis on better integrating
brand and development strategy in order to enhance consumer brand positioning through attention
to rate, location, amenities and service. We are improving brand consistency through more control
at the franchise point-of-entry and focusing our brands where they can attract the most business.
In this manner, we can protect the investment of those franchisees who support our standards
and goals. We also can improve overall system quality.
We continue to build brand equity by increasing brand awareness and enhancing the images of
our brands. Now we have to sharpen our focus to make sure the brands deliver on the guest experi-
ence they promise. This year we have set a goal of instituting a new Quality Assurance System that
will involve direct guest feedback and should result in greater guest satisfaction.
Facing Our Future with Confidence
When I assumed the role of president and chief executive officer a little over four years ago, I encoun-
tered a franchisor-franchisee relationship that was strained. Management changes and shifts in
strategy had left franchisees confused about the company’s direction.
Since then, I, along with our management team and all Choice associates, have worked tirelessly
to forge a more trusting and consistent relationship with our franchisees. Today I can say that our fran-
chisees have a much better understanding of our strategy and much greater faith in our commitment to
shared success.
I also enjoy the benefit of a very fine Board of Directors, whose wise counsel and strong support
mean so much to the success of Choice Hotels. I am especially pleased that we welcomed Ervin
Shames to the Board this past April. His consumer marketing background has added considerable value.
Together we have weathered a great deal of challenge in the face of real uncertainty and adversity.
The mutual success of the past four years has built a much stronger foundation for the future and
a much healthier Choice franchise system.
During my tenure, we also have worked diligently to strengthen our balance sheet and increase
shareholder value through targeted stock repurchases. For a business that generates significant
free cash flow, stock buybacks have proven to be an efficient way to build shareholder value and
help generate strong EPS.
The future we face together may seem cloudy and uncertain. But it is a future we face with
confidence, knowing that we already have endured some of the worst days our industry has ever
faced. And, it is a future that holds great promise once the geopolitical climate stabilizes and the
economy begins to grow more vigorously.
I thank our franchisees, hotel guests, vendor partners, associates, Board members and all of
you for your support. With a firm commitment to shared success, Choice Hotels can continue to
grow and prosper in the years ahead.
Charles A. Ledsinger, Jr.
President and Chief Executive Officer
March 20, 2003