Comfort Inn 2007 Annual Report Download - page 23

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Zealand. CHA is in the process of converting the remaining Flag branded franchise to one of the Company’ s other brands
and expects to complete this conversion during 2008.
Mexico. During 2004, we established a wholly owned subsidiary Choice Hotels Mexico S. de R.L. de C.V. (“CHM”)
to begin direct franchising operations in Mexico. CHM is focused on establishing Clarion, Quality and Comfort brands
through conversions of high quality unbranded hotels in Mexico. At December 31, 2007, CHM had 17 properties open
and operating.
Other International Relationships. We have various master franchise and area representative arrangements in place
with local hotel management and franchising companies doing business in China, South America, India, Central America
and Japan. In addition, the Company has direct franchise relationships with properties in Malaysia and Lebanon.
The following table summarizes Choice’ s non-domestic franchise system as of December 31, 2007:
Comfort
Quality
Clarion
Sleep
Econo Lodge
Rodeway
Flag
Total
Australia.................................................... 150 63 11 — — — — 224
Belgium..................................................... 1 — — — —
— — 1
Czech Republic ......................................... 1 1 1 — —
— — 3
France........................................................ 75 26 2 — —
— — 103
Germany.................................................... 20 19 3 — —
— — 42
Italy ........................................................... 4 7 5 — —
— — 16
Lebanon .................................................... — 1 — — —
— — 1
Malaysia.................................................... — 2 — — —
— — 2
Mexico ...................................................... 7 10 — — —
— — 17
New Zealand ............................................. 9 15 5 — —
— 1 30
Papua New Guinea.................................... 1 4 — — —
— — 5
Portugal..................................................... 5 3 1 — —
— — 9
Singapore .................................................. — 1 1 — —
— — 2
Spain ......................................................... 2 1 1 — —
— — 4
Switzerland ............................................... 4 3 — — —
— — 7
Direct Franchise Agreements ....... 279 156 30 — — — 1 466
Brazil......................................................... 21 20 2 5 — — — 48
Canada* .................................................... 144 64 12 2 45 6 — 273
China......................................................... 2 — — — — — — 2
Costa Rica ................................................. — 1 1 1 — — — 3
Denmark.................................................... 6 4 6 — — — — 16
Dominican Republic ................................. — 1 1 — — — — 2
El Salvador................................................ 4 1 — — — — — 5
Finland ...................................................... 1 1 1 — — — — 3
Guatemala ................................................. — — 1 — — — — 1
Honduras................................................... — — 2 — — — — 2
India* ........................................................ 10 14 1 — — — — 25
Ireland ....................................................... 5 8 8 — — — — 21
Japan ......................................................... 33 2 — 7 — — — 42
Lithuania ................................................... — 1 — — — — — 1
Norway...................................................... 8 38 23 — — — — 69
Sweden...................................................... 9 27 24 — — — — 60
United Kingdom........................................ 30 44 3 9 — — — 86
Master Franchise Agreements...... 273 226 85 24 45 6 — 659
Total Number of Properties ................... 552 382 115 24 45 6 1 1,125
* The Company has made equity investments in these master franchisors.
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