Investor Presentation

February 17, 2021

Cambria Hotel, Phoenix Cambria Hotel North Scottsdale Desert Ridge Certain matters discussed in this presentation constitute “forward- Several factors could cause actual results, performance, or achievements looking statements” within the meaning of the Private Securities of the company to differ materially from those expressed in or Litigation Reform Act of 1995. Generally, our use of words such as contemplated by the forward-looking statements. Such risks include, but "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," are not limited to, continuation, resurgence or worsening of the COVID- "plan," "project," "assume," or similar words of futurity identify such 19 pandemic, including quarantines, "shelter-in-place" orders or other forward-looking statements. These forward-looking statements are based travel restrictions; new information which may emerge concerning the Forward-looking on management's current beliefs, assumptions, and expectations severity or impact of the COVID-19 pandemic, including potential regarding future events, which, in turn, are based on information mutations of COVID-19; the pace of vaccination rollout and vaccines’ Statements currently available to management. Such statements may relate to effectiveness; changes in consumer demand and confidence, including projections of the company's revenue, expenses, earnings, debt levels, the impact of the COVID-19 pandemic on unemployment rates, consumer discretionary spending and the demand for travel, transient and group ability to repay outstanding indebtedness, payment of dividends, business; volatility or increases in oil and gas prices that may deter repurchases of common stock and other financial and operational consumers from using their vehicles and impact the demand for leisure measures, including occupancy and open hotels, the company's ability to travel; the impact of COVID-19 on the global hospitality industry, benefit from any rebound in travel demand, the company's liquidity, the particularly but not exclusively in the U.S. travel market; the success of company's ability to assist franchisees through relief or other financial our mitigation efforts in response to the COVID-19 pandemic; the measures, the company's ability to minimize or manage disruptions performance of our brands and categories in any recovery from the posed by COVID-19, the company's ability to achieve cost savings and COVID-19 pandemic disruption; the timing and amount of future reduce discretionary spending and investments and the impact of COVID- dividends and share repurchases; changes to general, domestic and 19 and economic conditions on our future operations, among other foreign economic conditions, including access to liquidity and capital as a matters. We caution you not to place undue reliance on any such result of COVID-19; future domestic or global outbreaks of COVID-19 or forward-looking statements. Forward-looking statements do not other epidemics, pandemics or contagious diseases, or fear of such guarantee future performance and involve known and unknown risks, outbreaks; changes in law and regulation applicable to the travel, lodging uncertainties, and other factors. or franchising industries; foreign currency fluctuations; impairments or declines in the value of the company's assets; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for marketing and reservations systems and other operating systems; the commercial acceptance of our software as a service technology solutions division's products and services; our ability to grow our franchise system; exposure to risks related to our hotel development, financing and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; cyber security and data breach risks; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations, especially in areas currently most affected by COVID-19; the outcome of litigation; our ability to effectively manage our indebtedness and secure our indebtedness; and any current and future resurgence of COVID-19. These and other risk factors are discussed in detail in the company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. 2 Non-GAAP Financial Measurements

The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, revenues excluding marketing and reservation system activities, adjusted net income and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibit 6, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as net income, EPS and total revenues. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.

In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company’s operations including employee severance benefit, income taxes and legal costs, debt-restructuring costs, tax credits related to the rehabilitation and re-use of historic buildings, exceptional allowances recorded as a result of COVID-19’s impact on the collectability of receivables, expenses associated with legal claims and gains and losses on sale/disposal and impairment of assets primarily related to the company's operations that provide Software as a Service ("SaaS") technology solutions to vacation-rental management companies, hotel ownership and development activities; and an office building leased to a third-party to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA reflects net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, franchise- agreement acquisition cost amortization, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by marketing and reservation-system activities. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures and expand our business. We also use adjusted EBITDA, as do analysts, lenders, investors and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. Adjusted EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement- plan investments recorded in SG&A are excluded from EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from marketing and reservation activities are excluded, as the company's franchise agreements require the marketing and reservation-system revenues to be used exclusively for expenses associated with providing franchise services, such as central reservation and property-management systems, reservation delivery and national marketing and media advertising. Franchisees are required to reimburse the company for any deficits generated from these marketing and reservation-system activities and the company is required to spend any surpluses generated in future periods. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.

Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and EPS exclude the impact of surpluses or deficits generated from marketing and reservation-system activities. Surpluses and deficits generated from marketing and reservation activities are excluded, as the company's franchise agreements require the marketing and reservation system revenues to be used exclusively for expenses associated with providing franchise services, such as central reservation and property-management systems, reservation delivery and national marketing and media advertising. Franchisees are required to reimburse the company for any deficits generated from these marketing and reservation- system activities and the company is required to spend any surpluses generated in future periods. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted EPS to be indicators of operating performance because excluding these items allow for period-over-period comparisons of our ongoing operations.

Revenues, Excluding Marketing and Reservation System Activities: The company reports revenues, excluding marketing and reservation-system activities. These non-GAAP measures we present are commonly used measures of performance in our industry and facilitate comparisons between the company and its competitors. Marketing and reservation-system activities are excluded, as the company's franchise agreements require the marketing and reservation-system revenues to be used exclusively for expenses associated with providing franchise services, such as central reservation and property-management systems, reservation delivery and national marketing and media advertising. Franchisees are required to reimburse the company for any deficits generated from these marketing and reservation-system activities and the company is required to spend any surpluses generated in future periods. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.

Net Debt: The company's net debt is calculated as total long-term debt (including current portion) excluding unamortized financing costs and discounts minus cash and cash equivalents. Net Debt is a non-GAAP financial measure.

3 Choice Hotels is one of the world’s largest hotel companies with over 80 years of success building a portfolio of diversified brands

More than Hotels in over Over Only lodging 1 of 5 lodging company with companies with an 7,100 40 1,000 ~100% IG rating Open Hotels Countries Hotels in global Hotels franchised and no Baa3 / BBB- Worldwide development pipeline managed properties1

Choice U.S. Hotels by Chain Scale 1 in 10 1 in 4 Upscale Chains Hotels in the U.S. Midscale hotels Upper Midscale Chains is a Choice in the U.S. Midscale Chains Economy Chains Hotels® is a Choice brand Hotels® Franchising Hospitality brand

Technology

1 Choice owns 5 hotels as of 02/17/2021, with a plan to recycle them within a five-year period. 4 Choice Hotels attracts and retains franchisees because of our long-held commitment to drive their profitability Connecting franchisees to the power of Offering best-in-class franchisee CHH customer delivery platform resources

✓ Proprietary channels deliver approx. $6 ✓ Sophisticated revenue management and out of every $10 to franchisees; nearly automated oversell tools maximizing pricing 1 1,000 bps increase since 2014 strategies ✓ Award-winning over 47-million member ✓ Dedicated consultants optimizing hotel’s loyalty program operations ✓ Leveraging the scale of franchisee funded ✓ Proprietary training suite (Choice University), marketing and reservation fees to drive ranked #1 for excellence in learning development business to owners and operators by the Learning! 100 awards; named 2021 BEST award winner by Association for Talent ✓ Expansion of strategic partnerships (e.g. AMR, Penn National Gaming) Development ✓ Leading-edge, cloud-based property management ✓ Negotiated lower OTA rates Value system (Choice Advantage) Mutually beneficial franchise Proposition Focusing on lowering total cost of ownership agreements with long horizons to franchisees & driving operating excellence

✓ Contract terms of 10 - 30 years allow to ✓ Low cost-to-build improves franchisees’ preserve brand equity through Property investment returns, operating profitability and Improvement Plans (PIP) resiliency ✓ Leveraging procurement and design services ✓ High voluntary franchisee retention rate provide a simpler purchasing process that ✓ Over 50% of new contracts signed with reduces ongoing operating costs of the hotel existing and/or returning owners2 ✓ Decades of franchising expertise to develop and refine brand standards, including cleanliness protocols

1 56% of domestic net room revenue was generated through Choice channels in 2019 and Choice saw a 933 bps increase in proprietary contribution from 2014 to 2019. Proprietary contribution includes room reservation generated through the Company’s website, mobile applications, call centers, GDS, global sales relationships, and loyalty program. 2 As of Q4 2020. 5 In 2020, Choice achieved a number of key milestones in the execution of its long- term strategy to grow its presence in more revenue-intense segments and locations

Midscale

✓ Comfort Family increased domestic system size by 2% after its successful brand transformation o Outperformed the Upper-Midscale chain scale on RevPAR change by over 10 percentage points in Q4 ✓ All select-service midscale brands achieved RevPAR share gains versus their local competitors for Q4 and full year 2020

Extended Stay

✓ Extended Stay segment rapidly expanded by 44 units to nearly 450 domestic hotels o Represents over 8% of total Choice domestic portfolio o Pipeline reached over 315 domestic hotels ✓ WoodSpring Suites brand achieved an average occupancy rate of 72% in 2020

Upscale

✓ Cambria brand grew its domestic system size by 8% and is expected to accelerate its unit growth in 2021 o Pipeline consists of nearly 80 domestic hotels o Achieved RevPAR Index gains vs. local competitors of ~22 percentage points in Q4

6 Choice Hotels' fourth quarter year-over-year domestic RevPAR change outperformed industry by nearly 26 percentage points, an approximately +600 bps expansion since the third quarter

-15%

-25%

+2,550 bps

-35% in Q4 1 +1,970 -45% bps in Q3

-55% Domestic RevPAR YoY RevPAR Domestic INDUSTRY -65% +2,030 bps -75% in Q2

-85%

3/15 5/11 7/7 9/2 10/29 12/2512/31

Review WeeklyHotel STR STR), Research Travel Smith Source:

1 Year-over-year change as reported by STR Source: Smith Travel Research (STR), STR Weekly Hotel Review 7 Uniquely Positioned to Outperform

Hotel Petaluma, Ascend Hotel Collection 8 Choice Hotels’ resilient business model positioned the company to drive RevPAR results that significantly outperformed the industry in 2020

1 2 3 4 5 6

Franchise- Well- Proven Midscale and Strength Predominately focused segmented Conversion Extended in Leisure Domestic Business Brand Engine Stay Travel Mix Drive-to Model Portfolio Abilities Expertise Locations

9 The company’s franchise-focused business model has provided a level of resiliency during the COVID-19 crisis

Choice is a leading industry franchisor1 Choice’s franchise model historically generates % of domestic franchised hotels predictable high free cash flow and strong ROI

100% ✓ Royalty-based revenue model leverages real estate footprint without significant 96% asset ownership 89% ✓ Limited exposure to operating costs and 87% capital requirements associated with owned assets 75% ✓ Asset-light requiring $30 to $35 million in annual capital expenditure spend historically Low risk business model ✓ Industry leading adjusted margins of 65% in ✓ Typical franchisee owns and operates 1 hotel, 2020, despite the impact of pandemic2 which diversifies risk across ownership base with 13,500 owners ✓ Franchising system fees allow investments in best-in-class resources and technology ✓ Franchises are distributed across different geographies/markets

1 STR data as of December 2020. Choice owns 5 hotels as of 02/17/2021, with a plan to recycle them within a five-year period. 2 Adjusted margin. Non-GAAP adjusted figure; also excludes marketing and reservation system activities. 10 Choice Hotels’ well-segmented portfolio of brands is distinctly positioned to meet the evolving needs of travelers during the demand recovery

Long-term strategy of growing the right brands in the right segments and in the right locations 12 96% 5 Distinct Of domestic portfolio New brands & brand extensions uniquely Brands1 Select-service2 positioned to assist in recovery since 2008 recession

Extended Stay Economy Midscale Upper Midscale Upscale

Refreshed portfolio after Industry’s largest global

Brands $2B transformation soft brand, launched

Established Established during the last recession, uniquely positioned to attract independents

Launched Jan. 2020 Launched Sept. 2018

Leisure-focused New New Brands Largest brand in CHH extended stay portfolio, select service brand nearly 300 open with strong pipeline

Given previous down cycles, consumers are expected to look for more moderately priced, limited-service hotel offerings, presenting an opportunity for the Choice portfolio

1 12 distinct brands and 2 brand extensions. 2 STR data as of December 2020. 11 Choice Hotels has a proven record of accelerating its share of new conversion franchise agreements to fuel its unit growth in down cycles

Choice Conversions as a % of Total Openings Anticipated Increase in Conversion Activity

89% 91% 90% ✓ Executed 427 new franchise agreements in 2020, over 70% of which were for conversion hotels; 195 agreements 76% awarded in Q4 68% 67% ✓ Independent and existing franchise owners seek established brands to improve reservation delivery, revenue management tools and to reduce customer- acquisition costs and/or seek more flexible entry costs

✓ Increased importance of brand standards (i.e., cleanliness protocols, bolsters desire for brand affiliation from 2008 2009 2010 2011 2012 2013 independents amid COVID-19 pandemic) Recession Years Recovery Years

Of total openings in the recovery Industry’s largest global soft brand with nearly 300 ~80-90% years post Great Recession came hotels open from conversions Attractive option for brands currently affiliated Of total openings historically come with upscale brands > 60% from conversions New conversion brand (2019 launch) Of new franchise agreements during > 60% the last downturn were driven by Proven conversion engines conversions Levers: Conversion Key During the “Great Recession,” Choice grew at a faster pace than the overall industry supply thanks to its conversion engine

1 Company internal data. 12 Choice Hotels continues to increase market share as a leader in the upper-midscale and midscale segments

Choice Midscale Domestic Portfolio vs. Competitors Choice overall midscale segment represents two- # of upper-midscale & midscale hotels thirds of company’s total domestic portfolio

~24% Market Share 5%

4,009 3,198 26%

2,927 CHAIN SCALE 2,292 1,850 MIX 69%

1,492

Midscale & Upper Midscale 450 Economy & Extended Stay Upscale

Note: Data as of December 2020. Note: Chain scale mix based on # of domestic open rooms. Source: STR. Source: Company filings. 13 Choice Hotels’ extended stay portfolio has proven to be a highly cycle-resilient segment, with the WoodSpring Suites brand displaying one of the best performances in the hotel industry

Choice extended stay average weekly occupancy (~70%) Choice’s strategic focus and prior investments in exceeded the industry average by 30 percentage points extended stay drove a competitive advantage

80% Growing Nearly 450 domestic extended-stay hotels open, Portfolio an 11% increase YoY (over 315 in pipeline)1 70%

60% Strong Awarded nearly 110 extended-stay franchise Developer agreements, including the largest multi-unit 50% Interest transaction in MainStay’s history (15 units)

Everhome Suites (January 2020): First brand to 40% New Brand enter the midscale extended stay segment in Launch

Occupancy (%) Occupancy 30% nearly a decade

Lean 20% Low break-even occupancy and steady margins Operating in practically any economic environment 10% Model

0% 1/26 2/26 3/26 4/26 5/26 6/26 7/26 8/26 9/26 10/26 11/26 12/26 Owner Average WoodSpring Suites GOP approximately Profitability 55% in 2019 Choice Extended Stay Industry

Cycle- In any cycle, overall economy extended stay WoodSpring Suites achieved occupancy levels of 72% resilient segment performs 10% higher than the in 2020 and experienced year-over-year RevPAR segment overall industry growth of 2% in December 2020 Industry extended stay segment demand 2x the Opportunity size of current supply2 1 As of Q4 2020. 2 Highland Group, The US Extended-Stay Hotel Market Complete History 1998-2019. 14 Choice Hotels benefits from a high focus on leisure travel, which is leading the recovery and rebounding faster than business travel

Leisure travel comprises approximately 80% of In 2020, Choice grew RevPAR faster than its local Choice room nights, and the company has limited competitors, increasing RevPAR Index through exposure to group and convention business1 notable lifts in Weekday and Weekend RevPAR Index

Low group business exposure <10%

21% Over 2,000 domestic properties near BUSINESS LEISURE beach locations and National Parks MIX

79% Uniquely positioned to continue to capture business travel demand (e.g. transportation and Leisure Business logistics professionals, construction workers etc.)

1 Source: 2018 DK Shifflet survey; numbers are based on room nights. Group business is defined as a stay with a trip purpose of convention, seminar/training, or other group meeting. 15 Given strong presence in drive-to locations, Choice Hotels is benefiting from Americans showing a continued preference for road trips

Strong presence in drive-to locations

✓ Americans are choosing to drive to their destinations due to heightened concern about air travel safety ✓ Road trips have been on the rise for the past 5 years Domestic traveler as a core guest

Over 80% of CHH portfolio is located domestically – of ✓ Less than 3% of CHH domestic room nights which over 4,000 hotels are within 1 mile of a highway exit comes from non-U.S. guests; low reliance on international inbound travel

Choice outperformed the industry on year-over-year domestic RevPAR change and achieved RevPAR share gains versus its local competitors across all location types in Q4 and full-year 2020

0% 50% 100%

Small Town, Interstate, Suburban ~90% of Choice domestic Urban <5% properties are in “drive-to” Resort <5% locations1 % in Choice System

1 As of Q4 2020. 16 Mitigating the Impacts of COVID-19

Clarion Pointe, Rochester, NY 17 Choice continues to outperform the competition thanks to a combination of its resilient franchise owner base and significant support the company has provided to its franchisees throughout the crisis

Choice proactive actions to support franchisees Resilient franchise owner base and health during the crisis: of franchisee:

Advocated at the federal/state levels to Domestic hotels open1; over 90% were expand franchisees' access to capital, ~100% operating in the worst weeks of COVID- resulting in the expansion of SBA loan Advocacy 19 crisis guarantee/lending programs, including the establishment of Paycheck Protection Program (PPP) Provide for financial flexibility in down Low debt levels cycles; franchisees tend to borrow from Launched outreach and online education Outreach & local and regional lenders program to enable franchisees to access Education new capital and reduce operating costs Average breakeven occupancy levels; Extended brand program deadlines, predominately limited-service hotels, ~30% Reducing Costs implemented cost saving operational which are less labor intensive with lower & initiatives; drove additional business operating costs and higher margins Delivering through Global Sales; launched Business Commitment to Clean initiative and marketing campaign to attract guests Hotels qualify as small business owners; over 70% of hotels applied or secured 90% Reduced several fixed program SBA loans through the government Fee Relief fees; implemented a tailored assistance programs (PPP and EIDL)2 fee-deferral program

The relationship with our franchisees has always been strong, as demonstrated by our high voluntary retention rate and the high proportion of new franchise agreements awarded to existing and returning owners every year

1 As of 01/05/2021. 2 In 2020. 18 The company ended 2020 with a strong balance sheet and improved its liquidity position by generating cash flow from operations while continuing to reduce debt

BALANCE SHEET / LIQUIDITY PROFILE OUTSTANDING DEBT AND MATURITIES

Available liquidity as of December 31, 2020 including $850 $835M cash and available borrowing capacity on revolver

Issued new senior unsecured notes in July; repaid $450M previously announced $250M term loan

Cash flow from operations in 2020, over $45M of which $115M reported in Q4 alone despite a lower seasonal demand

$50M Reduction of net debt achieved in Q4 2020 $217

Extended near-term debt maturities through issuance $0 $4 $0 $0 2031 of unsecured notes 2021 2022 2023 2024 2025 2026+ Maintained a net leverage ratio within the target 3.5x of 3x to 4x

COST LEVERS % of Total Debt 21% SG&A cost savings achieved in 2020 0.0% 20.2% 0.4% 0.0% 0.0% 79.4%

Choice navigated the impact of the pandemic without having to renegotiate debt covenants, refinanced a portion of debt to extend its debt maturity profile, and capitalized on favorable credit markets to significantly reduce the company’s effective cost of borrowings

19 Choice Hotels maintains a prudent and disciplined approach to capital allocation and ensures the level of investment activity is aligned with the current environment

Capital Growth M&A Initiatives management

Increase the entire platform’s Disciplined approach to Opportunistically return excess value and maintain our potential M&A opportunities cash to shareholders through competitive strength with based on our ability to: dividends and share repurchases discretionary investments for • Improve profitability for existing Precautionary measure: organic growth franchisees Temporarily suspended given the COVID-19 • Accelerate revenue growth pandemic impact on the industry

EXAMPLES: EXAMPLES: EXAMPLES: • Returned ~$100M in 2019 and ~$80M in • Cambria development • WoodSpring Suites (2018) 2020 to shareholders • Comfort transformation • Suburban (2005) ✓ ~$55M (2020) and ~$51M (2019) • New brand launches and prototypes • Econo Lodge and Rodeway (1990) in share repurchases ✓ ~$25M (2020) and ~$48M (2019) • Marketing and distribution technology • Clarion (1986) in dividends • Long term leverage target of 3.0x – 4.0x

20 Choice is committed to diversity and inclusion throughout all levels of enterprise – from the Board of Directors to the front lines of our franchised hotels

Nearly Over Female Directors Over Bias Training comprise completed by 70% 40% 30% 15 years 26K+ Minority owned Corporate female Seats on the Diversity Committee of the ChoiceU students franchises associates Board Board of Directors since 2019

Choice Inclusion and Diversity Initiatives Examples:

✓ Awarded and financially supported nearly 270 franchise agreements to underrepresented minority and veteran entrepreneurs ▪ 24 in 2020, amid COVID pandemic ✓ Established Choice Hotels Owners African American Alliance (CHOAAA) ✓ Strategic partnership with Operation Homefront, a national nonprofit supporting veterans ✓ 11 associate driven resource groups fostering cultural vibrancy and connection with 27 chapters

21 Investment thesis

Premium brand recognition and North America’s midscale/upper midscale 1 segment leader

Asset-light franchising model generates predictable high free cash flow and 2 strong returns on investment

Recurring fee-for-service business model produces stable cash flows, resilient 3 through cycles, with multiple levers to drive future growth and minimize volatility driven by future business cycles

4 Conservative balance sheet, record of financial discipline and significant liquidity

Disciplined and experienced management team focused on fueling 5 long-term growth

22 Appendix

The Cove Hotel, Ascend Collection Long Beach, California Hotel Petaluma, Ascend, CA 23 Choice entered the crisis with a strong balance sheet due to prudent capital allocation strategy and maintaining low levels of debt

Total Revenue ($ millions) Debt & Leverage ($ millions) $1,000 $1,115 $1,041 $941 $860 $900 $849 $863 $808 $824 $725 $758 $794 $794 $800 $765 $733 $700 3.9x $600 3.5x 3.5x 2013 2014 2015 2016 2017 2018 2019 $500

Adjusted EBITDA ($ millions) $400 3.3x $300 $365 $341 $298 $257 $200 $236 $205 $224 2.5x $100 2.4x 2.2x $0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

Even after adding debt to boost liquidity at the start of the COVID-19 crisis, CHH remains within its long-term leverage target of 3.0x – 4.0x

Source: Company filings. 24 Pre-COVID 19 crisis, Choice Hotels continued to improve each of its key growth levers

RevPAR and Occupancy Worldwide Unit Growth 61.7% 62.2% 63.3% 62.9% 59.5% 61.1% 8,288 56.4% 8,103

7,550 1,135 7,289 7,143 1,082 6,982 $52.25 $51.65 6,819 923 $45.80 $48.78 $51.00 $51.19 $42.20 720 775 479 603

2013 2014 2015 2016 2017 2018 2019 RevPAR Occupancy Rates

7,021 7,153 Domestic Royalty Rate 6,627 6,340 6,379 6,423 6,514

4.86% 4.75% 4.60% 4.41% 4.33% 4.28% 4.30%

2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 Open Pipeline Total

25 Choice Hotels’ resilient fee-for-service business model generates stable cash flows throughout the cycle

From 2008 to 2009, CHH saw a 17% decline in EBITDA while peers1 saw an EBITDA decline of 37% and Host2 saw a decline of 40%

15.0% $400

10.0% $350

$300 5.0%

$250 0.0% $200 (5.0%) $150

(10.0%) $100

(15.0%) $50

(20.0%) $0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

% Change - US RevPAR % Change - CHH RevPAR CHH Adjusted EBITDA ($m)

1 Peers include Hyatt, Marriott and Starwood. 2 Host is the only pure-play Investment Grade Lodging REIT. Source: Smith Travel Research, Management data, Company filings. 26 Reconciliation of Non-GAAP Measures

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ($millions) 2010 2011 2012 2013 2014 2015 2016 2017 * 2018 * 2019 * 2020 * Net income (loss) $ 107.4 $ 111.1 $ 121.3 $ 113.4 $ 121.5 $ 128.0 $ 139.4 $ 122.3 $ 216.4 $ 222.9 $ 75.4 Income taxes 50.8 47.9 48.2 45.3 52.3 56.0 60.6 126.9 56.9 47.1 (22.4) Interest expense 6.7 12.9 27.2 42.5 41.5 42.8 44.4 45.0 45.9 46.8 49.0 Interest income (0.5) (1.3) (1.5) (2.5) (1.8) (1.6) (3.5) (5.9) (7.0) (10.0) (7.7) Other (gains) losses (2.4) 2.4 (2.0) (1.8) 0.4 (0.8) (1.5) (3.2) 1.4 (4.9) (4.1) Loss on extinguishment of debt ------7.2 16.6 Equity in net (income) loss of affiliates (1.2) (0.3) (0.2) (0.6) 0.7 0.9 (0.5) 4.5 5.3 9.6 7.9 Depreciation and amortization 8.3 7.5 7.7 9.1 9.4 11.5 11.7 6.7 14.3 18.8 25.8 Gain (loss) on sale & impairment of assets, net ------(0.4) (1.2) 7.0 14.9 22.1 Mark to market adjustments on non-qualified retirement plan investments - - - - - (0.7) 1.5 3.2 (1.3) 4.8 4.1 Share-based compensation ------8.8 3.8 Marketing and reservation system reimbursable surplus (deficit) ------(20.2) (9.4) 1.7 44.3 Franchise agreement acquisition costs amortization ------4.1 5.1 4.5 6.4 Acceleration of executive succession plan & executive termination benefits ------2.2 12.0 - - - Acquisition related transition and transaction costs ------3.3 4.0 6.9 - - Other non-recurring charges - - 0.5 ------1.5 19.9 Adjusted EBITDA $ 169.1 $ 180.2 $ 201.2 $ 205.4 $ 224.0 $ 236.1 $ 257.2 $ 298.2 $ 341.5 $ 373.6 $ 241.1

*Figures are calculated using guidelines from the ASC 606 Revenue Recognition Standard. 27 Reconciliation of Non-GAAP Measures

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") ($millions) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net income (loss) $ 55.3 $ 57.2 $ 42.4 $ 14.3 $ 60.8 $ 71.9 $ 74.3 $ 87.6 $ 112.8 $ 111.3 $ 100.2 $ 98.3 Income taxes 34.3 37.3 27.1 31.1 35.0 40.5 40.2 43.2 42.5 62.6 57.1 52.4 Interest expense 19.1 19.4 18.5 15.4 13.1 11.6 11.6 15.3 14.1 14.3 10.9 4.4 Interest income (14.1) (20.1) (15.5) (4.3) ------(0.3) Other (gains) losses (2.4) 0.1 7.8 0.6 (4.3) (9.5) (0.4) (1.5) (1.7) (1.8) 7.8 (1.3) Loss on extinguishment of debt ------Equity in net (income) loss of affiliates - - 12.1 16.4 0.1 (0.6) (0.7) (0.8) (1.1) (1.2) (1.4) (1.1) Depreciation and amortization 6.8 8.0 11.6 12.5 11.3 11.2 9.9 9.1 9.7 8.6 8.2 8.3 Gain (loss) on sale & impairment of assets, net - - - 22.7 ------7.6 - Mark to market adjustments on non-qualified retirement plan investments ------Share-based compensation ------Marketing and reservation system reimbursable surplus (deficit) ------Franchise agreement acquisition costs amortization ------Acceleration of executive succession plan & executive termination benefits ------6.6 1.5 Acquisition related transition and transaction costs ------Other non-recurring charges (7.2) ------1.3 Adjusted EBITDA $ 91.8 $ 101.9 $ 104.1 $ 108.7 $ 116.0 $ 125.1 $ 134.9 $ 152.9 $ 176.3 $ 193.8 $ 197.0 $ 163.5

*Figures are calculated using guidelines from the ASC 606 Revenue Recognition Standard. 28