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Cambria Suites

Cambria Suites Franchise
Cambria Suites is the genuine and authentic upscale select-service hotel that offers thoughtful modern design for the way you live.

Designed to fill a competitive opportunity created by changing guest and travel patterns, Cambria Suits is the logical evolution in the marketplace.

Cambria Suites is a new construction brand designed to appeal to both businesses and leisure travelers. Among the most popular target areas identified for the brand are airports, mixed use developments, leisure destination points and aggressively growing commerical corridors. Its signature is a stylish, refreshingly new, contemporary design - both inside and out. Our guests will enjoy a warmer experience in a more intimate environment then competitive hotels offer, with an attention to function and detail that is normally not part of this segment.

We believe that this is a great opportunity whether your looking to enter the upscale segment or to diversify your portfolio. We hope you join us.

For the past few years, we have researched consumer preference, business and leisure travel trends, assessed development issues and reviewed both the competition and our own portfolio of brands. It was clear there was room for a new brand in today's changing marketplace: an upscale, select-service, all-suites brand that is perfect for today's travelers, who are focused on quality and concered with style.

The Upscale Segment
With demand for upscale select service lodging choices increasing, the segment continues to deliver on every key metric:

Upscale Select Service hotels reported an occupancy premium to the overall industry, a +5.5 higher difference for the full year in 2006.
Upscale Select Service rates are at record high and indexed 121% higher than the ADR of the overall Lodging industry in 2006.
Lodging industry pricing outpaced the rate of inflation by 4.4 percentage points in 2006, and Upscale Select Service grew by +2.3 percentage points more than the overall Lodging industry.
PricewaterhouseCoopers projects 3.5% or higher demand gains in the upscale segment in each of the next three years.

Smith Travel Research. Data through December 31, 2006

The Competition
Cambria Suites is designed to compete with Courtyard by Mariott, a loft, Indigo, Hyatt Place, Spring Hill Suilts, and Hilton Garden Inn. What distinguishes our new brand from these are its distinctive style, all-suite configuration and lower development and ongoing costs.

Cambria Delivers

Guests want more space
Cambria delivers an all-suites format at a competitive price point, with rooms that are 25% larger than a standard room.

Guests want a comfortable environment that makes them feel cared-for.
Cambria delivers an intimate atmosphere, with furnishings and amenities that feel like home -- like upscale bedding and bathroom, stereo and CD player, refrigeration and microwave.

Guests want style and quality.
Cambria delivers a fresh, sophisticated, contemporary design with public spaces that are active and inviting, and guest rooms that are peaceful and comforting.

Guests want technology and services that enhance their work and play.
Cambria delivers high-speed wireless access, business services, flat-panel TVs and a state-of-the-art fitness center with indoor pool.

The Opportunity
Since its launch in January 2005, the Cambria Suites-dedicated sales team has seen a flurry of interest from developers. The team has identified the top markets across the country and is actively identifiying sites and opportunities for Cambria Suites developers.

The momentum for the brand continues to increase, with over 60 contracts already signed. Despite the activity, Choice Hotels is taking a judicious approach to growing the brand. The goal is to place the Cambria Suites brand in the right market, with the right operator.

Choice Hotes is one of the leading hotel franchising companies in the world, with over 6,400 hotels open and under development worldwide. A strong, stable organization, we have over 60 years experience in developing brands, services and resources that optimize hotel performance.

As a member of the Choice Hotels family, Cambria Suites will benefit from the same extraordinary resources and support we provide all our brands:

$1.9 billion in gross room revenue from CRS in 2006.
$55 million in a national, multi-branded marketing campaign in 2006
Over 5 million members in Choice Privileges® frequency program database
Proprietary property management system mazimizing yield-management benefits.
Comprehensive resources, extensive field support

SUPPORT & TRAINING PROVIDED

Cambria Suites

National Advertising
National Partnerships
Marketing Programs and Services
Guest Loyalty Programs
Sales Support
Turn-Key Reservations Package
Operational Support (Profit Manager, choiceAdvantage, ChoiceCentral.com)
Start-up Support (Training and New Hotel Opening)
Field Support, Centralized Help Desk, Purchasing Services, ongoing Educational and Annual Convention
Financial Assistance Provided: Only via incentives. Current development incentive is for minorities and from time to time offer brand specific incentives.
Site Selection Assistance: Yes
Feasibility Study Support: Yes
Financial Lender Support: Yes
Lease Negotiation Assistance: No
Co-Operative Advertising: Yes
Training: New franchisees and their General Managers are required to attend a week-long training session at corporate headquarters.

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