Choice Hotels India, a joint venture between the Gupta Group and Choice Hotels International, has announced aggressive expansion plans that call for the introduction of Clarion and Sleep Inn brand hotels throughout India`s top markets.

Initially, the company is opening India`s first Clarion brand hotel in Goa, with plans for eight additional Clarion brand hotels in major markets - including New Delhi, Mumbai, Bangalore and Chennai - to be added to the system over the next five years. The Qutab Hotel in New Delhi, purchased by the Gupta Group in 2002, is undergoing an expansion that will add 120 rooms to its existing 60 rooms; upon completion, the hotel will be rebranded as a Clarion Hotel.

Choice Hotels India is also researching a location for the first Sleep Inn brand hotel in India and is actively soliciting a joint venture partner to aid in the development of a minimum of 10 Sleep Inn brand hotels throughout the country.

The profit potential for Clarion and Sleep Inn brand hotels throughout India is significant, said Sandeep Gupta, executive director of Choice Hotels India. There is a tremendous, underserved market in each of these brand segments. Clarion and Sleep Inn brand hotels, backed by Choice Hotels` marketing, reservations and services systems, will do exceptionally well here.

The development of Choice brand hotels in India is fundamental to our global growth strategy, said Bruce Haase, senior vice president of Choice Hotels` international division. We look forward to working with Choice Hotels India on the successful launch of our Clarion and Sleep Inn brand hotels in this critical market.

Choice Hotels India currently franchises 20 Quality and Comfort Inn brand hotels throughout India, with hotels in key markets including New Delhi, Mumbai, Chennai, Ahmedabad, Hyderabad and Pune. Five hotels were added to the system in the past year alone - a testament, according to Haase, to the strong management team in place at Choice Hotels India as well as to the marketability of the Comfort Inn and Quality brands.

Worldwide lodging franchisor Choice Hotels International (NYSE:CHH) markets more than 5,000 hotels in over 40 countries under the brand names Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Econo Lodge and Rodeway Inn. The company`s newest brand, Cambria Suites, launched in January 2005.