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Critically appraise performance of the above global company based on financial and non-financial information declared in the published financial reports. As and where possible support your arguments with recommendations.

CONSOLIDATED FINANCIAL STATEMENTS CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Years Ended December 31, 2020 2019 2018 $ 263,308 $ 25,906 45,242 402,568 20,168 16,880 774,072 388,151 $ 27,489 61,429 577,426 20,282 40,043 1,114,820 376,676 26,072 52,088 543,677 42,791 1,041,304 148,524 25,831 446,847 16,066 637,268 170,027 14,330 534,266 REVENUES Royalty fees Initial franchise and relicensing fees Procurement services Marketing and reservation system Owned hotels Other Total revenues OPERATING EXPENSES Selling, general and administrative Depreciation and amortization Marketing and reservation system Owned hotels Total operating expenses Impairment of goodwill Impairment of long-lived assets Loss on sale of business Gain on sale of assets, net Operating income OTHER INCOME AND EXPENSES, NET Interest expense Interest income Loss on extinguishment of debt Other (gain) loss Equity in net loss of affiliates Total other income and expenses, net Income before income taxes Income tax (benefit) expense Net income 168,833 18,828 579,139 14,448 781,248 (3,097) (7,259) (4,674) 100 318,642 718,623 (4,289) (14,751) 82 318,474 122,053 46,807 45,908 (7,452) 49,028 (7,688) 16,565 (4,147) 15,289 69,047 53,006 (22,381) 75,387 (9,996) 7,188 (4,862) 9,576 48,713 269,929 47,051 222,878 1,437 5,323 45,216 273,258 56,903 216,355 $ $ $ Basic earnings per share Diluted earnings per share 1.36 $ 1.35 $ 4.00 3.98 $ $ 3.83 3.80 $ CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS) Years Ended December 31, 2020 2019 75,387 $ 222,878 $ 2018 $ 216,355 Net income Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge Foreign currency translation adjustment Other comprehensive income (loss), net of tax Comprehensive income (96) (96) 75,291 1,436 (540) 896 223,774 $ 862 (1,609) (747) 215,608 $ $

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