Choice Hotels to Split Into Two Companies

Choice Hotels International Inc., the Silver Spring, Md.-based lodging company that was split off from Manor Care Inc. in November, is being split again. Choice’s board of directors voted to divide the firm into two units--one that owns and operates hotels and one that sells franchises. The franchise firm will continue to operate under the Choice Hotels name. Its brands--Quality Inn, Clarion, Comfort Inns, Rodeway Inn and Econo Lodge among them--are best known among budget-conscious travelers. The new company that will focus on owning real estate and developing new hotels has not been named. That company will include the 70 hotels in the United States that Choice owns and manages and 20 more that it is developing. The primary reason for the split, company executives said, is to give both businesses a clearer mission. Choice’s move is subject to approval by its shareholders and an IRS ruling on whether the spinoff will be tax-free.