The deal also allows for the possibility of an additional$5-million payment over a three-year period. The arrangement bringsChoice Hotels' system of brands up to 10 and adds 67 SuburbanExtended Stay Hotel chains to Choice's holdings.

"This acquisition allows Choice Hotels to enter a new segment,building on the excellent reputation and performance of theSuburban brand and the expertise we have gained through ourmid-scale extended stay MainStay Suites brand," Choice Hotelspresident and CEO Charles A. Ledsinger Jr says in a preparedstatement. "The economy extended-stay segment has strongsupply-side potential and a solid track record for providingabove-average returns for hoteliers. As we combine Suburban'sstrong product and brand name with our highly effective globalmarketing and reservations system, as well as our focused extendedstay services and technology infrastructure, we provide bothexisting Suburban owners and new developers an opportunity for avery compelling return on investment." In January Choice Hotelsintroduced a new brand, Cambria Suites, a "lower-upscale" chaintargeting the business traveler.