Choice Hotels Europe (CHE) has reduced its expectations for the year following a slow start to the year in bookings.

CHE chair, Peter Catesby, said the decline reflects the signs of a general slowdown in the economy and still expects the group – which operates 350 properties in 14 countries – to achieve growth during the financial year.

CHE operates the Comfort, Quality, Sleep Inn and Clarion brands and announced full-year profits of £0.6m for 2004 – the group’s first profitable figures in five years.