US Market News
2月前
Choice Hotels International Reports First Quarter 2026 ResultsApril 30, 2026 6:30 AM
PR Newswire (US)
Global Net Rooms Increased 1.7%, with U.S. Net Rooms Growth ImprovingQ1 U.S. Hotel Openings Hit Five-Year High Global Franchise Agreements Awarded Increased 72%NORTH BETHESDA, Md., April 30, 2026 /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, today reported results for the first quarter ended March 31, 2026.
Highlights include:Total revenues reached a company record $340.6 million for the first quarter.Net income was $20.3 million for the first quarter, representing diluted EPS of $0.44.Adjusted EBITDA totaled $125.7 million, while adjusted diluted EPS reached $1.07 for the first quarter.U.S. royalty rate expanded 11 basis points to 5.22% for the first quarter, compared to the same period of 2025.Global net rooms grew 1.7% compared to March 31, 2025, driven by 2.5% growth in higher revenue extended stay, midscale, and upscale brands.U.S. room openings increased 32% in the first quarter compared to the same period of 2025, reaching the highest first-quarter level since 2023, while exits declined year-over-year to the lowest quarterly level since 2023, driving sequential net rooms growth from year-end 2025.Global franchise agreements awarded increased 72% in the first quarter, compared to the same period of 2025.U.S. pipeline grew sequentially to approximately 71,500 rooms, with the conversion rooms pipeline increasing 17% compared to March 31, 2025, and 3% sequentially from December 31, 2025. Capital recycling generated $24.6 million of proceeds in the first quarter, with hotel development and lending shifting from net outflows in the prior year to net inflows in the current period."Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends," said Patrick Pacious, President and Chief Executive Officer. "We are driving sequentially improving U.S. net rooms growth, supported by our conversion-led model and more accretive pipeline, achieving faster, more capital-efficient expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders." Financial Performance
($ in millions, except per-share amounts)
20262025Total revenues$341$333Revenue excl. revenue for reimbursable costs from
franchised and managed properties1$217$209Net income$20$45Adjusted net income$50$64Diluted EPS$0.44$0.94Adjusted diluted EPS$1.07$1.34Adjusted EBITDA$126$1301 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $124 million and $123 million for first quarter 2026 and 2025, respectively.Revenue excluding reimbursable costs increased 3% to $216.7 million in the first quarter, from $209.4 million in the prior year.Adjusted EBITDA was $125.7 million for the first quarter, compared to $129.6 million in the prior year, primarily reflecting timing-related factors and in line with expectations.Adjusted diluted EPS was $1.07 for the first quarter, compared to $1.34 in the prior year, reflecting timing-related factors and a temporarily elevated effective income tax rate that is expected to be approximately 25% for the full year.RevPAR (% change on a currency-neutral basis)Change vs. Prior Year Period
Three months ended March 31, 2026U.S.-2.3 %International2.6 %Global-0.8 %U.S. results included a significant hurricane-related impact of approximately 410 basis points, affecting the year-over-year comparison.U.S. RevPAR increased 1.8% in the first quarter, compared to the same period of 2025, excluding the prior-year hurricane-related impact.International RevPAR increased 2.6% on a currency-neutral basis in the first quarter, compared to the same period of 2025. System Size and Development (Rooms)
March 31, 2026March 31, 2025ChangeU.S.497,881505,601-1.5 % U.S. upscale, extended stay, and midscale440,464444,230-0.8 %International160,467141,98613.0 %Global658,348647,5871.7 % Global upscale, extended stay, and midscale595,580580,8602.5 %Global pipeline exceeded 77,700 rooms as of March 31, 2026, with 97% concentrated in extended stay, midscale, and upscale brands, supporting a more accretive future earnings profile.Franchise agreements awarded increased 65% in the U.S. and 113% in international markets in the first quarter of 2026, compared to the same period of 2025.International net rooms grew 13% compared to March 31, 2025, highlighted by a 59% increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, including Canada and EMEA.Extended stay remains a core growth engine, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 11.8% compared to March 31, 2025, and a pipeline of over 30,300 rooms as of March 31, 2026.U.S. midscale room openings increased 57% compared to the same period of 2025, and the pipeline grew 6% from March 31, 2025, reflecting improving owner returns and demand for cost-efficient prototypes.U.S. economy transient rooms pipeline grew 26% sequentially from December 31, 2025, supported by a 13% increase in franchise agreements awarded in the first quarter of 2026.U.S. upscale room openings increased 112% compared to March 31, 2025, and the pipeline grew 8% compared to March 31, 2025, driven by Radisson Individuals, Ascend Collection, and Radisson brand.Balance Sheet and LiquidityAs of March 31, 2026, Choice had total available liquidity of $474.0 million, including cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.2x for the trailing twelve months ended March 31, 2026.During the first quarter of 2026, the Company used $23.2 million of cash in operating activities, primarily reflecting the timing of working capital items and increased franchise agreement acquisition cost payments associated with higher global room openings, which increased 37% compared to March 31, 2025.During the three months ended March 31, 2026, Choice generated $24.6 million in proceeds from capital recycling activities, as cash flows related to hotel development and lending shifted meaningfully from net outflows of $41.3 million in the prior year to net inflows of $3.7 million.Shareholder ReturnsDuring the three months ended March 31, 2026, the Company returned $75.2 million to shareholders, including $13.1 million in dividends and $62.1 million in share repurchases, under its stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.As of March 31, 2026, 2.3 million shares of common stock remained available under the Company's current share repurchase authorization.OutlookThe Company is maintaining its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, share repurchases completed after March 31, 2026, and other items.Net capital outlays for hotel development-related activities are expected to decline significantly, from $103.4 million in 2025 to a range of $20 million to $45 million in 2026, reflecting the Company's transition to a more capital-efficient model.
Full-Year 2026
Net income$265 to $275 million
Adjusted net income$320 to $330 million
Adjusted EBITDA$632 to $647 million
Adjusted SG&AMid-single digitsDiluted EPS$5.72 to $5.94
Adjusted diluted EPS$6.92 to $7.14
Effective tax rate25 %
Full-Year 2026 vs. 2025
Global RevPAR growth -2% to 1%
U.S. RevPAR growth-2% to 1%
U.S. royalty rate growthMid-single digitsGlobal net system rooms growthApproximately 1% Webcast and Conference CallChoice will host a conference call to discuss first quarter 2026 results on April 30, 2026, at 11:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 715-9871 (U.S.) or (646) 307-1963 (international) and reference conference ID 2822521. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.About Choice Hotels®Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.Forward-Looking StatementsInformation set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.Non-GAAP Financial Measurements and Other DefinitionsThe company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.Adjusted Net Income and Adjusted Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted diluted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided. Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided. Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.ContactsAllie Summers, Senior Director, Investor Relations
IR@choicehotels.com© 2026 Choice Hotels International, Inc. All rights reserved.Choice Hotels International, Inc.
Exhibit 1Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
For the Three Months Ended
March 31,
2026
2025REVENUES
Franchise and management fees
$ 149,631
$ 145,068Partnership services and fees
24,734
25,381Owned hotels
30,433
27,860Other
11,873
11,127Revenue for reimbursable costs from franchised and managed properties
123,904
123,424Total revenues
340,575
332,860
OPERATING EXPENSES
Selling, general and administrative
78,046
74,210Business combination, diligence and transition costs
236
99Depreciation and amortization
16,821
13,748Owned hotels
23,651
21,060Reimbursable expenses from franchised and managed properties
161,787
143,811Total operating expenses
280,541
252,928
Operating income
60,034
79,932
OTHER EXPENSES AND (INCOME), NET
Interest expense
23,962
21,242Interest income
(1,211)
(1,559)Other losses, net
721
436Equity in net loss of affiliates
6,252
51Total other expenses and (income), net
29,724
20,170
Income before income taxes
30,310
59,762Income tax expense
10,006
15,228Net income
$ 20,304
$ 44,534
Basic earnings per share
$ 0.44
$ 0.95Diluted earnings per share
$ 0.44
$ 0.94
Choice Hotels International, Inc.
Exhibit 2Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
March 31,
December 31,
2026
2025ASSETS
Cash and cash equivalents
$ 43,872
$ 44,997Accounts receivable, net
243,511
207,491Other current assets
123,392
153,510
Total current assets
410,775
405,998
Property and equipment, net
649,883
649,291Operating lease right-of-use assets
76,559
77,670Goodwill
304,583
305,758Intangible assets, net
1,096,143
1,082,486Notes receivable, net of allowances
27,403
12,490Investments for employee benefit plans, at fair value
47,899
50,227Investments in affiliates
132,848
134,975Other assets
198,493
199,308
Total assets
$ 2,944,586
$ 2,918,203
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable
$ 146,193
$ 156,276Accrued expenses and other current liabilities
86,707
125,282Deferred revenue
112,853
100,698Liability for guest loyalty program
88,236
85,035
Total current liabilities
433,989
467,291
Long-term debt
2,003,236
1,906,122Long-term deferred revenue
129,946
130,505Deferred compensation and retirement plan obligations
54,313
56,532Deferred income taxes
34,081
25,303Operating lease liabilities
106,384
107,963Liability for guest loyalty program
41,566
39,771Other liabilities
3,644
3,487
Total liabilities
2,807,159
2,736,974
Total shareholders' equity
137,427
181,229
Total liabilities and shareholders' equity
$ 2,944,586
$ 2,918,203
Choice Hotels International, Inc.
Exhibit 3Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)Three Months Ended March 31,
2026
2025CASH FLOWS FROM OPERATING ACTIVITIES
Net income$ 20,304
$ 44,534Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization16,821
13,748Depreciation and amortization – reimbursable expenses from franchised and managed properties5,115
4,887Franchise agreement acquisition cost amortization9,580
9,791Non-cash share-based compensation and other charges8,434
9,834Non-cash interest, investments, and affiliate loss, net1,800
1,515Deferred income taxes7,657
626Equity in net loss of affiliates, less distributions received6,252
413Franchise agreement acquisition costs, net of reimbursements(42,842)
(26,287)Change in working capital and other(56,295)
(38,594)Net cash (used in) provided by operating activities(23,174)
20,467CASH FLOWS FROM INVESTING ACTIVITIES
Investments in other property and equipment(10,065)
(10,543)Investments in owned hotel properties(16,819)
(35,462)Contributions to investments in affiliates(3,863)
(5,415)Issuances of notes receivable(236)
(1,952)Collections of notes receivable24,610
1,487Other items, net197
(1,067)Net cash used in investing activities(6,176)
(52,952)CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings pursuant to revolving credit facilities97,000
105,500Purchases of treasury stock(56,480)
(64,624)Dividends paid(13,115)
(13,471)Proceeds from the exercise of stock options880
4,803Net cash provided by financing activities28,285
32,208Net change in cash and cash equivalents(1,065)
(277)Effect of foreign exchange rate changes on cash and cash equivalents(60)
154Cash and cash equivalents, beginning of period44,997
40,177Cash and cash equivalents, end of period$ 43,872
$ 40,054
Exhibit 4CHOICE HOTELS INTERNATIONAL, INC.CURRENCY-NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS(UNAUDITED)
For the Three Months Ended March 31, 2026
ADR
Occupancy
RevPAR
2026
vs. 2025
2026
vs. 2025
2026
vs. 2025Total U.S.
$ 88.74
(2.1) %
50.9 %
(10)bps
$ 45.18
(2.3) % Upscale & Above (1)
140.24
0.5 %
50.1 %
20bps
70.24
0.8 % Midscale & Upper Midscale (2)
92.29
(2.1) %
49.8 %
—bps
45.93
(2.1) % Extended Stay (3)
66.35
0.1 %
66.1 %
(170)bps
43.86
(2.4) % Economy (4)
66.11
(5.5) %
42.3 %
(150)bps
27.99
(8.5) %International (5)
96.64
3.7 %
56.9 %
(60)bps
54.97
2.6 %Total System (5)
$ 90.73
(0.6) %
52.3 %
(10)bps
$ 47.45
(0.8) %
For the Three Months Ended
March 31, 2026
March 31, 2025
U.S. Average Royalty Rate
Total U.S.
5.22 %
5.11 %
(1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.(2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands.(3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.(4) Includes Econo Lodge and Rodeway brands.(5) International and Total System results are presented on a currency-neutral basis and exclude the impact of foreign currency exchange movements.
Exhibit 5CHOICE HOTELS INTERNATIONAL, INC.SYSTEM HOTEL AND ROOM SUPPLY(UNAUDITED)
Global System by BrandMarch 31, 2026
Hotels
RoomsAscend Hotel Collection513
69,858Cambria Hotels77
10,296Radisson(1)129
22,584Comfort(2)2,136
179,024Quality1,885
148,462Country404
32,564Sleep425
30,444Clarion(3)266
36,157Park Inn31
2,656WoodSpring293
35,261MainStay155
11,304Suburban117
9,777Everhome27
3,108Econo Lodge637
36,275Rodeway435
24,037Other (4)58
6,541(1) Includes Radisson, Radisson Blu, Radisson Individuals, Radisson RED and Park Plaza brands.(2) Includes Comfort family of brand extensions including Comfort Inn and Comfort Suites.(3) Includes Clarion family of brand extensions including Clarion and Clarion Pointe.(4) Includes other brands under Master Franchise Agreements.
U.S. System by Chain ScaleMarch 31, 2026
Hotels
RoomsUpscale & Above368
59,403Midscale & Upper Midscale4,223
322,291Extended Stay584
58,770Economy1,013
57,417
Global System by RegionMarch 31, 2026
Hotels
RoomsU.S6,188
497,881Total International1,400
160,467 Americas (excluding U.S.)542
55,857 Europe & Middle East478
69,874 Asia-Pacific380
34,736
Total System7,588
658,348
Exhibit 6CHOICE HOTELS INTERNATIONAL, INC.SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION(UNAUDITED)
ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
(dollar amounts in thousands)
Three Months Ended
March 31,
2026
2025
Total selling, general and administrative expenses
$ 78,046
$ 74,210
Mark to market adjustments on non-qualified retirement plan investments
1,051
723
Non-recurring operational restructuring charges and executive severance
(481)
(3,930)
Share-based compensation
(4,812)
(5,890)
Amortization of cloud computing arrangements
(279)
—
Global ERP system implementation and related costs
(300)
(990)Adjusted selling, general and administrative expenses
$ 73,225
$ 64,123
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("ADJUSTED EBITDA")(dollar amounts in thousands)
Three Months Ended
March 31,
2026
2025
Net income
$ 20,304
$ 44,534
Income tax expense
10,006
15,228
Interest expense
23,962
21,242
Interest income
(1,211)
(1,559)
Amortization of cloud computing arrangements
279
—
Depreciation and amortization
16,821
13,748
Other losses, net
721
436
Equity in net loss of affiliates
6,252
51
Share-based compensation
4,812
5,890
Mark to market adjustments on non-qualified retirement plan investments
(1,051)
(723)
Franchise agreement acquisition costs amortization and charges
5,925
5,386
Revenue for reimbursable costs from franchised and managed properties
(123,904)
(123,424)
Reimbursable expenses from franchised and managed properties
161,787
143,811
Global ERP system implementation and related costs
300
990
Business combination, diligence and transition costs
236
99
Non-recurring operational restructuring charges and executive severance
481
3,930Adjusted EBITDA
$ 125,720
$ 129,639
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS")(dollar amounts in thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025
Net income
$ 20,304
$ 44,534
Revenue for reimbursable costs from franchised and managed properties
(123,904)
(123,424)
Reimbursable expenses from franchised and managed properties
161,787
143,811
Business combination, diligence and transition costs
236
99
Non-recurring operational restructuring charges and executive severance
481
3,930
Global ERP system implementation and related costs
300
990
Income tax expense on adjustments
(9,605)
(6,297)Adjusted Net Income
$ 49,599
$ 63,643
Diluted EPS
$ 0.44
$ 0.94Adjusted Diluted EPS
$ 1.07
$ 1.34
Exhibit 7CHOICE HOTELS INTERNATIONAL, INC.OUTLOOK(UNAUDITED)
Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2026
ADJUSTED EBITDA
(in thousands)
Full Year
Full Year
Lower Range
Upper Range
Net income
$ 265,000
$ 275,000
Income tax expense
88,300
91,600
Interest expense
85,800
86,000
Interest income
(4,200)
(4,100)
Amortization of cloud computing arrangements
1,200
1,200
Depreciation and amortization
64,100
65,100
Other losses, net
800
800
Equity in net loss of affiliates
11,300
11,700
Share-based compensation
21,000
21,000
Mark to market adjustments on non-qualified retirement plan investments
(1,100)
(1,100)
Franchise agreement acquisition costs amortization and charges
26,300
26,300
Revenue for reimbursable costs from franchised and managed properties
(595,500)
(595,500)
Reimbursable expenses from franchised and managed properties
665,500
665,500
Global ERP system implementation and related costs
1,700
1,700
Business combination, diligence and transition costs
1,300
1,300
Non-recurring operational restructuring charges and executive severance
500
500Adjusted EBITDA
$ 632,000
$ 647,000
ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE ("EPS")
(in thousands, except per share amounts)
Full Year
Full Year
Lower Range
Upper Range
Net income
$ 265,000
$ 275,000
Revenue for reimbursable costs from franchised and managed properties
(595,500)
(595,500)
Reimbursable expenses from franchised and managed properties
665,500
665,500
Business combination, diligence and transition costs
1,300
1,300
Non-recurring operational restructuring charges and executive severance
500
500
Global ERP system implementation and related costs
1,700
1,700
Income tax expense on adjustments
(18,500)
(18,500)Adjusted net income
$ 320,000
$ 330,000
Diluted EPS
$ 5.72
$ 5.94Adjusted Diluted EPS
$ 6.92
$ 7.14
View original content to download multimedia:https://www.prnewswire.com/news-releases/choice-hotels-international-reports-first-quarter-2026-results-302757878.htmlSOURCE Choice Hotels International, Inc.
Original: Choice Hotels International Reports First Quarter 2026 Results
US Market News
4月前
Choice Hotels International Reports Fourth Quarter and Full-Year 2025 ResultsFebruary 19, 2026 6:30 AM
PR Newswire (US)
Accelerates International Expansion with 13% Net Room Growth Increases Global Franchise Agreements Awarded by 22%NORTH BETHESDA, Md., Feb. 19, 2026 /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor, today reported results for the fourth quarter and full year ended December 31, 2025.
Highlights include: Net income was $369.9 million for full-year 2025 and $63.7 million for the fourth quarter.Diluted EPS was $7.90 for full-year 2025 and $1.37 for the fourth quarter, while adjusted EPS was $6.94 for the full year and $1.60 for the fourth quarter.Adjusted EBITDA reached a company record $625.6 million for full-year 2025, with fourth quarter adjusted EBITDA of $140.9 million.Global hotel openings grew 14% to 440 hotels in full-year 2025, including a 42% increase in the fourth quarter, compared to the same periods of 2024.Global net rooms grew 1.2% across the higher revenue upscale, extended stay, and midscale brands, compared to December 31, 2024.International net rooms grew 12.5% compared to December 31, 2024, highlighted by an 82% increase in hotel openings during full-year 2025, compared to 2024, bringing the international system to nearly 160,000 rooms.Global franchise agreements awarded grew 22% in full-year 2025, including a 6% increase in the fourth quarter, compared to the same periods of 2024.U.S. pipeline for conversion rooms increased 12% sequentially from September 30, 2025, and 7% compared to December 31, 2024.U.S. extended stay net rooms grew 11.7% compared to December 31, 2024, highlighted by a record number of hotel openings, which increased 8% during full-year 2025.Full-year 2026, net income is expected to range between $265 to $275 million, and adjusted EBITDA is expected to range between $632 and $647 million."Choice Hotels International delivered another year of record profitability in 2025, driven by our double-digit increase in international rooms, continued leadership in the extended-stay segment, and disciplined portfolio optimization," said Patrick Pacious, President and Chief Executive Officer. "With a high-quality, accretive global development pipeline, targeted investments that strengthen franchisee economics and customer lifetime value, and a disciplined approach to capital allocation, we believe Choice is exceptionally well positioned to drive long-term growth and create meaningful shareholder value."Financial Performance
($ in millions, except per-share amounts)Three months ended December 31,
Twelve months ended December 31,
20252024
20252024Total revenues$390$390
$1,597$1,585Revenue excl. revenue for reimbursable costs from
franchised and managed properties1$234$229
$981$947Net income2$64$76
$370$300Adjusted net income$74$74
$326$332Diluted EPS$1.37$1.59
$7.90$6.20Adjusted diluted EPS$1.60$1.55
$6.94$6.88Adjusted EBITDA$141$140
$626$604
1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $156 million and $161 million for fourth quarter 2025 and 2024, respectively, and $616 million and $638 million for full-year 2025 and 2024, respectively.2 Full-year results include a $100 million gain from the fair value remeasurement of the previously held 50% equity investment in Choice Hotels Canada.Partnership services and fees increased 14% to $113.8 million in full-year 2025 and 16% to $32.5 million in fourth quarter 2025, compared to the same periods of 2024.U.S. royalty rate expanded 8 basis points to 5.14% for full-year and 10 basis points to 5.19% for fourth quarter 2025, compared to the same periods of 2024.RevPAR
(% change on a currency-neutral basis)Change vs. Prior Year Period
Three months ended December 31, 2025Twelve months ended December 31, 2025U.S.-7.6 %-3.0 %International3.2 %3.5 %Global-4.6 %-1.2 %U.S. RevPAR declined 2.2% in fourth quarter 2025 compared to the prior year period, adjusted to exclude a 540-basis-point hurricane-related benefit in the fourth quarter of 2024, primarily reflecting softer government and international inbound demand.International RevPAR increased 3.2% on a currency-neutral basis in fourth quarter 2025, compared to the same period of 2024. System Size and Development
(Rooms)
December 31, 2025December 31, 2024ChangeU.S.496,979511,739-2.9 % U.S. upscale, extended stay, and midscale438,483449,263-2.4 %International159,846142,07112.5 %Global656,825653,8100.5 % Global upscale, extended stay, and midscale592,900586,0041.2 %Accelerated U.S. portfolio optimization, with net room changes reflecting strategic exits of hotels with lower-economic contribution and guest satisfaction alongside healthy gross openings and development activity, improving the quality and earnings profile of the system.Global pipeline exceeded 77,800 rooms as of December 31, 2025, with 97% concentrated in upscale, extended stay, and midscale brands, including 70,600 rooms in the U.S.U.S. franchise agreements awarded increased 3% in fourth quarter 2025, driven by a 12% increase for conversion hotels compared to the same period of 2024.International franchise agreements awarded increased 35% in fourth quarter 2025 and more than doubled in full-year 2025 compared to the same periods of 2024. Key international milestones during the fourth quarter included:
Entered two new direct franchise markets, Poland and Suriname, and executed a direct franchise agreement to enter Kenya.Executed franchise agreements for over 700 rooms in Canada following the acquisition of Choice Hotels Canada in the third quarter and the transition to a direct franchising model, driving 49% growth in the Canada rooms pipeline since December 31, 2024.Completed the onboarding of more than 4,800 midscale rooms in France through a direct franchise agreement with Zenitude Hotel-Residences, nearly doubling the Company's portfolio in the country.Completed the onboarding of more than 8,300 rooms in China under a distribution agreement with SSAW Hotels and Resorts.Introduced the midscale extended stay Mainstay Suites brand to Australia, marking the brand's first expansion outside North America.U.S. extended stay franchise agreements awarded increased 15% in full-year 2025, compared to 2024, bringing the U.S. extended stay pipeline to 30,600 rooms as of December 31, 2025.U.S. economy transient brands rooms pipeline grew 6% sequentially from September 30, 2025, and U.S. franchise agreements awarded increased 13% in full-year 2025, compared to 2024.Global midscale franchise agreements awarded increased 14% in full-year 2025, compared to 2024, including a 50% increase in U.S. franchise agreements for the Country Inn & Suites by Radisson brand, whose U.S. rooms pipeline grew 18% compared to December 31, 2024.Global net upscale rooms grew 6.9% compared to December 31, 2024, highlighted by global hotel openings that more than doubled during full-year 2025.Balance Sheet and LiquidityAs of December 31, 2025, Choice had total available liquidity of $571.4 million, including cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.0x for the full year ended December 31, 2025.During full-year 2025, the Company generated $270.4 million in cash flows from operating activities, including $85.6 million generated in the fourth quarter.During the twelve months ended December 31, 2025, Choice realized $32.4 million in net proceeds from capital recycling activities, and net outlays related to hotel development and lending declined by $46.1 million to $103.4 million compared to the prior year.Shareholder ReturnsDuring the twelve months ended December 31, 2025, the Company returned $189.3 million to shareholders, through $53.5 million in dividends and $135.8 million in share repurchases, under its stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.As of December 31, 2025, the Company had 2.8 million shares of common stock remaining under its current share repurchase authorization.OutlookThe following outlook includes forward-looking non-GAAP measures used by management to forecast the Company's performance. Adjusted metrics exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, due diligence and transition costs, share repurchases completed after December 31, 2025, and other items.Net capital outlays for hotel development-related activities are expected to decline from $103.4 million in 2025 to a range of $20 million to $45 million in 2026.
Full-Year 2026
Net income$265 – $275 million
Adjusted net income$320 – $330 million
Adjusted EBITDA$632 – $647 million
Diluted EPS$5.72 – $5.94
Adjusted diluted EPS$6.92 – $7.14
Effective tax rate25 %
Full-Year 2026 vs. 2025
Global RevPAR growth -2% to 1%
U.S. RevPAR growth-2% to 1%
U.S. royalty rate growthMid-single digitsGlobal net system rooms growth~1% Webcast and Conference CallChoice will host a conference call to discuss fourth quarter and full-year 2025 results on February 19, 2026, at 9:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 549-8228 (U.S.) or (646) 564-2877 (international) using conference ID 96042. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.About Choice Hotels®Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing over 650,000 rooms, in 50 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.Forward-Looking StatementsInformation set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future domestic or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of the company's relationship with employees of our franchisees; foreign currency fluctuations; impairments or declines in the value of the company's assets; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; climate change and sustainability related concerns; business, compliance, reputational, and legal risks related to incorporating artificial intelligence technologies into our processes and franchisee tools; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.Non-GAAP Financial Measurements and Other DefinitionsThe company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, expenses associated with legal claims, (gain) loss on the sale of equity securities, net of dividend income purchased in contemplation of the proposed acquisition of Wyndham Hotels, franchise agreement acquisition cost recoveries, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.Earnings Before Interest, Taxes, Depreciation, and Amortization and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: EBITDA reflects net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt. Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider EBITDA and adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided. Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided. Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.Financial Statements UpdateDuring the first quarter of 2025, the consolidated statements of income were reclassified to evolve the financial statement to classify revenues and expenses based on the nature of the underlying activities. Certain prior year amounts in the consolidated statements of income were reclassified in order to maintain comparability with the current year presentation. The reclassification was not a result of any error in the company's prior classification and had no effect on the company's previously reported total revenues, total operating expenses, operating income, or net income.Royalty, licensing and management fees were revised to franchise and management fees in the consolidated statements of income, and now include the revenues previously presented in royalty, licensing and management fees, with the exception of partnership licensing revenues which are now presented in partnership services and fees in the consolidated statements of income, and the addition of revenues generated from programs, platforms, and services associated with the company's franchise operations which were previously presented in other revenues from franchised and managed properties in the consolidated statements of income. Initial franchise fees, which were previously presented as a standalone financial statement line item, are now presented within franchise and management fees in the consolidated statements of income. Platform and procurement services fees were revised to partnership services and fees in the consolidated statements of income, and now include the revenues previously presented in platform and procurement services fees, with the exception of the revenues from the company's annual franchisee convention which are now presented in other revenue, the addition of partnership licensing revenues which were previously presented in royalty, licensing and management fees, and the addition of the revenues generated from other non-franchising agreements which are primarily software as a service ("SaaS") arrangements for non-franchised hoteliers which were previously presented in other revenue in the consolidated statements of income. Other revenues from franchised and managed properties were revised to revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income, and now include the revenues previously presented in other revenues from franchised and managed properties, with the exception of the revenues generated from programs, platforms, and services associated with the company's franchise operations which are now presented in franchise and management fees in the consolidated statements of income.Selling, general and administrative expenses were revised to include the expenses incurred related to programs, platforms, and services associated with the company's franchise operations, which were previously presented in other expenses from franchised and managed properties in the consolidated statements of income. Depreciation and amortization was revised to include amortization expense from information technology platforms, which was previously presented in other expenses from franchised and managed properties in the consolidated statements of income.Other expenses from franchised and managed properties were revised to reimbursable expenses from franchised and managed properties in the consolidated statements of income, and now include the expenses previously presented in other expenses from franchised and managed properties, with the exception of the expenses incurred from programs, platforms, and services associated with the company's franchise operations which are now presented in selling, general and administrative expenses, and amortization expense from information technology platforms which is now presented in depreciation and amortization expense in the consolidated statements of income.ContactsAllie Summers, Senior Director, Investor Relations
IR@choicehotels.com© 2026 Choice Hotels International, Inc. All rights reserved.
Exhibit 1Choice Hotels International, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
For the Three Months EndedFor the Year Ended
December 31,
December 31,
2025
2024
2025
2024REVENUES
Franchise and management fees
$ 157,266
$ 158,187
$ 673,197
$ 669,637Partnership services and fees
32,476
27,964
113,789
99,491Owned hotels
30,118
28,114
121,373
113,459Other
14,293
14,389
72,230
64,060Revenue for reimbursable costs from franchised and managed properties
155,997
161,116
616,204
638,192Total revenues
390,150
389,770
1,596,793
1,584,839
OPERATING EXPENSES
Selling, general and administrative
85,840
82,368
328,958
312,388Business combination, diligence and transition costs (recoveries)
2,761
(490)
4,701
17,233Depreciation and amortization
16,783
13,408
59,715
51,953Owned hotels
24,413
20,778
91,684
83,148Reimbursable expenses from franchised and managed properties
158,899
154,487
663,336
656,344Total operating expenses
288,696
270,551
1,148,394
1,121,066
Operating income
101,454
119,219
448,399
463,773
OTHER EXPENSES AND (INCOME), NET
Interest expense
23,680
21,067
91,148
87,131Interest income
(1,787)
(2,089)
(6,237)
(8,646)Gain from an acquisition of a joint venture
—
—
(100,025)
—Gain on sale of assets
—
—
(713)
—Loss on extinguishment of debt
—
—
—
331Other (gains) losses, net
(1,330)
1,774
(6,989)
1,641Equity in net loss (gain) of affiliates
3,289
(3,241)
14,324
(12,329)Total other expenses and (income), net
23,852
17,511
(8,492)
68,128
Income before income taxes
77,602
101,708
456,891
395,645Income tax expense
13,920
25,904
86,945
95,980Net income
$ 63,682
$ 75,804
$ 369,946
$ 299,665
Basic earnings per share
$ 1.38
$ 1.62
$ 7.97
$ 6.26Diluted earnings per share
$ 1.37
$ 1.59
$ 7.90
$ 6.20
Exhibit 2Choice Hotels International, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31,
December 31,
2025
2024ASSETS
Cash and cash equivalents
$ 44,997
$ 40,177Accounts receivable, net
207,491
176,672Other current assets
153,510
122,237
Total current assets
405,998
339,086
Property and equipment, net
649,291
604,345Operating lease right-of-use assets
77,670
83,451Goodwill
305,758
220,187Intangible assets, net
1,082,486
884,013Notes receivable, net of allowances
12,490
32,682Investments in affiliates
134,975
117,016Investments, employee benefit plans, at fair value
50,227
47,603Other assets
199,308
202,144
Total assets
$ 2,918,203
$ 2,530,527
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Accounts payable
$ 156,276
$ 134,865Accrued expenses and other current liabilities
125,282
136,729Deferred revenue
100,698
102,114Liability for guest loyalty program
85,035
89,013
Total current liabilities
467,291
462,721
Long-term debt
1,906,122
1,768,526Deferred revenue
130,505
132,259Deferred compensation and retirement plan obligations
56,532
53,316Deferred income taxes
25,303
—Liability for guest loyalty program
39,771
40,607Operating lease liabilities
107,963
113,255Other liabilities
3,487
5,114
Total liabilities
2,736,974
2,575,798
Total shareholders' equity (deficit)
181,229
(45,271)
Total liabilities and shareholders' equity (deficit)
$ 2,918,203
$ 2,530,527
Exhibit 3Choice Hotels International, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)Year Ended December 31,
2025
2024CASH FLOWS FROM OPERATING ACTIVITIES
Net income$ 369,946
$ 299,665Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization59,715
51,953Depreciation and amortization – reimbursable expenses from franchised and managed properties19,554
18,907Franchise agreement acquisition cost amortization31,966
28,702Gain from an acquisition of a joint venture(100,025)
—Gain on sale of assets(713)
—Loss on extinguishment of debt—
331Non-cash share-based compensation and other charges38,254
43,250Non-cash interest, investments, and affiliate income, net(6,439)
(7,282)Deferred income taxes19,764
(19,028)Equity in net loss (gain) of affiliates, less distributions received19,848
(2,327)Franchise agreement acquisition costs, net of reimbursements(83,444)
(112,164)Change in working capital and other(97,979)
17,396Net cash provided by operating activities270,447
319,403CASH FLOWS FROM INVESTING ACTIVITIES
Investments in other property and equipment(38,924)
(39,102)Investments in owned hotel properties(106,871)
(106,750)Contributions to investments in affiliates(93,675)
(52,768)Issuances of notes receivable(6,885)
(37,994)Collections of notes receivable7,373
32,100Business acquisition, net of cash acquired(73,395)
—Proceeds from the sale of assets52,000
—Proceeds from sales of equity securities—
108,149Distributions from sales of affiliates44,617
15,850Other items, net(2,504)
(4,056)Net cash used in investing activities(218,264)
(84,571)CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings pursuant to revolving credit facilities132,982
111,500Proceeds from the issuance of long-term debt—
593,574Proceeds from economic development loans1,850
—Repayment of long-term debt—
(500,000)Debt issuance costs—
(8,069)Purchases of treasury stock(138,304)
(380,743)Dividends paid(53,472)
(55,497)Proceeds from the exercise of stock options6,841
17,525Net cash used in financing activities(50,103)
(221,710)Net change in cash and cash equivalents2,080
13,122Effect of foreign exchange rate changes on cash and cash equivalents2,740
301Cash and cash equivalents, beginning of period40,177
26,754Cash and cash equivalents, end of period$ 44,997
$ 40,177
Exhibit 4CHOICE HOTELS INTERNATIONAL, INC.CURRENCY-NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS (UNAUDITED)
For the Three Months Ended December 31, 2025
ADR
Occupancy
RevPAR
2025
vs. 2024
2025
vs. 2024
2025
vs. 2024Total U.S.
$ 90.57
(3.9) %
51.5 %
(200)bps
$ 46.64
(7.6) % Upscale & Above (1)
146.85
0.3 %
52.0 %
(140)bps
76.38
(2.3) % Midscale & Upper Midscale (2)
94.29
(3.8) %
50.4 %
(240)bps
47.57
(8.1) % Extended Stay (3)
64.40
(0.9) %
66.5 %
(210)bps
42.80
(4.0) % Economy (4)
67.46
(8.1) %
42.6 %
(290)bps
28.73
(14.0) %International (5)
96.67
1.2 %
62.6 %
120bps
60.52
3.2 %Total System (5)
$ 92.20
(2.5) %
54.0 %
(120)bps
$ 49.82
(4.6) %
For the Year Ended December 31, 2025
ADR
Occupancy
RevPAR
2025
vs. 2024
2025
vs. 2024
2025
vs. 2024Total U.S.
$ 95.05
(1.6) %
55.6 %
(80)bps
$ 52.85
(3.0) % Upscale & Above (1)
149.75
(1.4) %
56.3 %
(140)bps
84.35
(3.8) % Midscale & Upper Midscale (2)
99.21
(1.7) %
54.9 %
(100)bps
54.50
(3.4) % Extended Stay (3)
66.10
3.1 %
69.1 %
(210)bps
45.67
— % Economy (4)
70.73
(2.0) %
46.7 %
(40)bps
33.02
(2.8) %International (5)
102.45
1.8 %
64.0 %
100bps
65.61
3.5 %Total System (5)
$ 96.89
(0.7) %
57.5 %
(30)bps
$ 55.70
(1.2) %
For the Three Months Ended
For the Year Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
U.S Average Royalty Rate
Total U.S.
5.19 %
5.09 %
5.14 %
5.06 %
(1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.(2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands.(3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.(4) Includes Econo Lodge and Rodeway brands.(5) International and Total System results are presented on a currency-neutral basis and exclude the impact of foreign currency exchange movements.
Exhibit 5CHOICE HOTELS INTERNATIONAL, INC.SYSTEM HOTEL AND ROOM SUPPLY(UNAUDITED)
Global System by BrandDecember 31, 2025
Hotels
RoomsAscend Hotel Collection499
68,977Cambria Hotels76
10,189Radisson (1)127
22,074Comfort (2)2,141
179,238Quality1,880
148,411Country409
32,928Sleep426
30,648Clarion (3)266
36,516Park Inn26
2,248WoodSpring284
34,176MainStay151
11,017Suburban115
9,558Everhome25
2,870Econo Lodge651
37,023Rodeway442
24,486Other (4)57
6,466(1) Includes Radisson, Radisson Blu, Radisson Individuals, Radisson RED and Park Plaza brands.(2) Includes Comfort family of brand extensions including Comfort Inn and Comfort Suites.(3) Includes Clarion family of brand extensions including Clarion and Clarion Pointe.(4) Includes other brands under Master Franchise Agreements.
U.S. System by Chain ScaleDecember 31, 2025
Hotels
RoomsUpscale & Above364
58,705Midscale & Upper Midscale4,225
322,837Extended Stay567
56,941Economy1,031
58,496
Global System by RegionDecember 31, 2025
Hotels
RoomsU.S6,187
496,979Total International1,388
159,846 Americas (excluding U.S.)537
55,607 Europe & Middle East473
69,898 Asia-Pacific378
34,341
Total System7,575
656,825
Exhibit 6CHOICE HOTELS INTERNATIONAL, INC.NON-GAAP FINANCIAL INFORMATION(UNAUDITED)
ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
(dollar amounts in thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Total selling, general and administrative expenses
$ 85,840
$ 82,368
$ 328,958
$ 312,388
Mark to market adjustments on non-qualified retirement plan investments
(1,153)
(224)
(7,060)
(7,409)
Non-recurring operational restructuring charges and executive severance
(5,720)
(4,895)
(10,519)
(5,683)
Franchise agreement acquisition cost recoveries
—
1,244
—
1,244
Share-based compensation
(3,083)
(5,634)
(21,606)
(21,118)
Expenses associated with legal claims
—
—
—
(2,430)
Amortization of cloud computing arrangements
(324)
—
(513)
—
Global ERP system implementation and related costs
(2,264)
(791)
(5,917)
(1,377)Adjusted selling, general and administrative expenses
$ 73,296
$ 72,068
$ 283,343
$ 275,615
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") AND ADJUSTED EBITDA(dollar amounts in thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Net income
$ 63,682
$ 75,804
$ 369,946
$ 299,665
Income tax expense
13,920
25,904
86,945
95,980
Interest expense
23,680
21,067
91,148
87,131
Interest income
(1,787)
(2,089)
(6,237)
(8,646)
Gain from an acquisition of a joint venture
—
—
(100,025)
—
Gain on sale of assets
—
—
(713)
—
Loss on extinguishment of debt
—
—
—
331
Other (gains) losses, net
(1,330)
1,774
(6,989)
1,641
Equity in net loss (gain) of affiliates
3,289
(3,241)
14,324
(12,329)
Depreciation and amortization
16,783
13,408
59,715
51,953
Amortization of cloud computing arrangements
324
—
513
—EBITDA
$ 118,561
$ 132,627
$ 508,627
$ 515,726
Share-based compensation
3,083
5,634
21,606
21,118
Mark to market adjustments on non-qualified retirement plan investments
1,153
224
7,060
7,409
Franchise agreement acquisition cost amortization and charges
4,478
3,361
20,062
14,953
Revenue for reimbursable costs from franchised and managed properties
(155,997)
(161,116)
(616,204)
(638,192)
Reimbursable expenses from franchised and managed properties
158,899
154,487
663,336
656,344
Global ERP system implementation and related costs
2,264
791
5,917
1,377
Business combination, diligence and transition costs (recoveries)
2,761
(490)
4,701
17,233
Non-recurring operational restructuring charges and executive severance
5,720
4,895
10,519
5,683
Expenses associated with legal claims
—
—
—
2,430Adjusted EBITDA
$ 140,922
$ 140,413
$ 625,624
$ 604,081
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS")
(dollar amounts in thousands, except per share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Net income
$ 63,682
$ 75,804
$ 369,946
$ 299,665
Gain on sale of assets
—
—
(713)
—
Gain from an acquisition of a joint venture
—
—
(100,025)
—
Loss on extinguishment of debt
—
—
—
331
Loss on investments in equity securities, net of dividend income
—
—
—
6,715
Revenue for reimbursable costs from franchised and managed properties
(155,997)
(161,116)
(616,204)
(638,192)
Reimbursable expenses from franchised and managed properties
158,899
154,487
663,336
656,344
Business combination, diligence and transition costs (recoveries)
2,761
(490)
4,701
17,233
Non-recurring operational restructuring charges and executive severance
5,720
4,894
10,519
5,683
Global ERP system implementation and related costs
2,264
791
5,917
1,377
Expenses associated with legal claims
—
—
—
2,430
Gain on sale of an affiliate
—
—
—
(7,232)
Non-recurring joint venture formation transaction costs
—
—
6,498
—
Franchise agreement acquisition cost recoveries
—
(1,244)
—
(1,244)
Income tax expense on adjustments
(3,234)
565
(18,211)
(10,751)Adjusted Net Income
$ 74,095
$ 73,691
$ 325,764
$ 332,359
Diluted EPS
$ 1.37
$ 1.59
$ 7.90
$ 6.20Adjusted Diluted EPS
$ 1.60
$ 1.55
$ 6.94
$ 6.88
Exhibit 7CHOICE HOTELS INTERNATIONAL, INC.OUTLOOK(UNAUDITED)
Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2026
EBITDA & ADJUSTED EBITDA
(in thousands)
Full Year
Full Year
Lower Range
Upper Range
Net income
$ 265,000
$ 275,000
Income tax expense
88,200
91,800
Interest expense
87,600
89,000
Interest income
(6,500)
(6,500)
Other losses, net
100
100
Equity in net loss of affiliates
11,900
11,900
Depreciation and amortization
64,500
64,500
Amortization of cloud computing arrangements
1,200
1,200EBITDA
$ 512,000
$ 527,000
Share-based compensation
20,700
20,700
Franchise agreement acquisition cost amortization and charges
26,100
26,100
Revenue for reimbursable costs from franchised and managed properties
(605,300)
(605,300)
Reimbursable expenses from franchised and managed properties
675,300
675,300
Global ERP system implementation and related costs
1,700
1,700
Business combination, diligence and transition costs
1,500
1,500Adjusted EBITDA
$ 632,000
$ 647,000
ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE ("EPS")
(in thousands, except per share amounts)
Full Year
Full Year
Lower Range
Upper Range
Net income
$ 265,000
$ 275,000
Revenue for reimbursable costs from franchised and managed properties
(605,300)
(605,300)
Reimbursable expenses from franchised and managed properties
675,300
675,300
Business combination, diligence and transition costs
1,500
1,500
Global ERP system implementation and related costs
1,700
1,700
Income tax expense on adjustments
(18,200)
(18,200)Adjusted Net Income
$ 320,000
$ 330,000
Diluted EPS
$ 5.72
$ 5.94Adjusted Diluted EPS
$ 6.92
$ 7.14
View original content to download multimedia:https://www.prnewswire.com/news-releases/choice-hotels-international-reports-fourth-quarter-and-full-year-2025-results-302692143.htmlSOURCE Choice Hotels International, Inc.
Original: Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results
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