Choice Hotels International Stock Earnings Reports

Choice Hotels reported a strong Q3 2025 driven by portfolio mix shift toward higher-revenue segments, conversions and international expansion. Record adjusted EBITDA of $190M (up 7% YoY) allowed management to raise the midpoint and tighten full-year adjusted EBITDA guidance to $620M–$632M. Global rooms grew ~2.3% YoY (3.3% in higher-revenue segments); U.S. RevPAR was down ~3.2% YoY while international RevPAR grew ~9.5% (constant currency EMEA +11%). The company highlighted accelerating international momentum (150k+ rooms outside the U.S., 66% YoY increase in openings), a direct-franchise shift that improves royalty rates and margins, and a target to generate >$50M of international adjusted EBITDA by 2027 (double 2024 baseline). Extended-stay and upscale segments are key growth drivers (extended stay now >55k U.S. rooms and ~50% of U.S. pipeline; Everhome Suites scaling via JV pipeline). Management emphasized technology and AI investments (~$60M program near completion) to boost franchisee productivity, revenue management and loyalty, and expects low single-digit SG&A growth. Capital allocation priorities remain: invest in growth and M&A (completed remaining Canada acquisition), recycle capital from owned hotels, and return cash to shareholders (YTD $150M dividends and buybacks). Balance sheet: net debt/TTM EBITDA ~3.0x and liquidity ~$564M. Full-year 2025 outlook: U.S. RevPAR now expected -3% to -2%; adjusted EPS guidance $6.82–$7.05 (impact from Canada acquisition amortization and JV timing).