Q2 26 EPS
$2.02
BEAT +2.54%
Est. $1.97
Q2 26 Revenue
$440.8M
vs S&P Since Q2 26
-2.4%
TRAILING MARKET
CHH -1.8% vs S&P +0.6%
Market Reaction
Did CHH Beat Earnings? Q2 2026 Results
Choice Hotels International posted a solid second quarter under interim CEO Dom Dragisich, with adjusted diluted EPS of $2.02 beating the $1.97 consensus estimate by 2.54% and revenue rising 3.4% year over year to $440.76 million, as the company's ex… Read more Choice Hotels International posted a solid second quarter under interim CEO Dom Dragisich, with adjusted diluted EPS of $2.02 beating the $1.97 consensus estimate by 2.54% and revenue rising 3.4% year over year to $440.76 million, as the company's extended stay momentum and unit growth acceleration drove outperformance. U.S. Room openings surged 27% year over year, extended stay net rooms expanded 13% for the twelfth consecutive quarter of double-digit growth, and the global pipeline reached approximately 77,300 rooms, with franchise agreements awarded jumping 20% year over year. WoodSpring Suites' recognition as the top-ranked economy extended stay brand for the fifth consecutive year in J.D. Power's 2026 study underscores the portfolio's competitive positioning. Looking ahead, Choice Hotels raised its full-year adjusted EBITDA guidance to $635 million–$650 million and lifted global net system rooms growth guidance to approximately 1.5%, though full-year GAAP net income guidance was trimmed to $230 million–$241 million, reflecting higher reimbursable expenses, increased interest costs, and a 26% effective tax rate.
Key Takeaways
- • U.S. RevPAR increased 1.3% driven by 0.7% rate increase and 40 bps occupancy gain
- • U.S. royalty rate expanded 11 basis points to 5.23%
- • Franchise and management fees increased 6% reflecting higher international royalty fees and franchisee programs revenue
- • U.S. extended stay net rooms grew 13.0% YoY, 12th consecutive quarter of double-digit growth
- • Global net rooms grew 2.6%, with higher-revenue extended stay, midscale, and upscale brands growing 3.6%
- • International RevPAR increased 2.1% on currency-neutral basis led by Caribbean and Latin America
- • U.S. room openings increased 27% YoY to approximately 6,400 rooms, highest Q2 level since 2019
CHH Forward Guidance & Outlook
Choice Hotels raised its full-year 2026 adjusted EBITDA guidance to $635–$650 million (from $632–$647 million), reflecting improvement in U.S. RevPAR, global net rooms growth, and U.S. royalty rate. Full-year adjusted diluted EPS guidance was set at $6.86–$7.10 (prior: $6.92–$7.14). GAAP net income guidance was lowered to $230–$241 million (from $265–$275 million), primarily reflecting higher marketing and reservation system reimbursable expenses, higher interest expense, and a higher effective tax rate of 26%. GAAP diluted EPS is expected at $5.07–$5.31. Global RevPAR growth is expected at 0%–1% (prior: -2% to 1%). U.S. RevPAR growth is expected at 0%–1.25% (prior: -2% to 1%). U.S. royalty rate growth is expected at 7–9 bps (prior: mid-single digits). Global net system rooms growth guidance was raised to approximately 1.5% (from approximately 1%). Net capital outlays for hotel development are expected to decline to $20–$45 million from $103.4 million in 2025. First owned hotel asset sales are expected in the first half of 2027.
CHH YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
CHH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our second quarter results reflect encouraging progress across our key priorities, with U.S. net rooms growth improving for the second consecutive quarter to its strongest first-half performance since 2021 and U.S. RevPAR trends strengthening.”
— Dom Dragisich, Q2 2026 Earnings Press Release
CHH Earnings Trends
CHH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CHH EPS Trend
Earnings per share: estimate vs actual
CHH Revenue Trend
Quarterly revenue: estimate vs actual
CHH Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $1.97 | $2.02 | +2.54% | $440.8M | — |
| Q1 26 MISS | $1.32 | $1.07 | -18.80% | $340.6M | +2.03% |
| Q4 25 BEAT FY | $1.54 | $1.60 | +3.69% | $390.2M | +5.55% |
| FY Full Year | $6.93 | $6.94 | +0.16% | $1.60B | +1.11% |
| Q3 25 MISS | $2.20 | $2.10 | -4.39% | $447.3M | +7.26% |
| Q2 25 BEAT | $1.90 | $1.92 | +0.97% | $426.4M | -0.79% |
| Q1 25 MISS | $1.37 | $1.34 | -1.97% | $332.9M | -3.97% |