Q3 25 EPS
$2.10
MISS 4.39%
Est. $2.20
Q3 25 Revenue
$447.3M
BEAT +7.26%
Est. $417.1M
vs S&P Since Q3 25
+7.1%
BEATING MARKET
CHH +16.5% vs S&P +9.4%
Market Reaction
Did CHH Beat Earnings? Q3 2025 Results
Choice Hotels International delivered a mixed third quarter for 2025, topping revenue expectations while falling short on the bottom line. Revenue climbed 4.5% year-over-year to $447.34 million, well ahead of the $417.06 million consensus, yet adjust… Read more Choice Hotels International delivered a mixed third quarter for 2025, topping revenue expectations while falling short on the bottom line. Revenue climbed 4.5% year-over-year to $447.34 million, well ahead of the $417.06 million consensus, yet adjusted diluted EPS of $2.10 missed the $2.20 estimate by 4.39%, dragged lower by acquisition-related amortization, a temporary tax expense increase, and unrealized foreign currency adjustments tied to the company's full buyout of Choice Hotels Canada. The Canada acquisition proved central to the quarter's story in multiple ways, as a $100.03 million fair-value remeasurement gain lifted GAAP net income to $180 million but obscured softer underlying domestic performance, with U.S. RevPAR declining 3.2% on weaker government and international inbound travel. International operations offered a meaningful counterweight, with RevPAR rising 9.5% and net rooms growing 8.3%, momentum the company is extending through a newly announced African market entry. Looking ahead, Choice Hotels guided full-year adjusted EPS to $6.82 to $7.05, with U.S. RevPAR growth now tightened to a range of negative 3% to negative 2%.
Key Takeaways
- • Portfolio shift toward higher-value upscale, extended stay, and midscale brand segments
- • International RevPAR growth of 9.5% offsetting U.S. RevPAR decline of 3.2%
- • Adjusted EBITDA grew 7% to $190.1 million, a third-quarter record
- • $100 million gain from fair value remeasurement of previously held 50% equity investment in Choice Hotels Canada
- • U.S. average royalty rate expanded 10 basis points to 5.15%
- • Partnership services and fees grew 19% year-over-year
- • Global franchise agreements awarded grew 54%
- • U.S. extended stay net rooms grew 12%
- • 80% of 2025 openings expected from conversions, which open 80% faster than new construction
CHH YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
CHH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Choice Hotels International delivered another quarter of record profitability, underscoring the strength of our portfolio's continued shift toward higher-value brand segments and multiple growth avenues beyond U.S. RevPAR.”
— Patrick Pacious, Q3 2025 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 | — | — | — | — | — |
| 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% |