Choice Hotels International Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.25%.
Did CHH Beat Earnings? Q4 2025 Results
Choice Hotels International closed out Q4 2025 with a clean beat on both top and bottom lines, posting adjusted diluted EPS of $1.60 against a consensus estimate of $1.54, a 3.90% beat, while revenue of $390.15 million topped expectations of $372.55 million by 4.73%, though it was essentially flat year-over-year at just 0.1% growth. The headline driver behind the quarter's resilience was a record full-year adjusted EBITDA of $625.62 million and a surge in global development activity, with hotel openings climbing 14% for the full year and international net rooms expanding 12.5% to nearly 160,000 rooms. A softer domestic backdrop weighed on results, as U.S. RevPAR declined on a reported basis amid weakened government and international inbound demand, though management noted the prior year carried a significant hurricane-related tailwind. Deutsche Bank raised its price target to $119 following the results, maintaining a Hold rating. Looking ahead, Choice guided FY 2026 adjusted diluted EPS of $6.92 to $7.14, with global RevPAR growth projected in a range of -2% to 1%.
- International net rooms growth of 12.5% compared to December 31, 2024
- U.S. extended stay net rooms growth of 11.7% year-over-year
- Partnership services and fees increased 16% in Q4 2025
- U.S. royalty rate expansion of 10 basis points to 5.19% in Q4
- Global franchise agreements awarded grew 22% in full-year 2025
- Global hotel openings grew 14% to 440 hotels in full-year 2025
- $100 million gain from fair value remeasurement of Choice Hotels Canada equity investment boosted full-year GAAP results
“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.”
Choice Hotels CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Choice Hotels expects net income of $265–$275 million, adjusted net income of $320–$330 million, adjusted EBITDA of $632–$647 million, diluted EPS of $5.72–$5.94, and adjusted diluted EPS of $6.92–$7.14. The company expects an effective tax rate of 25%. Global and U.S. RevPAR growth is projected at -2% to 1%, U.S. royalty rate growth at mid-single digits, and global net system rooms growth of approximately 1%. Net capital outlays for hotel development-related activities are expected to decline from $103.4 million in 2025 to a range of $20–$45 million in 2026.
CHH YoY Financials
CHH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.