Choice Hotels (CHH) Q1 2026 Earnings
How Did CHH Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +5.69%.
Did CHH Beat Earnings? Q1 2026 Results
No. Choice Hotels reported Q1 2026 earnings of $1.07 a share on Apr 30, 2026, missing the $1.32 consensus estimate by 18.8%. Revenue was $340.6M against a $333.8M estimate.
Choice Hotels International delivered a mixed first quarter for 2026, with revenue edging ahead of expectations while earnings fell well short of the mark. The Rockville-based franchisor posted revenue of $340.57 million, up 2.3% year over year and modestly above the $333.81 million consensus estimate, but adjusted diluted EPS of $1.07 missed the $1.32 consensus by 18.80%, weighed down primarily by a temporarily elevated effective tax rate and timing-related cost factors that management expects to normalize to roughly 25% for the full year. Beneath the headline numbers, development momentum stood out, with U.S. room openings rising 32% year over year and global franchise agreements awarded jumping 72%, building a pipeline exceeding 77,700 rooms. The company's Canadian operations also contributed a bright spot, with RevPAR climbing 5.2% following a direct-franchising transition. Choice Hotels maintained its full-year 2026 guidance, targeting adjusted diluted EPS of $6.92 to $7.14 and adjusted EBITDA of $632 million to $647 million, signaling confidence that the quarterly earnings shortfall reflects timing rather than structural pressure.
- Revenue excluding reimbursable costs increased 3% to $216.7 million
- U.S. royalty rate expanded 11 basis points to 5.22%
- Global net rooms grew 1.7%, driven by 2.5% growth in higher revenue extended stay, midscale, and upscale brands
- U.S. room openings increased 32% reaching highest first-quarter level since 2023
- U.S. RevPAR comparison impacted by approximately 410 basis points from prior-year hurricane effects
- Adjusted EBITDA declined to $125.7 million from $129.6 million reflecting timing-related factors
- Adjusted diluted EPS declined to $1.07 from $1.34 due to timing factors and temporarily elevated effective tax rate
- International net rooms grew 13% with 59% increase in room openings
“Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends.”
Choice Hotels CEO, on the earnings call
What Was Choice Hotels's Outlook in Q1 2026?
Choice Hotels is maintaining its full-year 2026 outlook: 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; adjusted diluted EPS of $6.92–$7.14; effective tax rate of approximately 25%; global RevPAR growth of -2% to 1%; U.S. RevPAR growth of -2% to 1%; U.S. royalty rate growth in the mid-single digits; global net system rooms growth of approximately 1%. Adjusted SG&A is expected to grow at mid-single digits. Net capital outlays for hotel development are expected to decline significantly from $103.4 million in 2025 to $20–$45 million in 2026.
CHH YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $340.6M | $332.9M | +2.3% |
| Operating Income | $60.0M | $79.9M | −24.9% |
| Net Income | $20.3M | $44.5M | −54.4% |
CHH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.