Q2 26 EPS
$N/A
Q2 26 Revenue
N/A
vs S&P Since Q2 26
-6.3%
TRAILING MARKET
CHH -4.5% vs S&P +1.7%
Market Reaction
Did CHH Beat Earnings? Q2 2026 Results
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 m… Read more 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.
Key Takeaways
- • 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
CHH Forward Guidance & Outlook
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
Q2 2026 vs Q2 2025, source: SEC Filings
CHH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends.”
— Patrick Pacious, 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 | — | — | — | — | — |
| 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% |