Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results

Choice Hotels International, Inc., a leading global lodging franchisor, reported results for the fourth quarter and full year ended December 31, 2025.

Financial Highlights
- Net income: $369.9M for FY 2025; $63.7M in Q4.
- Diluted EPS: $7.90 for FY; $1.37 in Q4.
- Adjusted EPS: $6.94 for FY; $1.60 in Q4.
- Adjusted EBITDA: Record $625.6M for FY; $140.9M in Q4.
- Total revenues: $1.597B for FY, flat compared to 2024.

Growth & Expansion
- Global hotel openings: 440 in 2025 (+14% YoY), with Q4 openings up 42%.
- International net rooms: +12.5% YoY, reaching ~160,000 rooms.
- Franchise agreements awarded: +22% globally in 2025.
- U.S. extended stay segment: +11.7% net rooms, record hotel openings.

Key international milestones:
- Entered Poland, Suriname, and Kenya with direct franchise agreements.
- Added 4,800 rooms in France via Zenitude Hotel-Residences.
- Onboarded 8,300 rooms in China with SSAW Hotels.
- Introduced Mainstay Suites to Australia.

Performance Metrics
- RevPAR (currency-neutral):
- U.S.: -3.0% FY, -7.6% Q4 (adjusted for hurricane impact).
- International: +3.5% FY, +3.2% Q4.
- Global: -1.2% FY, -4.6% Q4.
- System size: 656,825 rooms worldwide (slight global growth, U.S. portfolio optimization led to -2.9% decline).

Balance Sheet & Shareholder Returns
- Liquidity: $571.4M available at year-end.
- Net debt-to-EBITDA: 3.0x.
- Cash flow from operations: $270.4M in 2025.
- Shareholder returns: $189.3M (dividends + buybacks).

2026 Outlook
- Net income: $265M–$275M.
- Adjusted EBITDA: $632M–$647M.
- Adjusted EPS: $6.92–$7.14.
- Global RevPAR growth: -2% to +1%.
- Net capital outlays for hotel development: Expected to decline sharply to $20M–$45M.

CEO Commentary
Patrick Pacious emphasized record profitability, strong international growth, and extended-stay leadership, positioning Choice for long-term shareholder value creation through disciplined portfolio optimization and targeted investments.