Choice Hotels International Reports Third Quarter 2026 Results

Choice Hotels International, Inc., a leading global lodging franchisor with an asset-light model, reported results for the third quarter ended September 30, 2026.

Key Financial Highlights
- Net income: $58 million.
- Adjusted EBITDA: $193 million.
- Adjusted diluted EPS: $2.33.

RevPAR Growth
- U.S. RevPAR increased 3.8% year-on-year.
- Global RevPAR rose 3.9%.
- Growth was driven by higher occupancy and room rates.

Room and Pipeline Expansion
- Global net rooms grew 1.7% year-on-year.
- International net rooms increased 7.3%.
- Global development pipeline reached 78,200 rooms, with 96% concentrated in extended-stay, midscale, and upscale brands.

Development Momentum
- U.S. franchise agreements awarded increased 24%, representing 6,900 new rooms.
- U.S. conversion pipeline expanded to 25,500 rooms, up 29% from a year ago.

Strategic Initiatives
- Completed the acquisition of Harvest Hosts, expanding into the outdoor travel and RV segment.
- Continued asset-light strategy through the sale of two owned hotels while retaining franchise agreements.

Shareholder Returns
- Returned $211 million to shareholders during the first nine months of 2026 through dividends and share repurchases.

Outlook
- Raised its full-year U.S. and global RevPAR forecasts.
- Increased adjusted EBITDA guidance.
- Expects U.S. net room growth to improve to approximately 1% by year-end.

Key Takeaway
- Choice Hotels delivered solid third-quarter performance, supported by stronger RevPAR growth, expanding franchise development, growing international presence, and continued progress toward its asset-light growth strategy.