The company is adjusting its RevPAR outlook to reflect a more moderate domestic expectation amidst a changing macroeconomic backdrop.

The company's adjusted EBITDA outlook reflects an incremental contribution of approximately $6 million for the remainder of 2025 from the acquisition of Choice Hotels Canada.

The outlook information below includes forward-looking non-GAAP financial measures, which management uses in forecasting performance. The adjusted numbers in the company's outlook below exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, due diligence and transition costs, additional repurchases of company stock, and other items.

These figures include the $2 million impact from the operating guarantee payment related to managed hotels incurred during the second quarter of 2025.

Domestic revenue per available room (RevPAR) decreased by 2.9% for second quarter 2025, compared to the same period of 2024, reflecting macroeconomic uncertainty and previously disclosed difficult comparisons due to the timing of Easter and eclipse-related travel in 2024. Excluding the Easter and eclipse impacts, domestic RevPAR declined approximately 1.6% for second quarter 2025, compared to the same period of 2024.

Choice Hotels International Reports Second Quarter 2025 Results

Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, today reported its second quarter 2025 results.

• Grows Global Net Rooms System Size by 2.1%,
• Including 3.0% Growth for More Revenue-Intense Portfolio
• Accelerates International Growth with Expansion to Over 140,000 Rooms

Highlights include:

• Net income was $81.7 million for second quarter 2025, compared to $87.1 million in the same period of 2024, representing diluted earnings per share (EPS) of $1.75, compared to $1.80 in second quarter 2024.
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for second quarter 2025 grew to $165.0 million, a second quarter record and a 2% increase compared to the same period of 2024. Excluding the impact of a $2 million operating guarantee payment for a portfolio of managed hotels, which was acquired in connection with the company's purchase of Radisson Hotels Americas, second quarter 2025 adjusted EBITDA was $167.0 million.
• Adjusted diluted EPS for second quarter 2025 grew to $1.92, a second quarter record and a 4% increase compared to the same period of 2024.
• Increased net global rooms system size by 2.1%, including 3.0% growth for global upscale, extended stay, and midscale rooms portfolio, compared to June 30, 2024.
• Increased net international rooms system size by 5.0%, highlighted by a 15% increase in openings, compared to June 30, 2024.
• Accelerated international expansion, including strengthening the company's presence in Brazil by extending a master franchise agreement for over 10,000 rooms with Atlantica Hospitality International by 20 years, nearly tripling the room count in France through a direct franchise agreement with Zenitude Hotel-Residences, and signing strategic agreements with SSAW Hotels & Resorts in China, including a distribution agreement which is expected to add over 9,500 rooms in 2025 and a master franchising agreement, which is expected to add approximately 10,000 rooms over the next five years.
• Acquired the remaining 50% interest in Choice Hotels Canada in July for approximately $112 million, subject to customary adjustments for working capital and cash, funded through available cash and existing credit facilities. The transaction paves the way for the company's accelerated growth in Canada by expanding the product offering from eight to 22 Choice brands, including particularly strong opportunities in the extended-stay segment. The portfolio includes 327 units and over 26,000 rooms, already reflected in the company's system count. Management expects the total Choice Hotels Canada business to generate approximately $18 million in EBITDA for full year 2025.¹
• Global pipeline exceeded 93,000 rooms as of June 30, 2025, including nearly 77,000 domestic rooms.
• Increased net rooms portfolio for the domestic extended stay segment by 10.5% compared to June 30, 2024, and the segment's pipeline reached nearly 43,000 rooms as of June 30, 2025.

"Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy," said Patrick Pacious, President and Chief Executive Officer.

"We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement, and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders."

1 - The July 2, 2025 exchange rate of 0.734 was used to convert the purchase price and EBITDA from Canadian dollars to US dollars.