NORTH BETHESDA, Maryland—Choice Hotels International, Inc. reported its fourth-quarter and full-year 2025 results.
Key Highlights
Highlights include:
- Net income was $369.9 million for full-year 2025 and $63.7 million for the fourth quarter.
- Diluted EPS was $7.90 for full-year 2025 and $1.37 for the fourth quarter, while adjusted EPS was $6.94 for the full year and $1.60 for the fourth quarter.
- Adjusted EBITDA reached a company record $625.6 million for full-year 2025, with fourth quarter adjusted EBITDA of $140.9 million.
- Global hotel openings grew 14 percent to 440 hotels in full-year 2025, including a 42 percent increase in the fourth quarter, compared to the same periods of 2024.
- Global net rooms grew 1.2 percent across the higher revenue upscale, extended-stay, and midscale brands, compared to December 31, 2024.
- International net rooms grew 12.5 percent compared to December 31, 2024, highlighted by an 82 percent increase in hotel openings during full-year 2025, compared to 2024, bringing the international system to nearly 160,000 rooms.
- Global franchise agreements awarded grew 22 percent in full-year 2025, including a 6 percent increase in the fourth quarter, compared to the same periods of 2024.
- U.S. pipeline for conversion rooms increased 12 percent sequentially from September 30, 2025, and 7 percent compared to December 31, 2024.
- U.S. extended stay net rooms grew 11.7 percent compared to December 31, 2024, highlighted by a record number of hotel openings, which increased 8 percent during full-year 2025.
- Full-year 2026, net income is expected to range between $265 to $275 million, and adjusted EBITDA is expected to range between $632 and $647 million.
“Choice Hotels International delivered another year of record profitability in 2025, driven by our double-digit increase in international rooms, continued leadership in the extended-stay segment, and disciplined portfolio optimization,” said Patrick Pacious, president and chief executive officer. “With a high-quality, accretive global development pipeline, targeted investments that strengthen franchisee economics and customer lifetime value, and a disciplined approach to capital allocation, we believe Choice is exceptionally well positioned to drive long-term growth and create meaningful shareholder value.”
Financial Performance
- Partnership services and fees increased 14 percent to $113.8 million in full-year 2025 and 16 percent to $32.5 million in the fourth quarter of 2025, compared to the same periods of 2024.
- U.S. royalty rate expanded 8 basis points to 5.14 percent for 2025 and 10 basis points to 5.19% for the fourth quarter of 2025, compared to the same periods of 2024.
RevPAR
- U.S. RevPAR declined 2.2 percent in the fourth quarter of 2025 compared to the prior year period, adjusted to exclude a 540-basis-point hurricane-related benefit in the fourth quarter of 2024, primarily reflecting softer government and international inbound demand.
- International RevPAR increased 3.2 percent on a currency-neutral basis in the fourth quarter of 2025, compared to the same period of 2024.
System Size and Development
- Accelerated U.S. portfolio optimization, with net room changes reflecting strategic exits of hotels with lower economic contribution and guest satisfaction alongside healthy gross openings and development activity.
- Global pipeline exceeded 77,800 rooms as of December 31, 2025, with 97 percent concentrated in upscale, extended-stay, and midscale brands, including 70,600 rooms in the U.S.
- U.S. franchise agreements awarded increased 3 percent in the fourth quarter of 2025, driven by a 12 percent increase for conversion hotels compared to the same period of 2024.
- International franchise agreements awarded increased 35 percent ithe n fourth quarter of 2025 and more than doubled in full-year 2025 compared to the same periods of 2024. Key international milestones during the fourth quarter included:
- Entered two new direct franchise markets, Poland and Suriname, and executed a direct franchise agreement to enter Kenya.
- Executed franchise agreements for over 700 rooms in Canada following the acquisition of Choice Hotels Canada in the third quarter and the transition to a direct franchising model, driving 49 percent growth in the Canada rooms pipeline since December 31, 2024.
- Completed the onboarding of more than 4,800 midscale rooms in France through a direct franchise agreement with Zenitude Hotel-Residences, nearly doubling the Company’s portfolio in the country.
- Completed the onboarding of more than 8,300 rooms in China under a distribution agreement with SSAW Hotels and Resorts.
- Introduced the midscale extended stay Mainstay Suites brand to Australia, marking the brand’s first expansion outside North America.
- U.S. extended-stay franchise agreements awarded increased 15 percent in full-year 2025, compared to 2024, bringing the U.S. extended-stay pipeline to 30,600 rooms as of December 31, 2025.
- U.S. economy transient brands rooms pipeline grew 6 percent sequentially from September 30, 2025, and U.S. franchise agreements awarded increased 13 percent in full-year 2025, compared to 2024.
- Global midscale franchise agreements awarded increased 14 percent in full-year 2025, compared to 2024, including a 50 percent increase in U.S. franchise agreements for the Country Inn & Suites by Radisson brand, whose U.S. rooms pipeline grew 18 percent compared to December 31, 2024.
- Global net upscale rooms grew 6.9 percent compared to December 31, 2024, highlighted by global hotel openings that more than doubled during full-year 2025.
