- Choice opened 27 percent more U.S. rooms in Q2.
- RevPAR rose 1.3 percent on rate, occupancy gains.
- Net income fell 21 percent to $64 million in Q2.
CHOICE HOTELS INTERNATIONAL Inc. reported a 27 percent increase in U.S. room openings in the second quarter, adding about 6,400 rooms. This was the highest second-quarter opening level since 2019.
The company reported improved U.S. net rooms growth, supported by lower exits and development activity, Choice said in a statement. U.S. RevPAR increased 1.3 percent in the quarter, driven by a 0.7 percent rise in rate and a 40-basis-point increase in occupancy. International RevPAR increased 2.1 percent on a currency-neutral basis, led by the Caribbean and Latin America, with gains in Canada and Asia-Pacific.
“Our second quarter results reflect encouraging progress across our key priorities, with U.S. net rooms growth improving for the second consecutive quarter to its strongest first-half performance since 2021 and U.S. RevPAR trends strengthening,” said Dom Dragisich, Choice interim CEO. “Over the past several years, we’ve built a stronger commercial engine and technology platform, and we continue to invest in both.”
In May, Patrick Pacious, longtime president and CEO of Choice, stepped down from the position he had held since 2017, effective immediately. Dominic Dragisich, Choice’s chief growth and strategy officer, was named interim CEO.
Development growth
U.S. franchise agreements awarded increased 30 percent, representing about 9,400 rooms under development, Choice said. The U.S. conversion pipeline grew 24 percent year on year to 24,100 rooms and increased 6 percent from March 31, 2026.
U.S. extended-stay net rooms increased 13 percent compared with June 30, 2025, marking the 12th consecutive quarter of double-digit growth.
Global room openings increased 16 percent to about 8,300 rooms during the quarter. International net rooms grew 12.5 percent, driven by growth in Asia-Pacific and EMEA, along with expansion in Canada, the statement said. Global franchise agreements awarded increased 20 percent, representing 11,200 rooms under development.
Choice global pipeline stood at approximately 77,300 rooms as of June 30, including 71,100 U.S. rooms and 6,200 international rooms. About 96 percent of the pipeline was in extended-stay, midscale and upscale brands.
Net income for the quarter was $64 million, or $1.41 per diluted share, down 21 percent from the same period in 2025, the statement said. The decline reflected a higher net reimbursable deficit from franchised and managed properties, increased SG&A expenses, and higher depreciation and amortization from owned hotels and the acquisition of Choice Hotels Canada.
Choice reported first-quarter revenue of $340.6 million for the three months ended March 31, with global net rooms increasing 1.7 percent year on year, driven by growth in extended-stay, midscale and upscale brands.
