- Choice reported net income of $63.7 million in Q4, $369.9 million for 2025.
- U.S. RevPAR fell 2.2 percent in Q4, excluding a 540-basis-point hurricane benefit.
- U.S. extended-stay net rooms grew 11.7 percent.
CHOICE HOTELS INTERNATIONAL reported net income of $63.7 million for the fourth quarter and $369.9 million for full-year 2025. Adjusted EBITDA was $140.9 million in the quarter and $625.6 million for the year.
Global system-wide room growth reached 1.2 percent, led by upscale, extended-stay and midscale brands, Choice said in a statement. International net rooms rose 12.5 percent, with hotel openings up 82 percent, bringing the international system to nearly 160,000 rooms. Full-year global hotel openings increased 14 percent to 440 hotels, including a 42 percent rise in the fourth quarter.
“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, Choice president and CEO. “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.”
U.S. extended-stay net rooms grew 11.7 percent, with hotel openings up 8 percent for the year, the statement said. Global franchise agreements awarded rose 22 percent, including 6 percent in the fourth quarter. The U.S. conversion-room pipeline increased 12 percent sequentially and 7 percent year over year.
Choice’s U.S. RevPAR fell 2.2 percent in the fourth quarter, excluding a 540-basis-point hurricane-related benefit in the prior year. International RevPAR rose 3.2 percent on a currency-neutral basis. Partnership services and fees increased 14 percent to $113.8 million for the year and 16 percent to $32.5 million for the quarter. The U.S. royalty rate rose 8 basis points to 5.14 percent for 2025 and 10 basis points to 5.19 percent in the fourth quarter.
The company accelerated U.S. portfolio optimization, exiting lower-performing hotels while maintaining gross openings, Choice said. The global pipeline exceeded 77,800 rooms at year-end, with 70,600 in the U.S. and 97 percent in upscale, extended-stay and midscale brands. U.S. franchise agreements rose 3 percent in the fourth quarter, led by a 12 percent increase for conversion hotels, while international agreements grew 35 percent, more than doubling for the year.
Looking ahead, Choice expects 2026 net income of $265 million to $275 million, adjusted net income of $320 million to $330 million and adjusted EBITDA of $632 million to $647 million. Global RevPAR is projected between -2 percent and 1 percent, with U.S. RevPAR in the same range. Global net system-room growth is forecast at about 1 percent and net capital outlays for hotel development are expected to fall from $103.4 million in 2025 to $20 million to $45 million in 2026.
The U.S. extended-stay pipeline is expected to keep growing, led by conversion and midscale brands. Global midscale brands, including Country Inn & Suites, grew 18 percent year over year, while global upscale rooms rose 6.9 percent, supported by hotel openings that more than doubled in 2025.
Choice’s strategy focuses on portfolio optimization, capital allocation and growth across high-revenue brands, the company said. It is expanding internationally, strengthening franchisee economics and growing its extended-stay and midscale systems to support profitability and shareholder value.
In November, Choice reported third-quarter net income of $180 million, up from $105.7 million a year earlier on international growth. The company recently debuted a redesigned prototype for its midscale extended-stay Everhome Suites brand, increasing capacity to about 120 suites to boost owner returns while maintaining operational simplicity.
