- Choice reported record first-quarter revenue of $340.6 million.
- U.S. RevPAR rose 1.8 percent YoY, excluding prior-year hurricane impact.
- U.S. room openings rose 32 percent, the highest first-quarter level since 2023.
CHOICE HOTELS INTERNATIONAL Inc. reported record first-quarter revenue of $340.6 million for the three months ended March 31. Global net rooms rose 1.7 percent from a year earlier, driven by growth in extended-stay, midscale and upscale brands.
First-quarter results were in line with expectations, supported by U.S. net room growth, franchisee economics and lower capital intensity as it shifts to an asset-light model, Choice said in a statement. The company maintained its full-year 2026 outlook and forecast lower hotel development-related capital outlays.
“Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends,” said Patrick Pacious, Choice president and CEO. “We are driving sequentially improving U.S. net rooms growth, supported by our conversion-led model and more accretive pipeline, achieving faster, more capital-efficient expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders.”
Net income for the quarter was $20.3 million, or $0.44 per diluted share, the statement said. Adjusted EBITDA was $125.7 million, down from $129.6 million a year earlier, while adjusted diluted EPS was $1.07, down from $1.34 due to timing-related factors and a higher effective income tax rate.
Revenue excluding reimbursable costs rose 3 percent to $216.7 million from $209.4 million a year earlier.
U.S. RevPAR rose 1.8 percent year over year in the first quarter, excluding the prior-year hurricane impact. International RevPAR increased 2.6 percent on a currency-neutral basis.
Choice reported higher domestic development activity. U.S. room openings rose 32 percent from a year earlier to the highest first-quarter level since 2023, while room exits fell to the lowest quarterly level since 2023, supporting sequential net rooms growth from year-end 2025.
Global franchise agreements awarded rose 72 percent from the first quarter of 2025, the company said. The U.S. pipeline expanded sequentially to about 71,500 rooms, while the conversion rooms pipeline increased 17 percent year over year and 3 percent from Dec. 31, 2025.
Choice’s development pipeline exceeded 77,700 rooms as of March 31, with 97 percent in extended-stay, midscale and upscale brands.
International net rooms increased 13 percent from a year earlier. Room openings rose 59 percent, bringing the international system to about 160,500 rooms, with growth in Canada and EMEA.
U.S. extended-stay net rooms rose 11.8 percent year over year, with a pipeline of more than 30,300 rooms. In midscale, U.S. room openings rose 57 percent and the pipeline increased 6 percent. Upscale openings rose 112 percent, led by Radisson Individuals, Ascend Collection and Radisson.
The company recently opened four Sleep Inn properties under the Scenic Dreams prototype in Ashland City and Savannah, Tennessee; Middletown, Pennsylvania; and Henderson, Nevada.
Capital recycling generated $24.6 million of proceeds during the quarter, with hotel development and lending shifting from net outflows a year earlier to net inflows in the current period, Choice said.
For full-year 2026, Choice reaffirmed guidance for net income of $265 million to $275 million and adjusted EBITDA of $632 million to $647 million. It expects global and U.S. RevPAR growth ranging from down 2 percent to up 1 percent and global net system rooms growth of about 1 percent.
Net capital outlays for hotel development-related activities are expected to decline to between $20 million and $45 million in 2026 from $103.4 million in 2025.
Choice also integrated artificial intelligence across its enterprise with Amazon Web Services, embedding AI across the hospitality value chain from guest search and booking to franchise operations and distribution.
