Choice Hotels International, Inc. (NYSE: CHH) reported fourth‑quarter 2025 results that surpassed analyst expectations, with revenue of $390.2 million and adjusted earnings per share of $1.60. Adjusted EBITDA for the quarter was $141 million, up 4% from the same period in 2024, while full‑year adjusted EBITDA reached $626 million, a 4% increase year‑over‑year.
Revenue growth was driven by a 3.5% rise in international RevPAR and a 12.5% increase in international rooms to 159,846, offsetting a 7.6% decline in U.S. RevPAR on a currency‑neutral basis. The U.S. segment saw softer demand, partly due to weather‑related disruptions and a broader slowdown in business travel, which weighed on RevPAR and contributed to the overall revenue beat through stronger international performance.
Global rooms grew modestly 0.5% to 656,825, reflecting a small increase in U.S. inventory while international inventory expanded 12.5%. The mix shift toward higher‑margin international franchise properties helped lift earnings, while the U.S. segment’s slower growth highlighted ongoing headwinds in the domestic market.
Management guided for full‑year 2026 adjusted EBITDA of $632–$647 million and a diluted earnings per share of $7.03, indicating confidence in continued international expansion and cost discipline. The guidance maintains a steady outlook despite the U.S. softness, underscoring the company’s focus on higher‑margin segments and portfolio optimization.
CEO Patrick Pacious emphasized the company’s “continued strength of our higher‑revenue brand mix” and the “accelerating earnings contribution from our international portfolio.” He noted that portfolio optimization and a focus on higher‑earning properties are key to sustaining profitability as U.S. rooms decline. The company’s strategy to grow its international franchise network and leverage partnership services has delivered a 16% increase in partnership services and fees to $32.5 million in Q4, supporting the earnings beat.
Capital recycling remained a priority, with net proceeds of $32.4 million generated from the sale of non‑core assets during 2025. The proceeds are expected to fund further franchise development and support the company’s long‑term growth strategy.
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