NORTH BETHESDA, Maryland—Choice Hotels International, Inc. reported its third-quarter 2025 outcomes. Highlights embrace:
- Internet earnings grew to $180.0 million for the third quarter of 2025 from $105.7 million in the identical interval of 2024, representing diluted EPS of $3.86, a rise from $2.22 within the third quarter of 2024.
- Adjusted EBITDA for the third quarter of 2025 elevated 7 p.c to a third-quarter document of $190.1 million, in comparison with $177.6 million in the identical interval of 2024.
- Adjusted diluted EPS for the third quarter was $2.10, a lower from $2.23 in the identical interval of 2024, reflecting the acquisition of the corporate’s beforehand held 50 p.c fairness funding in Alternative Motels Canada, which resulted in larger amortization expense associated to acquired intangible belongings, a short lived enhance in earnings tax expense anticipated to reverse within the fourth quarter of 2025, the revaluation of the corporate’s beforehand held possession curiosity within the three way partnership, and unrealized international foreign money changes throughout the corporate’s broader operations. Excluding this stuff, third-quarter adjusted EPS would have been $2.27, representing a 2 p.c enhance in comparison with the identical interval of 2024.
- World internet rooms grew 2.3 p.c, pushed by 3.3 p.c progress throughout the extra accretive larger income upscale, prolonged keep, and midscale segments, in comparison with September 30, 2024.
- Worldwide internet rooms grew 8.3 p.c in comparison with September 30, 2024, highlighted by a 66 p.c enhance in openings, and grew 5.2 p.c in comparison with June 30, 2025. Key milestones embrace:
- Added over 4,800 midscale rooms in France by way of direct franchise agreements and is anticipating to just about double the corporate’s France portfolio by year-end 2025.
- Entered Argentina by way of a direct franchise settlement.
- Onboarded almost 80 p.c of the anticipated 9,500 rooms in China below a distribution settlement with SSAW Motels and Resorts.
- Subsequent to quarter-end, launched the midscale extended-stay Mainstay Suites model to Australia by way of direct franchise agreements, the model’s first enlargement outdoors North America, entered new markets in Africa and Suriname, and added a second franchise settlement in Argentina.
- World franchise agreements awarded grew 54 p.c for the third quarter of 2025, in comparison with the identical interval of 2024.
- World pipeline exceeded 86,000 rooms as of September 30, 2025, with 98 p.c concentrated in upscale, extended-stay, and midscale segments.
- U.S. prolonged keep internet rooms grew 12 p.c, highlighted by a 14 p.c enhance in openings, in comparison with September 30, 2024.
“Alternative Motels Worldwide delivered one other quarter of document profitability, underscoring the energy of our portfolio’s continued shift towards higher-value model segments and a number of progress avenues past U.S. RevPAR,” mentioned Patrick Pacious, president and chief government officer. “We’re particularly excited by the accelerating momentum in our worldwide enterprise, the place we’re on monitor to double profitability by 2027. With an accretive, high-quality pipeline that quickly converts signings into openings, and an enhanced worth proposition that’s attracting a rising base of higher-value friends, Alternative is exceptionally well-positioned to ship long-term progress and create significant worth for all stakeholders.”
Monetary Efficiency
- Whole revenues elevated 5 p.c to $447.3 million within the third quarter of 2025, in comparison with the identical interval of 2024.
- Franchise and administration charges elevated 3 p.c to $193.8 million within the third quarter of 2025, in comparison with the identical interval of 2024.
- Partnership providers and charges elevated 19 p.c to $28.9 million within the third quarter of 2025, in comparison with the identical interval of 2024.
- World RevPAR elevated 0.2 p.c for the third quarter of 2025, in comparison with the identical interval of 2024, reflecting worldwide RevPAR progress of 9.5 p.c that was offset by a 3.2 p.c decline in U.S. RevPAR primarily attributable to softer authorities and worldwide inbound demand.
- Worldwide RevPAR elevated 9.5 p.c, or 5.1 p.c on a constant-currency foundation, for the third quarter in comparison with the identical interval in 2024, with progress recorded throughout all areas outdoors of america:
- EMEA delivered an 11 p.c year-over-year enhance.
- Americas (excluding america) reported a 5 p.c year-over-year enhance, pushed by robust outcomes from Canada, the place the newly acquired operations achieved a 7 p.c year-over-year enhance.
- Asia-Pacific grew 5 p.c year-over-year.
- U.S. RevPAR for the extended-stay portfolio outperformed the U.S. lodging trade by 20 foundation factors, whereas the U.S. financial system transient portfolio outperformed its chain scale by 180 foundation factors for the third quarter of 2025, in comparison with the identical interval of 2024.
- U.S. common royalty charge expanded 10 foundation factors to five.15 p.c for the third quarter of 2025, in comparison with the identical interval of 2024.
System Dimension and Growth
- U.S. upscale, extended-stay, and midscale internet rooms portfolio grew 1.6 p.c in comparison with September 30, 2024.
- World internet upscale rooms grew 20.8 p.c within the third quarter of 2025, highlighted by a greater than fourfold enhance in international openings, in comparison with the identical interval of 2024.
- U.S. franchise agreements awarded elevated 7 p.c within the third quarter of 2025, pushed by a 7 p.c enhance for conversion accommodations and a ten p.c enhance for brand spanking new building accommodations, in comparison with the identical interval of 2024.
- World midscale pipeline expanded 5 p.c to just about 30,000 rooms as of September 30, 2025, together with a 15 p.c enhance within the U.S. pipeline for the Nation Inn & Suites by Radisson model in comparison with September 30, 2024.
- U.S. financial system transient manufacturers rooms pipeline grew 35 p.c, and U.S. franchise agreements awarded elevated 27 p.c within the third quarter of 2025, in comparison with the identical interval of 2024.
Steadiness Sheet and Liquidity
As of September 30, 2025, Alternative had whole out there liquidity of $564.2 million, together with money and money equivalents and out there borrowing capability. The corporate’s internet debt-to-adjusted EBITDA ratio was 3.0x for the trailing twelve months ended September 30, 2025.
Through the 9 months ended September 30, 2025, the corporate generated $184.8 million in money flows from working actions, together with $68.7 million generated within the third quarter.
For the three months ended September 30, 2025, Alternative realized $25 million in internet proceeds from capital recycling actions. Through the 9 months ended September 30, 2025, the corporate’s internet outlays associated to lodge growth and lending declined by $53.2 million.
Shareholder Returns
Through the 9 months ended September 30, 2025, the corporate returned $150.4 million to shareholders by way of dividends, share repurchases below its inventory repurchase program, and repurchases from workers in reference to tax withholding and choice workout routines regarding awards below the Firm’s fairness incentive plans.
As of September 30, 2025, the corporate had 3.0 million shares of widespread inventory remaining below its present share repurchase authorization.
Outlook
The next outlook consists of forward-looking non-GAAP measures utilized by administration to forecast the corporate’s efficiency. The web earnings steerage vary has been revised from the corporate’s prior outlook primarily to replicate the $100 million acquire acknowledged through the third quarter of 2025 on the honest worth remeasurement of the beforehand held 50 p.c fairness funding in Alternative Motels Canada. Adjusted diluted EPS displays amortization expense associated to the intangible belongings acquired and the remeasurement of the corporate’s beforehand held fairness curiosity in reference to the acquisition of Alternative Motels Canada—gadgets that weren’t factored into prior steerage. Adjusted metrics exclude the web surplus or deficit generated from reimbursable income from franchised and managed properties, due diligence and transition prices, and any share repurchases accomplished after September 30, 2025, and different gadgets.
