NORTH BETHESDA, Maryland—Choice Hotels International, Inc. reported its fourth-quarter and full-year 2025 outcomes.
Key Highlights
Highlights embody:
- Web earnings was $369.9 million for full-year 2025 and $63.7 million for the fourth quarter.
- Diluted EPS was $7.90 for full-year 2025 and $1.37 for the fourth quarter, whereas adjusted EPS was $6.94 for the complete 12 months and $1.60 for the fourth quarter.
- Adjusted EBITDA reached an organization document $625.6 million for full-year 2025, with fourth quarter adjusted EBITDA of $140.9 million.
- International resort openings grew 14 p.c to 440 accommodations in full-year 2025, together with a 42 p.c enhance within the fourth quarter, in comparison with the identical intervals of 2024.
- International web rooms grew 1.2 p.c throughout the upper income upscale, extended-stay, and midscale manufacturers, in comparison with December 31, 2024.
- Worldwide web rooms grew 12.5 p.c in comparison with December 31, 2024, highlighted by an 82 p.c enhance in resort openings throughout full-year 2025, in comparison with 2024, bringing the worldwide system to almost 160,000 rooms.
- International franchise agreements awarded grew 22 p.c in full-year 2025, together with a 6 p.c enhance within the fourth quarter, in comparison with the identical intervals of 2024.
- U.S. pipeline for conversion rooms elevated 12 p.c sequentially from September 30, 2025, and seven p.c in comparison with December 31, 2024.
- U.S. prolonged keep web rooms grew 11.7 p.c in comparison with December 31, 2024, highlighted by a document variety of resort openings, which elevated 8 p.c throughout full-year 2025.
- Full-year 2026, web earnings is predicted to vary between $265 to $275 million, and adjusted EBITDA is predicted to vary between $632 and $647 million.
“Alternative Inns Worldwide delivered one other 12 months of document profitability in 2025, pushed by our double-digit enhance in worldwide rooms, continued management within the extended-stay section, and disciplined portfolio optimization,” stated Patrick Pacious, president and chief govt officer. “With a high-quality, accretive world improvement pipeline, focused investments that strengthen franchisee economics and buyer lifetime worth, and a disciplined method to capital allocation, we imagine Alternative is exceptionally nicely positioned to drive long-term development and create significant shareholder worth.”
Monetary Efficiency
- Partnership providers and charges elevated 14 p.c to $113.8 million in full-year 2025 and 16 p.c to $32.5 million within the fourth quarter of 2025, in comparison with the identical intervals of 2024.
- U.S. royalty charge expanded 8 foundation factors to five.14 p.c for 2025 and 10 foundation factors to five.19% for the fourth quarter of 2025, in comparison with the identical intervals of 2024.
RevPAR
- U.S. RevPAR declined 2.2 p.c within the fourth quarter of 2025 in comparison with the prior 12 months interval, adjusted to exclude a 540-basis-point hurricane-related profit within the fourth quarter of 2024, primarily reflecting softer authorities and worldwide inbound demand.
- Worldwide RevPAR elevated 3.2 p.c on a currency-neutral foundation within the fourth quarter of 2025, in comparison with the identical interval of 2024.
System Measurement and Growth
- Accelerated U.S. portfolio optimization, with web room modifications reflecting strategic exits of accommodations with decrease financial contribution and visitor satisfaction alongside wholesome gross openings and improvement exercise.
- International pipeline exceeded 77,800 rooms as of December 31, 2025, with 97 p.c concentrated in upscale, extended-stay, and midscale manufacturers, together with 70,600 rooms within the U.S.
- U.S. franchise agreements awarded elevated 3 p.c within the fourth quarter of 2025, pushed by a 12 p.c enhance for conversion accommodations in comparison with the identical interval of 2024.
- Worldwide franchise agreements awarded elevated 35 p.c ithe n fourth quarter of 2025 and greater than doubled in full-year 2025 in comparison with the identical intervals of 2024. Key worldwide milestones through the fourth quarter included:
- Entered two new direct franchise markets, Poland and Suriname, and executed a direct franchise settlement to enter Kenya.
- Executed franchise agreements for over 700 rooms in Canada following the acquisition of Alternative Inns Canada within the third quarter and the transition to a direct franchising mannequin, driving 49 p.c development within the Canada rooms pipeline since December 31, 2024.
- Accomplished the onboarding of greater than 4,800 midscale rooms in France by means of a direct franchise settlement with Zenitude Resort-Residences, almost doubling the Firm’s portfolio within the nation.
- Accomplished the onboarding of greater than 8,300 rooms in China below a distribution settlement with SSAW Inns and Resorts.
- Launched the midscale prolonged keep Mainstay Suites model to Australia, marking the model’s first growth outdoors North America.
- U.S. extended-stay franchise agreements awarded elevated 15 p.c in full-year 2025, in comparison with 2024, bringing the U.S. extended-stay pipeline to 30,600 rooms as of December 31, 2025.
- U.S. economic system transient manufacturers rooms pipeline grew 6 p.c sequentially from September 30, 2025, and U.S. franchise agreements awarded elevated 13 p.c in full-year 2025, in comparison with 2024.
- International midscale franchise agreements awarded elevated 14 p.c in full-year 2025, in comparison with 2024, together with a 50 p.c enhance in U.S. franchise agreements for the Nation Inn & Suites by Radisson model, whose U.S. rooms pipeline grew 18 p.c in comparison with December 31, 2024.
- International web upscale rooms grew 6.9 p.c in comparison with December 31, 2024, highlighted by world resort openings that greater than doubled throughout full-year 2025.
