NORTH BETHESDA, Maryland—Choice Hotels International, Inc. reported its first-quarter 2026 outcomes.
Highlights embody:
- Complete revenues reached an organization document $340.6 million for the primary quarter.
- Web revenue was $20.3 million for the primary quarter, representing diluted EPS of $0.44.
- Adjusted EBITDA totaled $125.7 million, whereas adjusted diluted EPS reached $1.07 for the primary quarter.
- U.S. royalty price expanded 11 foundation factors to five.22 p.c for the primary quarter, in comparison with the identical interval of 2025.
- International internet rooms grew 1.7 p.c in comparison with March 31, 2025, pushed by 2.5 p.c development in higher-revenue extended-stay, midscale, and upscale manufacturers.
- U.S. room openings elevated 32 p.c within the first quarter in comparison with the identical interval of 2025, reaching the very best first-quarter stage since 2023, whereas exits declined year-over-year to the bottom quarterly stage since 2023, driving sequential internet rooms development from year-end 2025.
- International franchise agreements awarded elevated 72 p.c within the first quarter, in comparison with the identical interval of 2025.
- U.S. pipeline grew sequentially to roughly 71,500 rooms, with the conversion rooms pipeline growing 17 p.c in comparison with March 31, 2025, and three p.c sequentially from December 31, 2025.
- Capital recycling generated $24.6 million of proceeds within the first quarter, with resort growth and lending shifting from internet outflows within the prior yr to internet inflows within the present interval.
“Alternative Motels delivered first-quarter monetary outcomes consistent with expectations, with key working indicators signaling an inflection level in underlying tendencies,” mentioned Patrick Pacious, president and chief govt officer. “We’re driving sequentially bettering U.S. internet rooms development, supported by our conversion-led mannequin and extra accretive pipeline, attaining sooner, extra capital-efficient growth. Franchisee unit economics proceed to strengthen, and capital depth is declining. This positions Option to ship extra constant earnings development and enhances our capability to return capital to shareholders.”
Monetary Efficiency
- Income excluding reimbursable prices elevated 3 p.c to $216.7 million within the first quarter, from $209.4 million within the prior yr.
- Adjusted EBITDA was $125.7 million for the primary quarter, in comparison with $129.6 million within the prior yr, primarily reflecting timing-related components and consistent with expectations.
- Adjusted diluted EPS was $1.07 for the primary quarter, in comparison with $1.34 within the prior yr, reflecting timing-related components and a briefly elevated efficient revenue tax price that’s anticipated to be roughly 25 p.c for the total yr.
RevPAR
U.S. outcomes included a big hurricane-related influence of roughly 410 foundation factors, affecting the year-over-year comparability.
- U.S. RevPAR elevated 1.8 p.c within the first quarter, in comparison with the identical interval of 2025, excluding the prior-year hurricane-related influence.
- Worldwide RevPAR elevated 2.6 p.c on a currency-neutral foundation within the first quarter, in comparison with the identical interval of 2025.
System Measurement and Growth
- International pipeline exceeded 77,700 rooms as of March 31, 2026, with 97 p.c concentrated in extended-stay, midscale, and upscale manufacturers, supporting a extra accretive future earnings profile.
- Franchise agreements awarded elevated 65 p.c within the U.S. and 113 p.c in worldwide markets within the first quarter of 2026, in comparison with the identical interval of 2025.
- Worldwide internet rooms grew 13 p.c in comparison with March 31, 2025, highlighted by a 59 p.c improve in room openings, bringing the worldwide system to roughly 160,500 rooms, with sturdy momentum throughout areas, together with Canada and EMEA.
- Prolonged keep stays a core development engine, supported by sturdy unit economics and continued developer demand, with U.S. prolonged keep internet rooms rising 11.8 p.c in comparison with March 31, 2025, and a pipeline of over 30,300 rooms as of March 31, 2026.
- U.S. midscale room openings elevated 57 p.c in comparison with the identical interval of 2025, and the pipeline grew 6 p.c from March 31, 2025, reflecting bettering proprietor returns and demand for cost-efficient prototypes.
- U.S. economic system transient rooms pipeline grew 26 p.c sequentially from December 31, 2025, supported by a 13 p.c improve in franchise agreements awarded within the first quarter of 2026.
- U.S. upscale room openings elevated 112 p.c in comparison with March 31, 2025, and the pipeline grew 8 p.c in comparison with March 31, 2025, pushed by Radisson People, Ascend Assortment, and Radisson model.
Steadiness Sheet and Liquidity
As of March 31, 2026, Alternative had complete out there liquidity of $474.0 million, together with money and money equivalents and out there borrowing capability. The corporate’s internet debt-to-adjusted EBITDA ratio was 3.2x for the trailing twelve months ended March 31, 2026.
In the course of the first quarter of 2026, the corporate used $23.2 million of money in working actions, primarily reflecting the timing of working capital gadgets and elevated franchise settlement acquisition price funds related to increased world room openings, which elevated 37 p.c in comparison with March 31, 2025.
In the course of the three months ended March 31, 2026, Alternative generated $24.6 million in proceeds from capital recycling actions, as money flows associated to resort growth and lending shifted meaningfully from internet outflows of $41.3 million within the prior yr to internet inflows of $3.7 million.
