US Hospitality Market Forecast to Reach USD 313.87 Billion by 2030: Driven by Growing Domestic Travel and Shift to Online BookingsRakeshnaidu4 min read·1 hour ago1 hour ago--US Hospitality Market OverviewThe United States hospitality market Size is valued at USD 247.45 billion in 2025 and is forecast to reach USD 313.87 billion by 2030, advancing at a 4.9% CAGR. This steady expansion reflects the growing demand for travel and accommodation services, supported by trends such as domestic tourism, bleisure tra ...

Financial Performance - Total revenues for Q3 2025 reached $447.34 million, a 4.8% increase from $427.96 million in Q3 2024[12] - Net income for the nine months ended September 30, 2025, was $306.26 million, compared to $223.86 million for the same period in 2024, reflecting a 37% increase[12] - Basic earnings per share for Q3 2025 were $3.89, up from $2.24 in Q3 2024, representing a 73.2% increase[12] - Operating income for the nine months ended September 30, 2025, was $346.95 million, slightly up from $344.55 million in the same period of 2024[12] - Net income for Q3 2025 reached $179,996,000, up 70% from $105,716,000 in Q3 2024[68] - The company reported a net income available to common shareholders of $304,786,000 for the nine months ended September 30, 2025, compared to $222,726,000 for the same period in 2024, a 37% increase[68] - For the nine months ended September 30, 2025, revenues totaled $1.206 billion, compared to $1.195 billion for the same period in 2024, representing a 0.9% increase[74] - The company experienced a net income of $44,534,000 for the year ending December 31, 2024[21] Assets and Liabilities - Cash and cash equivalents increased to $52.58 million as of September 30, 2025, from $40.18 million at the end of 2024[16] - Total assets grew to $2.91 billion as of September 30, 2025, compared to $2.53 billion at the end of 2024, marking a 14.9% increase[16] - Long-term debt increased to $1.92 billion as of September 30, 2025, from $1.77 billion at the end of 2024[16] - The total outstanding shares decreased from 49,284,204 as of March 31, 2024, to 46,959,039 as of September 30, 2024[20] - The accumulated deficit increased to $2,386,893,000 as of September 30, 2024, compared to $2,332,736,000 as of June 30, 2024[20] Dividends and Share Repurchases - The company declared cash dividends of $0.2875 per share for Q3 2025, consistent with Q3 2024[12] - The company declared dividends of $0.2875 per share, totaling $13,499,000 for the quarter ending September 30, 2024[20] - Cash dividends paid during the nine months ended September 30, 2025, amounted to $40.2 million, with projected annual dividends of approximately $53.5 million for the year ended December 31, 2025[171] - The Company repurchased 0.7 million shares at a total cost of $100.4 million during the nine months ended September 30, 2025, bringing total repurchases to 62.0 million shares for $2.7 billion[173] Revenue Streams - Loyalty net revenues for the three months ended September 30, 2025, were $31.8 million, compared to $23.7 million for the same period in 2024, representing a 34% increase[39] - Franchise and management fees rose to $193.8 million, an increase of 2.9% from $188.2 million in the same quarter of 2024[114] - Domestic royalty fees decreased by $6.9 million to $342.5 million, primarily due to a 1.7% decrease in domestic system-wide RevPAR[129] Acquisitions and Investments - The company reported a gain from an acquisition of a joint venture amounting to $100.03 million in Q3 2025[12] - The Company recognized a gain of approximately $100.0 million from the acquisition of Choice Hotels Canada, which was accounted for as a business combination[80] - The Company acquired the remaining 50% of Choice Hotels Canada for $73.4 million on July 2, 2025, funded through available cash and borrowings[151] Operational Metrics - The company’s performance metrics include revenue per available room (RevPar), occupancy, and average daily room rate (ADR) for assessing segment performance[72] - The company experienced a 3.2% decrease in domestic system-wide RevPAR, attributed to a 2.0% decrease in average daily rates and an 80 basis points decrease in occupancy[117] Future Outlook and Strategic Initiatives - Future outlook includes a projected revenue increase of 10% for Q4 2025, driven by new hotel openings and enhanced marketing strategies[200] - The company is investing $50 million in technology upgrades to improve customer experience and operational efficiency[200] - Market expansion plans include entering three new international markets by the end of 2026[200] - The company is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 30% by 2030[200] Tax and Regulatory Matters - The effective income tax rate for the nine months ended September 30, 2025, was 19.3%, down from 23.8% for the same period in 2024, primarily due to a $100.0 million non-taxable gain from a joint venture acquisition[65] - The effective income tax rate for the three months ended September 30, 2025, was 14.7%, significantly lower than the 22.9% rate in the same period of 2024[124] Miscellaneous - The Company completed the implementation of a new ERP and EPM system, which is expected to strengthen internal controls over financial reporting[185] - The Company is not a party to any material litigation that could adversely affect its financial position[188]

As we look ahead, we're optimistic about the next phase of the U.S. lodging cycle and its impact on new construction openings. In the U.S., we expect last week's lowering of interest rates, continued investments in the build-out of AI infrastructure, and a constructive regulatory environment will drive stronger demand, especially for our travelers. Combined with low industry supply growth, continued favorable demographic trends, and significant demand catalysts such as the 2026 World Cup, the U.S. 250th ann ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 7% year-over-year to $190 million, driven by a stronger revenue brand mix and growth in small and medium business traveler revenue [4][24] - Global rooms grew by 2.3% year-over-year, with higher revenue segments expanding by 3.3% [25][28] - Adjusted earnings per share (EPS) for Q3 2025 was $2.10, down from $2.23 in the prior year, primarily due to increased amortization expenses and temporary tax impacts [31][35] Business Line Data and Key Metrics Changes - The U.S. extended stay segment saw a 12% year-over-year growth in room system size, with openings increasing by 14% [25][28] - The international business achieved a 35% growth in adjusted EBITDA, with an 8% year-over-year increase in the international portfolio [9][24] - The economy transient segment outperformed its chain-scale RevPAR by 310 basis points year-to-date [28] Market Data and Key Metrics Changes - International RevPAR increased by 9.5% year-over-year, with EMEA leading at 11% growth [28] - U.S. RevPAR declined by 3.2% year-over-year, attributed to softer government and international inbound demand [28] - Canadian operations reported a 7% increase in RevPAR for Q3 [28] Company Strategy and Development Direction - The company is focusing on expanding its higher revenue-generating segments, with 98% of its global pipeline in these brands [5][24] - A strategic shift towards a higher value direct franchising model has been implemented, with international EBITDA margins expanding to 70% [8][9] - Investments in technology and AI are aimed at enhancing franchisee success and operational efficiency [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. lodging cycle, citing favorable demographic trends and upcoming events like the 2026 World Cup as demand catalysts [6][7] - The company anticipates sustained RevPAR growth driven by strategic investments and an expanding business travel base [29][36] - The retiree demographic is expected to significantly contribute to future demand, with a projected increase in travel spending [22][49] Other Important Information - The company returned $150 million to shareholders through dividends and share repurchases year-to-date [33] - The full-year adjusted EBITDA guidance has been tightened to a range of $620 million to $632 million [35] - The company is on track to complete its technology investment program, enhancing its operational capabilities [17][23] Q&A Session Summary Question: Clarification on the EverHome joint venture and asset recycling - Management explained that the joint venture allows for longer-term hotel ownership while still focusing on asset recycling, with a net benefit of $25 million from the transaction [37][39] Question: Rationale for not buying back stock during the quarter - The decision was based on prioritizing investments in the business and the acquisition of the remaining interest in Choice Hotels Canada [41][42] Question: Long-term outlook for room growth in the U.S. - Management indicated that the focus remains on high-quality products in the pipeline, with expectations for continued growth in higher value segments [43][44] Question: Insights on the RevPAR environment and competition - Management noted that the current environment is cyclical, with signs of recovery in occupancy rates, particularly in the economy segment [46][48] Question: Expectations for 2026 and growth opportunities - Management highlighted the growing retiree demographic and the resilience of small business travelers as key drivers for future growth [50][52]

Choice Hotels (CHH) reported $447.34 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 4.5%. EPS of $2.10 for the same period compares to $2.23 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $417.29 million, representing a surprise of +7.2%. The company delivered an EPS surprise of -3.67%, with the consensus EPS estimate being $2.18.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Supplemental Investor Materials Higher-quality accretive global pipeline driving earnings growth through superior conversion capability, higher room count, stronger RevPAR, and greater royalty rate November 5, 2025 DRAFT Global expansion driving 4x international adjusted EBITDA growth and margin gains through higher direct franchising and stronger unit economics 1,195 1,398 Number of Units 19% 41% % of Rooms Direct Franchising 45% 72% EBITDA Margin 9K 28K EBITDA Per Unit $10 $39 +203 +22% +27% 3x Adjusted E ...

分组1 - Choice Hotels reported quarterly earnings of $2.1 per share, missing the Zacks Consensus Estimate of $2.18 per share, and down from $2.23 per share a year ago, representing an earnings surprise of -3.67% [1] - The company posted revenues of $447.34 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.20%, compared to year-ago revenues of $427.96 million [2] - Over the last four quarters, Choice Hotels has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - Choice Hotels shares have lost about 35.6% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The current consensus EPS estimate for the coming quarter is $1.57 on revenues of $370.44 million, and for the current fiscal year, it is $7.00 on revenues of $1.55 billion [7] - The Zacks Industry Rank for Hotels and Motels is currently in the bottom 21% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Baron Funds, an investment management company, released its “Baron Focused Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund delivered strong results in the third quarter, appreciating 4.83% (Institutional Shares); however, the performance underperformed the Russell 2500 Growth Index’s (the Benchmark) 10.73% gain. The fund's underperformance stemmed from concerns over a slowdown in economic growth affecting the fund’s more economically sensitive Consumer ...

NORTH BETHESDA, Md., November 5, 2025 – Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor, today reported results for the third quarter ended September 30, 2025. Highlights include: • Net income grew to $180.0 million for third quarter 2025 from $105.7 million in the same period of 2024, representing diluted EPS of $3.86, an increase from $2.22 in third quarter 2024. • Adjusted EBITDA for third quarter 2025 increased 7% to a third-quarter record o ...

Core Insights - Choice Hotels International reported a record profitability for the third quarter of 2025, driven by a strategic shift towards higher-value brand segments and international growth [3][4] - The company aims to double its profitability in the international market by 2027, supported by a robust pipeline of high-quality projects [3][4] Financial Performance - Total revenues increased by 5% to $447.3 million in Q3 2025 compared to Q3 2024 [5] - Net income grew to $180 million in Q3 2025 from $106 million in Q3 2024, resulting in diluted EPS of $3.86, up from $2.22 [7] - Adjusted EBITDA for Q3 2025 reached a record $190.1 million, a 7% increase from $177.6 million in Q3 2024 [7] System Size and Development - Global net rooms grew by 2.3%, with a notable 3.3% increase in higher revenue segments [7] - International net rooms increased by 8.3%, with a 66% rise in openings compared to the previous year [7] - The global franchise agreements awarded surged by 54% in Q3 2025 compared to Q3 2024 [7] Revenue and Fees - Franchise and management fees rose by 3% to $193.8 million in Q3 2025 [8] - Partnership services and fees increased by 19% to $28.9 million in Q3 2025 [8] RevPAR and Market Performance - Global RevPAR increased by 0.2% in Q3 2025, with international RevPAR growth of 9.5% offset by a 3.2% decline in U.S. RevPAR [8] - U.S. extended stay portfolio outperformed the U.S. lodging industry by 20 basis points [8] Balance Sheet and Liquidity - As of September 30, 2025, the company had total available liquidity of $564.2 million [10] - The net debt-to-adjusted EBITDA ratio was 3.0x for the trailing twelve months [10] Shareholder Returns - The company returned $150.4 million to shareholders through dividends and share repurchases during the nine months ended September 30, 2025 [11] Outlook - The net income guidance for full-year 2025 has been revised to a range of $353 million to $371 million, up from previous estimates [13] - Adjusted diluted EPS is projected to be between $6.82 and $7.05 for full-year 2025 [13]