Choice Hotels posts record Q3 2025 adjusted EBITDA despite softer US RevPAR

Core Insights - Choice Hotels International reported record adjusted EBITDA of $190.1 million for Q3 2025, a 7% increase despite a decline in US RevPAR [1] - The company's performance was attributed to diversified revenue sources and initial results from ongoing investments [1] Financial Performance - Q3 net income reached $180 million, up from $105.7 million in Q3 2024, with diluted EPS rising to $3.86 from $2.22 YoY [3] - Adjusted diluted EPS for the quarter was $2.10, down from $2.23 in the same period last year due to various expenses and adjustments [4] Revenue and Room Growth - System-wide room count growth and increased revenue from extended stay and upscale segments contributed to performance [2] - Global net rooms grew by 2.3%, with upscale, extended stay, and midscale segments recording 3.3% growth since September 2024 [4] - International net rooms increased by 8.3% YoY, with a global pipeline exceeding 86,000 rooms as of September 30, 2025 [5] Regional Performance - International RevPAR growth was highest in the EMEA region, with an 11% increase YoY [2] - The Americas and Asia-Pacific regions each recorded a 5% increase in RevPAR, while Canada saw a 7% increase [3] - In the US, RevPAR declined by 3.2% YoY, primarily due to reduced demand from government and international inbound segments [3] Strategic Outlook - The CEO expressed optimism about the accelerating momentum in the international business, aiming to double profitability by 2027 [6] - The company is well-positioned for long-term growth with a high-quality pipeline and an enhanced value proposition attracting higher-value guests [7]