Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results

Core Insights - Choice Hotels International reported record profitability for 2025, driven by a significant increase in international rooms and strong performance in the extended-stay segment [1][2] Financial Performance - Full-year 2025 net income was $369.9 million, with diluted EPS of $7.90 and adjusted EPS of $6.94 [1][2] - Adjusted EBITDA reached a record $625.6 million for 2025, with fourth-quarter adjusted EBITDA of $140.9 million [1][2] - Total revenues for 2025 were $1.597 billion, a slight increase from $1.585 billion in 2024 [1][2] Growth Metrics - U.S. extended stay net rooms grew by 11.7% compared to December 31, 2024, with a record number of hotel openings increasing by 8% during 2025 [1] - Global franchise agreements awarded increased by 22% in 2025, including a 6% increase in the fourth quarter [1] - International net rooms grew by 12.5% compared to December 31, 2024, with an 82% increase in hotel openings during 2025 [1] Development and Expansion - The U.S. pipeline for conversion rooms increased by 12% sequentially from September 30, 2025, and 7% compared to December 31, 2024 [1] - Key international milestones included the introduction of the Mainstay Suites brand to Australia and onboarding over 8,300 rooms in China [1][2] Shareholder Returns - The company returned $189.3 million to shareholders in 2025, including $53.5 million in dividends and $135.8 million in share repurchases [2] - As of December 31, 2025, the company had 2.8 million shares remaining under its current share repurchase authorization [2] Outlook for 2026 - The company expects net income for 2026 to range between $265 million and $275 million, with adjusted EBITDA projected between $632 million and $647 million [2] - Global RevPAR growth is anticipated to be between -2% and 1%, with U.S. RevPAR growth also expected in the same range [2]