Core Insights - Choice Hotels International demonstrated strong development performance in 2025, highlighting the effectiveness of its strategy and global portfolio [1][3] - The company significantly expanded its international presence and achieved record results in the extended stay segment, positioning itself for continued success in 2026 and beyond [1][4] International Growth - Choice Hotels achieved breakthrough international growth, underscoring its commitment to long-term expansion [2][3] - The company acquired the remaining 50% stake in the Choice Hotels Canada joint venture, enhancing its growth potential in the Canadian market [6] - A multi-unit agreement for six new Ascend Collection properties in Québec marks a significant step in the Canadian market [6] - In Europe, the company signed a 50-unit Quality Suites agreement in France, nearly doubling its footprint there [6] - The introduction of MainStay Suites in Australia with seven properties marks the brand's entry into the country [6] - A landmark franchise partnership in China is expected to generate over 100 Comfort and Quality hotels in the next four years [6] - The company expanded its Radisson portfolio in Latin America, entering new markets such as Argentina and Suriname [6] - Agreements for three hotels in Kenya lay the groundwork for future growth in Africa [6] Extended Stay Segment - Choice Hotels' extended stay platform had its strongest year on record, with 66 new domestic extended stay hotels opened in 2025 [4] - The company signed 93 franchise agreements across its four extended stay brands, with WoodSpring Suites leading with 50 contracts [4] - The segment's performance was bolstered by a successful marketing campaign, "Stay in Your Rhythm," which unified the brands under a single value proposition [4] Upscale Portfolio - The upscale brands of Choice Hotels showed steady growth with 27 new domestic hotels opened in 2025 [5] - The domestic upscale pipeline grew to 133 hotels, with expected increases in 2026 [5] - Key initiatives were launched to enhance guest experience and operational efficiency, including a refreshed Ascend Collection identity and new amenities solutions [5] Core Brands Development - The core brands of Choice Hotels awarded 247 U.S. franchise agreements, reflecting strong demand from franchisees [7] - Country Inn & Suites saw a 50% increase in U.S. franchise agreements compared to 2024, while Quality Inn experienced double-digit growth with 57 agreements [7] - Major brand initiatives were advanced, including refreshed identities and a new coffee experience rollout across more than 2,000 hotels expected by mid-2026 [7]

This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Dive Brief: Peachtree Group’s hotel development portfolio has exceeded $2 billion nationwide amid a challenged hospitality investment and construction environment, the commercial real estate firm announced Monday in a release obtained by Hotel Dive. Peachtree is focused on development in key U.S. markets including across Texas in Dallas, Austin and San Antonio. In A ...

Financial Data and Key Metrics Changes - Global RevPAR grew by 1.8%, reflecting the strength of the company's brands and operating model [5] - Adjusted EPS increased by 19%, supported by share buybacks [8][12] - EBIT increased by 13%, driven by margin accretion and positive operating leverage [8][12] Business Line Data and Key Metrics Changes - Fee business revenue increased by 7%, with operating profit up by 14% [10][11] - Fee margin grew by 390 basis points to 64.7% [11][20] - The company added over 31,000 rooms, achieving a gross system growth of 7.7% year over year [6][16] Market Data and Key Metrics Changes - RevPAR in the Americas grew by 1.4%, with occupancy up by 0.1 percentage points [13] - EMEAA RevPAR grew by 4.1%, with occupancy up by 0.8 percentage points [14] - Greater China experienced a RevPAR decline of 3.2%, with occupancy up by 0.3 percentage points [14] Company Strategy and Development Direction - The company aims to continue expanding its brand portfolio, having doubled the number of brands from 10 to 20 over the last decade [29] - Focus on enhancing hotel owner returns and increasing ancillary fee streams [28] - Continued investment in technology to optimize operations and enhance guest engagement [49][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver growth driven by high single-digit fee revenue growth and margin expansion [72] - The company anticipates returning over $1,100,000,000 to shareholders in 2025 [8][72] - Long-term structural growth drivers in Greater China remain strong, supported by technological innovation and a rising middle class [41] Other Important Information - The company declared an interim dividend of 58.6¢, consistent with a 10% growth rate over the past three years [8] - The share buyback program is expected to return over $1,100,000,000 to shareholders, equivalent to just under 6% of the company's market capitalization at the start of the year [25] Q&A Session Summary Question: What are the expectations for future growth in EBITDA and cash generation? - The company expects to maintain leverage within the target range of 2.5 to 3 times net debt to EBITDA, with guidance remaining unchanged from previous communications [27] Question: How is the company addressing cost management? - The company has maintained a disciplined approach to cost management, resulting in a reduction of fee business overheads by 4.5% [20] Question: What is the outlook for the Ruby brand integration? - The second phase of the Ruby brand integration is expected to begin later this year, with plans to expand into new markets [34]