Core Insights - The company is optimistic about the U.S. lodging cycle, expecting stronger demand driven by lower interest rates, AI infrastructure investments, and favorable demographic trends, alongside significant events like the 2026 World Cup [1] - The hotel pipeline is projected to be 1.7 times more accretive than the current portfolio, indicating a focus on high-quality hotel additions that enhance earnings per unit [2] - The company achieved a nearly 2.5% year-over-year increase in global rooms, with a strong emphasis on higher revenue segments, which now constitute 90% of the portfolio [3] Financial Performance - Adjusted EBITDA for the third quarter rose 7% to $190 million, reflecting growth in higher revenue brand mix and international business contributions [4] - The company generated $185 million in operating cash flow year-to-date, with $69 million in the third quarter, supporting capital allocation priorities [38] - Adjusted earnings per share for the third quarter were $2.10, down from $2.23 year-over-year, primarily due to increased amortization expenses from the acquisition of Choice Hotels Canada [37] Market Trends - The U.S. economy transient segment occupancy has improved year-to-date, indicating a potential positive turn in the cycle [5] - The occupancy index across the U.S. portfolio has increased slightly year-to-date, a positive early indicator for broader RevPAR growth [6] - The international business is positioned as the fastest-growing segment, with a 35% growth in adjusted international EBITDA and an 8% year-over-year increase in the international portfolio [8] Strategic Initiatives - The company is focusing on a higher value direct franchising model, which has grown by 22 percentage points over the past three years, now representing 40% of the international rooms portfolio [7] - Investments in technology are aimed at enhancing franchisee support, with a $6 million technology investment program nearing completion [19] - The loyalty program has grown to over 73 million members, with enhancements expected to drive member engagement and direct bookings [23] Future Outlook - The company expects U.S. RevPAR to range between -3% and -2% for the full year, with a tightening of the adjusted EBITDA outlook to between $620 million and $632 million [40] - The focus remains on capturing demand from retirees and the blue-collar workforce, with significant growth expected in these demographics [24][60] - The company anticipates continued growth in international markets and a doubling of international adjusted EBITDA by 2027 [7][68]

Core Insights - Choice Hotels International is enhancing its Choice Privileges rewards program, introducing new benefits and a Titanium tier in early 2026, aimed at providing members with more rewards and faster paths to Elite status [1][2][3] Group 1: New Program Features - Members will earn rewards every five nights, including milestone rewards like bonus points and gift cards [5] - The new Titanium status will be available at 55 nights or 110,000 Elite Qualifying Credits, offering exclusive benefits such as the ability to book premium properties for half the points [5] - Elite status will be more attainable, with reduced requirements for Gold, Platinum, and Diamond tiers, now requiring five fewer nights than before [5] Group 2: Member Benefits - Members can earn Elite Qualifying Credits through hotel stays and spending on the Choice Privileges Mastercard, which can be used for everyday purchases [5] - Points will never expire for Elite status holders, and a soft landing benefit will prevent sudden loss of status [5] - Members will have the ability to transfer points to friends and family starting in late 2026 [5] Group 3: Market Position and Recognition - Choice Privileges has been recognized as the top hotel rewards program by U.S. News & World Report and WalletHub, reflecting its competitive points redemption rate and flexible options [3][4] - The program is designed based on extensive research with travelers, focusing on flexibility and frequent recognition [3][4] - Choice Hotels operates over 7,000 properties globally, catering to various travel styles and budgets, enhancing the overall travel experience for members [6][9]

Core Insights - Choice Hotels International is launching MainStay Suites in Australia, marking the brand's first expansion outside North America with seven new properties [1][4] - This expansion strengthens Choice Hotels' Australian portfolio to 7,487 rooms across 163 hotels, solidifying its position as a major player in the local market [2][4] - The Australian market is experiencing a surge in demand for extended stay accommodations, particularly in sectors such as business, healthcare, government, and construction [3][7] Company Strategy - The introduction of MainStay Suites aligns with the company's growth strategy and enhances its international footprint, catering to corporate and government travelers as well as project-based workers [4][5] - All new properties will participate in the Choice Privileges loyalty program, allowing members to earn and redeem points at over 7,100 hotels globally [4] - The launch is supported by a strategic partnership with Extended STAY Australasia, leveraging local expertise to deliver a tailored extended stay model [5][9] Market Opportunities - The demand for extended stay accommodations is expected to continue growing, providing significant opportunities for further expansion of the MainStay brand across Australia [4][5] - Choice Hotels anticipates high single-digit international room growth this year, with a portfolio exceeding 150,000 rooms outside the U.S. [5][7] - Recent achievements include agreements in China and Japan, as well as expansion efforts in the Caribbean and Latin America, indicating a robust international growth trajectory [5][6][12]

Core Insights - Choice Hotels International, Inc. (CHH) is expanding its presence in France by adding 50 new properties, which will increase its portfolio from 57 to 107 franchised hotels, totaling over 4,800 rooms [1][10] Expansion Strategy - The new hotels will operate under the Quality Suites brand, complementing existing brands such as Clarion, Quality, Comfort, and Ascend Hotel Collection in France, nearly doubling the company's footprint in the country [2][3] - This expansion is part of a broader strategy to enhance direct franchise growth and strengthen the company's position in key global markets, building on international growth momentum observed in Asia and the Americas [3][6] Market Coverage - The 50 new properties will be distributed across more than 30 cities in France, with 26% located in major urban centers, 52% in mid-sized suburban markets, and 22% in smaller touristic locations, effectively targeting both business and seasonal demand [5][10] - All new hotels will be included in the Choice Privileges loyalty program, which connects over 7,100 properties worldwide, enhancing customer engagement and retention [4] International Growth - Choice Hotels' international portfolio has surpassed 150,000 rooms, with expectations of high single-digit growth in international room count this year [6] - The company is also pursuing strategic partnerships and market entries in regions such as the Caribbean, Latin America, and Asia, including a significant agreement in Brazil covering 70 hotels and over 10,000 rooms [7][9] North American Operations - In North America, the company has strengthened its position by acquiring the remaining stake in Choice Hotels Canada, transitioning to a direct franchising model, which supports faster growth [8]

Core Insights - Choice Hotels International is expanding its portfolio in France by onboarding an additional 50 properties, increasing its total from 57 to 107 hotels, which nearly doubles its presence in the country [2][3]. Company Expansion - The new properties will be part of the Quality Suites brand and will complement existing brands such as Clarion, Quality, Comfort, and Ascend Hotel Collection [2][3]. - This expansion adds over 4,800 rooms and introduces more than 30 new cities to Choice Hotels' network, with a balanced distribution across urban hubs, mid-sized suburban cities, and smaller tourist towns [4]. Market Strategy - The expansion is part of a broader strategy to enhance the company's international footprint, which now exceeds 150,000 rooms outside the U.S., with expectations of high single-digit international room growth this year [5]. - The company aims to capture additional market share in key regions, building on recent achievements in Asia and the Americas [5]. Customer Engagement - All new properties will participate in the Choice Privileges loyalty program, allowing members to earn and redeem points at over 7,100 hotels worldwide, enhancing the value proposition for guests [3][4]. Regional Focus - The new hotels are strategically located near airports, public transportation, and city centers, ensuring stable year-round demand and strong seasonal appeal [4].

Company Overview - Comfort Hotels has been a trusted travel companion for over 40 years, operating more than 2,100 hotels worldwide, providing reliable stays with amenities such as free hot breakfast and Wi-Fi [7][12] - The brand has undergone a multiyear transformation, updating guest rooms and public spaces, and now features a new modern logo [12] Industry Insights - A recent survey indicates that 74% of U.S. travelers consider a relaxing breakfast essential for a great vacation, with 66% ranking breakfast among their favorite family travel memories [1] - The survey also reveals that 78% of respondents enjoy sharing food as a way to connect with others, and 57% associate waffles with cozy, relaxing mornings [2] Consumer Preferences - When it comes to waffles, 41% of respondents prefer crispy waffles, while the remaining 59% favor a softer, fluffier texture [4] - Despite the trend of mini-sized products, 67% of consumers prefer full-size waffles, indicating a strong preference for traditional offerings [5] Marketing and Promotions - Comfort Hotels is celebrating National Waffle Day on August 24, inviting guests to participate in festivities and highlighting the emotional connection breakfast, particularly waffles, has with hotel stays [6] - The company is running a national sweepstakes from August 21 to August 25, where guests can win a one-night stay at participating hotels by engaging on social media [10] Brand Positioning - Comfort Hotels emphasizes the importance of breakfast in creating memorable travel experiences, with over 30 million waffles made annually at its properties [3] - The brand aims to deliver a perfect start to the day for all guests, regardless of their waffle preferences, reinforcing its commitment to customer satisfaction [6]

Core Insights - Cambria Hotels is experiencing growth in both high-demand and emerging markets, with nearly 60 hotels in the pipeline, including new openings in Times Square, NY, and Fort Worth, Texas, as well as its first Canadian property in Thunder Bay, Ontario [1][12] - The upscale portfolio of Choice Hotels now exceeds 110,000 rooms globally, reflecting a 15% year-over-year increase, with nearly 29,000 more rooms in development [1][12] - Cambria Hotels is positioned to attract travelers in aspirational destinations, supported by a commitment to brand success and resources for developers [2] Company Overview - Cambria Hotels offers a distinct experience for modern travelers, featuring contemporary design, spacious rooms, flexible meeting spaces, and locally inspired food and beverages [13] - The brand has over 70 hotels open in major U.S. cities, including Chicago, New York, and Los Angeles, and was ranked 1 in the upscale segment in the J.D. Power 2023 North America Hotel Guest Satisfaction Index Study [13] Specific Properties - Cambria Hotel Templeton in California features 132 rooms, powered by solar energy, and offers curated experiences like ziplining and wine tastings [3][4] - Cambria Hotel Tampa, with 104 rooms, serves as a launchpad for cruise adventures and city exploration, offering a Snooze & Cruise Package [5][6] - Cambria Hotel Plymouth, with 107 rooms, reflects coastal Massachusetts' beauty and is located near historical landmarks [7][8] - Cambria Hotel Portland, the first property in Oregon, features 178 rooms and nearly 1,400 sq ft of meeting space in the Pearl District [9] Rewards Program - Cambria Hotels participates in the Choice Privileges rewards program, allowing members to earn and redeem points for reward nights at over 7,000 Choice-branded hotels [10]

Financial Data and Key Metrics Changes - Adjusted EBITDA reached $165 million, a 2% year-over-year increase, while adjusted earnings per share rose 4% year-over-year to $1.92 [4][24] - Global rooms increased by 2% year-over-year, with a 3% net increase in more revenue-intensive rooms [4][24] - Domestic RevPAR declined approximately 1.6% year-over-year, while overall RevPAR decreased by 2.9% due to reduced government and international travel [27][32] Business Line Data and Key Metrics Changes - The domestic extended stay room system size grew by 10% year-over-year, with a 7% increase in domestic openings [24][25] - The Comfort brand saw a 50% increase in global openings and a 23% year-over-year rise in domestic franchise agreements awarded [25] - The upscale segment expanded by 15% year-over-year, with nearly 29,000 upscale global rooms in the pipeline, a 7% increase over the prior quarter [13][25] Market Data and Key Metrics Changes - International business achieved a 10% growth in adjusted EBITDA, with a 5% year-over-year expansion in the rooms portfolio [4][6] - The Canadian lodging market is projected to grow at an average annual rate of over 5% over the next five years, reaching over $50 billion in total revenues by 2030 [6] - The EMEA region saw a 7% increase in room count year-over-year, with approximately 4,000 rooms onboarded under direct franchise agreements [7] Company Strategy and Development Direction - The company is transitioning to a fully direct franchising model in Canada, expanding its product offering from eight hotel brands to a full portfolio of 22 [6] - Strategic acquisitions and partnerships are being pursued to enhance international market share, including a recent acquisition of the remaining 50% interest in Choice Hotels Canada [5][30] - The focus on revenue-intensive segments is expected to drive long-term growth, with 98% of the rooms in the pipeline belonging to these segments [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic consumer's resilience, citing increased disposable income and a favorable travel environment [17][56] - The company anticipates continued growth in the extended stay segment, which has shown resilience during uncertain economic times [10][18] - Adjusted domestic RevPAR expectations have been revised to a range of -3% to flat for the remainder of the year, reflecting a more cautious outlook [32] Other Important Information - The rewards program expanded to nearly 72 million members, an 8% year-over-year increase, and was recognized as the top hotel rewards program by U.S. News and World Report [19][20] - The company returned $137 million to shareholders year-to-date, including $27 million in cash dividends and $110 million in share repurchases [30] Q&A Session Summary Question: How does the company decide on direct versus master franchise in different markets? - The decision is based on market fundamentals, including the ability of small business owners to aggregate capital and the regulatory environment [35][36] Question: What is the growth outlook for Canada? - The company expects healthy growth in Canada, with a strong existing base of franchisees and a focus on both new construction and conversions [41][44] Question: What are the long-term expectations for international EBITDA? - International EBITDA is currently about 6% of total EBITDA, with significant growth opportunities anticipated in the coming years [47][50] Question: What are the current trends affecting RevPAR guidance? - The company noted softness in international inbound and government travel as key headwinds impacting RevPAR expectations [55][56] Question: Can you clarify the operating profit guarantee and its impact on EBITDA? - The operating profit guarantee is evaluated annually, with a total potential payment of $20 million over the life of the agreement [70][71] Question: How is the company managing occupancy and rate in the current environment? - The company is focused on maintaining occupancy while managing costs, particularly in the extended stay segment, which has lower costs per occupied room [76][78]

Group 1 - Choice Hotels has partnered with Learfield to allow members to use Choice Privileges points to bid on 40 VIP packages during the 2025 college football season, including access to 15 teams such as Ohio State University and University of Michigan [1][3] - The Choice Privileges program has been recognized as the 1 hotel rewards program by U.S. News & World Report and WalletHub, enhancing its appeal to members [2] - Last season, members redeemed nearly 6 million points for gameday experiences, indicating strong engagement with the program [3] Group 2 - The Platinum VIP Experience includes a two-night hotel stay, pre-game hospitality and sideline passes, game tickets, a parking pass, and gift cards, providing significant value to members [6][7] - The Silver VIP Experience offers similar benefits but with fewer perks, catering to a broader range of fans [5][6] - Members can earn points through hotel stays and everyday purchases, with special promotions available for new Choice Privileges Mastercard holders [7][8] Group 3 - The Choice Privileges program allows members to earn and redeem points at over 7,000 hotels globally, with options to exchange points for airline miles or gift cards [9] - Choice Hotels International operates over 7,500 hotels across 46 countries, offering a diverse portfolio of brands to meet various traveler needs [10]

Group 1: Choice Privileges Program Overview - Choice Privileges is a rewards program that allows members to earn and redeem points for stays at over 7,000 hotels in 46 countries and territories, with additional earning opportunities through partners [7] - The program has been refreshed to provide greater value to its 70 million members, offering more ways to use points, including a sweepstakes for members [1][5] - Members can earn additional entries in the sweepstakes by staying qualifying nights during the promotion period, which runs until October 7, 2025 [1] Group 2: Travel Opportunities and Points Usage - Members can use their points for various travel experiences, including stays near national parks, cultural tours, and beach vacations in the Caribbean and Latin America [3][4] - Specific travel routes and the corresponding points required include a national park route starting at 375,000 points, a cultural tour starting at 425,000 points, and a beach vacation starting at 570,000 points [3][4] - A grand prize winner in the sweepstakes will receive 1 million Choice Privileges points, enabling luxury stays and experiences, along with additional prizes for other winners [5] Group 3: Company Background - Choice Hotels International, Inc. is one of the largest lodging franchisors globally, with over 7,500 hotels and nearly 650,000 rooms across 46 countries and territories [8] - The company operates a diverse portfolio of 22 brands, catering to various traveler needs and driving value for franchise owners and shareholders [8] - The Choice Privileges program and co-brand credit card options facilitate earning reward nights and personalized perks for members [8]