Choice Hotels(US:CHH)2025-11-05 15:00Global Expansion & Unit Economics - International adjusted EBITDA is projected to grow 4x from 2022 to 2025F, driven by direct franchising and stronger unit economics[2] - The percentage of rooms under direct franchising is expected to increase from 19% in 2022 to 41% in 2025F[3] - EBITDA per unit is projected to increase from $9,000 in 2022 to $28,000 in 2025F[3] - Adjusted EBITDA is expected to increase from $10 million in 2022 to $39 million in 2025F, a 3x increase[3] Pipeline Composition & Growth Drivers - A new MFA partnership in China is expected to add 9,500 rooms[4] - 98% of the global pipeline is comprised of higher-revenue hotels with higher room count, RevPAR, and royalty rates[5] - Midscale and Extended Stay segments constitute 34% and 39% respectively of the 3Q 2025 Global Portfolio[6] - Conversions make up 35% of the 3Q 2025 Global Pipeline, while new builds account for 65%[6] - Average rooms per unit in the global pipeline are 96, compared to 86 in the global portfolio[6] - Average RevPAR in the global pipeline is $70, compared to $54 in the global portfolio[6] - Conversions are typically opened within 3-6 months, approximately 80% faster than new construction[6]