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Sep 30, 2025
Choice Hotels Q3 2025 Earnings Report
Choice Hotels reported strong Q3 2025 results with record profitability and notable growth in higher revenue segments and international expansion.
Key Takeaways
Choice Hotels delivered record net income and total revenues in Q3 2025, driven by strategic growth in upscale, extended stay, and midscale segments, as well as international expansion.
Net income rose to $180 million, up from $106 million in Q3 2024
Total revenues grew 5% to $447.3 million, a new third-quarter record
Global net rooms increased by 2.3%, led by 8.3% growth in international rooms
Adjusted EPS declined to $2.10 due to acquisition-related amortization and FX adjustments
Forward Guidance
Choice Hotels raised full-year net income guidance and reaffirmed Adjusted EBITDA guidance, citing stronger-than-expected Q3 results and international momentum.
Positive Outlook
- Full-year net income guidance raised to $353–$371 million
- Adjusted EBITDA expected between $620–$632 million
- Strong international RevPAR growth across all regions
- Robust pipeline of 86,000+ rooms, mostly in higher revenue segments
- U.S. average royalty rate expected to grow mid-single digits
Challenges Ahead
- U.S. RevPAR expected to decline by 2%–3% YoY
- Adjusted EPS forecast slightly reduced from prior guidance
- Temporary increase in income tax expense due to Canada acquisition
- U.S. demand softness in government and international inbound segments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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