Choice Hotels Q3 revenue and adjusted EPS beat estimates, raises FY RevPAR outlook
CHH•Choice Hotels reported Q3 revenue of $458.33 million and adjusted EPS of $2.33, beating estimates of $447.52 million and $2.29. It raised its 2026 global RevPAR growth outlook to 1.5%-2.5% and adjusted EBITDA outlook to $641 million-$651 million, while lowering its net income outlook to $178 million-$185 million.
1. Quarterly results
Choice Hotels' Q3 revenue rose year over year and beat analyst expectations, while adjusted EPS of $2.33 topped the $2.29 consensus. Net income was $58 million, down year over year due to a prior-year gain and current charges.
2. Revised outlook
The company raised its 2026 global RevPAR growth forecast to 1.5%-2.5% from 0%-1% and lifted its adjusted EBITDA outlook to $641 million-$651 million from $635 million-$650 million. It lowered its net income outlook to $178 million-$185 million from $230 million-$241 million.
3. Operating drivers
Higher franchise and management fees, mainly from increased U.S. royalties and royalty rate expansion, benefited Q3 results. U.S. RevPAR rose 3.8%, while the U.S. conversion pipeline grew 6% from the prior quarter and 29% year over year. After the quarter, Choice Hotels completed the sale of two owned hotels.
