Choice Hotels jumps as record Q1 revenue and steady 2026 outlook calm investors
Choice Hotels (CHH) is rising after reporting Q1 2026 results with record revenue of $340.6 million, beating expectations. The company reiterated full-year 2026 guidance and highlighted ongoing capital returns, including $75.2 million returned year-to-date through March 31.
1. What’s driving the move
Choice Hotels shares are moving higher following its first-quarter 2026 earnings update, where the hotel franchisor posted company-record total revenue of $340.6 million, ahead of consensus revenue estimates. Investors also focused on management maintaining its full-year 2026 outlook, which helped offset concern around profitability and near-term EPS pressure.
2. The key numbers from the quarter
For Q1 2026, Choice reported adjusted diluted EPS of $1.07 and adjusted EBITDA of $125.7 million, alongside record revenue of $340.6 million. While adjusted EPS was down versus the prior-year period, the top-line beat and commentary around room growth and pipeline trends supported the stock’s positive reaction.
3. Guidance and capital return angle
Choice reiterated full-year 2026 guidance for adjusted EBITDA of $632 million to $647 million and adjusted diluted EPS of $6.92 to $7.14. The company also emphasized shareholder returns, reporting $75.2 million returned year-to-date through March 31, including share repurchases, reinforcing the market’s focus on cash generation and capital discipline.