Choice Hotels Beats Q4 Estimates with 13% Room Growth, Raises FY26 EPS Guidance
Choice Hotels posted Q4 net income of $63.7 million, $1.60 adjusted EPS topping the $1.56 estimate, on $390.2 million revenue versus $380.3 million forecast. It delivered 13% net room growth and set FY2026 adjusted EPS guidance at $6.92–$7.14 per share.
1. Fourth-Quarter Results
Choice Hotels reported Q4 net income of $63.7 million, or $1.37 per share, and $1.60 adjusted EPS, surpassing analyst forecasts of $1.56. Revenue reached $390.2 million, topping the $380.3 million estimate, driven by strong system-wide ADR and occupancy gains.
2. Franchise Growth
The global lodging franchisor accelerated international expansion, achieving 13% net room growth and a 22% increase in new franchise agreements awarded year-over-year. This growth highlights robust adoption of Choice’s brands across key markets.
3. Fiscal 2026 Guidance
Choice Hotels initiated fiscal 2026 guidance with a GAAP EPS range of $5.72 to $5.94 and adjusted EPS of $6.92 to $7.14 per share. Management cited continued development in the franchise pipeline and operational efficiencies as drivers of next year’s outlook.