Choice Hotels Shifts 97% Pipeline to Higher-Revenue Brands, Guides $632–$647M EBITDA
Choice Hotels reported Q4 revenue (ex-reimbursables) of $234 million (up 2%), adjusted EBITDA of $141 million and EPS of $1.60. Management shifted 97% of its global pipeline into higher-revenue brands, awarded 22% more franchise agreements and guided 2026 EBITDA of $632–$647 million.
1. Q4 Financial Results
Choice Hotels reported Q4 revenue (excluding reimbursable revenue) of $234 million, adjusted EBITDA of $141 million and adjusted EPS of $1.60, representing 2% revenue growth and 3% EPS growth year-over-year. Full-year 2025 adjusted EBITDA reached $626 million, up 4% versus 2024 and in line with guidance.
2. Portfolio Mix Shift
Management shifted 97% of its global development pipeline into higher-revenue brands, projects expected to be 1.7 times more accretive than the existing portfolio. Franchise agreements awarded rose 22%, conversion-led openings increased 12% sequentially, and selective exits of about 20 underperforming hotels targeted low-RevPAR properties.
3. International and Extended-Stay Growth
International revenue grew 37% in 2025 with system size up roughly 13% to 160,000 rooms, while direct franchising now accounts for over 40% of that portfolio. The extended-stay segment logged its 10th consecutive quarter of double-digit system growth, representing more than 40% of the U.S. pipeline.
4. 2026 Outlook and Guidance
Choice Hotels guided 2026 adjusted EBITDA of $632–$647 million and adjusted EPS of $6.92–$7.14, based on approximately 1% net global room growth and global RevPAR of -2% to +1%. Management expects U.S. RevPAR to inflect positively in Q2 as tougher hurricane year-ago comparisons roll off.