Choice Hotels International Reports First Quarter 2025 Results

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) reported strong Q1 2025 results with net income rising 44% to $44.5 million. The company achieved record first-quarter adjusted EBITDA of $129.6 million, up 4% year-over-year, and adjusted diluted EPS of $1.34, a 5% increase. Key operational highlights include a 2.8% growth in global rooms system and a 2.3% increase in domestic RevPAR. The extended stay segment showed particularly strong performance with 10.8% portfolio growth and 6.8% RevPAR increase. However, Choice Hotels adjusted its full-year 2025 outlook, revising domestic RevPAR growth expectations to -1% to 1%, down from the previous 1% to 2%, citing a changing macro backdrop.

Positive

• Net income increased 44% to $44.5 million in Q1 2025
• Record Q1 adjusted EBITDA of $129.6 million, up 4% YoY
• Extended stay portfolio grew 10.8% with RevPAR increase of 6.8%
• Partnership services and fees increased 28% to $25.4 million
• Global upscale net rooms portfolio grew by 16.2%
• Strong liquidity position with $593.8 million available

Negative

• Downward revision of full-year 2025 RevPAR growth guidance from 1-2% to -1% to 1%
• Adjusted net income outlook reduced to $324-339 million from $333-345 million
• Net debt leverage ratio at 3.0 times as of March 31, 2025

Insights

Hospitality Financial Analyst

Choice Hotels delivered strong Q1 results with 44% net income growth, but lowered full-year RevPAR guidance signaling caution ahead.

Choice Hotels International posted exceptional Q1 2025 financial results with net income surging 44% to $44.5 million and diluted EPS jumping 52% to $0.94 year-over-year. The company achieved first-quarter records in both adjusted EBITDA ($129.6 million, +4%) and adjusted diluted EPS ($1.34, +5%).

Revenue performance shows strategic strength across segments. Domestic RevPAR grew 2.3%, outperforming competitive chain scales by 60 basis points. The extended stay segment was particularly robust with 6.8% RevPAR growth (410 basis points above industry) and the economy portfolio impressed with 7.1% RevPAR growth (440 basis points above its chain scale).

The revenue improvement stems from both pricing power (ADR up 1.7%) and increased demand (occupancy +30 basis points). Meanwhile, the effective royalty rate increased 8 basis points to 5.11%, enhancing revenue efficiency per booking.

Choice's growth strategy shows clear focus on higher-value segments. Global rooms increased 2.8% overall, with the upscale portfolio expanding by an impressive 16.2%. The domestic extended stay segment grew 10.8% with a substantial pipeline of 40,000 rooms. Total pipeline stands at 95,000 rooms globally, indicating strong future expansion potential.

Non-room revenue diversification is evident with partnership services and fees jumping 28% to $25.4 million, creating valuable additional revenue streams beyond traditional room fees.

Despite these strong Q1 results, management has reduced full-year 2025 guidance. RevPAR growth expectations were lowered from 1-2% to -1% to 1%, citing a "changing macro backdrop." This adjustment cascaded to other financial targets, with adjusted EBITDA now projected at $615-635 million (down from $625-640 million) and adjusted net income at $324-339 million (from $333-345 million).

The balance sheet remains solid with $593.8 million in total available liquidity and a net debt leverage ratio of 3.0x. Cash flow from operations improved significantly to $20.5 million, an $18.7 million increase year-over-year. Choice maintained shareholder returns through $13.5 million in dividends and repurchasing 456,000 shares for $64.6 million in Q1.

The contrast between strong current performance and cautious forward guidance suggests management is preparing for potential headwinds while demonstrating that Choice's strategic positioning in resilient segments like extended stay provides competitive advantages even in changing market conditions.

Drives Domestic RevPAR Growth of 2.3% Year-over-Year, Outperforming its Chain Scales

Grows Global Net Rooms System Size by 2.8%,

Including 3.9% Growth for More Revenue-Intense Portfolio

NORTH BETHESDA, Md., May 8, 2025 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, today reported its first quarter 2025 results.

Highlights include:

• Net income increased 44% to $44.5 million for first quarter 2025, representing diluted earnings per share (EPS) of $0.94, a 52% increase compared to the same period of 2024.
  
  
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for first quarter 2025 grew to $129.6 million, a first quarter record and a 4% increase compared to the same period of 2024.
  
  
• Adjusted diluted EPS for first quarter 2025 grew to $1.34, a first quarter record and a 5% increase compared to the same period of 2024.
  
  
• Increased net global rooms system size by 2.8%, including 3.9% growth for global upscale, extended stay, and midscale rooms portfolio, compared to March 31, 2024.
  
  
• Increased net rooms portfolio for the domestic extended stay segment by 10.8% compared to March 31, 2024 and the segment's pipeline reached over 40,000 rooms as of March 31, 2025.
  
  
• Increased domestic revenue per available room (RevPAR) by 2.3% for first quarter 2025, compared to the same period of 2024, outperforming the chain scales in which the company competes by 60 basis points.
  
  
• Increased domestic RevPAR for the extended stay portfolio by 6.8% for first quarter 2025, compared to the same period of 2024, outperforming the industry by 410 basis points.
  
  
• Increased domestic RevPAR for midscale and economy portfolios by 1.7% and 7.1% for first quarter 2025, respectively, compared to the same period of 2024, outperforming their respective chain scales by 30 basis points and 440 basis points.

"Choice Hotels generated another quarter of record financial performance and RevPAR outperformance, demonstrating the successful execution of our growth strategy," said Patrick Pacious, President and Chief Executive Officer. "Our unique positioning has enabled us to outperform our peers, gain market share, and emerge stronger even in periods of economic uncertainty. Today, with our more diversified avenues of growth, a more resilient customer profile, and a meaningfully strengthened brand portfolio, including our larger presence in the cycle-resilient extended-stay segment, we have established an even stronger foundation for near-term stability and long-term growth." 

Financial Performance

($ in millions, except per share amounts)	Three months ended March 31,
	2025	2024
Total Revenues	$333	$332
Revenue excluding revenue for reimbursable costs      from franchised and managed properties1	$209	$203
Net Income	$45	$31
Adjusted Net Income	$64	$64
Diluted Earnings per Share	$0.94	$0.62
Adjusted Diluted Earnings per Share	$1.34	$1.28
Adjusted EBITDA	$130	$124

• Partnership services and fees² increased 28% to $25.4 million for first quarter 2025, compared to the same period of 2024.
  
  
• Domestic average daily rate (ADR) grew by 1.7% and occupancy levels increased by 30 basis points for first quarter 2025.
  
  
• The domestic effective royalty rate increased by 8 basis points to 5.11% for first quarter 2025, compared to the same period of 2024.

System Size and Development

	Rooms
	March 31, 2025	March 31, 2024	Change
Domestic	505,601	494,096	2.3 %
Domestic Upscale, Extended Stay, and Midscale	444,230	428,713	3.6 %
International	141,986	136,032	4.4 %
Global	647,587	630,128	2.8 %

 

1	Calculated as total revenues net of reimbursable revenues. Reimbursable revenues were $123 million and $129 million for first quarter 2025 and first quarter 2024, respectively.
2	During the first quarter of 2025, the company reclassified certain revenues into Partnership services and fees (formerly known as Platform and procurement services fees). See the Financial Statement Updates section of this release for additional information.

• Domestic upscale, extended stay, and midscale net rooms portfolio grew by 3.6% compared to March 31, 2024.
  
  
• International net rooms portfolio grew by 4.4% compared to March 31, 2024, and its pipeline increased by 13% from December 31, 2024.
  
  
• Global upscale net rooms portfolio grew by 16.2% from March 31, 2024, and its pipeline increased by 8% from December 31, 2024, reaching over 26,000 rooms.
  
  
• Global pipeline was over 95,000 rooms as of March 31, 2025, of which nearly 79,000 were domestic rooms.

Balance Sheet and Liquidity

As of March 31, 2025, the company had a total available liquidity of $593.8 million, including available borrowing capacity and cash and equivalents. The company's net debt leverage ratio was 3.0 times as of March 31, 2025.

During first quarter 2025, the company generated cash flows from operating activities of $20.5 million, an $18.7 million increase compared to the same period of 2024.

Shareholder Returns 

During first quarter 2025, the company paid cash dividends totaling $13.5 million and repurchased 456,000 shares of common stock for $64.6 million under its stock repurchase program and through repurchases from employees in connection with tax withholding and option exercises relating to awards under the company's equity incentive plans.

As of March 31, 2025, the company had 3.4 million shares of common stock remaining under the current share repurchase authorization.

Outlook

The company is adjusting its outlook to reflect a more moderate domestic RevPAR growth expectation amidst a changing macro backdrop. The outlook information below includes forward-looking non-GAAP financial measures, which management uses in forecasting performance. The adjusted numbers in the company's outlook below exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, additional repurchases of company stock, and other items:

	Full-Year 2025	Prior Outlook
Net Income	$275 – $290 million	$288 – $300 million
Adjusted Net Income	$324 – $339 million	$333 – $345 million
Adjusted EBITDA	$615 – $635 million	$625 – $640 million
Diluted EPS	$5.86 – $6.18	$6.04 – $6.29
Adjusted Diluted EPS	$6.90 – $7.22	$6.98 – $7.24
Effective Income Tax Rate	25 %	25 %
	Full-Year 2025 vs. Full-Year 2024	Prior Outlook
Domestic RevPAR Growth	-1% to 1%	1% to 2%
Domestic Effective Royalty Rate Growth	Mid-single digits	Mid-single digits
Global Net System Rooms Growth	Approximately 1%	Approximately 1%

Webcast and Conference Call

Choice Hotels International will conduct a live webcast to discuss the company's first quarter 2025 earnings results on May 8, 2025, at 10:00 a.m. EDT on the company's investor relations website, www.investor.choicehotels.com, accessible via the Events and Presentations tab. 

A conference call will also be available. Participants may listen to the call by dialing (800) 549-8228 domestically or (646) 564-2877 internationally using conference ID 88948. 

A replay and transcript of the event will be available on the company's investor relations website within 24 hours at www.investor.choicehotels.com/events-and-presentations.

About Choice Hotels^®

Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing nearly 650,000 rooms, in 46 countries and territories. A wide-ranging portfolio of 22 brands, from full-service upper upscale properties to midscale, extended stay, and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

Forward-Looking Statements

Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.

Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future domestic or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of the company's relationship with employees of our franchisees; foreign currency fluctuations; impairments or declines in the value of the company's assets; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; climate change and sustainability related concerns; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measurements and Other Definitions

The company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.

In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, (gain) loss on the sale of equity securities, net of dividend income purchased in contemplation of the proposed acquisition of Wyndham Hotels, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.

Earnings Before Interest, Taxes, Depreciation, and Amortization and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: EBITDA reflects net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, impairments and gains on sale of business and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider EBITDA and adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.

Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.

Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.

Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided. 

Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided. 

Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.

Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.

Financial Statements Update

During the first quarter of 2025, the consolidated statements of income were reclassified to evolve the financial statement to classify revenues and expenses based on the nature of the underlying activities. Certain prior year amounts in the consolidated statements of income were reclassified in order to maintain comparability with the current year presentation. The reclassification was not a result of any error in the company's prior classification and had no effect on the company's previously reported total revenues, total operating expenses, operating income, or net income. 

Royalty, licensing and management fees were revised to franchise and management fees in the consolidated statements of income, and now include the revenues previously presented in royalty, licensing and management fees, with the exception of partnership licensing revenues which are now presented in partnership services and fees in the consolidated statements of income, and the addition of revenues generated from programs, platforms, and services associated with the company's franchise operations which were previously presented in other revenues from franchised and managed properties in the consolidated statements of income. 

Initial franchise fees, which were previously presented as a standalone financial statement line item, are now presented within franchise and management fees in the consolidated statements of income. 

Platform and procurement services fees were revised to partnership services and fees in the consolidated statements of income, and now include the revenues previously presented in platform and procurement services fees, with the exception of the revenues from the company's annual franchisee convention which are now presented in other revenue, the addition of partnership licensing revenues which were previously presented in royalty, licensing and management fees, and the addition of the revenues generated from other non-franchising agreements which are primarily software as a service ("SaaS") arrangements for non-franchised hoteliers which were previously presented in other revenue in the consolidated statements of income. 

Other revenues from franchised and managed properties were revised to revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income, and now include the revenues previously presented in other revenues from franchised and managed properties, with the exception of the revenues generated from programs, platforms, and services associated with the company's franchise operations which are now presented in franchise and management fees in the consolidated statements of income.

Selling, general and administrative expenses were revised to include the expenses incurred related to programs, platforms, and services associated with the company's franchise operations, which were previously presented in other expenses from franchised and managed properties in the consolidated statements of income. 

Depreciation and amortization was revised to include amortization expense from information technology platforms, which was previously presented in other expenses from franchised and managed properties in the consolidated statements of income.

Other expenses from franchised and managed properties were revised to reimbursable expenses from franchised and managed properties in the consolidated statements of income, and now include the expenses previously presented in other expenses from franchised and managed properties, with the exception of the expenses incurred from programs, platforms, and services associated with the company's franchise operations which are now presented in selling, general and administrative expenses, and amortization expense from information technology platforms which is now presented in depreciation and amortization expense in the consolidated statements of income.

Contacts

Allie Summers, Senior Director, Investor Relations
IR@choicehotels.com

© 2025 Choice Hotels International, Inc. All rights reserved. 

Choice Hotels International, Inc.	Exhibit 1
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)		Three months ended March 31,
		2025		2024
REVENUES
Franchise and management fees		$                   145,068		$                   143,410
Partnership services and fees		25,381		19,844
Owned hotels		27,860		24,991
Other		11,127		14,717
Revenue for reimbursable costs from franchised and managed properties		123,424		128,987
Total revenues		332,860		331,949
OPERATING EXPENSES
Selling, general and administrative		74,210		72,269
Business combination, diligence and transition costs		99		15,844
Depreciation and amortization		13,748		12,815
Owned hotels		21,060		19,323
Reimbursable expenses from franchised and managed properties		143,811		151,549
Total operating expenses		252,928		271,800
Operating income		79,932		60,149
OTHER EXPENSES AND INCOME, NET
Interest expense		21,242		20,181
Interest income		(1,559)		(1,731)
Other loss		436		1,336
Equity in net loss of affiliates		51		155
Total other expenses and income, net		20,170		19,941
Income before income taxes		59,762		40,208
Income tax expense		15,228		9,199
Net income		$                     44,534		$                     31,009
Basic earnings per share		$                         0.95		$                         0.63
Diluted earnings per share		$                         0.94		$                         0.62

 

Choice Hotels International, Inc.						Exhibit 2
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)				March 31,		December 31,
				2025		2024
ASSETS
Cash and cash equivalents				$               40,054		$               40,177
Accounts receivable, net				194,269		176,672
Other current assets				123,876		122,237
	Total current assets			358,199		339,086
Property and equipment, net				631,609		604,345
Operating lease right-of-use assets				81,858		83,451
Goodwill				220,187		220,187
Intangible assets, net				880,793		884,013
Notes receivable, net of allowances				32,832		32,682
Investments for employee benefit plans, at fair value				44,176		47,603
Investments in affiliates				122,116		117,016
Other assets				205,818		202,144
	Total assets			$           2,577,588		$           2,530,527
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable				$              121,627		$              134,865
Accrued expenses and other current liabilities				100,767		136,729
Deferred revenue				115,785		102,114
Liability for guest loyalty program				89,237		89,013
	Total current liabilities			427,416		462,721
Long-term debt				1,874,821		1,768,526
Long-term deferred revenue				131,031		132,259
Deferred compensation and retirement plan obligations				49,869		53,316
Operating lease liabilities				112,254		113,255
Liability for guest loyalty program				40,794		40,607
Other liabilities				5,337		5,114
	Total liabilities			2,641,522		2,575,798
	Total shareholders' deficit			(63,934)		(45,271)
	Total liabilities and shareholders' deficit			$           2,577,588		$           2,530,527

 

Choice Hotels International, Inc.			Exhibit 3
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)	Three months ended March 31,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$             44,534		$             31,009
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,748		12,815
Depreciation and amortization – reimbursable expenses from franchised and managed properties	4,887		5,148
Franchise agreement acquisition cost amortization	9,791		6,185
Non-cash share-based compensation and other charges	9,834		10,597
Non-cash interest, investments, and affiliate loss, net	1,515		2,510
Deferred income taxes	626		(736)
Equity in net loss of affiliates, less distributions received	413		1,200
Franchise agreement acquisition costs, net of reimbursements	(26,287)		(33,486)
Change in working capital and other	(38,594)		(33,501)
Net cash provided by operating activities	20,467		1,741
CASH FLOWS FROM INVESTING ACTIVITIES
Investments in other property and equipment	(10,543)		(7,203)
Investments in owned hotel properties	(35,462)		(25,574)
Contributions to investments in affiliates	(5,415)		(9,317)
Issuances of notes receivable	(1,952)		(1,042)
Collections of notes receivable	1,487		884
Proceeds from sales of equity securities	—		1,230
Other items, net	(1,067)		(1,714)
Net cash used in investing activities	(52,952)		(42,736)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings pursuant to revolving credit facilities	105,500		126,500
Purchases of treasury stock	(64,624)		(59,459)
Dividends paid	(13,471)		(14,728)
Proceeds from the exercise of stock options	4,803		4,160
Net cash provided by financing activities	32,208		56,473
Net change in cash and cash equivalents	(277)		15,478
Effect of foreign exchange rate changes on cash and cash equivalents	154		(121)
Cash and cash equivalents, beginning of period	40,177		26,754
Cash and cash equivalents, end of period	$             40,054		$             42,111

 

														Exhibit 4
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
		For the Three Months Ended March 31, 2025						For the Three Months Ended March 31, 2024						Change
		Average Daily						Average Daily						Average Daily
		Rate		Occupancy		RevPAR		Rate		Occupancy		RevPAR		Rate		Occupancy			RevPAR
Upscale & Above (1)		$       139.54		49.9 %		$         69.70		$          142.91		51.0 %		$          72.85		(2.4) %		(110)	bps		(4.3) %
Midscale & Upper Midscale (2)		94.29		49.8 %		46.95		93.15		49.6 %		46.18		1.2 %		20	bps		1.7 %
Extended Stay (3)		66.68		67.9 %		45.25		61.44		68.9 %		42.36		8.5 %		(100)	bps		6.8 %
Economy (4)		69.98		43.7 %		30.60		66.61		42.9 %		28.56		5.1 %		80	bps		7.1 %
Total		$         90.78		51.0 %		$         46.28		$           89.29		50.7 %		$          45.25		1.7 %		30	bps		2.3 %
Effective Royalty Rate
		For the Three Months Ended
		March 31, 2025		March 31, 2024
System-wide		5.11 %		5.03 %
(1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.
(2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands.
(3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.
(4) Includes Econo Lodge and Rodeway brands.

 

														Exhibit 5
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
		March 31, 2025				March 31, 2024				Variance
		Hotels		Rooms		Hotels		Rooms		Hotels		%		Rooms		%
Ascend Hotel Collection		232		38,657		202		22,833		30		14.9 %		15,824		69.3 %
Cambria Hotels		76		10,344		73		10,094		3		4.1 %		250		2.5 %
Radisson(1)		57		10,593		60		14,154		(3)		(5.0) %		(3,561)		(25.2) %
Comfort(2)		1,668		130,964		1,672		131,285		(4)		(0.2) %		(321)		(0.2) %
Quality		1,608		116,779		1,622		119,219		(14)		(0.9) %		(2,440)		(2.0) %
Country		416		33,342		426		33,990		(10)		(2.3) %		(648)		(1.9) %
Sleep		409		28,662		424		29,775		(15)		(3.5) %		(1,113)		(3.7) %
Clarion(3)		190		19,519		183		19,561		7		3.8 %		(42)		(0.2) %
Park Inn		26		2,822		4		363		22		550.0 %		2,459		677.4 %
WoodSpring		265		31,912		240		28,960		25		10.4 %		2,952		10.2 %
MainStay		141		10,157		127		8,918		14		11.0 %		1,239		13.9 %
Suburban		112		9,232		108		9,226		4		3.7 %		6		0.1 %
Everhome		11		1,247		3		335		8		266.7 %		912		272.2 %
Econo Lodge		625		36,579		665		39,243		(40)		(6.0) %		(2,664)		(6.8) %
Rodeway		443		24,792		464		26,140		(21)		(4.5) %		(1,348)		(5.2) %
Domestic Franchises		6,279		505,601		6,273		494,096		6		0.1 %		11,505		2.3 %
International Franchises		1,248		141,986		1,215		136,032		33		2.7 %		5,954		4.4 %
Total Franchises		7,527		647,587		7,488		630,128		39		0.5 %		17,459		2.8 %
(1) Includes Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.
(2) Includes Comfort family of brand extensions including Comfort Inn and Comfort Suites.
(3) Includes Clarion family of brand extensions including Clarion and Clarion Pointe.

 

		Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
(dollar amounts in thousands)			Three months ended March 31,
			2025			2024
	Total Selling, General and Administrative Expenses		$                 74,210			$                 72,269
	Mark to market adjustments on non-qualified retirement plan investments		723			(3,719)
	Non-recurring operational restructuring charges and executive severance		(3,930)			(791)
	Share-based compensation		(5,890)			(4,933)
	Global ERP system implementation and related costs		(990)			—
	Adjusted Selling, General and Administrative Expenses		$                 64,123			$                 62,826
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") AND ADJUSTED EBITDA
(dollar amounts in thousands)			Three months ended March 31,
			2025			2024
Net income			$                 44,534			$                 31,009
	Income tax expense		15,228			9,199
	Interest expense		21,242			20,181
	Interest income		(1,559)			(1,731)
	Other loss		436			1,336
	Equity in net loss of affiliates		51			155
	Depreciation and amortization		13,748			12,815
EBITDA			$                 93,680			$                 72,964
	Share-based compensation		5,890			4,933
	Mark to market adjustments on non-qualified retirement plan investments		(723)			3,719
	Franchise agreement acquisition costs amortization and charges		5,386			3,527
	Net reimbursable deficit from franchised and managed properties		20,387			22,563
	Global ERP system implementation and related costs		990			—
	Business combination, diligence and transition costs		99			15,844
	Non-recurring operational restructuring charges and executive severance		3,930			791
Adjusted EBITDA			$               129,639			$               124,341
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
(dollar amounts in thousands, except per share amounts)			Three months ended March 31,
			2025			2024
Net income			$                 44,534			$                 31,009
	Loss on investments in equity securities, net of dividend income		—			3,187
	Net reimbursable deficit from franchised and managed properties		15,310			16,922
	Business combination, diligence and transition costs		75			11,947
	Non-recurring operational restructuring charges and executive severance		2,975			596
	Global ERP system implementation and related costs		749			—
Adjusted Net Income			$                 63,643			$                 63,661
Diluted Earnings Per Share			$                     0.94			$                     0.62
	Loss on investments in equity securities, net of dividend income		—			0.06
	Net reimbursable deficit from franchised and managed properties		0.32			0.35
	Business combination, diligence and transition costs		—			0.24
	Non-recurring operational restructuring charges and executive severance		0.06			0.01
	Global ERP system implementation and related costs		0.02			—
Adjusted Diluted Earnings Per Share (EPS)			$                     1.34			$                     1.28

 

			Exhibit 7
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION - 2025 OUTLOOK
(UNAUDITED)
Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2025
EBITDA & ADJUSTED EBITDA
(in thousands)			Full Year		Full Year
			Lower Range		Upper Range
Net income			$             275,000		$            290,000
	Income tax expense		93,100		98,100
	Interest expense		89,800		89,800
	Interest income		(6,900)		(6,900)
	Other loss		800		800
	Equity in net gain of affiliates		(6,300)		(6,300)
	Depreciation and amortization		57,700		57,700
EBITDA			$             503,200		$            523,200
	Share-based compensation		24,400		24,400
	Mark to market adjustments on non-qualified retirement plan investments		(700)		(700)
	Franchise agreement acquisition costs amortization and charges		23,000		23,000
	Net reimbursable deficit from franchised and managed properties		55,000		55,000
	Global ERP system implementation and related costs		6,100		6,100
	Non-recurring operational restructuring charges and executive severance		4,000		4,000
Adjusted EBITDA			$             615,000		$            635,000
ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE (EPS)
(in thousands, except per share amounts)			Full Year		Full Year
			Lower Range		Upper Range
Net income			$             275,000		$            290,000
	Net reimbursable deficit from franchised and managed properties		41,300		41,300
	Global ERP system implementation and related costs		4,600		4,600
	Non-recurring operational restructuring charges and executive severance		3,100		3,100
Adjusted Net Income			$             324,000		$            339,000
Diluted Earnings Per Share			$                   5.86		$                  6.18
	Net reimbursable deficit from franchised and managed properties		0.87		0.87
	Global ERP system implementation and related costs		0.10		0.10
	Non-recurring operational restructuring charges and executive severance		0.07		0.07
Adjusted Diluted Earnings Per Share (EPS)			$                   6.90		$                  7.22

 

 

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SOURCE Choice Hotels International, Inc.

FAQ

What was Choice Hotels (CHH) earnings per share in Q1 2025?

Choice Hotels reported diluted EPS of $0.94 and adjusted diluted EPS of $1.34 in Q1 2025, representing increases of 52% and 5% respectively compared to Q1 2024.

How much did Choice Hotels (CHH) RevPAR grow in Q1 2025?

Choice Hotels' domestic RevPAR grew by 2.3% in Q1 2025 compared to Q1 2024, outperforming its chain scales by 60 basis points.

What is Choice Hotels (CHH) revised guidance for 2025?

Choice Hotels revised its 2025 guidance with domestic RevPAR growth expected between -1% to 1% (down from 1-2%), and adjusted EBITDA of $615-635 million (down from $625-640 million).

How many hotels does Choice Hotels (CHH) have globally?

Choice Hotels has over 7,500 hotels representing nearly 650,000 rooms across 46 countries and territories, with a global rooms system size of 647,587 as of March 31, 2025.

How much did Choice Hotels (CHH) spend on share repurchases in Q1 2025?

Choice Hotels repurchased 456,000 shares of common stock for $64.6 million during Q1 2025, with 3.4 million shares remaining under the current repurchase authorization.