Choice Hotels International Reports First Quarter 2026 Results
Rhea-AI Summary
Choice Hotels (NYSE: CHH) reported first-quarter 2026 results for the period ended March 31, 2026. Total revenues reached a company record of $340.6 million and net income was $20.3 million, or $0.44 diluted EPS. Adjusted EBITDA was $125.7 million and adjusted diluted EPS was $1.07.
Key operating trends: global net rooms grew 1.7%, international net rooms grew 13%, U.S. room openings rose 32%, franchise agreements awarded increased materially, and the company maintained full-year 2026 guidance.
AI-generated analysis. Not financial advice.
Positive
- International net rooms growth of 13% year-over-year
- U.S. extended stay net rooms +11.8% year-over-year
- Global franchise agreements awarded increased 72% year-over-year
- Company returned $75.2M to shareholders in Q1 2026
- Full-year 2026 adjusted EBITDA outlook of $632–$647M
Negative
- Net income declined from $45M to $20.3M year-over-year
- Adjusted diluted EPS fell from $1.34 to $1.07 year-over-year
- Adjusted EBITDA decreased to $125.7M from $129.6M year-over-year
- Net debt-to-adjusted EBITDA ratio of 3.2x for trailing twelve months
News Market Reaction – CHH
On the day this news was published, CHH declined 15.58%, reflecting a significant negative market reaction. Argus tracked a trough of -9.7% from its starting point during tracking. Our momentum scanner triggered 43 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $924M from the company's valuation, bringing the market cap to $5.01B at that time. Trading volume was very high at 3.2x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CHH fell 2.16%, while several peers were also weak: WH -1.21%, H -1.44%, IHG -0.54%, ATAT -0.71%. HTHT differed, rising 0.50%. Momentum scanner only flagged H on the upside, supporting a largely stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | +6.0% | Record adjusted EBITDA, sharply higher net income, and raised full‑year 2025 guidance. |
| Aug 06 | Q2 2025 earnings | Neutral | -0.4% | Record adjusted EBITDA but lower net income and softer domestic RevPAR with trimmed guidance. |
| May 08 | Q1 2025 earnings | Neutral | -3.6% | Strong EPS and EBITDA growth offset by reduced full‑year domestic RevPAR outlook. |
| Feb 20 | Q4 & FY 2024 earnings | Positive | +3.1% | Full‑year net income and EPS up double digits with record adjusted EBITDA and raised guidance. |
| Nov 04 | Q3 2024 earnings | Positive | +1.1% | Strong revenue and earnings growth, record adjusted EBITDA, and higher 2024 guidance. |
Earnings releases have generally produced modest, directionally aligned moves, with stronger upside reactions when results and guidance are clearly positive.
Over the past five earnings releases from Nov 2024 to Nov 2025, Choice reported consistent profitability, record adjusted EBITDA in multiple quarters, and steady global rooms growth. Guidance was raised in late 2024 and again for 2025 after strong third‑quarter results, while domestic RevPAR softness led to more cautious outlooks in early and mid‑2025. Price reactions ranged from mild declines to solid gains, generally tracking the tone of each earnings update. Today’s Q1 2026 report, with lower net income and EPS but record revenue and maintained guidance, fits this mixed but stable trajectory.
Historical Comparison
Across five prior earnings releases, CHH moved an average of ±1.24%. Today’s -2.16% reaction to Q1 2026 results is somewhat more negative but still within a historically modest range.
Earnings releases since late 2024 show steady adjusted EBITDA records and global room growth, but with periods of soft domestic RevPAR that led to more cautious guidance in early and mid‑2025. The Q1 2026 report continues this pattern: record revenue and growing system size alongside lower net income and EPS versus prior‑year quarters.
Market Pulse Summary
The stock dropped -15.6% in the session following this news. A negative reaction despite mixed elements in the release fits a pattern where RevPAR softness or earnings pressure weighed on the stock even when system growth and pipelines improved. Prior earnings events moved about ±1.24% on average, so a sizable decline would be notable but not unprecedented.
Key Terms
adjusted ebitda financial
diluted eps financial
adjusted diluted eps financial
revpar financial
non-gaap financial
net debt-to-adjusted ebitda ratio financial
AI-generated analysis. Not financial advice.
Global Net Rooms Increased
Q1
Global Franchise Agreements Awarded Increased
Highlights include:
- Total revenues reached a company record
$340.6 million for the first quarter.
- Net income was
$20.3 million $0.44
- Adjusted EBITDA totaled
$125.7 million $1.07
U.S. royalty rate expanded 11 basis points to5.22% for the first quarter, compared to the same period of 2025.
- Global net rooms grew
1.7% compared to March 31, 2025, driven by2.5% growth in higher revenue extended stay, midscale, and upscale brands.
U.S. room openings increased32% in the first quarter compared to the same period of 2025, reaching the highest first-quarter level since 2023, while exits declined year-over-year to the lowest quarterly level since 2023, driving sequential net rooms growth from year-end 2025.
- Global franchise agreements awarded increased
72% in the first quarter, compared to the same period of 2025.
U.S. pipeline grew sequentially to approximately 71,500 rooms, with the conversion rooms pipeline increasing17% compared to March 31, 2025, and3% sequentially from December 31, 2025.
- Capital recycling generated
$24.6 million
"Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends," said Patrick Pacious, President and Chief Executive Officer. "We are driving sequentially improving
Financial Performance | ||
($ in millions, except per-share amounts) | ||
2026 | 2025 | |
Total revenues | ||
Revenue excl. revenue for reimbursable costs from | ||
Net income | ||
Adjusted net income | ||
Diluted EPS | ||
Adjusted diluted EPS | ||
Adjusted EBITDA | ||
1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled |
- Revenue excluding reimbursable costs increased
3% to$216.7 million $209.4 million
- Adjusted EBITDA was
$125.7 million $129.6 million
- Adjusted diluted EPS was
$1.07 $1.34 25% for the full year.
RevPAR | |
(% change on a currency-neutral basis) | Change vs. Prior Year Period |
Three months ended March 31, 2026 | |
-2.3 % | |
International | 2.6 % |
Global | -0.8 % |
U.S. RevPAR increased1.8% in the first quarter, compared to the same period of 2025, excluding the prior-year hurricane-related impact.
- International RevPAR increased
2.6% on a currency-neutral basis in the first quarter, compared to the same period of 2025.
System Size and Development | |||
(Rooms) | |||
March 31, 2026 | March 31, 2025 | Change | |
497,881 | 505,601 | -1.5 % | |
| 440,464 | 444,230 | -0.8 % |
International | 160,467 | 141,986 | 13.0 % |
Global | 658,348 | 647,587 | 1.7 % |
Global upscale, extended stay, and midscale | 595,580 | 580,860 | 2.5 % |
- Global pipeline exceeded 77,700 rooms as of March 31, 2026, with
97% concentrated in extended stay, midscale, and upscale brands, supporting a more accretive future earnings profile.
- Franchise agreements awarded increased
65% in theU.S. and113% in international markets in the first quarter of 2026, compared to the same period of 2025.
- International net rooms grew
13% compared to March 31, 2025, highlighted by a59% increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, includingCanada and EMEA.
- Extended stay remains a core growth engine, supported by strong unit economics and continued developer demand, with
U.S. extended stay net rooms growing11.8% compared to March 31, 2025, and a pipeline of over 30,300 rooms as of March 31, 2026.
U.S. midscale room openings increased57% compared to the same period of 2025, and the pipeline grew6% from March 31, 2025, reflecting improving owner returns and demand for cost-efficient prototypes.
U.S. economy transient rooms pipeline grew26% sequentially from December 31, 2025, supported by a13% increase in franchise agreements awarded in the first quarter of 2026.
U.S. upscale room openings increased112% compared to March 31, 2025, and the pipeline grew8% compared to March 31, 2025, driven by Radisson Individuals, Ascend Collection, and Radisson brand.
Balance Sheet and Liquidity
As of March 31, 2026, Choice had total available liquidity of
During the first quarter of 2026, the Company used
During the three months ended March 31, 2026, Choice generated
Shareholder Returns
During the three months ended March 31, 2026, the Company returned
As of March 31, 2026, 2.3 million shares of common stock remained available under the Company's current share repurchase authorization.
Outlook
The Company is maintaining its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, share repurchases completed after March 31, 2026, and other items.
Net capital outlays for hotel development-related activities are expected to decline significantly, from
Full-Year 2026 | ||
Net income | ||
Adjusted net income | ||
Adjusted EBITDA | ||
Adjusted SG&A | Mid-single digits | |
Diluted EPS | ||
Adjusted diluted EPS | ||
Effective tax rate | 25 % | |
Full-Year 2026 vs. 2025 | ||
Global RevPAR growth | - | |
| - | |
Mid-single digits | ||
Global net system rooms growth | Approximately | |
Webcast and Conference Call
Choice will host a conference call to discuss first quarter 2026 results on April 30, 2026, at 11:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 715-9871 (
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 more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties 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, 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, strategic investment and acquisition performance, international expansion performance, 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 our actual results, performance or achievements 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,
These and other risk factors are discussed in detail in the company's filings with the
Non-GAAP Financial Measurements and Other Definitions
The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted 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, 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.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, 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 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 they exclude 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 Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets 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 diluted 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, amortization of cloud computing arrangements 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.
Contacts
Allie Summers, Senior Director, Investor Relations
IR@choicehotels.com
© 2026 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) | For the Three Months Ended | |||
March 31, | ||||
2026 | 2025 | |||
REVENUES | ||||
Franchise and management fees | $ 149,631 | $ 145,068 | ||
Partnership services and fees | 24,734 | 25,381 | ||
Owned hotels | 30,433 | 27,860 | ||
Other | 11,873 | 11,127 | ||
Revenue for reimbursable costs from franchised and managed properties | 123,904 | 123,424 | ||
Total revenues | 340,575 | 332,860 | ||
OPERATING EXPENSES | ||||
Selling, general and administrative | 78,046 | 74,210 | ||
Business combination, diligence and transition costs | 236 | 99 | ||
Depreciation and amortization | 16,821 | 13,748 | ||
Owned hotels | 23,651 | 21,060 | ||
Reimbursable expenses from franchised and managed properties | 161,787 | 143,811 | ||
Total operating expenses | 280,541 | 252,928 | ||
Operating income | 60,034 | 79,932 | ||
OTHER EXPENSES AND (INCOME), NET | ||||
Interest expense | 23,962 | 21,242 | ||
Interest income | (1,211) | (1,559) | ||
Other losses, net | 721 | 436 | ||
Equity in net loss of affiliates | 6,252 | 51 | ||
Total other expenses and (income), net | 29,724 | 20,170 | ||
Income before income taxes | 30,310 | 59,762 | ||
Income tax expense | 10,006 | 15,228 | ||
Net income | $ 20,304 | $ 44,534 | ||
Basic earnings per share | $ 0.44 | $ 0.95 | ||
Diluted earnings per share | $ 0.44 | $ 0.94 | ||
Choice Hotels International, Inc. | Exhibit 2 | |||||
Condensed Consolidated Balance Sheets | ||||||
(Unaudited) | ||||||
(In thousands) | March 31, | December 31, | ||||
2026 | 2025 | |||||
ASSETS | ||||||
Cash and cash equivalents | $ 43,872 | $ 44,997 | ||||
Accounts receivable, net | 243,511 | 207,491 | ||||
Other current assets | 123,392 | 153,510 | ||||
Total current assets | 410,775 | 405,998 | ||||
Property and equipment, net | 649,883 | 649,291 | ||||
Operating lease right-of-use assets | 76,559 | 77,670 | ||||
Goodwill | 304,583 | 305,758 | ||||
Intangible assets, net | 1,096,143 | 1,082,486 | ||||
Notes receivable, net of allowances | 27,403 | 12,490 | ||||
Investments for employee benefit plans, at fair value | 47,899 | 50,227 | ||||
Investments in affiliates | 132,848 | 134,975 | ||||
Other assets | 198,493 | 199,308 | ||||
Total assets | $ 2,944,586 | $ 2,918,203 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Accounts payable | $ 146,193 | $ 156,276 | ||||
Accrued expenses and other current liabilities | 86,707 | 125,282 | ||||
Deferred revenue | 112,853 | 100,698 | ||||
Liability for guest loyalty program | 88,236 | 85,035 | ||||
Total current liabilities | 433,989 | 467,291 | ||||
Long-term debt | 2,003,236 | 1,906,122 | ||||
Long-term deferred revenue | 129,946 | 130,505 | ||||
Deferred compensation and retirement plan obligations | 54,313 | 56,532 | ||||
Deferred income taxes | 34,081 | 25,303 | ||||
Operating lease liabilities | 106,384 | 107,963 | ||||
Liability for guest loyalty program | 41,566 | 39,771 | ||||
Other liabilities | 3,644 | 3,487 | ||||
Total liabilities | 2,807,159 | 2,736,974 | ||||
Total shareholders' equity | 137,427 | 181,229 | ||||
Total liabilities and shareholders' equity | $ 2,944,586 | $ 2,918,203 | ||||
Choice Hotels International, Inc. | Exhibit 3 | ||
Condensed Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
(In thousands) | Three Months Ended March 31, | ||
2026 | 2025 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 20,304 | $ 44,534 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 16,821 | 13,748 | |
Depreciation and amortization – reimbursable expenses from franchised and managed properties | 5,115 | 4,887 | |
Franchise agreement acquisition cost amortization | 9,580 | 9,791 | |
Non-cash share-based compensation and other charges | 8,434 | 9,834 | |
Non-cash interest, investments, and affiliate loss, net | 1,800 | 1,515 | |
Deferred income taxes | 7,657 | 626 | |
Equity in net loss of affiliates, less distributions received | 6,252 | 413 | |
Franchise agreement acquisition costs, net of reimbursements | (42,842) | (26,287) | |
Change in working capital and other | (56,295) | (38,594) | |
Net cash (used in) provided by operating activities | (23,174) | 20,467 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investments in other property and equipment | (10,065) | (10,543) | |
Investments in owned hotel properties | (16,819) | (35,462) | |
Contributions to investments in affiliates | (3,863) | (5,415) | |
Issuances of notes receivable | (236) | (1,952) | |
Collections of notes receivable | 24,610 | 1,487 | |
Other items, net | 197 | (1,067) | |
Net cash used in investing activities | (6,176) | (52,952) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings pursuant to revolving credit facilities | 97,000 | 105,500 | |
Purchases of treasury stock | (56,480) | (64,624) | |
Dividends paid | (13,115) | (13,471) | |
Proceeds from the exercise of stock options | 880 | 4,803 | |
Net cash provided by financing activities | 28,285 | 32,208 | |
Net change in cash and cash equivalents | (1,065) | (277) | |
Effect of foreign exchange rate changes on cash and cash equivalents | (60) | 154 | |
Cash and cash equivalents, beginning of period | 44,997 | 40,177 | |
Cash and cash equivalents, end of period | $ 43,872 | $ 40,054 | |
Exhibit 4 | |||||||||||||
CHOICE HOTELS INTERNATIONAL, INC. | |||||||||||||
CURRENCY-NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS | |||||||||||||
(UNAUDITED) | |||||||||||||
For the Three Months Ended March 31, 2026 | |||||||||||||
ADR | Occupancy | RevPAR | |||||||||||
2026 | vs. 2025 | 2026 | vs. 2025 | 2026 | vs. 2025 | ||||||||
Total | $ 88.74 | (2.1) % | 50.9 % | (10) | bps | $ 45.18 | (2.3) % | ||||||
Upscale & Above (1) | 140.24 | 0.5 % | 50.1 % | 20 | bps | 70.24 | 0.8 % | ||||||
Midscale & Upper Midscale (2) | 92.29 | (2.1) % | 49.8 % | — | bps | 45.93 | (2.1) % | ||||||
Extended Stay (3) | 66.35 | 0.1 % | 66.1 % | (170) | bps | 43.86 | (2.4) % | ||||||
Economy (4) | 66.11 | (5.5) % | 42.3 % | (150) | bps | 27.99 | (8.5) % | ||||||
International (5) | 96.64 | 3.7 % | 56.9 % | (60) | bps | 54.97 | 2.6 % | ||||||
Total System (5) | $ 90.73 | (0.6) % | 52.3 % | (10) | bps | $ 47.45 | (0.8) % | ||||||
For the Three Months Ended | |||||||||||||
March 31, 2026 | March 31, 2025 | ||||||||||||
Total | 5.22 % | 5.11 % | |||||||||||
(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. | |||||||||||||
(5) International and Total System results are presented on a currency-neutral basis and exclude the impact of foreign currency exchange movements. | |||||||||||||
Exhibit 5 | |||
CHOICE HOTELS INTERNATIONAL, INC. | |||
SYSTEM HOTEL AND ROOM SUPPLY | |||
(UNAUDITED) | |||
Global System by Brand | March 31, 2026 | ||
Hotels | Rooms | ||
Ascend Hotel Collection | 513 | 69,858 | |
Cambria Hotels | 77 | 10,296 | |
Radisson(1) | 129 | 22,584 | |
Comfort(2) | 2,136 | 179,024 | |
Quality | 1,885 | 148,462 | |
Country | 404 | 32,564 | |
Sleep | 425 | 30,444 | |
Clarion(3) | 266 | 36,157 | |
Park Inn | 31 | 2,656 | |
WoodSpring | 293 | 35,261 | |
MainStay | 155 | 11,304 | |
Suburban | 117 | 9,777 | |
Everhome | 27 | 3,108 | |
Econo Lodge | 637 | 36,275 | |
Rodeway | 435 | 24,037 | |
Other (4) | 58 | 6,541 | |
(1) Includes Radisson, Radisson Blu, Radisson Individuals, Radisson RED and Park Plaza 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. | |||
(4) Includes other brands under Master Franchise Agreements. | |||
March 31, 2026 | |||
Hotels | Rooms | ||
Upscale & Above | 368 | 59,403 | |
Midscale & Upper Midscale | 4,223 | 322,291 | |
Extended Stay | 584 | 58,770 | |
Economy | 1,013 | 57,417 | |
Global System by Region | March 31, 2026 | ||
Hotels | Rooms | ||
6,188 | 497,881 | ||
Total International | 1,400 | 160,467 | |
| 542 | 55,857 | |
| 478 | 69,874 | |
| 380 | 34,736 | |
Total System | 7,588 | 658,348 | |
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, | |||||
2026 | 2025 | ||||
Total selling, general and administrative expenses | $ 78,046 | $ 74,210 | |||
Mark to market adjustments on non-qualified retirement plan investments | 1,051 | 723 | |||
Non-recurring operational restructuring charges and executive severance | (481) | (3,930) | |||
Share-based compensation | (4,812) | (5,890) | |||
Amortization of cloud computing arrangements | (279) | — | |||
Global ERP system implementation and related costs | (300) | (990) | |||
Adjusted selling, general and administrative expenses | $ 73,225 | $ 64,123 | |||
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("ADJUSTED EBITDA") | |||||
(dollar amounts in thousands) | Three Months Ended | ||||
March 31, | |||||
2026 | 2025 | ||||
Net income | $ 20,304 | $ 44,534 | |||
Income tax expense | 10,006 | 15,228 | |||
Interest expense | 23,962 | 21,242 | |||
Interest income | (1,211) | (1,559) | |||
Amortization of cloud computing arrangements | 279 | — | |||
Depreciation and amortization | 16,821 | 13,748 | |||
Other losses, net | 721 | 436 | |||
Equity in net loss of affiliates | 6,252 | 51 | |||
Share-based compensation | 4,812 | 5,890 | |||
Mark to market adjustments on non-qualified retirement plan investments | (1,051) | (723) | |||
Franchise agreement acquisition costs amortization and charges | 5,925 | 5,386 | |||
Revenue for reimbursable costs from franchised and managed properties | (123,904) | (123,424) | |||
Reimbursable expenses from franchised and managed properties | 161,787 | 143,811 | |||
Global ERP system implementation and related costs | 300 | 990 | |||
Business combination, diligence and transition costs | 236 | 99 | |||
Non-recurring operational restructuring charges and executive severance | 481 | 3,930 | |||
Adjusted EBITDA | $ 125,720 | $ 129,639 | |||
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS") | |||||
(dollar amounts in thousands, except per share amounts) | Three Months Ended | ||||
March 31, | |||||
2026 | 2025 | ||||
Net income | $ 20,304 | $ 44,534 | |||
Revenue for reimbursable costs from franchised and managed properties | (123,904) | (123,424) | |||
Reimbursable expenses from franchised and managed properties | 161,787 | 143,811 | |||
Business combination, diligence and transition costs | 236 | 99 | |||
Non-recurring operational restructuring charges and executive severance | 481 | 3,930 | |||
Global ERP system implementation and related costs | 300 | 990 | |||
Income tax expense on adjustments | (9,605) | (6,297) | |||
Adjusted Net Income | $ 49,599 | $ 63,643 | |||
Diluted EPS | $ 0.44 | $ 0.94 | |||
Adjusted Diluted EPS | $ 1.07 | $ 1.34 | |||
Exhibit 7 | |||||
CHOICE HOTELS INTERNATIONAL, INC. | |||||
OUTLOOK | |||||
(UNAUDITED) | |||||
Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2026 | |||||
ADJUSTED EBITDA | |||||
(in thousands) | Full Year | Full Year | |||
Lower Range | Upper Range | ||||
Net income | $ 265,000 | $ 275,000 | |||
Income tax expense | 88,300 | 91,600 | |||
Interest expense | 85,800 | 86,000 | |||
Interest income | (4,200) | (4,100) | |||
Amortization of cloud computing arrangements | 1,200 | 1,200 | |||
Depreciation and amortization | 64,100 | 65,100 | |||
Other losses, net | 800 | 800 | |||
Equity in net loss of affiliates | 11,300 | 11,700 | |||
Share-based compensation | 21,000 | 21,000 | |||
Mark to market adjustments on non-qualified retirement plan investments | (1,100) | (1,100) | |||
Franchise agreement acquisition costs amortization and charges | 26,300 | 26,300 | |||
Revenue for reimbursable costs from franchised and managed properties | (595,500) | (595,500) | |||
Reimbursable expenses from franchised and managed properties | 665,500 | 665,500 | |||
Global ERP system implementation and related costs | 1,700 | 1,700 | |||
Business combination, diligence and transition costs | 1,300 | 1,300 | |||
Non-recurring operational restructuring charges and executive severance | 500 | 500 | |||
Adjusted EBITDA | $ 632,000 | $ 647,000 | |||
ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE ("EPS") | |||||
(in thousands, except per share amounts) | Full Year | Full Year | |||
Lower Range | Upper Range | ||||
Net income | $ 265,000 | $ 275,000 | |||
Revenue for reimbursable costs from franchised and managed properties | (595,500) | (595,500) | |||
Reimbursable expenses from franchised and managed properties | 665,500 | 665,500 | |||
Business combination, diligence and transition costs | 1,300 | 1,300 | |||
Non-recurring operational restructuring charges and executive severance | 500 | 500 | |||
Global ERP system implementation and related costs | 1,700 | 1,700 | |||
Income tax expense on adjustments | (18,500) | (18,500) | |||
Adjusted net income | $ 320,000 | $ 330,000 | |||
Diluted EPS | $ 5.72 | $ 5.94 | |||
Adjusted Diluted EPS | $ 6.92 | $ 7.14 | |||
View original content to download multimedia:https://www.prnewswire.com/news-releases/choice-hotels-international-reports-first-quarter-2026-results-302757878.html
SOURCE Choice Hotels International, Inc.