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Choice Hotels International Reports Second Quarter 2025 Results

By PR Newswire | August 06, 2025, 6:30 AM

Grows Global Net Rooms System Size by 2.1%,

Including 3.0% Growth for More Revenue-Intense Portfolio

Accelerates International Growth with Expansion to Over 140,000 Rooms

NORTH BETHESDA, Md., Aug. 6, 2025 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, today reported its second quarter 2025 results.

Highlights include:

  • Net income was $81.7 million for second quarter 2025, compared to $87.1 million in the same period of 2024, representing diluted earnings per share (EPS) of $1.75, compared to $1.80 in second quarter 2024.

     
  • Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for second quarter 2025 grew to $165.0 million, a second quarter record and a 2% increase compared to the same period of 2024. Excluding the impact of a $2 million operating guarantee payment for a portfolio of managed hotels, which was acquired in connection with the company's purchase of Radisson Hotels Americas, second quarter 2025 adjusted EBITDA was $167.0 million.

     
  • Adjusted diluted EPS for second quarter 2025 grew to $1.92, a second quarter record and a 4% increase compared to the same period of 2024.

     
  • Increased net global rooms system size by 2.1%, including 3.0% growth for global upscale, extended stay, and midscale rooms portfolio, compared to June 30, 2024.

     
  • Increased net international rooms system size by 5.0%, highlighted by a 15% increase in openings, compared to June 30, 2024.

     
  • Accelerated international expansion, including strengthening the company's presence in Brazil by extending a master franchise agreement for over 10,000 rooms with Atlantica Hospitality International by 20 years, nearly tripling the room count in France through a direct franchise agreement with Zenitude Hotel-Residences, and signing strategic agreements with SSAW Hotels & Resorts in China, including a distribution agreement which is expected to add over 9,500 rooms in 2025 and a master franchising agreement, which is expected to add approximately 10,000 rooms over the next five years.

     
  • Acquired the remaining 50% interest in Choice Hotels Canada in July for approximately $112 million, subject to customary adjustments for working capital and cash, funded through available cash and existing credit facilities. The transaction paves the way for the company's accelerated growth in Canada by expanding the product offering from eight to 22 Choice brands, including particularly strong opportunities in the extended-stay segment. The portfolio includes 327 units and over 26,000 rooms, already reflected in the company's system count. Management expects the total Choice Hotels Canada business to generate approximately $18 million in EBITDA for full year 2025.1

      
  • Global pipeline exceeded 93,000 rooms as of June 30, 2025, including nearly 77,000 domestic rooms.

     
  • Increased net rooms portfolio for the domestic extended stay segment by 10.5% compared to June 30, 2024, and the segment's pipeline reached nearly 43,000 rooms as of June 30, 2025.

"Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy," said Patrick Pacious, President and Chief Executive Officer. "We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement, and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders."

Financial Performance



Three months ended

June 30,

Six months ended

June 30,



2025

2024

2025

2024

Total Revenues

$426

$435

$759

$767

Revenue excluding revenue for reimbursable costs from

  franchised and managed properties2

$259

$259

$469

$462

Net Income

$82

$87

$126

$118

Adjusted Net Income

$90

$89

$153

$152

Diluted Earnings per Share

$1.75

$1.80

$2.68

$2.41

Adjusted Diluted Earnings per Share

$1.92

$1.84

$3.25

$3.11

Adjusted EBITDA

$165

$162

$295

$286













1 The July 2, 2025 exchange rate of 0.734 was used to convert the purchase price and EBITDA from Canadian dollars to US dollars.

2 Calculated as total revenues net of reimbursable revenues. Reimbursable revenues were $167 million and $176 million for second quarter 2025 and 2024, respectively, and $291 million and $305 million, year-to-date through June 30, 2025 and June 30, 2024, respectively.

 

  • Partnership services and fees rose 7% to $27.1 million in second quarter 2025, compared to the same period of 2024, and increased 16% to $52.4 million in the first half of 2025, compared to the same period of 2024.3

     
  • Adjusted selling, general and administrative expenses (SG&A) declined 4% to $77.6 million in second quarter 2025, compared to the same period of 2024. Excluding the impact of a $2 million operating guarantee payment for a portfolio of managed hotels, which was acquired in connection with the company's acquisition of Radisson Hotels Americas, second quarter 2025 adjusted SG&A was $75.6 million, 6% lower than the same period of 2024.

     
  • The domestic effective royalty rate increased by 8 basis points to 5.12% for second quarter 2025, compared to the same period of 2024.

     
  • Domestic revenue per available room (RevPAR) decreased by 2.9% for second quarter 2025, compared to the same period of 2024, reflecting macroeconomic uncertainty and previously disclosed difficult comparisons due to the timing of Easter and eclipse-related travel in 2024. Excluding the Easter and eclipse impacts, domestic RevPAR declined approximately 1.6% for second quarter 2025, compared to the same period of 2024.

     
  • The domestic RevPAR for extended stay portfolio outperformed the total lodging industry by 40 basis points and the economy transient portfolio outperformed the economy chain scale by 320 basis points in domestic RevPAR for second quarter 2025, compared to the same period of 2024.

System Size and Development



Rooms



June 30, 2025

June 30, 2024

Change

Domestic

500,562

494,083

1.3 %

     Domestic Upscale, Extended Stay, and Midscale

439,744

429,725

2.3 %

International

143,838

136,980

5.0 %

Global

644,400

631,063

2.1 %

 

  • Domestic upscale, extended stay, and midscale net rooms portfolio grew by 2.3% compared to June 30, 2024.

     
  • The company's WoodSpring Suites brand grew by 9.7% to nearly 33,000 rooms since June 30, 2024, and was ranked number one for the third year in a row in guest satisfaction among economy extended stay hotel brands in the J.D. Power 2025 North America Hotel Guest Satisfaction Index Study.4

     
  • For the upscale brands, global net rooms grew by 14.7% from June 30, 2024, and global pipeline increased by 7% from March 31, 2025, reaching nearly 29,000 rooms.

     
  • Increased the domestic economy transient pipeline by 8% to over 1,700 rooms as of June 30, 2025, compared to June 30, 2024.

3 Adjusted to exclude a non-recurring benefit of $2.1 million recognized in second quarter 2024, related to the company's former credit card partner.

4 WoodSpring Suites received the highest score among economy extended stay hotels in the J.D. Power 2025 North America Hotel Guest Satisfaction Index Study of customers' satisfaction with their hotel stay. Visit jdpower.com/awards for more details.

 

Balance Sheet and Liquidity

As of June 30, 2025, the company had total available liquidity of $587.5 million, including available borrowing capacity and cash and equivalents. The company's net debt leverage ratio was 3.0 times as of June 30, 2025.

During the first half of 2025, the company increased cash flows from operating activities by 2% to $116.1 million, compared to the same period of 2024. The amount included $95.6 million generated in the second quarter.

Shareholder Returns

During the six months ended June 30, 2025, the company paid cash dividends totaling $26.9 million and repurchased 811,000 shares of common stock for $110.0 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 June 30, 2025, the company had 3.0 million shares of common stock remaining under the current share repurchase authorization.

Outlook

The company is adjusting its RevPAR outlook to reflect a more moderate domestic expectation amidst a changing macroeconomic backdrop. The company's adjusted EBITDA outlook reflects an incremental contribution of approximately $6 million for the remainder of 2025 from the acquisition of Choice Hotels Canada. 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, due diligence and transition costs, additional repurchases of company stock, and other items. These figures include the $2 million impact from the operating guarantee payment related to managed hotels incurred during the second quarter of 2025.



Full-Year 2025

Prior Outlook

Net Income

$261 – $276 million

$275 – $290 million

Adjusted Net Income

$324 – $339 million

$324 – $339 million

Adjusted EBITDA

$615 – $635 million

$615 – $635 million

Diluted EPS

$5.54 – $5.86

$5.86 – $6.18

Adjusted Diluted EPS

$6.88 – $7.20

$6.90 – $7.22

Effective Income Tax Rate

25 %

25 %









Full-Year 2025

vs. Full-Year 2024

Prior Outlook

Domestic RevPAR Growth

-3% to 0%

-1% to 1%

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 second 2025 earnings results on August 6, 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 nearly 7,500 hotels, representing over 640,000 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, 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 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, expenses associated with legal claims, (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 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 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

[email protected]

© 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 June 30,

Six months ended June 30,























2025



2024



2025



2024

REVENUES

















Franchise and management fees



$           177,086



$           179,803



$           322,154



$           323,213

Partnership services and fees



27,064



27,363



52,445



47,207

Owned hotels



30,228



28,418



58,088



53,409

Other



24,716



23,307



35,843



38,024

Revenue for reimbursable costs from franchised and managed properties



167,349



176,265



290,773



305,252

Total revenues



426,443



435,156



759,303



767,105



















OPERATING EXPENSES

















Selling, general and administrative



89,298



88,729



163,508



160,998

Business combination, diligence and transition costs



347



895



446



16,739

Depreciation and amortization



13,424



12,837



27,172



25,652

Owned hotels



22,419



20,704



43,479



40,027

Reimbursable expenses from franchised and managed properties



176,358



179,369



320,169



330,918

Total operating expenses



301,846



302,534



554,774



574,334



















Operating income



124,597



132,622



204,529



192,771



















OTHER EXPENSES AND INCOME, NET

















Interest expense



22,736



23,845



43,978



44,026

Interest income



(1,456)



(2,415)



(3,015)



(4,146)

Other (gain) loss



(5,374)



2,544



(4,938)



3,880

Equity in net loss (gain) of affiliates



80



(7,933)



131



(7,778)

Total other expenses and income, net



15,986



16,041



36,156



35,982



















Income before income taxes



108,611



116,581



168,373



156,789

Income tax expense



26,877



29,445



42,105



38,644

Net income



$             81,734



$             87,136



$           126,268



$           118,145



















Basic earnings per share



$                 1.76



$                 1.82



$                 2.71



$                 2.42



















Diluted earnings per share



$                 1.75



$                 1.80



$                 2.68



$                 2.41

 

Choice Hotels International, Inc.







Exhibit 2

Condensed Consolidated Balance Sheets









(Unaudited)























(In thousands)



June 30,



December 31,









2025



2024















ASSETS









Cash and cash equivalents



$                 58,610



$                 40,177

Accounts receivable, net



218,473



176,672

Other current assets



123,596



122,237



Total current assets



400,679



339,086















Property and equipment, net



660,762



604,345

Operating lease right-of-use assets



79,745



83,451

Goodwill



220,187



220,187

Intangible assets, net



882,490



884,013

Notes receivable, net of allowances



34,214



32,682

Investments for employee benefit plans, at fair value



48,205



47,603

Investments in affiliates



125,480



117,016

Other assets



213,000



202,144

















Total assets



$             2,664,762



$             2,530,527















LIABILITIES AND SHAREHOLDERS' DEFICIT









Accounts payable



$                142,870



$                134,865

Accrued expenses and other current liabilities



116,569



136,729

Deferred revenue



105,761



102,114

Liability for guest loyalty program



86,729



89,013



 Total current liabilities



451,929



462,721











Long-term debt



1,900,116



1,768,526

Long-term deferred revenue



128,616



132,259

Deferred compensation and retirement plan obligations



54,040



53,316

Operating lease liabilities



111,239



113,255

Liability for guest loyalty program



39,576



40,607

Other liabilities



5,484



5,114















Total liabilities



2,691,000



2,575,798

















Total shareholders' deficit



(26,238)



(45,271)

















Total liabilities and shareholders' deficit



$             2,664,762



$             2,530,527















 

Choice Hotels International, Inc.





Exhibit 3

Condensed Consolidated Statements of Cash Flows







(Unaudited)















(In thousands)

Six months ended June 30,



2025



2024

CASH FLOWS FROM OPERATING ACTIVITIES







Net income

$           126,268



$           118,145

Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization

27,172



25,652

Depreciation and amortization – reimbursable expenses from franchised and managed properties

9,426



9,907

Franchise agreement acquisition cost amortization

17,261



13,993

Non-cash share-based compensation and other charges

19,438



19,253

Non-cash interest, investments, and affiliate income, net

(1,668)



(1,791)

Deferred income taxes

850



(2,689)

Equity in net loss of affiliates, less distributions received

692



1,160

Franchise agreement acquisition costs, net of reimbursements

(41,474)



(52,025)

Change in working capital and other

(41,895)



(18,010)

Net cash provided by operating activities

116,070



113,595

CASH FLOWS FROM INVESTING ACTIVITIES







Investments in other property and equipment

(18,333)



(22,686)

Investments in owned hotel properties

(65,676)



(50,853)

Contributions to investments in affiliates

(9,358)



(19,486)

Issuances of notes receivable

(3,353)



(1,479)

Collections of notes receivable

2,773



1,743

Proceeds from sales of equity securities



16,815

Distributions from sales of affiliates



15,850

Other items, net

(1,201)



(1,936)

Net cash used in investing activities

(95,148)



(62,032)

CASH FLOWS FROM FINANCING ACTIVITIES







Net borrowings pursuant to revolving credit facilities

130,000



301,500

Debt issuance costs



(2,760)

Purchases of treasury stock

(112,756)



(292,711)

Dividends paid

(26,868)



(28,854)

Proceeds from the exercise of stock options

6,385



4,261

Net cash used in financing activities

(3,239)



(18,564)

Net change in cash and cash equivalents

17,683



32,999

Effect of foreign exchange rate changes on cash and cash equivalents

750



656

Cash and cash equivalents, beginning of period

40,177



26,754

Cash and cash equivalents, end of period

$             58,610



$             60,409

 

 





























Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL OPERATING INFORMATION

DOMESTIC HOTEL SYSTEM

(UNAUDITED)













































For the Three Months Ended June 30, 2025



For the Three Months Ended June 30, 2024



Change





Average Daily











Average Daily











Average Daily















Rate



Occupancy



RevPAR



Rate



Occupancy



RevPAR



Rate



Occupancy



RevPAR

Upscale & Above (1)



$       152.54



60.5 %



$         92.24



$       156.20



62.0 %



$          96.88



(2.3) %



(150)

bps



(4.8) %

Midscale & Upper

Midscale (2)



102.08



59.4 %



60.64



104.11



60.2 %



62.71



(1.9) %



(80)

bps



(3.3) %

Extended Stay (3)



66.89



71.2 %



47.62



64.38



74.0 %



47.63



3.9 %



(280)

bps



— %

Economy (4)



71.42



50.1 %



35.80



72.33



49.6 %



35.86



(1.3) %



50

bps



(0.2) %

Total



$         97.65



59.6 %



$         58.22



$         99.40



60.3 %



$          59.95



(1.8) %



(70)

bps



(2.9) %













































For the six months ended June 30, 2025



For the six months ended June 30, 2024



Change





Average Daily











Average Daily











Average Daily















Rate



Occupancy



RevPAR



Rate



Occupancy



RevPAR



Rate



Occupancy



RevPAR

Upscale & Above (1)



$       146.63



55.2 %



$         80.91



$       150.14



56.5 %



$          84.90



(2.3) %



(130)

bps



(4.7) %

Midscale & Upper

Midscale (2)



98.52



54.6 %



53.78



99.16



54.9 %



54.45



(0.6) %



(30)

bps



(1.2) %

Extended Stay (3)



66.79



69.5 %



46.44



62.98



71.5 %



45.03



6.0 %



(200)

bps



3.1 %

Economy (4)



70.73



46.9 %



33.19



69.66



46.2 %



32.20



1.5 %



70

bps



3.1 %

Total



$         94.48



55.3 %



$         52.25



$         94.79



55.5 %



$          52.61



(0.3) %



(20)

bps



(0.7) %









































Effective Royalty Rate



































For the Three Months Ended







For the Six Months Ended























June 30, 2025



June 30, 2024







June 30, 2025



June 30, 2024



















System-wide



5.12 %



5.04 %







5.11 %



5.04 %



























































(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)







































June 30, 2025



June 30, 2024



Variance





Hotels



Rooms



Hotels



Rooms



Hotels



%



Rooms



%

Ascend Hotel Collection



231



38,537



203



23,109



28



13.8 %



15,428



66.8 %

Cambria Hotels



75



10,222



74



10,209



1



1.4 %



13



0.1 %

Radisson(1)



53



9,928



60



14,177



(7)



(11.7) %



(4,249)



(30.0) %

Comfort(2)



1,659



130,208



1,670



131,167



(11)



(0.7) %



(959)



(0.7) %

Quality



1,593



115,638



1,625



118,739



(32)



(2.0) %



(3,101)



(2.6) %

Country



408



32,704



422



33,633



(14)



(3.3) %



(929)



(2.8) %

Sleep



407



28,483



422



29,696



(15)



(3.6) %



(1,213)



(4.1) %

Clarion(3)



186



19,014



186



19,598





— %



(584)



(3.0) %

Park Inn



13



1,302



8



775



5



62.5 %



527



68.0 %

WoodSpring



270



32,521



246



29,639



24



9.8 %



2,882



9.7 %

MainStay



139



10,098



130



9,202



9



6.9 %



896



9.7 %

Suburban



111



9,137



110



9,332



1



0.9 %



(195)



(2.1) %

Everhome



17



1,952



4



449



13



325.0 %



1,503



334.7 %

Econo Lodge



620



36,149



658



38,602



(38)



(5.8) %



(2,453)



(6.4) %

Rodeway



441



24,669



458



25,756



(17)



(3.7) %



(1,087)



(4.2) %

Domestic Franchises



6,223



500,562



6,276



494,083



(53)



(0.8) %



6,479



1.3 %



































International Franchises



1,258



143,838



1,210



136,980



48



4.0 %



6,858



5.0 %



































Total Franchises



7,481



644,400



7,486



631,063



(5)



(0.1) %



13,337



2.1 %



































(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 June 30,



Six months ended June 30,







2025



2024



2025



2024























Total selling, general and administrative expenses



$        89,298



$          88,729



$        163,508



$        160,998



Mark to market adjustments on non-qualified retirement plan investments



(3,973)



(931)



(3,250)



(4,651)



Non-recurring operational restructuring (charges) net benefit and executive severance



(372)



258



(4,302)



(533)



Share-based compensation



(6,236)



(5,126)



(12,126)



(10,059)



Expenses associated with legal claims





(2,430)





(2,430)



Global ERP system implementation and related costs



(1,076)





(2,066)





Adjusted selling, general and administrative expenses



$        77,641



$        80,500



$        141,764



$        143,325



















EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") AND ADJUSTED EBITDA

(dollar amounts in thousands)



Three months ended June 30,



Six months ended June 30,







2025



2024



2025



2024





















Net income



$          81,734



$          87,136



$        126,268



$        118,145



Income tax expense



26,877



29,445



42,105



38,644



Interest expense



22,736



23,845



43,978



44,026



Interest income



(1,456)



(2,415)



(3,015)



(4,146)



Other (gain) loss



(5,374)



2,544



(4,938)



3,880



Equity in net loss (gain) of affiliates



80



(7,933)



131



(7,778)



Depreciation and amortization



13,424



12,837



27,172



25,652

EBITDA



$        138,021



$        145,459



$        231,701



$        218,423



Share-based compensation



6,236



5,126



12,126



10,059



Mark to market adjustments on non-qualified retirement plan investments



3,973



931



3,250



4,651



Franchise agreement acquisition costs amortization and charges



5,941



4,054



11,327



7,581



Revenue for reimbursable costs from franchised and managed properties



(167,349)



(176,265)



(290,773)



(305,252)



Reimbursable expenses from franchised and managed properties



176,358



179,369



320,169



330,918



Global ERP system implementation and related costs



1,076





2,066





Business combination, diligence and transition costs



347



895



446



16,739



Non-recurring operational restructuring charges (net benefit) and executive severance



372



(258)



4,302



533



Expenses associated with legal claims





2,430





2,430

Adjusted EBITDA



$        164,975



$        161,741



$        294,614



$        286,082





















ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS")





(dollar amounts in thousands, except per share amounts)



Three months ended June 30,



Six months ended June 30,







2025



2024



2025



2024





















Net income



$          81,734



$          87,136



$        126,268



$        118,145



Loss on investments in equity securities, net of dividend income





3,357





7,584



Revenue for reimbursable costs from franchised and managed properties



(167,349)



(176,265)



(290,773)



(305,252)



Reimbursable expenses from franchised and managed properties



176,358



179,369



320,169



330,918



Business combination, diligence and transition costs



347



895



446



16,739



Non-recurring operational restructuring charges (net benefit) and executive severance



372



(258)



4,302



533



Global ERP system implementation and related costs



1,076





2,066





Expenses associated with legal claims





2,430





2,430



Gain on sale of an affiliate





(7,232)





(7,232)



Income tax expense on adjustments



(2,756)



(649)



(9,053)



(11,421)

Adjusted net income



$          89,782



$          88,783



$        153,425



$        152,444





















Diluted EPS



$              1.75



$              1.80



$              2.68



$              2.41

Adjusted Diluted EPS



$              1.92



$              1.84



$              3.25



$              3.11

 







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(1)



$             260,800



$            275,800



Income tax expense



87,000



92,000



Interest expense



88,400



88,400



Interest income



(6,500)



(6,500)



Other gain



(4,700)



(4,700)



Equity in net gain of affiliates



(1,300)



(1,300)



Depreciation and amortization(1)



56,400



56,400

EBITDA



$             480,100



$            500,100



Share-based compensation



24,100



24,100



Mark to market adjustments on non-qualified retirement plan investments



3,300



3,300



Franchise agreement acquisition costs amortization and charges



23,800



23,800



Revenue for reimbursable costs from franchised and managed properties



(606,200)



(606,200)



Reimbursable expenses from franchised and managed properties



676,200



676,200



Non-recurring operational restructuring charges and executive severance



4,300



4,300



Global ERP system implementation and related costs



6,400



6,400



Business combination, diligence and transition costs



3,000



3,000

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(1)



$             260,800



$            275,800



Revenue for reimbursable costs from franchised and managed properties



(606,200)



(606,200)



Reimbursable expenses from franchised and managed properties



676,200



676,200



Non-recurring operational restructuring charges and executive severance



4,300



4,300



Global ERP system implementation and related costs



6,400



6,400



Business combination, diligence and transition costs



3,000



3,000



Income tax expense on adjustments



(20,900)



(20,900)

Adjusted Net Income



$             323,600



$            338,600













Diluted EPS



$                   5.54



$                  5.86

Adjusted Diluted EPS



$                   6.88



$                  7.20













(1) Guidance does not reflect depreciation and amortization related to assets acquired and liabilities assumed in conjunction with the acquisition of Choice Hotels Canada, as the initial accounting for the acquisition is incomplete as of the filing date.

 

 

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SOURCE Choice Hotels International, Inc.

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