Choice Hotels International, Inc. reported its financial results for the second quarter of 2025, revealing total revenues of $426.4 million, a decrease of 2% from $435.2 million in the same period of 2024. The decline was primarily attributed to a drop in franchise and management fees, which fell to $177.1 million from $179.8 million year-over-year. Despite the revenue dip, the company achieved a net income of $81.7 million, compared to $87.1 million in the prior year, resulting in diluted earnings per share of $1.75, down from $1.80.
In the first half of 2025, Choice Hotels generated total revenues of $759.3 million, a slight decrease from $767.1 million in the first half of 2024. The company reported an operating income of $204.5 million, an increase from $192.8 million in the previous year, driven by a reduction in business combination costs and an increase in partnership services and fees. The company’s total operating expenses decreased to $554.8 million from $574.3 million, reflecting improved cost management.
Operationally, Choice Hotels continued to expand its footprint, with 7,481 hotels and 644,400 rooms open and operating as of June 30, 2025. The company also reported 931 hotels in its development pipeline. The domestic franchise system saw a slight decrease in the number of hotels, with 6,223 hotels compared to 6,276 a year earlier. However, the international franchise system grew, adding 48 hotels, bringing the total to 1,258.
Strategically, the company made significant moves, including the acquisition of the remaining 50% of Choice Hotels Canada for approximately $112 million, enhancing its presence in the Canadian market. Additionally, a joint venture was established to develop and operate Everhome Suites in strategic markets, with an initial cash contribution of $71.6 million. These initiatives are expected to bolster the company’s growth and market share in the competitive hospitality sector.
Looking ahead, Choice Hotels remains optimistic about its growth trajectory, focusing on enhancing franchise performance and expanding its brand portfolio. The company anticipates that its strategic investments and operational efficiencies will continue to drive profitability, despite the challenges posed by market fluctuations and economic conditions.
About CHOICE HOTELS INTERNATIONAL INC /DE
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