Choice Hotels International, Inc. reported a total revenue of $1.60 billion for the fiscal year ending December 31, 2025, reflecting a slight increase from $1.58 billion in 2024. The company's net income rose to $369.9 million, up from $299.7 million in the previous year, primarily driven by a $100 million gain from the acquisition of the remaining 50% interest in Choice Hotels Canada. This acquisition, completed in July 2025, allowed the company to consolidate its operations in Canada, which previously operated under a master franchise agreement.
In terms of operational metrics, the company had 7,575 hotels with 656,825 rooms open and operating as of December 31, 2025. The number of hotels in the franchise system decreased slightly from 6,328 in 2024 to 6,187 in 2025, while the average daily room rate (ADR) for U.S. hotels was reported at $95.05, a decrease from $96.67 in 2024. The revenue per available room (RevPAR) also saw a decline, dropping to $52.85 from $54.54 in the previous year, attributed to a decrease in occupancy rates and average daily rates.
Strategically, Choice Hotels focused on expanding its brand portfolio and enhancing franchisee profitability. The company emphasized its commitment to profitable growth through various initiatives, including the development of new hotel brands such as Cambria Hotels and Everhome Suites. As of the end of 2025, the company had 825 hotels in its development pipeline, indicating ongoing efforts to increase its market presence. Additionally, the company reported a significant increase in partnership services and fees, which rose to $113.8 million from $99.5 million in 2024, reflecting enhanced collaboration with vendors and service providers.
The company’s workforce comprised 1,754 employees as of December 31, 2025, a slight increase from 1,754 in 2024. Choice Hotels also maintained a disciplined approach to capital allocation, returning approximately $53.5 million to shareholders through dividends and repurchasing 1.1 million shares of its common stock during the year. The company’s liquidity position remained strong, with $571.4 million in cash and cash equivalents and available borrowing capacity under its senior unsecured revolving credit facility, which was increased to $1 billion in June 2024.
Looking ahead, Choice Hotels expressed optimism about its growth trajectory, particularly in international markets, where it aims to leverage its expanded brand portfolio. The company anticipates that its strategic investments and focus on enhancing franchisee performance will continue to drive revenue growth and shareholder value in the coming years. However, it also acknowledged potential risks, including economic fluctuations and competitive pressures in the hospitality industry, which could impact its operational performance.
About CHOICE HOTELS INTERNATIONAL INC /DE
Choice Hotels International, Inc. is a global hotel franchisor operating over 7,500 hotels across 49 U.S. states and 46 countries. It offers 22 diverse brands spanning economy to upscale segments, serving business and leisure travelers. The company generates revenue primarily through franchise fees based on room revenues and system size, leveraging marketing, reservation systems, loyalty programs, and vendor partnerships to enhance franchisee profitability and brand value.
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