Choice hit with tough Q4 RevPAR comps

NORTH BETHESDA, Maryland — Choice Hotels International reported U.S. RevPAR of -7.6% in the U.S. in Q4 and -3% for all of 2025 and global systemwide growth of 0.5% as part of its fourth quarter earnings.

RevPAR had a global RevPAR of -4.6% in Q4, including 3.2% international RevPAR gains in the fourth quarter and finished -1.2% for year-end 2025, including a 3.5% international RevPAR gain for the year.

“Choice Hotels International delivered another year of record profitability in 2025, driven by our double-digit increase in international rooms, continued leadership in the extended-stay segment, and disciplined portfolio optimization,” said Choice President and CEO Patrick Pacious. “With a high-quality, accretive global development pipeline, targeted investments that strengthen franchisee economics and customer lifetime value, and a disciplined approach to capital allocation, we believe Choice is exceptionally well positioned to drive long-term growth and create meaningful shareholder value.”

Choice said global hotel openings grew 14% to 440 hotels in full-year 2025, including a 42% increase in Q4 year-over-year. Global net rooms also grew 1.2% YOY in 2025 across the higher-revenue upscale, extended-stay, and midscale brands. International net rooms grew 12.5% YOY, highlighted by an 82% increase in hotel openings during full-year 2025, compared to 2024, bringing the international system to nearly 160,000 rooms.

The company said global franchise agreements awarded grew 22% YOY in 2025, including a 6% YOY increase in Q4. Choice also said its U.S. pipeline for conversion rooms increased 12% last quarter and 7% YOY. The company’s global pipeline exceeded 77,800 rooms, with 97% concentrated in upscale, extended stay, and midscale brands, including 70,600 rooms in the U.S.

The company also forecast global RevPAR growth of between -2% to 1% in 2026 and global net system rooms growth of approximately 1%.

Analyst Patrick Scholes of Truist Securities said Choice earnings had no surprises with Q4 adjusted EBITDA exactly in line with Street expectations.

“Looking at P&L line items, revenues were generally slightly ahead of Street expectations, though these were offset by higher than expected SG&A. Net Rooms Growth was +0.5% YOY, in line with consensus for +0.4%. The company continues to struggle with domestic room growth, which was down 2.9% YOY, whereas international was up 12.5%. Share repurchases were fairly minimal as approximately 200,000 shares were repurchased, about 0.5% of shares, for what we estimate was approximately $20 million.”