Choice Hotels International Reports Impressive Growth in 2025 Amid Global Expansion
Choice Hotels International Reports Impressive Growth in 2025 Amid Global Expansion
Choice Hotels International, Inc. (NYSE: CHH), recognized as a leading global lodging franchisor, unveiled its financial results for the fourth quarter and the entire year of 2025. The company’s performance reflects significant advancements in profitability and expansion, driven by a remarkable 13% net room growth and an impressive increase in global franchise agreements awarded by 22%.
Financial Highlights
The financial results for the year highlighted several key metrics:
- - Net income for the full year reached $369.9 million, while the fourth quarter brought in $63.7 million.
- - The diluted earnings per share (EPS) stood at $7.90 for the full year and $1.37 for the fourth quarter. When adjusted, the EPS was reported as $6.94 for the year and $1.60 for the quarter.
- - Adjusted EBITDA achieved a record of $625.6 million for the year, with $140.9 million generated in the last quarter.
- - Choice saw a 14% growth in global hotel openings, totaling 440 hotels in 2025, marking a particularly strong fourth quarter with a 42% increase over the same period in 2024.
Additionally, the company reported global net rooms growth of 1.2%, along with an outstanding 12.5% increase in international net rooms compared to 2024. This surge included an 82% growth in hotel openings internationally during 2025. Notably, franchise agreements awarded increased significantly, with the U.S. pipeline for conversion rooms seeing a 12% rise sequentially from September 30, 2025.
Strategic Expansion
As part of its international strategy, Choice Hotels has made notable strides, entering new markets and enhancing its presence in existing ones. The company introduced MainStay Suites to Australia, marking the brand's inaugural expansion beyond North America. It also executed franchise agreements that brought in over 700 rooms in Canada, bolstered by the acquisition of Choice Hotels Canada.
Furthermore, significant onboarding efforts were made in France and China, with over 4,800 midscale rooms added in France and 8,300 rooms established under a partnership in China. This global outreach underscores Choice's commitment to growth in key markets.
Leadership Insights
Patrick Pacious, the President and CEO of Choice Hotels, emphasized the company's achievements, stating, "2025 was another year of record profitability for Choice Hotels, highlighted by our double-digit growth in international rooms and continued leadership in the extended-stay segment.
With a strong, accretive global development pipeline and investments that enhance franchisee economics, we are well equipped for long-term growth and value creation for our shareholders."
Future Projections
Looking ahead, Choice Hotels anticipates a net income range of $265 to $275 million for 2026, alongside an expected adjusted EBITDA between $632 and $647 million. This positive outlook is complemented by the company's active engagement in expanding its development pipeline, which, as of December 31, 2025, exceeded 77,800 rooms globally.
Furthermore, the management expects continued growth in franchise agreements, reinforcing their performance in the market.
In conclusion, 2025 has marked a pivotal year for Choice Hotels International, showcasing its resilience amidst challenges and its potential for future success. With ongoing international expansion and robust financial results, the company is not only solidifying but also significantly enhancing its position within the global hospitality industry.
Topics Consumer Products & Retail）
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