#United States #Global Expansion #Choice Hotels #North Bethesda #Hotel Industry

Choice Hotels International Sees Robust Gains in Q3 2025

Choice Hotels International, Inc. has continued its strong performance into the third quarter of 2025, showcasing a significant surge in net income, global room expansion, and enhanced franchise agreements. The company reported an impressive net income of $180 million for the quarter ending September 30, 2025, up from $105.7 million in the same timeframe the previous year, delivering a diluted earnings per share (EPS) of $3.86, compared to $2.22 in Q3 2024.

The adjusted EBITDA for Q3 also saw a commendable growth of 7%, reaching a record $190.1 million, highlighting the company's continued operational efficiency and strategic focus on high-value segments. But it was the international expansion that truly caught the eye, as global net rooms increased by 2.3%, with higher revenue segments like upscale, extended stay, and midscale growing by 3.3% when compared to the previous year.

In a display of solid international growth, net rooms outside the U.S. surged by 8.3%, primarily driven by a 66% increase in new openings. The surge in new international franchise agreements reflects the company's strategic vision for growth, which has seen the number of awarded global franchise agreements skyrocket by 54% in Q3 2025 compared to the same period last year.

Among the key milestones this quarter, Choice Hotels added over 4,800 midscale rooms in France with expectations to nearly double its portfolio in that market by the end of 2025. Additionally, the company made its entry into the Argentine market through direct franchise agreements and is set to onboard approximately 80% of an anticipated 9,500 rooms in China in collaboration with SSAW Hotels and Resorts.

The company’s leadership, led by President and CEO Patrick Pacious, expressed optimism about the ongoing success and future potential of Choice Hotels in the international market. With the company poised to capitalize on a high-quality pipeline, there is a clear trajectory towards enhancing profitability and delivering significant value to all stakeholders, including franchise owners and shareholders.

Further budgeting for Q4 and beyond reflects the confidence anchored by current performance levels, with adjusted diluted EPS expected to demonstrate continued growth, despite some temporary challenges stemming from operational costs related to acquisitions and tax expenses. Management noted that excluding certain items, the adjusted diluted EPS for Q3 would reflect a modest increase compared to the previous year.

The company's diversified portfolio, consisting of 22 brands serving various traveler needs, continues to present a significant competitive edge across segments such as upper upscale and economy. The Choice Privileges rewards program complements this strategy by providing a seamless experience for both customers and franchise operators.

Looking towards the future, the ongoing focus will be on fortifying the company’s presence globally, particularly in high-potential markets while also enhancing its product offerings and service quality. Strategies to adapt to market demands post-pandemic and the increasing necessity for flexible and diversified lodging options remain top priorities. Furthermore, with an outlook aiming to double profitability by 2027, Choice Hotels International is keen to transform challenges into opportunities in the highly competitive global hotel industry.

In conclusion, the latest figures from Choice Hotels International underscore a clear commitment to growth, profitability, and international expansion. With robust results and solid planning, stakeholders can look forward to a promising future for this leading lodging franchisor.