Choice Hotels International, Inc. ("Choice" or "the company") (NYSE: CHH) reported its financial results for the fourth quarter and full year ending December 31, 2025. Here are the key highlights:
- Net income for full-year 2025 was $369.9 million, while for the fourth quarter it was $63.7 million.
- Diluted EPS for full-year 2025 was $7.90, and for the fourth quarter, it was $1.37. Adjusted EPS was $6.94 for the full year and $1.60 for the fourth quarter.
- Adjusted EBITDA reached a company record $625.6 million for full-year 2025, with fourth quarter adjusted EBITDA of $140.9 million.
- Global hotel openings grew 14% to 440 hotels in full-year 2025, including a 42% increase in the fourth quarter compared to the same periods of 2024.
- International net rooms grew 12.5% compared to December 31, 2024, highlighted by an 82% increase in hotel openings during full-year 2025, bringing the international system to nearly 160,000 rooms.
- Global franchise agreements awarded grew 22% in full-year 2025, including a 6% increase in the fourth quarter compared to the same periods of 2024.
The company reported that for full-year 2026, net income is expected to range between $265 to $275 million, and adjusted EBITDA is expected to range between $632 and $647 million.
In terms of the development pipeline, the global pipeline exceeded 77,800 rooms as of December 31, 2025, with 97% concentrated in upscale, extended stay, and midscale brands, including 70,600 rooms in the U.S.
Regarding the balance sheet and liquidity, as of December 31, 2025, Choice had total available liquidity of $571.4 million, including cash and cash equivalents and available borrowing capacity. The company’s net debt-to-adjusted EBITDA ratio was 3.0x for the full year ended December 31, 2025.
In addition, during the twelve months ended December 31, 2025, the company returned $189.3 million to shareholders, through $53.5 million in dividends and $135.8 million in share repurchases, under its stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the company's equity incentive plans.
Looking ahead, the company provided an outlook for full-year 2026, including forward-looking non-GAAP measures. It expects adjusted net income to range between $320 and $330 million, and adjusted EBITDA to range between $632 and $647 million.
Choice Hotels International, Inc. is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing over 650,000 rooms, in 50 countries and territories. Today the company's shares have moved -1.05% to a price of $107.95. If you want to know more, read the company's complete 8-K report here.
