Choice Hotels International (NYSE:CHH) reported second-quarter earnings that surpassed analyst expectations on Wednesday, even as revenue slightly missed estimates amid a softer domestic travel market. Shares climbed 0.85% in pre-market trading following the results.
The global hotel franchisor posted adjusted earnings per share of $1.92, beating the consensus of $1.89. Revenue totaled $426 million, just below the forecasted $430.18 million.
Choice Hotels set a new second-quarter record with adjusted EBITDA of $165 million, up 2% year-over-year. Adjusted diluted EPS increased 4% compared to the same period last year, also reaching a record level for the quarter.
This strong performance came despite a 2.9% decline in domestic RevPAR, attributed partly to tough year-over-year comparisons related to the timing of Easter and eclipse-related travel in 2024.
“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, President and CEO.
Internationally, the company saw solid growth, with net international rooms rising 5.0% year-over-year, driven by a 15% increase in new openings. Overall, Choice expanded its global net rooms system by 2.1%, including 3.0% growth in its higher-revenue portfolio.
For the full year 2025, Choice Hotels projects adjusted earnings per share between $6.88 and $7.20, slightly below the analyst consensus of $7.04. The company lowered its RevPAR outlook to reflect “a more moderate domestic expectation amidst a changing macroeconomic backdrop.”
In July, Choice completed the acquisition of the remaining 50% stake in Choice Hotels Canada for roughly $112 million, anticipating about $18 million in EBITDA contribution for 2025.
Choice Hotels International stock price
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