Shares of Choice Hotels International, Inc. (NYSE:CHH) were little changed in after-hours trading on Thursday after the company reported first-quarter results that fell short on earnings, even as revenue came in above expectations.
The company posted adjusted earnings per share of $1.07 for the quarter ended March 31, 2026, missing the analyst consensus of $1.28 by $0.21.
Revenue reached a record $340.6 million, exceeding the $330.37 million estimate and rising 2.3% from $332.9 million in the same period last year.
Revenue excluding reimbursable costs increased 3% to $216.7 million. Adjusted EBITDA totaled $125.7 million, down from $129.6 million in the first quarter of 2025, reflecting timing-related factors.
“Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends,” said President and CEO Patrick Pacious.
In the U.S., RevPAR declined 2.3% year-over-year, although the company noted that hurricane-related impacts reduced performance by approximately 410 basis points. Excluding this effect, U.S. RevPAR would have increased by 1.8%. International RevPAR rose 2.6% on a constant currency basis.
Global net room count grew 1.7% compared with March 31, 2025, while U.S. room openings jumped 32%, reaching the highest first-quarter level since 2023. The U.S. royalty rate increased by 11 basis points to 5.22%.
For full-year 2026, Choice Hotels maintained its outlook, guiding for adjusted EPS in the range of $6.92 to $7.14. The midpoint of $7.03 is slightly below the $7.17 consensus estimate. The company also expects adjusted EBITDA between $632 million and $647 million, with global RevPAR growth projected between -2% and 1%.