Choice Hotels CEO Steps Down but the Growth Playbook Stays Open

Choice Hotels International said that Patrick Pacious is stepping down as president and CEO. Dominic Dragisich, the company’s chief growth and strategy officer, has become interim CEO.

Pacious will stay on as an advisor until August 31, 2026, to support the handover.

The board has started a search for a permanent CEO and will consider both internal and external candidates. Choice also reaffirmed its full-year 2026 guidance, which suggests the company wants to show stability during the transition.

Pacious leaves after a major expansion period

Pacious spent nearly 21 years at Choice and became CEO in 2017. During his leadership, the company expanded from 11 brands to 22. It also completed important acquisitions, including WoodSpring Suites and Radisson Hotels Americas. Those deals helped Choice grow in extended stay and upscale lodging.

He also pushed the company toward more digital tools and stronger franchisee support. For hotel franchisors, this matters because owners do not choose a brand only for its name. They also look at reservation systems, loyalty programs, revenue tools, and the support they receive from the parent company.

Dragisich is expected to keep the strategy steady

Dragisich brings finance and operating experience to the interim role. He joined Choice in 2017 as chief financial officer and later held senior roles in operations, global brands, corporate development, and growth strategy. His background suggests the company wants continuity while it searches for a permanent CEO.

Results show growth, but also pressure

Choice reported record first-quarter 2026 revenue of $340.6 million. Revenue excluding reimbursable costs rose 3 percent to $216.7 million, and global net rooms increased 1.7 percent from the previous year. Growth was helped by extended stay, midscale, and upscale brands.

Still, the quarter also showed some pressure. Adjusted EBITDA fell to $125.7 million from $129.6 million a year earlier. Choice expects 2026 adjusted EBITDA of $632 million to $647 million, so keeping guidance unchanged is a signal that the company believes the transition will not derail its plan.

Photo by Kate Kasiutich on Unsplash