Choice Hotels’ Q3 2025 Shines with $180M Profit Amid US Demand Dip

Choice Hotels International has reported strong third-quarter results for 2025, demonstrating steady growth and improved profitability despite softer demand in the US market.

The company recorded net income of $180 million, a sharp increase from $105.7 million in the same period last year.

Diluted earnings per share (EPS) rose to $3.86, up from $2.22 a year ago, while adjusted EBITDA reached a record $190.1 million, a seven percent increase year-over-year.

Total revenue increased 5 percent to $447.3 million, driven by a strong global performance and the continued expansion of higher-margin brands.

Global net rooms grew by 2.3 percent, led by a 3.3 percent increase in the upscale, extended-stay, and midscale categories.

While US revenue per available room (RevPAR) fell 3.2 percent, international RevPAR surged 9.5 percent, reflecting stronger travel demand across Europe and the Asia-Pacific region.

Franchise and management fees also improved by 3 percent, contributing to revenue gains.

The company generated $68.7 million in operating cash flow for the quarter and $184.8 million year-to-date, supported by disciplined cost management and solid franchise growth.

Net proceeds of $25 million were generated from capital recycling activities, while investments in hotel development and lending declined during the first nine months.

For full-year 2025, Choice expects adjusted EPS between $6.82 and $7.05, and forecasts a 2–3 percent decline in US RevPAR, offset by accelerating international growth. The company aims to double its international EBITDA by 2027 through expansion and technology-driven initiatives focused on digital transformation and premium brands.

Take a look at the third-quarter reports released by other major hotel groups like Marriott, Hilton, and Wyndham to get a broader perspective on the industry’s recent performance.

Photo by Hanna Flores on Unsplash