Choice Q4 RevPAR Slides as US Demand Stalls and 2026 Outlook Turns Cautious

Choice Hotels International reported its fourth-quarter and full-year 2025 results, showing that RevPAR declined mainly due to weakness in the US business. Systemwide fourth quarter RevPAR was $49.82, down 4.6 percent year over year, as hotels both charged less and filled fewer rooms: ADR was $92.20 (down 2.5 percent), and occupancy was 54.0 percent (down 120 basis points). For the full year, systemwide RevPAR was $55.70, down 1.2 percent. Choice said the international side did better, which helped offset some of the US softness.

What caused the US drop, and why it matters for travel operators

Choice said US fourth-quarter RevPAR fell 7.6 percent and blamed a mix of temporary and comparison-related factors: a US government shutdown during the quarter, softer international inbound travel into the US, and a tough year-over-year comparison because the fourth quarter of 2024 benefited from hurricane-related demand. Choice also shared an “adjusted” view to explain the gap: excluding a 540-basis-point hurricane benefit from the prior year, the company said US RevPAR declined 2.2 percent in the fourth quarter. For airlines, OTAs, and destinations, this split matters because it points to specific demand pockets (government and inbound) rather than a broad collapse in travel.

Q4 results beyond RevPAR: what the financials show

Choice’s Q4 story was not only about room revenue. The company said fourth-quarter revenue was $390.2 million, essentially flat year over year, while net income was $63.7 million. Profitability also held up: adjusted EBITDA was $140.9 million for the quarter. On earnings, Choice reported diluted EPS of $1.37 and adjusted EPS of $1.60. In simple terms, Choice still produced strong cash earnings even as US hotel demand softened, reflecting how its franchise-heavy model can remain profitable when room metrics move unevenly across regions.

The bright spot is corporate demand, and Choice is leaning into SME tech

Choice’s management highlighted that business-related travel improved in 2025 even as headline RevPAR fell. CEO Patrick Pacious said group revenue grew 35 percent year over year in 2025 and small and midsized business revenue grew 13 percent, helped by resilient sectors like construction, utilities, and high-tech manufacturing. The company said business travel now represents about 40 percent of total stays. To capture more of that demand, Choice is using AI-enabled RFP tools to speed hotel responses and previewed a dedicated digital platform for small and midsized businesses launching next quarter, aimed at a $13 billion opportunity.

Most recent update: 2026 guidance is cautious, and the next signal is US weekday strength

Choice’s newest guidance, released with earnings, projects both systemwide and US RevPAR for full-year 2026 to range from a 2 percent decline to a 1 percent increase. That range basically says: the company expects stability, but the direction depends on whether US government travel and inbound demand recover, and whether business travel keeps holding up. Choice also pointed to longer-term momentum drivers—record adjusted EBITDA and continued growth in openings and agreements—as it seeks to build steadier weekday demand through corporate and SME channels.

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