The company attributed the drop to single-time events such as expenditures linked to the integration of Radisson Hotels Americas and the timing of net reimbursable costs.
For the three months ended 30 June 2023, total revenues were $427.4m, up 16% compared with $367.9m a year earlier.
Diluted earnings per share (EPS) for the quarter was $1.65 versus $1.89 last year.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $153.1m, a rise of 18% from $129.5m in the year ago period.
In the first half of 2023, Choice Hotels gave shareholders cash dividends of nearly $28m.
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Choice Hotels International president and CEO Patrick Pacious said: “Choice Hotels generated record revenues, fuelled by our best-in-class hotel conversion and reservation-delivery capabilities as well as our success in integrating Radisson Hotels Americas ahead of schedule.
“The exceptional speed with which we are able to move conversion projects through the pipeline has driven impressive revenue-intense hotel openings in the first half of 2023 and further strengthened our award-winning brand portfolio, reinforcing our confidence in the company’s ability to drive significant growth in 2023 and beyond.”
The company has revised the outlook for the full year 2023, with net income now expected in the range of $251 to $259m while adjusted diluted EPS is anticipated to be in the range of $5.86 to $6.01.