Choice Hotels International has reported record adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $190.1m for the third quarter (Q3) of 2025, a 7% increase despite a softer US revenue per available room (RevPAR).
During the earnings call, the company’s chief financial officer Scott Oaksmith stated that its performance reflected diversified revenue sources and initial results from ongoing investments.
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He said performance was driven by contributing factors that include growth in system-wide room count, increased revenue from extended stay and upscale segments, a higher average royalty rate, expansion in international markets through brand introductions, and partnership revenue.
On a constant currency basis, international RevPAR growth was highest in the Europe, the Middle East and Africa (EMEA) region, with an 11% increase compared to the previous year.
The Americas and Asia-Pacific regions each recorded a 5% increase in RevPAR over the same period. In Canada, RevPAR grew by 7% in Q3.
In the US, Q3 RevPAR declined by 3.2% year-over-year (YoY), mainly due to reduced demand from government and international inbound segments.
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By GlobalDataThe company’s Q3 net income stood at $180m, up from $105.7m during the same period of 2024. Diluted earnings per share (EPS) rose to $3.86 from $2.22 YoY.
The group’s adjusted diluted EPS for the quarter was $2.10, compared to $2.23 in the same period last year.
The decrease was attributed to factors including amortisation expense from the acquisition of Choice Hotels Canada, temporary increases in income tax expense, revaluation of a previously held joint venture interest, and foreign currency adjustments.
Global net rooms grew by 2.3% with the upscale, extended stay, and midscale segments recording 3.3% growth since September 2024.
International net rooms increased by 8.3% YoY and by 5.2% compared to June 2025.
The company’s global pipeline exceeded 86,000 rooms as of 30 September 2025, with upscale, extended stay, and midscale properties accounting for 98% of new developments.
In the US market, extended stay net rooms rose by 12%, including a 14% increase in new openings compared to September 2024 period.
The global franchise agreements awarded rose 54% YoY during the quarter.
Choice Hotels International president and chief executive officer Patrick Pacious said: “We are especially excited by the accelerating momentum in our international business, where we are on track to double profitability by 2027.
“With an accretive, high-quality pipeline that rapidly converts signings into openings, and an enhanced value proposition that is attracting a growing base of higher-value guests, Choice is exceptionally well-positioned to deliver long-term growth and create meaningful value for all stakeholders.”
In the full year 2025, Choice expects US RevPAR to be between – 3% and -2%.
The company has revised its full year adjusted EBITDA outlook, setting the range at $620m to $632m, with the midpoint raised by $1m.
The full year adjusted earnings per share are now expected to be between $6.82 and $7.05.
The company said: “As a reminder, fourth-quarter comparisons will be impacted by elevated hurricane-related demand in the prior year, and we continue to monitor potential impacts related to the government shutdown.”
