Choice Hotels International, Inc. Q3 2025 Earnings Recap

Choice Hotels International reported a 7% increase in adjusted EBITDA to $190 million in Q3 2025, bolstered by strong revenue growth in higher-margin segments and a robust global expansion strategy.

Key Takeaways

• Global room growth reached 2.5% year-over-year, with a significant 3.5% expansion in higher revenue segments.
• Franchise agreements surged 54% year-over-year, indicating strong developer interest and future growth potential.
• International adjusted EBITDA grew by 35%, with plans to double it by 2027, driven by higher margins and an expanding footprint of over 150,000 rooms.
• Increased occupancy rates in the economy transient segment signal positive trends for the upcoming U.S. lodging cycle.