Q4 2025 Choice Hotels International Inc Earnings Call Transcript
Key Points
- Choice Hotels International Inc (CHH) delivered adjusted EBITDA of $626 million in 2025, up 4% year over year, reflecting strong financial performance.
- The company achieved 14% year-over-year growth in global hotel openings and expanded its international footprint at a double-digit pace.
- Choice Hotels International Inc (CHH) reported a 22% increase in global franchise agreements awarded in 2025, indicating strong developer interest.
- The company's extended stay segment saw a record number of US hotel openings, up 8% year-over-year, driven by the Everhome Suites brand.
- Choice Hotels International Inc (CHH) launched enhancements to its Choice Privileges loyalty program, which now exceeds 74 million members, up 7% year over year.
- Global RevPAR declined 4.6% year over year in the fourth quarter of 2025, impacted by a tougher hurricane comparison in the US Southeast.
- US RevPAR faced challenges due to a government shutdown and continued softness in international inbound travel.
- The company accelerated the exit of underperforming hotels in the fourth quarter, which generated royalties well below the portfolio average.
- Choice Hotels International Inc (CHH) anticipates a negative RevPAR in Q1 2026 due to lapping hurricane impacts from the prior year.
- The company reported a drag in working capital and other financial areas in 2025, which is expected to reverse in 2026.
Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International fourth quarter and full-year 2025 earnings call. (Operator Instructions)
I will now turn the call over to Allie Summers, Senior Director of Investor Relations.
Good morning, and thank you for joining us. Before we begin, please note that today's discussion includes forward-looking statements as defined under US securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.
For more information, please refer to our filings with the SEC, including our most recent forms 10-K and 10-Q. These statements speak only as of today, and we undertake no obligation to update them. A reconciliation of any non-GAAP financial measures referenced in today's remarks is included in our earnings press release available on the Investor Relations section of the choicehotels.com.
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