Q1 2026 Choice Hotels International Inc Earnings Call Transcript
Key Points
- Choice Hotels International Inc (CHH) reported a 32% year-over-year increase in gross hotel openings, marking a five-year high.
- The company's US pipeline is expanding, providing greater visibility into future growth.
- Franchisee unit economics are improving, driven by stronger revenue delivery and lower hotel development and operating costs.
- Choice Hotels International Inc (CHH) has achieved a 65% year-over-year increase in US franchise agreements awarded in the first quarter.
- The company has successfully reduced development outlays by 51% year-over-year, indicating a decline in capital intensity.
- Adjusted EBITDA decreased to $126 million from $130 million a year ago, reflecting the timing of certain SG&A costs.
- Adjusted earnings per share fell to $1.07 from $1.34 a year ago, due to a temporary adjustment to the effective income tax rate.
- Global RevPAR declined by 80 basis points year-over-year on a currency-neutral basis, primarily due to the lapping of hurricane-related impacts.
- The company maintained its guidance across all key metrics, indicating caution due to broader macroeconomic uncertainties.
- Choice Hotels International Inc (CHH) experienced a 400-basis-point impact on RevPAR due to hurricane-related demand in the prior year.
Ladies and gentlemen, thank you for standing by. Welcome to Choice Hotels International's first-quarter 2026 earnings call. (Operator Instructions)
I will now turn the call over to Allie Summers, Senior Director of Investor Relations. Please go ahead.
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 choicehotels.com.
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