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Choice Hotels International (CHH) FY2025 results: revenue $1.6 billion, up 0.8% on the year

Choice Hotels International Inc. (CHH) reported revenue of $1.6 billion for fiscal 2025, the year ended 31 December 2025, up 0.8% on the year before. Net income was $370 million, up 23.5%, and diluted earnings per share $7.90. The figures are the company's own, from the 10-K it filed with the SEC on 19 February 2026.

Revenue
$1.6 billion
+0.8% on the year
FY2018FY2025
Operating margin
28.1%
29.3% a year earlier
FY2018FY2025
Net income
$370 million
+23.5% on the year
FY2018FY2025
Diluted EPS
$7.90
+27.4% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 10 new.

  • Adjusted EBITDA reached a record: Adjusted EBITDA was $625.6 million for 2025, up from $604.1 million, with fourth-quarter adjusted EBITDA of $140.9 million against $140.4 million a year earlier.
  • Canada gain lifted full-year net income: Net income was $369.9 million for 2025, against $299.7 million in 2024. It includes a $100.0 million remeasurement gain on the previously held Choice Hotels Canada equity stake.
  • U.S. RevPAR fell, adjusted for hurricane base: U.S. RevPAR fell 7.6% in the fourth quarter and 3.0% for the year, currency-neutral. Management's adjusted fourth-quarter decline, excluding the 2024 hurricane benefit, was 2.2%.
  • U.S. portfolio optimization cut net rooms: Management said accelerated U.S. portfolio optimization, including strategic hotel exits, shaped the net room change, while gross openings and development stayed healthy.
  • Pipeline fell from third-quarter level: The year-end global pipeline is below the more than 86,000 rooms reported at September 30, 2025, in the third-quarter release.
Read the Q4 FY2025 earnings call summary

From this 10-K

Choice Hotels International is primarily a hotel franchisor, operating in 49 states, the District of Columbia and 50 countries and territories. As of December 31, 2025 its system had 7,575 hotels with 656,825 rooms open and operating. Another 825 hotels with 77,862 rooms were in the pipeline: under construction, awaiting conversion, approved for development or committed under master development agreements. Its principal source of revenue is franchise fees, based on hotels' gross room revenues or number of rooms.

Choice Hotels International Inc., the 10-K for 2025

Choice Hotels International is primarily a hotel franchisor, operating in 49 states, the District of Columbia and 50 countries and territories. As of December 31, 2025 its system had 7,575 hotels with 656,825 rooms open and operating. Another 825 hotels with 77,862 rooms were in the pipeline: under construction, awaiting conversion, approved for development or committed under master development agreements. Its principal source of revenue is franchise fees, based on hotels' gross room revenues or number of rooms.

The brands

The brands include Comfort Inn and Comfort Suites, Quality, Econo Lodge, Rodeway Inn, Sleep Inn, Country Inn & Suites by Radisson, Ascend Collection, Clarion, WoodSpring Suites, MainStay Suites, Suburban Studios, Cambria Hotels, Everhome Suites and the Radisson family, including Radisson Blu, Radisson RED and Park Plaza. Comfort is the largest, with 2,141 hotels and 179,238 rooms worldwide, followed by Quality Inn with 1,880 hotels. The brands span chain scales from economy, such as Econo Lodge, through midscale, such as Quality Inn and Sleep Inn, to upscale Cambria Hotels and upper upscale Radisson Blu. The Radisson brands came with an acquisition completed on August 11, 2022.

The U.S. system

At the end of 2025 the U.S. franchise system had 6,187 properties with 496,979 rooms, operating under 22 brands and brand extensions. U.S. franchise agreements generally run for terms of 10 to 30 years. In 2025 the average royalty rate was 5.14%, average occupancy 55.6% and the average daily room rate $95.05. The company also owns 10 Cambria hotels, four Everhome Suites, one Radisson RED, one Radisson Blu and one Country Inn & Suites, and manages 13 hotels, including four of those it owns. It says owning hotels helps establish its newer brands in the U.S. and win more franchise agreements.

Outside the U.S.

Internationally the system had 378 hotels in Asia-Pacific, 473 in Europe and the Middle East and 537 in the Americas outside the U.S. The company franchises directly where franchising is an accepted model and its own distribution channels work, and uses master franchise agreements in markets with complex business models and language and cultural differences.

What franchisees get

Franchise agreements require the company to spend the marketing and reservation fees it collects on system-wide marketing and reservations, including advertising and the central reservations systems. It also provides a guest loyalty program, property and yield management systems, revenue management services, quality assurance standards and field services staff. The loyalty program, Choice Privileges, covers all brands except WoodSpring Suites, with points redeemable for free hotel nights, gift cards and airline miles. Hotel demand is typically lower from November through February. The company has over 1,700 associates across the globe.

From Choice Hotels International's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 19 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,5971,5851,544+0.8%
Selling, general and administrative329312313+5.3%
Operating income448464375-3.3%
Operating margin28.1%29.3%24.3%
Interest expense91.187.163.8+4.6%
Pre-tax income457396337+15.5%
Income tax86.996.078.4-9.4%
Effective tax rate19.0%24.3%23.3%
Net income370300259+23.5%
Net margin23.2%18.9%16.7%
Diluted EPS$7.90$6.20$5.07+27.4%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow270319297-15.3%
Capital expenditure10710768.6+0.1%
Free cash flow164213228-23.1%
Free cash flow margin10.2%13.4%14.8%
Cash from investing-218-84.6-266
Cash from financing-50.1-222-45.9
Depreciation and amortisation59.752.045.0+14.9%
Share-based compensation38.338.440.5-0.3%
Buybacks138381363-63.7%
Dividends paid53.555.556.5-3.6%
Dividend per share$1.15$1.15$0.290.0%
Diluted shares, weighted47m48m51m-3.1%
Shares outstanding at period end46m47m50m-1.8%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity181-45.335.6
Debt1,9061,7691,568+7.8%
Operating lease liabilities108113109-4.7%
Other liabilities723694682+4.2%
Total liabilities and equity2,9182,5312,395+15.3%
Fixed assets649604493+7.4%
Goodwill306220220+38.9%
Intangible assets1,082884811+22.5%
Cash and equivalents45.040.226.8+12.0%
Receivables207177196+17.4%
Other assets628605647+3.8%
Total assets2,9182,5312,395+15.3%

10-K for the year ended 31 December 2025, filed 19 February 2026: the filing.