Choice Hotels International Inc. reported net income of $369.9 million for full-year 2025 and $63.7 million for the fourth quarter. Adjusted EBITDA reached a company record of $625.6 million for full-year 2025, with fourth quarter adjusted EBITDA of $140.9 million. But
U.S. RevPAR declined 2.2 percent in fourth quarter 2025 compared to the prior year period, adjusted to exclude a 540-basis-point hurricane-related benefit in the fourth quarter of 2024, primarily reflecting softer government and international inbound demand.
International RevPAR increased 3.2 percent on a currency-neutral basis in fourth quarter 2025, compared to the same period of 2024.
Choice Hotels CEO and President Patrick Pacious said during a Thursday earnings call that in 2025, Choice “delivered 37 percent growth in international revenue driven by portfolio expansion and positive RevPAR growth across every region.”
Reducing Room Count
Choice Hotels reduced its net U.S. room count last year, removing underperforming hotels while adding properties the company said were of higher average quality.
In the fourth quarter, the company kicked out of its system "about 20 hotels" more than it usually does in a quarter, Pacious said during the earnings call. The properties generated royalties below the portfolio average and were predominantly in the bottom quartile of guest satisfaction within their brands.
The goal is to improve portfolio mix, strengthen earnings, and backfill those markets with higher‑quality hotels that deliver better unit economics and long‑term growth.
Choice Hotels took some "very targeted, deliberate and ultimately value-accretive exits," Pacious said. "So the brand quality is getting better."
The company ended the year with 496,979 rooms in the U.S., a drop of 2.9 percent of net rooms. Globally, the company ended the year with 656,825 rooms, a 1 percent net increase thanks to international expansion.
That pipeline gives Choice confidence the company can replace the exited hotels with better ones and still bring U.S. net rooms growth back to positive in 2026, Pacious said.
Accelerated U.S. portfolio optimization, with net room changes reflecting strategic exits of hotels with lower-economic contribution and guest satisfaction alongside healthy gross openings and development activity, improving the quality and earnings profile of the system.
Global pipeline exceeded 77,800 rooms as of December 31, 2025, with 97 percent concentrated in upscale, extended-stay and midscale brands, including 70,600 rooms in the U.S.
U.S. franchise agreements awarded increased 3 percent in fourth quarter 2025, driven by a 12 percent increase for conversion hotels compared to the same period of 2024.
International franchise agreements awarded increased 35 percent in fourth quarter 2025 and more than doubled in full-year 2025 compared to the same periods of 2024.
The company executed franchise agreements for over 700 rooms in Canada following the acquisition of Choice Hotels Canada in the third quarter and the transition to a direct franchising model, driving 49 percent growth in the Canada rooms pipeline since Dec. 31, 2024.
"Choice Hotels International delivered another year of record profitability in 2025, driven by our double-digit increase in international rooms, continued leadership in the extended-stay segment, and disciplined portfolio optimization," Pacious said. "With a high-quality, accretive global development pipeline, targeted investments that strengthen franchisee economics and customer lifetime value, and a disciplined approach to capital allocation, we believe Choice is exceptionally well positioned to drive long-term growth and create meaningful shareholder value."
U.S. Extended-Stay
U.S. extended stay net rooms grew 11.7 percent compared to December 31, 2024, highlighted by a record number of hotel openings, which increased 8 percent during full-year 2025.
U.S. extended stay franchise agreements awarded increased 15 percent in full-year 2025, compared to 2024, bringing the U.S. extended stay pipeline to 30,600 rooms as of Dec. 31, 2025.
U.S. economy transient brands rooms pipeline grew 6 percent sequentially from Sept. 30, 2025, and U.S. franchise agreements awarded increased 13 percent in full-year 2025, compared to 2024.
Global midscale franchise agreements awarded increased 14 percent in full-year 2025, compared to 2024, including a 50 percent increase in U.S. franchise agreements for the Country Inn & Suites by Radisson brand, whose U.S. rooms pipeline grew 18 percent compared to Dec. 31, 2024.
Global net upscale rooms grew 6.9 percent compared to Dec. 31, 2024, highlighted by global hotel openings that more than doubled during full-year 2025.