Keeping in line with other companies, Choice Hotels International reported solid growth in international revenue per available room while RevPAR at the company’s U.S. continued to slip.
Global RevPAR increased 0.2 percent year-over-year during the quarter, reflecting international RevPAR growth of 9.5 percent that was offset by a 3.2 percent decline in U.S. RevPAR, which the company attributed to softer government and international inbound demand.
Excluding the U.S., RevPAR in the Americas increased 5 percent, driven by strong results from Canada, where the newly acquired operations achieved a 7 percent year-over-year increase.
U.S. RevPAR for the extended-stay portfolio outperformed the U.S. lodging industry by 20 basis points, while the U.S. economy transient portfolio outperformed its chain scale by 180 basis points for third quarter 2025, compared to the same period of 2024.
Net income grew to $180 million for third quarter 2025 from $105.7 million in the same period of 2024. Adjusted earnings before interest, taxes, depreciation and amortization increased 7 percent to a third-quarter record of $190.1 million, compared to $177.6 million in the same period of 2024.
"Our third-quarter results demonstrate the success of our strategy and highlight the benefits of our expanded scale and diversified business model, even in a softer U.S. RevPAR environment," CFO Scott Oaksmith said during the company's earnings call with investors. "We'll continue to invest in high-return areas and enhance our long-term trajectory."
System Size
Global net rooms grew 2.3 percent, driven by 3.3 percent growth across the more accretive higher revenue upscale, extended-stay and midscale segments, compared to Sept. 30, 2024.
U.S. upscale, extended-stay, and midscale net rooms portfolio grew 1.6 percent year over year, and global net upscale rooms grew 20.8 percent year over year in the quarter, highlighted by a more than fourfold increase in global openings.
Franchise agreements awarded in the U.S. increased 7 percent in the quarter, driven by a 7 percent increase for conversion hotels and a 10 percent increase for new-construction hotels, compared to the same period of 2024.
U.S. extended-stay net rooms grew 12 percent, highlighted by a 14 percent increase in openings, compared to Sept. 30, 2024. “At the same time, we awarded 30 percent more franchise agreements in the U.S. year over year,” Oaksmith said.
The global midscale pipeline expanded 5 percent to nearly 30,000 rooms as of Sept. 30, including a 15 percent increase in the U.S. pipeline for the Country Inn & Suites by Radisson brand compared to Sept. 30, 2024. The U.S. economy transient-brands rooms pipeline grew 35 percent and U.S. franchise agreements awarded increased 27 percent in third quarter 2025, compared to the same period in 2024.
Global franchise agreements awarded grew 54 percent year over year in the quarter and the global pipeline exceeded 86,000 rooms as of Sept. 30, with 98 percent concentrated in upscale, extended-stay and midscale segments.
Forecast
For full-year 2025, Choice now expects U.S. RevPAR growth to be between -3 percent to -2 percent, down from the prior guidance of -3 percent to 0 percent.
The company expects net income to be between $353 million and $371 million, up from the prior guidance of $261 million to $276 million. Adjusted EBITDA for the year is now poised to be between $620 million and $632 million, up from $615 million and $635 million.
The forecast for global net system rooms growth remains unchanged at approximately 1 percent.