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Why Choice Hotels International Conversion Pipeline Matters As RevPAR Volatility Persists

Choice Hotels International concluded its fiscal year 2025 with a reported adjusted EBITDA of $626 million, reflecting a 4% increase year-over-year and aligning with the company’s expectations. Positively, the company demonstrated growth in its portfolio, augmenting global hotel openings by 14% and expanding its international presence at a double-digit pace. The U.S. operations showed a strategic focus on quality improvement by increasing the average royalty rate by 8 basis points during the year. Additionally, significant progress was noted in the extended-stay segment, achieving record U.S. openings. The strengths of Choice Hotels International’s results stem from amplified interest in higher revenue brands and a thriving international portfolio that propelled a 37% increase in international revenues. Notably, the development pipeline was bolstered by a 22% rise in global franchise agreements.