Description
Choice Hotels’ Hidden Growth Engine — U.S. Hotel Openings Surge 27%!
Choice Hotels International reported second quarter 2026 results showing moderate progress amid ongoing operational and strategic initiatives. Adjusted EBITDA increased 6% year-over-year to $175 million, supported by improving U.S. royalties from higher RevPAR and royalty rate expansion, growth in franchisee services, and contributions from international markets due to the transition to direct franchising in Canada. Adjusted earnings per share rose 5% to $2.02, while revenues grew 7% to $277 million excluding reimbursable revenue. The company’s U.S. net rooms growth, a key performance metric, improved sequentially for the second consecutive quarter and approached a near flat year-over-year level—a positive development after recent trends. Gross room openings in the U.S. rose 27% year-over-year while exits declined by approximately 50%, reflecting improved franchisee economics and retention. The conversion-led development model remains central, comprising around 90% of U.S. openings in 2026, emphasizing faster openings with lower owner investment.
