Choice Hotels International Inc., for the first quarter ending March 31, reported domestic RevPAR growth of 2.3% year-over-year, outperforming the chain scales in which the company competes by 60 bps.
“Choice Hotels generated another quarter of record financial performance and RevPAR outperformance, demonstrating the successful execution of our growth strategy,” said Patrick Pacious, president/CEO. “Our unique positioning has enabled us to outperform our peers, gain market share and emerge stronger even in periods of economic uncertainty. Today, with our more diversified avenues of growth, a more resilient customer profile and a meaningfully strengthened brand portfolio, including our larger presence in the cycle-resilient extended-stay segment, we have established an even stronger foundation for near-term stability and long-term growth.”
First-quarter highlights include:
- Net income increased 44% to $44.5 million, representing diluted earnings per share (EPS) of $0.94, a 52% increase compared to the same period of 2024.
- Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to $129.6 million, a first-quarter record and a 4% increase compared to the same period of 2024.
- Adjusted diluted EPS grew to $1.34, a first-quarter record and a 5% increase compared to the same period of 2024.
- Increased net global rooms system size by 2.8%, including 3.9% growth for global upscale, extended-stay and midscale rooms portfolio, compared to March 31, 2024.
- Increased net rooms portfolio for the domestic extended-stay segment by 10.8% compared to March 31, 2024, and the segment’s pipeline reached to more than 40,000 rooms as of March 31, 2025.
- Increased domestic RevPAR by 2.3%, compared to the same period of 2024, outperforming
- Increased domestic RevPAR for the extended-stay portfolio by 6.8%, compared to the same period of 2024, outperforming the industry by 410 bps.
- Increased domestic RevPAR for midscale and economy portfolios by 1.7% and 7.1%, respectively, compared to the same period of 2024, outperforming their respective chain scales by 30 bps and 440 bps.
Q1 financial performance
- Partnership services and fees increased 28% to $25.4 million, compared to the same period of 2024.
- Domestic ADR grew by 1.7% and occupancy levels increased by 30 bps.
- The domestic effective royalty rate increased by 8 bps to 5.11%, compared to the same period of 2024.
System size and development
- Domestic upscale, extended-stay and midscale net rooms portfolio grew by 3.6% compared to March 31, 2024.
- International net rooms portfolio grew by 4.4% compared to March 31, 2024, and its pipeline increased by 13% from Dec. 31, 2024.
- Global upscale net rooms portfolio grew by 16.2% from March 31, 2024, and its pipeline increased by 8% from Dec. 31, 2024, reaching more than 26,000 rooms.
- Global pipeline was more than 95,000 rooms as of March 31, 2025, of which nearly 79,000 were domestic rooms.
Outlook
The company is adjusting its full-year outlook to reflect a more moderate domestic RevPAR growth expectation amidst a changing macro backdrop.
- Net income between $275 million and $290 million
- Adjusted net income between $324 million and $339 million
- Adjusted EBITDA between $615 million and $635 million
- Domestic RevPAR growth from -1% to 1%
- Global net system rooms growth of approximately 1%
