Choice Hotels Reports Mixed Third Quarter Results

Choice Hotels International recorded a net income of $58 million for the third quarter of 2026, a decline from the same period in 2025. The result was impacted by a one-time gain from a joint venture acquisition in the prior-year quarter, as well as a $24 million charge related to the termination of an option agreement for a European hospitality asset. Adjusted EBITDA rose slightly to $193 million, supported by increased royalty revenue from U.S. operations.

The hotel franchisor reported a 3.8% increase in U.S. RevPAR, citing improvements in both occupancy and room rates. Driven by these performance metrics, the company raised its full-year guidance for RevPAR and adjusted EBITDA.

CEO Dom Dragisich noted that the firm is prioritizing its U.S. net rooms growth and capital recycling. As part of this strategy, Choice recently sold two owned hotels while retaining the franchise agreements, reinforcing its move toward an asset-light business model.