Choice Hotels InternationalReports Q1 2025 Results

Choice Hotels International, Inc., headquartered in North Bethesda, Maryland, has released its financial results for the first quarter of 2025. The highlights of the report include a 44 percent increase in net income to $44.5 million, leading to diluted earnings per share (EPS) of $0.94, a 52 percent rise from the same period in 2024. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter of 2025 reached $129.6 million, setting a new first-quarter record with a 4 percent increase compared to 2024.

The company expanded its net global rooms system size by 2.8 percent, particularly in the upscale, extended stay, and midscale rooms portfolio, which grew by 3.9 percent compared to March 31, 2024. Notably, domestic revenue per available room (RevPAR) rose by 2.3 percent in the first quarter of 2025, surpassing industry competitors by 60 basis points. Patrick Pacious, the president and CEO, highlighted the company’s solid financial performance and RevPAR growth, attributing it to their robust growth strategy and brand portfolio enhancement.

Partnership services and fees surged by 28 percent to $25.4 million in the first quarter of 2025, domestic average daily rate (ADR) increased by 1.7 percent, and occupancy levels rose by 30 basis points. The company’s net debt leverage ratio stood at 3.0 times as of March 31, 2025, with total available liquidity of $593.8 million. Shareholder returns included cash dividends of $13.5 million and the repurchase of 456,000 shares of common stock for $64.6 million in the first quarter of 2025.

Looking forward, Choice Hotels International, Inc. has adjusted its outlook to reflect a more moderate domestic RevPAR growth expectation due to changing market conditions. The revised forecast includes financial measures excluding specific items and anticipates adjusted net income, EBITDA, and diluted EPS within the ranges of $324 – $339 million, $615 – $635 million, and $6.90 – $7.22, respectively for full-year 2025.