Choice Hotels International, Inc. filed its third-quarter 2026 earnings release on November 2, 2026, reporting net income of $58 million and raising its full-year RevPAR and adjusted EBITDA guidance.

Key Highlights

  • Net income: $58 million, or $1.28 per diluted share, for the third quarter ended September 30, 2026, a 68% decline compared to the same period of 2025, primarily due to a $100 million joint-venture gain recorded in the prior-year quarter.
  • Adjusted EBITDA: $193 million for the third quarter, a 1% increase compared to the same period of 2025.
  • U.S. RevPAR: Increased 3.8% in the third quarter compared to the same period of 2025, driven by a 1.0% increase in rate and a 160-basis-point increase in occupancy.
  • Global net rooms: Grew 1.7% compared to September 30, 2025, reaching 660,614 rooms, with global extended stay net rooms growing 10.7% for the 13th consecutive quarter of double-digit growth.
  • U.S. franchise agreements awarded: Increased 24% in the third quarter compared to the same period of 2025, representing 6,900 new rooms for development.
  • Post-quarter asset sales: Two owned hotels sold subsequent to quarter-end for estimated net cash proceeds of approximately $34 million, with franchise agreements retained for both properties.
  • Shareholder returns: $211 million returned through dividends and share repurchases during the first nine months of 2026.

Choice Hotels Q3 2026 Financial Results and Strategic Developments

Choice Hotels International (NYSE:CHH) reported total revenues of $458 million for the third quarter of 2026, compared to $447 million in the same period of 2025, according to the filing. Revenue excluding reimbursable costs from franchised and managed properties was $285 million, up from $278 million in the prior-year quarter. Franchise and management fees increased 5% to $204 million, primarily reflecting higher U.S. royalties driven by RevPAR growth and royalty rate expansion. The U.S. average royalty rate expanded 8 basis points to 5.23% compared to the same period of 2025.

The company disclosed that the decline in reported net income reflected a $24 million charge related to the termination of an arrangement involving an option to acquire a European hospitality business operating primarily under a lease-based model, as well as a $6 million non-cash impairment charge related to two owned hotels. Both current-year charges and the prior-year $100 million joint-venture gain are excluded from adjusted results. Adjusted diluted EPS increased 11% to $2.33 for the third quarter compared to $2.10 in the same period of 2025. For the nine months ended September 30, 2026, the company generated $122 million in cash flows from operating activities, compared to $185 million in the prior-year period.

According to the filing, as of September 30, 2026, total available liquidity was $928 million, with a net debt-to-adjusted EBITDA ratio of 3.2x for the trailing twelve months, within the company's stated target range of 3.0x to 4.0x. The company completed a $500 million unsecured term loan in August 2026, reducing the borrowing spread on refinanced debt by 15 basis points and maturing in August 2029. On October 1, 2026, the company acquired Harvest Hosts, described in the filing as "an asset-light RV travel subscription platform with recurring revenue," in an approximately $130 million transaction funded with available cash and revolving credit facility borrowings. The global pipeline totaled 78,200 rooms as of September 30, 2026, with 96% concentrated in extended stay, midscale, and upscale brands.

What Was Disclosed

Choice Hotels reported third-quarter 2026 net income of $58 million and adjusted EBITDA of $193 million, raised its full-year RevPAR and adjusted EBITDA guidance, completed a post-quarter sale of two owned hotels, and closed the Harvest Hosts acquisition on October 1, 2026.