StockWatch
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Hotels/Resorts
Quarterly ResultAug 5, 2026, 08:38 AM

Choice Hotels Q2 Net Income $64M, Adjusted EPS $2.02; Raises FY26 EBITDA Outlook

AI Summary

Choice Hotels International reported second-quarter 2026 results with net income of $64 million, a 21% decline year-over-year, primarily due to higher reimbursable deficits and expenses. However, adjusted diluted EPS increased 5% to $2.02 and adjusted EBITDA rose 6% to $175 million. The company saw strong operational growth with global net rooms up 2.6% and U.S. RevPAR increasing 1.3%. Choice Hotels also raised its full-year 2026 Adjusted EBITDA guidance while revising net income and adjusted net income guidance lower due to higher expected expenses and tax rates.

Key Highlights

  • Net income was $64 million, a 21% decrease from Q2 2025.
  • Adjusted diluted EPS reached $2.02, a 5% increase from Q2 2025.
  • Adjusted EBITDA totaled $175 million, up 6% from Q2 2025.
  • Global net rooms grew 2.6% compared to June 30, 2025.
  • U.S. RevPAR increased 1.3% in the second quarter.
  • U.S. room openings increased 27% compared to Q2 2025.
  • Returned $139 million to shareholders year-to-date through June 30, 2026.
  • Raised full-year 2026 Adjusted EBITDA guidance.