| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 440.76 | 29.4% | 3.4% |
| Total Income | 440.76 | 29.4% | 3.4% |
| Expenditure | 336.62 | 20.0% | 11.5% |
| PBT | 85.88 | 183.3% | 20.9% |
| Net Profit | 64.34 | 216.9% | 21.3% |
| OPM | 23.63% | 6.00pp | 5.59pp |
| NPM | 14.60% | 8.64pp | 4.57pp |
| EPS | 1.42 | 222.7% | 19.3% |
Choice Hotels Reports Q2 2026 Results with Improved U.S. Net Rooms Growth
05 Aug 2026 · 5 Aug, 6:08 pm
Summary
Choice Hotels International reported second quarter 2026 results with net income of $64 million, or $1.41 per diluted share, and Adjusted EBITDA of $175 million, a 6% increase year-over-year. Global net rooms grew by 2.6%, supported by strong performance in extended stay, midscale, and upscale brands, while U.S. RevPAR saw a 1.3% increase. The company also noted a significant 30% rise in U.S. franchise agreements awarded. Management expressed confidence in the business's potential, highlighting progress in key priorities and a focus on sharpening execution to enhance franchisee economics.
Key Highlights
- 1
Net income for the second quarter was $64 million, or $1.41 per diluted share.
- 2
Adjusted EBITDA totaled $175 million for the second quarter, an increase of 6% year-over-year.
- 3
Global net rooms grew 2.6% compared to June 30, 2025, driven by 3.6% growth in extended stay, midscale, and upscale brands.
- 4
U.S. RevPAR increased 1.3% in the second quarter compared to the same period of 2025.
- 5
U.S. franchise agreements awarded increased 30% in the second quarter, representing approximately 9,400 new U.S. rooms for development.
- 6
The Company returned $139 million to shareholders through dividends and share repurchases year-to-date through June 30, 2026.
- 7
Full-year 2026 Adjusted EBITDA guidance has been raised, reflecting improvements in U.S. RevPAR, global net rooms growth, and U.S. royalty rate.
Management Comments
Dom Dragisich
Our second quarter results reflect encouraging progress across our key priorities, with U.S. net rooms growth improving for the second consecutive quarter to its strongest first-half performance since 2021 and U.S. RevPAR trends strengthening. Over the past several years, we've built a stronger commercial engine and technology platform, and we continue to invest in both. Our biggest opportunity now is sharpening execution—leveraging those capabilities to further enhance franchisee economics by increasing the number and quality of the guests we deliver while lowering operating costs. While we still have work to do, this business has significantly more potential, and I'm confident we can realize it. The progress we delivered this quarter reinforces that confidence.
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