CHOICE HOTELS INTERNATIONAL INC /DE

Choice Hotels International reported mixed results for Q2 2026, with total revenues increasing by 3.36% to $440.8 million. However, net income decreased significantly by 21.28% to $64.3 million, and diluted EPS fell by 19.43% to $1.41 compared to the prior year. For the six months ended June 30, 2026, net income was down 32.97% to $84.6 million. The company also saw a decrease in net cash provided by operating activities and an increase in long-term debt.

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.

Choice Hotels International, Inc. announced the appointment of Ali Keshavarz to its Board of Directors, effective June 26, 2026. Mr. Keshavarz, who serves as President and Chief Data & Analytics Officer of CVS Health, brings extensive experience in artificial intelligence and advanced analytics. His appointment increases the Board's size to twelve directors, and he will receive compensation consistent with other non-employee directors.

Choice Hotels International shareholders approved an amendment to the Certificate of Incorporation, increasing the Board of Directors' size range from 3-12 to 5-15 directors. The Board also approved corresponding amendments to the company's bylaws. Additionally, shareholders elected eleven directors, approved the advisory vote on executive compensation, and ratified Ernst & Young LLP as the independent auditor for 2026.

Choice Hotels International announced a leadership transition, with Patrick S. Pacious stepping down as President and CEO, effective May 20, 2026. He will serve as an advisor through August 31, 2026. Dominic E. Dragisich, Chief Growth & Strategy Officer, has been appointed Interim CEO, effective the same date, and will receive a $500,000 cash bonus and a $500,000 restricted stock unit award. The Board has formed a search committee to find a permanent CEO. The company also reaffirmed its full-year 2026 financial guidance.

CHOICE HOTELS INTERNATIONAL INC /DE reported a significant decline in its first-quarter 2026 financial results. Net income decreased by 54.4% to $20.3 million, with diluted EPS falling to $0.44 from $0.94 in the prior year. Total revenues saw a modest increase of 2.3% to $340.6 million, but operating income dropped by 24.9%. The company also reported negative cash flow from operating activities and an increase in long-term debt.