Choice Hotels Q3 revenue rises to $458M as net income falls 68%
Key points
- Choice Hotels reported third-quarter revenue of $458 million, up from $447 million, while net income declined 68% to $58 million.
- US RevPAR increased 3.8%, and global room count grew 1.7%, prompting the company to raise its 2026 RevPAR growth forecast to 1.5%–2.5%.
- Choice lowered its full-year net income forecast to $178–$185 million from $230–$241 million and completed its approximately $130 million Harvest Hosts acquisition.
Choice Hotels International (NYSE:CHH) reported third-quarter 2026 revenue of $458 million, up from $447 million a year earlier, while net income fell 68% to $58 million.
The earnings decline primarily reflected a gain recorded in the previous year's quarter, while current results included a $24 million termination charge and a $6 million hotel impairment charge.
The company reported adjusted EBITDA of $193 million, up 1%, while US revenue per available room (RevPAR), a measure of hotel room revenue relative to available rooms, increased 3.8%.
Choice raised its 2026 US and global RevPAR growth forecasts to 1.5%–2.5%, but lowered its full-year net income guidance to $178–$185 million from its previous $230–$241 million range.
The company also reported a 1.7% increase in its global room count and completed the approximately $130 million acquisition of Harvest Hosts on October 1, 2026.
After the quarter ended, Choice completed two hotel sales that generated estimated net cash proceeds of approximately $34 million while retaining franchise agreements for the properties.
Nine-month operating cash flow declined to $122 million from $185 million, while Choice continued expanding its franchise network and pursuing acquisitions to broaden its hospitality offerings.
