Choice Hotels International (NYSE:CHH) reported record adjusted EBITDA for full-year 2025 while delivering strong net income and franchise development momentum, as the lodging franchisor continued to benefit from international expansion and a robust pipeline despite softer domestic system growth.
The Rockville, Maryland-based company posted full-year 2025 net income of $369.9 million, or $7.90 per diluted share.
Adjusted EBITDA reached a company record $625.6 million, reflecting solid margin performance driven by higher royalties, improved RevPAR trends in key markets, and disciplined cost management across its franchised portfolio of brands including Comfort Inn, Quality Inn, Cambria, Radisson, and Ascend Hotel Collection.
Global hotel openings totaled 440 properties in 2025, with international net rooms growing 12.5% year over year as the company capitalized on demand in emerging markets across Europe, Asia-Pacific, and Latin America.
Franchise agreements awarded increased 22% for the year, underscoring sustained developer interest in Choice's brands amid a recovering travel environment and favorable unit economics for franchisees.
U.S. system rooms declined approximately 2.9%, primarily reflecting strategic non-renewals of lower-performing properties as the company focuses on quality and brand elevation.
As of Dec. 31, 2025, Choice Hotels maintained strong liquidity with $571.4 million available through a combination of cash, revolver capacity, and other sources, providing flexibility for continued development support, potential share repurchases, and strategic investments.
For 2026, Choice Hotels guided net income to a range of $265 million to $275 million and adjusted EBITDA to $632 million to $647 million.