Choice Hotels International reported first-quarter 2026 results reflecting the company's execution of a more capital‑efficient, conversion‑led growth strategy.
The company generated total revenues of $340.6 million, a company record for the first quarter. Net income reached $20.3 million while adjusted EBITDA totaled $125.7 million.
“Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends,” President and CEO Patrick Pacious said in a statement. “We are driving sequentially improving U.S. net rooms growth, supported by our conversion‑led model and more accretive pipeline, achieving faster, more capital‑efficient expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders.”
Development Momentum
Global net room count increased 1.7 percent year over year, led by growth in the company’s higher-revenue brands. Extended-stay, midscale and upscale segments posted 2.5 percent growth.
U.S. hotel openings rose 32 percent compared with the same period last year, marking the highest first-quarter opening level since 2023. At the same time, property exits declined to their lowest quarterly level in three years, driving sequential improvement in net room growth from year‑end 2025.
Global franchise agreements awarded climbed 72 percent year over year, reflecting increased demand for Choice’s conversion-friendly brands. The company’s U.S. pipeline grew to approximately 71,500 rooms, while the global pipeline exceeded 77,700 rooms, with nearly all future development concentrated in extended-stay, midscale and upscale brands.
International net rooms grew 13 percent compared to March 31, 2025, highlighted by a 59 percent increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, including Canada and EMEA.
Extended stay remains a core growth engine for the company, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 11.8 percent compared to March 31, 2025, and a pipeline of over 30,300 rooms as of March 31.
U.S. midscale room openings increased 57 percent compared to the same period of 2025, and the pipeline grew 6 percent from March 31, 2025, reflecting improving owner returns and demand for cost-efficient prototypes.
U.S. economy transient rooms pipeline grew 26 percent sequentially from Dec. 31, 2025, supported by a 13 percent increase in franchise agreements awarded in the first quarter of 2026.
U.S. upscale room openings increased 112 percent compared to March 31, 2025, and the pipeline grew 8 percent compared to March 31, 2025, driven by Radisson Individuals, Ascend Collection, and Radisson brand.
Global RevPAR declined modestly during the quarter as the U.S. market was affected by hurricane-related disruptions that weighed on year‑over‑year comparisons. Excluding those impacts, U.S. RevPAR showed underlying improvement, while international RevPAR posted positive growth on a currency-neutral basis, supported by strong momentum in Canada and Europe.
Outlook
Choice reiterated its full-year 2026 guidance, projecting continued earnings strength, disciplined development and approximately 1 percent global net room growth. The company expects net capital outlays related to hotel development to decline significantly this year as it deepens its transition toward a more capital‑light operating model.