Choice Hotels noted weaker performance at its US hotels, as it reported second quarter 2025 results.
US revpar fell almost 3% during the quarter, not helped by comparables being affected by a shift in Easter. Net income was also softer, at USD81.7 million.
Expansion plans in international markets
The company grew its global portfolio by 2.1% year on year. Choice noted that it is now pushing growth in its brands with more revenue intensive returns, in the upscale, extended stay, and midscale segments of the market.
The group is now turning its attention to growth opportunities outside the USA where, at least in the short term, hotels are generally seeing stronger performance. Choice said its international portfolio grew by a net 5% year on year, and pointed to a 15% increase in openings outside the USA.
In Canada, the company announced it has acquired the outstanding 50% interest it did not own in Choice Hotels Canada. Buying out joint venture partner InnVest Hotels, at a cost of USD112 million, will shift the Canadian business from operating under a master franchise agreement, to direct control.
Currently just eight of the group’s 22 brands are present in the Canadian market. There is now an opportunity to expand the Choice offering in Canada, particularly by launching its extended stay choices such as Woodspring Suites and Everhome Suites.
“Canada presents an attractive opportunity,” said Choice CEO Pat Paccious, “with the lodging market projected to grow at an average annual rate of more than 5% over the next five years, reaching over USD50 billion in total revenue by 2030.”
Currently, Choice has 327 hotels in Canada, with over 26,000 rooms. The business there will generate Choice USD18 million in earnings during 2025, a figure expected to build not only with operational synergies in the short term, but through more signings in the medium and longer term. Current Canadian projects in the works include Cambria Hotel Thunder Bay, a 150 room hotel due to launch in late 2026; and Comfort Inn & Suites Port Perry, northeast of Toronto.
In Brazil, Choice is also looking at opportunities and extended its master franchise agreement with its local partner Atlantica Hospitality International, by 20 more years. And in France, a deal with local partner Zenitude has almost tripled the group’s presence in France, following an agreement signed in 2024.
Big opportunities in China
Choice is also making headway in China. There, it expects to brand an initial 9,500 rooms and then add a further 10,000 rooms over the next five years, working with partner SSAW Hotels & Resorts.
An initial 68 upscale hotels currently managed by SSAW will join Choice’s Ascend Collection over the latter months of 2025 and into early 2026. Currently, SSAW operates hotels under its Pagoda, Narada, SSAW Garden and Boutique, and Ginlan Jia brands. In addition, the agreement gives SSAW development rights to add hotels in China under the Comfort and Quality brands across the whole of China.
