Choice Hotels International, Inc. has reported its results for the first quarter ended March 31, 2026. The Company highlighted record revenue performance, continued international expansion, and steady growth in its development pipeline. Choice also maintained its full-year 2026 outlook, supported by a more capital-efficient growth model.
Strong First Quarter Financial Performance
Choice Hotels delivered strong financial results in the first quarter of 2026, supported by stable demand and growth in franchise activity. Total revenues reached a company record $340.6 million, while net income was $20.3 million, or $0.44 per diluted share. Adjusted EBITDA totaled $125.7 million, and adjusted diluted EPS was $1.07.
Key financial highlights include:
- Revenue excluding reimbursable costs increased 3% to $216.7 million
- Adjusted net income was $50 million
- Global RevPAR declined 0.8% year-over-year on a currency-neutral basis
Performance was supported by international growth and higher franchise activity, while U.S. results were impacted by temporary factors, including severe weather effects in the prior year comparison.
Growth in Rooms, Pipeline, and Franchise Development
Choice Hotels continued to expand its global system and development pipeline during the quarter. Global net rooms grew 1.7% year-over-year, driven by stronger performance in extended stay, midscale, and upscale brands. International net rooms increased 13%, reflecting strong expansion across key regions.
Development momentum remained strong:
- Global pipeline exceeded 77,700 rooms
- U.S. pipeline grew to approximately 71,500 rooms
- Conversion pipeline increased 17% year-over-year
- Franchise agreements awarded increased 72% globally
Extended stay remains a key growth driver, supported by strong developer demand and solid unit economics. The Company also saw increased openings in midscale and upscale segments, along with continued international expansion.
Capital Efficiency and Outlook
Choice Hotels continued its shift toward a more capital-efficient model. Capital recycling generated $24.6 million in the quarter, while hotel development and lending activity moved from net outflows in the prior year to net inflows. Net capital outlays for hotel development are expected to decline significantly in 2026 compared to 2025.
The Company also returned $75.2 million to shareholders during the quarter through dividends and share repurchases. As of March 31, 2026, $474 million in total liquidity was available, supporting ongoing strategic flexibility.
Patrick Pacious, President and Chief Executive Officer, said the Company is seeing improving underlying trends and stronger franchisee economics. He noted that the conversion-led model is driving more efficient growth and positioning the Company for more consistent earnings performance.
