Choice Hotels International Reports Third Quarter 2025 Results

Delivers 2.3% Global Net Room Growth, Driven by 3.3% Expansion in Higher Revenue Segments

Accelerates International Growth with Portfolio Surpassing 150,000 Rooms

Increases Global Franchise Agreements Awarded by 54%

NORTH BETHESDA, Md., Nov. 5, 2025 /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor, today reported results for the third quarter ended September 30, 2025.

Highlights include:

"Choice Hotels International delivered another quarter of record profitability, underscoring the strength of our portfolio's continued shift toward higher-value brand segments and multiple growth avenues beyond U.S. RevPAR," said Patrick Pacious, President and Chief Executive Officer. "We are especially excited by the accelerating momentum in our international business, where we are on track to double profitability by 2027. With an accretive, high-quality pipeline that rapidly converts signings into openings, and an enhanced value proposition that is attracting a growing base of higher-value guests, Choice is exceptionally well-positioned to deliver long-term growth and create meaningful value for all stakeholders."

Financial Performance

($ in millions, except per-share amounts)

Three months ended

Sept. 30,

Nine months ended

Sept. 30,

2025

2024

2025

2024

Total revenues

$447

$428

$1,207

$1,195

Revenue excl. revenue for reimbursable costs from franchised and managed properties[1]

$278

$256

$746

$718

Net income

$180

$106

$306

$224

Adjusted net income

$98

$106

$252

$259

Diluted EPS

$3.86

$2.22

$6.52

$4.61

Adjusted diluted EPS

$2.10

$2.23

$5.36

$5.32

Adjusted EBITDA

$190

$178

$485

$464

______________________

1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $169 million and $172 million for the third quarters of 2025 and 2024, respectively, and $460 million and $477 million for the year-to-date periods ended September 30, 2025, and September 30, 2024, respectively.

System Size and Development

(Rooms)

Sept. 30, 2025

Sept. 30, 2024

Change

U.S.

498,307

495,194

0.6 %

U.S. upscale, extended stay, and midscale

438,865

431,874

1.6 %

International

151,370

139,758

8.3 %

Global

649,677

634,952

2.3 %

Balance Sheet and Liquidity

As of September 30, 2025, Choice had total available liquidity of $564.2 million, including cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.0x for the trailing twelve months ended September 30, 2025.

During the nine months ended September 30, 2025, the Company generated $184.8 million in cash flows from operating activities, including $68.7 million generated in the third quarter.

For the three months ended September 30, 2025, Choice realized $25 million in net proceeds from capital recycling activities. During the nine months ended September 30, 2025, the Company's net outlays related to hotel development and lending declined by $53.2 million.

Shareholder Returns

During the nine months ended September 30, 2025, the Company returned $150.4 million to shareholders through dividends, share repurchases under its stock repurchase program, and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.

As of September 30, 2025, the Company had 3.0 million shares of common stock remaining under its current share repurchase authorization.

Outlook

The following outlook includes forward-looking non-GAAP measures used by management to forecast the Company's performance. The net income guidance range has been revised from the Company's prior outlook primarily to reflect the $100 million gain recognized during the third quarter of 2025 on the fair value remeasurement of the previously held 50% equity investment in Choice Hotels Canada. Adjusted diluted EPS reflects amortization expense related to the intangible assets acquired and the remeasurement of the Company's previously held equity interest in connection with the acquisition of Choice Hotels Canada – items that were not factored into prior guidance. Adjusted metrics exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, due diligence and transition costs, and any share repurchases completed after September 30, 2025, and other items.

Full-Year 2025

Prior Outlook

Net income

$353 – $371 million

$261 – $276 million

Adjusted net income

$320 – $331 million

$324 – $339 million

Adjusted EBITDA

$620 – $632 million

$615 – $635 million

Diluted EPS

$7.52 – $7.89

$5.54 – $5.86

Adjusted diluted EPS

$6.82 – $7.05

$6.88 – $7.20

Recurring effective tax rate

25 %

Full-Year 2025 vs. 2024

Prior Outlook

U.S. RevPAR growth

-3% to -2%

-3% to 0%

U.S. average royalty rate growth

Mid-single digits

Global net system rooms growth

~1%

Webcast and Conference Call

Choice will host a conference call to discuss third quarter 2025 results on November 5, 2025, at 10:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 549-8228 (U.S.) or (646) 564-2877 (international) using conference ID 01852. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.

About Choice Hotels ®

Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing nearly 650,000 rooms, in 47 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

Forward-Looking Statements

Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.

Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future domestic or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of the company's relationship with employees of our franchisees; foreign currency fluctuations; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdown; impairments or declines in the value of the company's assets; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; climate change and sustainability related concerns; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measurements and Other Definitions

The company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.

In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, expenses associated with legal claims, (gain) loss on the sale of equity securities, net of dividend income purchased in contemplation of the proposed acquisition of Wyndham Hotels, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.

Earnings Before Interest, Taxes, Depreciation, and Amortization and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: EBITDA reflects net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt. Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider EBITDA and adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.

Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.

Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.

Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided.

Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided.

Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.

Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.

Financial Statements Update

During the first quarter of 2025, the consolidated statements of income were reclassified to evolve the financial statement to classify revenues and expenses based on the nature of the underlying activities. Certain prior year amounts in the consolidated statements of income were reclassified in order to maintain comparability with the current year presentation. The reclassification was not a result of any error in the company's prior classification and had no effect on the company's previously reported total revenues, total operating expenses, operating income, or net income.

Royalty, licensing and management fees were revised to franchise and management fees in the consolidated statements of income, and now include the revenues previously presented in royalty, licensing and management fees, with the exception of partnership licensing revenues which are now presented in partnership services and fees in the consolidated statements of income, and the addition of revenues generated from programs, platforms, and services associated with the company's franchise operations which were previously presented in other revenues from franchised and managed properties in the consolidated statements of income.

Initial franchise fees, which were previously presented as a standalone financial statement line item, are now presented within franchise and management fees in the consolidated statements of income.

Platform and procurement services fees were revised to partnership services and fees in the consolidated statements of income, and now include the revenues previously presented in platform and procurement services fees, with the exception of the revenues from the company's annual franchisee convention which are now presented in other revenue, the addition of partnership licensing revenues which were previously presented in royalty, licensing and management fees, and the addition of the revenues generated from other non-franchising agreements which are primarily software as a service ("SaaS") arrangements for non-franchised hoteliers which were previously presented in other revenue in the consolidated statements of income.

Other revenues from franchised and managed properties were revised to revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income, and now include the revenues previously presented in other revenues from franchised and managed properties, with the exception of the revenues generated from programs, platforms, and services associated with the company's franchise operations which are now presented in franchise and management fees in the consolidated statements of income.

Selling, general and administrative expenses were revised to include the expenses incurred related to programs, platforms, and services associated with the company's franchise operations, which were previously presented in other expenses from franchised and managed properties in the consolidated statements of income.

Depreciation and amortization was revised to include amortization expense from information technology platforms, which was previously presented in other expenses from franchised and managed properties in the consolidated statements of income.

Other expenses from franchised and managed properties were revised to reimbursable expenses from franchised and managed properties in the consolidated statements of income, and now include the expenses previously presented in other expenses from franchised and managed properties, with the exception of the expenses incurred from programs, platforms, and services associated with the company's franchise operations which are now presented in selling, general and administrative expenses, and amortization expense from information technology platforms which is now presented in depreciation and amortization expense in the consolidated statements of income.

Contacts

Allie Summers, Senior Director, Investor Relations

IR@choicehotels.com

Choice Hotels International, Inc.

Exhibit 1

Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

REVENUES

Franchise and management fees

$ 193,777

$ 188,237

$ 515,931

$ 511,450

Partnership services and fees

28,868

24,320

81,313

71,527

Owned hotels

33,167

31,936

91,255

85,345

Other

22,094

11,647

57,937

49,671

Revenue for reimbursable costs from franchised and managed properties

169,434

171,824

460,207

477,076

Total revenues

447,340

427,964

1,206,643

1,195,069

OPERATING EXPENSES

Selling, general and administrative

79,610

69,022

243,118

230,020

Business combination, diligence and transition costs

1,494

984

1,940

17,723

Depreciation and amortization

15,760

12,893

42,932

38,545

Owned hotels

23,792

22,343

67,271

62,370

Reimbursable expenses from franchised and managed properties

184,268

170,939

504,437

501,857

Total operating expenses

304,924

276,181

859,698

850,515

Operating income

142,416

151,783

346,945

344,554

OTHER EXPENSES AND (INCOME), NET

Interest expense

23,490

22,038

67,468

66,064

Interest income

(1,435)

(2,411)

(4,450)

(6,557)

Gain from an acquisition of a joint venture

(100,025)

—

(100,025)

—

Gain on sale of assets

(713)

—

(713)

—

Loss on extinguishment of debt

—

331

—

331

Other gains, net

(721)

(4,013)

(5,659)

(133)

Equity in net loss (gain) of affiliates

10,904

(1,310)

11,035

(9,088)

Total other expenses and (income), net

(68,500)

14,635

(32,344)

50,617

Income before income taxes

210,916

137,148

379,289

293,937

Income tax expense

30,920

31,432

73,025

70,076

Net income

$ 179,996

$ 105,716

$ 306,264

$ 223,861

Basic earnings per share

$ 3.89

$ 2.24

$ 6.59

$ 4.64

Diluted earnings per share

$ 3.86

$ 2.22

$ 6.52

$ 4.61

Choice Hotels International, Inc.

Exhibit 2

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

September 30,

December 31,

2025

2024

ASSETS

Cash and cash equivalents

$ 52,583

$ 40,177

Accounts receivable, net

236,499

176,672

Other current assets

161,265

122,237

Total current assets

450,347

339,086

Property and equipment, net

628,260

604,345

Operating lease right-of-use assets

79,029

83,451

Goodwill

304,511

220,187

Intangible assets, net

1,045,510

884,013

Notes receivable, net of allowances

16,268

32,682

Investments for employee benefit plans, at fair value

49,017

47,603

Investments in affiliates

134,424

117,016

Other assets

200,168

202,144

Total assets

$ 2,907,534

$ 2,530,527

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Accounts payable

$ 154,224

$ 134,865

Accrued expenses and other current liabilities

114,902

136,729

Deferred revenue

109,451

102,114

Liability for guest loyalty program

89,965

89,013

Total current liabilities

468,542

462,721

Long-term debt

1,918,504

1,768,526

Long-term deferred revenue

134,622

132,259

Deferred compensation and retirement plan obligations

55,014

53,316

Operating lease liabilities

109,782

113,255

Liability for guest loyalty program

42,681

40,607

Other liabilities

28,615

5,114

Total liabilities

2,757,760

2,575,798

Total shareholders' equity (deficit)

149,774

(45,271)

Total liabilities and shareholders' equity (deficit)

$ 2,907,534

$ 2,530,527

Choice Hotels International, Inc.

Exhibit 3

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Nine months ended September 30,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$ 306,264

$ 223,861

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

42,932

38,545

Depreciation and amortization – reimbursable expenses from franchised and managed properties

14,295

14,314

Franchise agreement acquisition cost amortization

25,020

20,584

Gain from an acquisition of a joint venture

(100,025)

—

Gain on sale of assets

(713)

—

Non-cash share-based compensation and other charges

27,439

32,445

Non-cash interest, investments, and affiliate income, net

(6,131)

(7,529)

Deferred income taxes

(17,713)

(21,086)

Equity in net loss of affiliates, less distributions received

16,424

Franchise agreement acquisition costs, net of reimbursements

(62,359)

(84,085)

Change in working capital and other

(60,676)

19,435

Net cash provided by operating activities

184,757

236,540

CASH FLOWS FROM INVESTING ACTIVITIES

Investments in other property and equipment

(26,927)

(33,620)

Investments in owned hotel properties

(85,307)

(81,239)

Contributions to investments in affiliates

(90,005)

(47,695)

Issuances of notes receivable

(6,351)

(24,405)

Collections of notes receivable

3,036

2,277

Business acquisition, net of cash acquired

(73,395)

—

Proceeds from the sale of assets

52,000

—

Proceeds from sales of equity securities

—

108,149

Distributions from sales of affiliates

44,617

15,850

Other items, net

4,475

(2,680)

Net cash used in investing activities

(177,857)

(63,363)

CASH FLOWS FROM FINANCING ACTIVITIES

Net borrowings pursuant to revolving credit facilities

148,482

154,500

Proceeds from the issuance of long-term debt

—

593,574

Proceeds from economic development loans

250

—

Repayment of long-term debt

—

(500,000)

Debt issuance costs

—

(8,069)

Purchases of treasury stock

(112,958)

(348,964)

Dividends paid

(40,194)

(42,488)

Proceeds from the exercise of stock options

7,488

9,279

Net cash provided by (used in) financing activities

3,068

(142,168)

Net change in cash and cash equivalents

9,968

31,009

Effect of foreign exchange rate changes on cash and cash equivalents

2,438

802

Cash and cash equivalents, beginning of period

40,177

26,754

Cash and cash equivalents, end of period

$ 52,583

$ 58,565

Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL OPERATING INFORMATION

U.S. HOTEL SYSTEM

(UNAUDITED)

For the Three Months Ended September 30, 2025

For the Three Months Ended September 30, 2024

Change

Average Daily

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Upscale & Above (1)

$ 157.88

62.9 %

$ 99.33

$ 159.55

64.2 %

$ 102.50

(1.0) %

(130)

bps

(3.1) %

Midscale & Upper Midscale (2)

104.63

60.1 %

62.90

106.50

61.0 %

64.97

(1.8) %

(90)

bps

(3.2) %

Extended Stay (3)

66.78

71.0 %

47.39

65.44

73.3 %

47.95

2.0 %

(230)

bps

(1.2) %

Economy (4)

73.61

50.1 %

36.89

75.66

50.4 %

38.13

(2.7) %

(30)

bps

(3.3) %

Total

$ 100.03

60.3 %

$ 60.33

$ 102.02

61.1 %

$ 62.32

(2.0) %

(80)

bps

(3.2) %

For the Nine Months Ended September 30, 2025

For the Nine Months Ended September 30, 2024

Change

Average Daily

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Rate

Occupancy

RevPAR

Upscale & Above (1)

$ 150.69

57.7 %

$ 87.01

$ 153.61

59.2 %

$ 90.87

(1.9) %

(150)

bps

(4.2) %

Midscale & Upper Midscale (2)

100.67

56.4 %

56.81

101.81

57.0 %

57.98

(1.1) %

(60)

bps

(2.0) %

Extended Stay (3)

66.66

70.0 %

46.68

63.83

72.1 %

46.03

4.4 %

(210)

bps

1.4 %

Economy (4)

71.71

48.0 %

34.42

71.77

47.6 %

34.16

(0.1) %

bps

0.8 %

Total

$ 96.41

57.0 %

$ 54.94

$ 97.38

57.4 %

$ 55.87

(1.0) %

(40)

bps

(1.7) %

Effective Royalty Rate

For the Three Months Ended

For the Nine Months Ended

September 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

System-wide

5.15 %

5.05 %

5.12 %

5.05 %

(1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.

(2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands.

(3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.

(4) Includes Econo Lodge and Rodeway brands.

Exhibit 5

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA

(UNAUDITED)

September 30, 2025

September 30, 2024

Variance

Hotels

Rooms

Hotels

Rooms

Hotels

Rooms

Ascend Hotel Collection

232

38,221

201

22,957

15.4 %

15,264

66.5 %

Cambria Hotels

10,520

10,226

2.7 %

294

2.9 %

Radisson (1)

9,694

14,296

(10)

(16.4) %

(4,602)

(32.2) %

Comfort (2)

1,659

130,014

1,669

131,205

(10)

(0.6) %

(1,191)

(0.9) %

Quality

1,584

114,784

1,623

118,361

(39)

(2.4) %

(3,577)

(3.0) %

Country

404

32,435

418

33,327

(14)

(3.3) %

(892)

(2.7) %

Sleep

409

28,588

421

29,610

(12)

(2.9) %

(1,022)

(3.5) %

Clarion (3)

181

18,368

188

19,763

(7)

(3.7) %

(1,395)

(7.1) %

Park Inn

1,000

2,818

(15)

(60.0) %

(1,818)

(64.5) %

WoodSpring

275

33,130

249

29,989

10.4 %

3,141

10.5 %

MainStay

139

10,049

132

9,459

5.3 %

590

6.2 %

Suburban

115

9,536

110

9,178

4.5 %

358

3.9 %

Everhome

2,526

685

266.7 %

1,841

268.8 %

Econo Lodge

610

35,477

650

37,955

(40)

(6.2) %

(2,478)

(6.5) %

Rodeway

433

23,965

450

25,365

(17)

(3.8) %

(1,400)

(5.5) %

U.S. Franchises

6,201

498,307

6,278

495,194

(77)

(1.2) %

3,113

0.6 %

International Franchises

1,314

151,370

1,237

139,758

6.2 %

11,612

8.3 %

Total Franchises

7,515

649,677

7,515

634,952

—

— %

14,725

2.3 %

(1) Includes Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.

(2) Includes Comfort family of brand extensions including Comfort Inn and Comfort Suites.

(3) Includes Clarion family of brand extensions including Clarion and Clarion Pointe.

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

(UNAUDITED)

ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

(dollar amounts in thousands)

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Total selling, general and administrative expenses

$ 79,610

$ 69,022

$ 243,118

$ 230,020

Mark to market adjustments on non-qualified retirement plan investments

(2,657)

(2,534)

(5,907)

(7,185)

Non-recurring operational restructuring charges and executive severance

(497)

(255)

(4,799)

(788)

Share-based compensation

(6,397)

(5,425)

(18,523)

(15,484)

Expenses associated with legal claims

—

(2,430)

Amortization of cloud computing arrangements

(189)

—

(189)

—

Global ERP system implementation and related costs

(1,587)

(586)

(3,653)

(586)

Adjusted selling, general and administrative expenses

$ 68,283

$ 60,222

$ 210,047

$ 203,547

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") AND ADJUSTED EBITDA

(dollar amounts in thousands)

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Net income

$ 179,996

$ 105,716

$ 306,264

$ 223,861

Income tax expense

30,920

31,432

73,025

70,076

Interest expense

23,490

22,038

67,468

66,064

Interest income

(1,435)

(2,411)

(4,450)

(6,557)

Gain from an acquisition of a joint venture

(100,025)

—

(100,025)

—

Gain on sale of assets

(713)

—

(713)

—

Loss on extinguishment of debt

—

331

—

331

Other gains, net

(721)

(4,013)

(5,659)

(133)

Equity in net loss (gain) of affiliates

10,904

(1,310)

11,035

(9,088)

Amortization of cloud computing arrangements

189

—

189

—

Depreciation and amortization

15,760

12,893

42,932

38,545

EBITDA

$ 158,365

$ 164,676

$ 390,066

$ 383,099

Share-based compensation

6,397

5,425

18,523

15,484

Mark to market adjustments on non-qualified retirement plan investments

2,657

2,534

5,907

7,185

Franchise agreement acquisition costs amortization and charges

4,257

4,011

15,584

11,592

Revenue for reimbursable costs from franchised and managed properties

(169,434)

(171,824)

(460,207)

(477,076)

Reimbursable expenses from franchised and managed properties

184,268

170,939

504,437

501,857

Global ERP system implementation and related costs

1,587

586

3,653

586

Business combination, diligence and transition costs

1,494

984

1,940

17,723

Non-recurring operational restructuring charges and executive severance

497

255

4,799

788

Expenses associated with legal claims

—

2,430

Adjusted EBITDA

$ 190,088

$ 177,586

$ 484,702

$ 463,668

ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS")

(dollar amounts in thousands, except per share amounts)

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Net income

$ 179,996

$ 105,716

$ 306,264

$ 223,861

Gain on sale of assets

(713)

—

(713)

—

Gain from an acquisition of a joint venture

(100,025)

—

(100,025)

—

Loss on extinguishment of debt

—

331

—

331

(Gain) loss on investments in equity securities, net of dividend income

—

(869)

—

6,715

Revenue for reimbursable costs from franchised and managed properties

(169,434)

(171,824)

(460,207)

(477,076)

Reimbursable expenses from franchised and managed properties

184,268

170,939

504,437

501,857

Business combination, diligence and transition costs

1,494

984

1,940

17,723

Non-recurring operational restructuring charges and executive severance

497

255

4,799

788

Global ERP system implementation and related costs

1,587

586

3,653

586

Expenses associated with legal claims

—

2,430

Gain on sale of an affiliate

—

(7,232)

Non-recurring joint venture formation transaction costs

6,498

—

6,498

—

Income tax expense on adjustments

(5,924)

106

(14,977)

(11,315)

Adjusted net income

$ 98,244

$ 106,224

$ 251,669

$ 258,668

Diluted EPS

$ 3.86

$ 2.22

$ 6.52

$ 4.61

Adjusted Diluted EPS

$ 2.10

$ 2.23

$ 5.36

$ 5.32

Exhibit 7

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL INFORMATION - 2025 OUTLOOK

(UNAUDITED)

Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2025

EBITDA & ADJUSTED EBITDA

(in thousands)

Full Year

Lower Range

Upper Range

Net income

$ 353,000

$ 371,000

Income tax expense

84,200

88,200

Interest expense

89,200

Interest income

(6,000)

Gain from an acquisition of a joint venture

(100,000)

Gain on sale of assets

(700)

Other gains, net

(5,600)

Equity in net loss of affiliates

9,900

Amortization of cloud computing arrangements

500

Depreciation and amortization

59,500

EBITDA

$ 484,000

$ 506,000

Share-based compensation

24,500

Mark to market adjustments on non-qualified retirement plan investments

5,900

Franchise agreement acquisition costs amortization and charges

22,200

Revenue for reimbursable costs from franchised and managed properties

(599,800)

(604,800)

Reimbursable expenses from franchised and managed properties

669,800

664,800

Global ERP system implementation and related costs

4,800

Business combination, diligence and transition costs

3,800

Non-recurring operational restructuring charges and executive severance

4,800

Adjusted EBITDA

$ 620,000

$ 632,000

ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE ("EPS")

(in thousands, except per share amounts)

Full Year

Lower Range

Upper Range

Net income

$ 353,000

$ 371,000

Gain from an acquisition of a joint venture

(100,000)

Gain on sale of assets

(700)

Revenue for reimbursable costs from franchised and managed properties

(599,800)

(604,800)

Reimbursable expenses from franchised and managed properties

669,800

664,800

Business combination, diligence and transition costs

3,700

Non-recurring operational restructuring charges and executive severance

4,800

Global ERP system implementation and related costs

4,800

Non-recurring joint venture formation transaction costs

6,500

Income tax expense on adjustments

(22,100)

(19,100)

Adjusted net income

$ 320,000

$ 331,000

Diluted EPS

$ 7.52

$ 7.89

Adjusted Diluted EPS

$ 6.82

$ 7.05

SOURCE Choice Hotels International, Inc.