Choice Hotels Reports Record 2025 Adjusted EBITDA, Issues Lower 2026 Net Income and EPS Guidance
CHH sits 30% above its 52-week low of $84.035.
Summary
Choice Hotels reported record full-year 2025 adjusted EBITDA and strong operational growth, but Q4 2025 net income declined and 2026 guidance for net income and diluted EPS is significantly lower than 2025 actuals.
Key Events · Earnings and Guidance · CHH
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Record Full-Year 2025 Adjusted EBITDA
The company achieved a record adjusted EBITDA of $625.6 million for full-year 2025, an increase from $604.0 million in 2024.
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Lower 2026 Net Income and EPS Guidance
Full-year 2026 net income is expected to range from $265 million to $275 million, significantly below the $369.9 million reported for 2025. Diluted EPS guidance for 2026 is $5.72 to $5.94, also lower than the $7.90 achieved in 2025.
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Mixed Q4 2025 Financial Performance
Fourth quarter 2025 net income was $63.7 million and diluted EPS was $1.37, both down from $75.8 million and $1.59 respectively in Q4 2024.
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Strong International and Franchise Growth
Global franchise agreements awarded grew 22% in full-year 2025, and international net rooms increased by 12.5% compared to December 31, 2024.
Analysis · CHH · Real Estate & Construction
Choice Hotels International reported a year of record profitability in 2025, driven by strong international room growth and increased franchise agreements. However, the fourth quarter of 2025 saw a decline in net income and diluted EPS compared to the prior year. More significantly, the company's full-year 2026 guidance projects a notable decrease in net income and diluted EPS compared to 2025 actuals, despite a slight increase in adjusted EBITDA guidance. This suggests potential margin pressures or other factors impacting bottom-line profitability, which could concern investors looking for continued earnings growth. The mixed RevPAR trends, with U.S. RevPAR declining in 2025, also indicate challenges in the domestic market.
At the time of this filing, CHH was trading at $109.40 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $5.1B. The 52-week trading range was $84.04 to $157.86. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.