Choice Hotels Beats Q2 Estimates, Raises EBITDA Outlook Despite Net Income Drop
CHH sits 29% above its 52-week low of $84.035.
Summary
Choice Hotels delivered a top-and-bottom-line beat for Q2, with revenue of $440.76M and adjusted EPS of $2.02 surpassing consensus. The company raised its full-year adjusted EBITDA guidance to $635M-$650M, signaling confidence in operational momentum. However, net income fell 21% year-over-year, and the 2026 net income outlook was cut to $230M-$241M from $265M-$275M, reflecting higher costs. Key drivers include a 27% surge in U.S. room openings and a 13% increase in extended-stay net rooms, marking the 12th straight quarter of double-digit growth in that segment. This follows a Q1 marked by declining net income and negative operating cash flow, making the revenue beat and EBITDA raise a notable inflection. The company also returned $139M to shareholders year-to-date through dividends and buybacks.
At the time of this announcement, CHH was trading at $108.65 on NYSE in the Trade & Services sector, with a market capitalization of approximately $4.9B. The 52-week trading range was $84.04 to $127.27. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.