Choice Hotels International, a leading global lodging franchisor, has reported significant growth in its second quarter results for 2026, ending 30 June. The company achieved a 26% increase in global net rooms, driven by a 36% rise in its extended stay, midscale, and upscale brands. Additionally, US revenue per available room (RevPAR) increased by 13% compared to the same period in 2025.
Net income for the quarter was $64 million, a 21% decline from the previous year, attributed to higher net reimbursable deficits and increased depreciation. However, adjusted EBITDA rose by 6% to $175 million, and adjusted diluted earnings per share (EPS) increased by 5% to $2.02.
The company opened approximately 6,400 US rooms, marking the highest second-quarter level since 2019. US franchise agreements awarded increased by 30%, representing around 9,400 new rooms for development. Dom Dragisich, Interim CEO, stated, "Our second quarter results reflect encouraging progress across our key priorities with US net rooms growth improving for the second consecutive quarter."
Internationally, RevPAR grew by 21% on a currency-neutral basis, with notable strength in the Caribbean, Latin America, Canada, and Asia Pacific. The company's global pipeline now includes approximately 77,300 rooms, with a strong focus on extended stay, midscale, and upscale brands.
Looking ahead, Choice Hotels has updated its full-year 2026 outlook, adjusting net income and EPS expectations due to increased marketing and reservation system expenses. The company remains optimistic about leveraging its commercial engine and technology platform to enhance franchisee economics and guest experiences
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