Choice Hotels International

Choice Hotels franchises hotels. Hotel owners pay Choice royalty and other fees, and Choice runs the reservation system, the loyalty program and marketing for them. Its brands serve midscale, extended stay, upscale and economy guests.

At September 30, 2026, its global system had 660,614 rooms: 498,215 in the United States and 162,399 in other countries. The global pipeline had about 78,200 rooms. In 2025, Choice bought its Canadian master franchisee, Choice Hotels Canada.

On October 1, 2026, it bought Harvest Hosts, a membership platform for RV travel. Choice is selling its owned hotels: after it sold two in October 2026, it owned 17 operating hotels on November 2, 2026. Dominic Dragisich became President and CEO on August 31, 2026.

The market prices Choice Hotels for slow growth in U.S. hotel demand and for change at the top. U.S. rooms were about flat in the year to September 30, 2026. In November 2026, Choice raised its 2026 guidance for U.S. RevPAR growth to 1.5% to 2.5%, but from a low base.

The long-time CEO stepped down in May 2026, and net income guidance fell twice in 2026, mainly because Choice spends more on tools and guest delivery for franchisees. Net debt was 3.2 times adjusted EBITDA at September 30, 2026. For the gap to close, three things must be true. U.S. net rooms must start to grow, as openings rise and exits fall; Choice expects U.S. net rooms growth of about 1% by the end of 2026.

Extended stay rooms must keep growing at double-digit rates, and international rooms near the 7% of the year to September 30, 2026. The sale of owned hotels, which started in October 2026, must return capital and keep leverage within the target of 3.0 to 4.0 times. The Q4 2026 report with the 2027 outlook in early 2027 is the next test. If these checks pass, the gap can close over the next four to six quarters.

The main reason it may not close is a weaker U.S. economy, which lowers travel by the midscale and economy guests that Choice serves.

1. Oct 2026Passed

   First sales of owned hotelsThe first owned hotel sales close in the first half of 2027 near book value pass; no sales or sales at large losses fail.Outcome: Choice sold two owned hotels in October 2026, earlier than planned, for about $34 million of net cash and kept their franchise agreements.
2. Nov 2, 2026Passed

   Q3 2026 earnings: U.S. rooms and RevPARU.S. RevPAR within the 0% to 1.25% guidance range and better U.S. net rooms growth pass; a cut to adjusted EBITDA guidance or falling U.S. rooms fail.Outcome: U.S. RevPAR rose 3.8%, U.S. rooms were about flat after a 0.3% fall in the year to June, and Choice raised its RevPAR and adjusted EBITDA guidance.
3. Feb 2, 2027 · est.Pending

   Q4 2026 results and 2027 outlookU.S. net rooms growth near 1% at the end of 2026 and a 2027 outlook for higher adjusted EBITDA pass; falling U.S. rooms or a 2027 outlook for lower adjusted EBITDA fail.

Every passed and failed checkpoint across all picks

• November 2, 2026Choice reported Q3 2026 results. Adjusted EBITDA rose 1% to $193 million, and adjusted diluted EPS rose 11% to $2.33. Net income fell 68% to $58 million, because Q3 2025 had a $100 million gain and Q3 2026 had a $24 million charge to end an option to buy a European hotel business and a $6 million impairment of two owned hotels. U.S. RevPAR rose 3.8%, U.S. rooms were about flat and global net rooms grew 1.7%. After the quarter, Choice sold two owned hotels for about $34 million of net cash and kept their franchise agreements. It raised its 2026 U.S. RevPAR growth guidance to 1.5% to 2.5% and its adjusted EBITDA guidance to $641 million to $651 million, but lowered its net income guidance to $178 million to $185 million.
• October 1, 2026Choice completed its purchase of Harvest Hosts for about $130 million, funded with cash and borrowings under its revolving credit facility.
• September 30, 2026Choice agreed to buy Harvest Hosts, a membership network for RV travel with more than 11,200 host locations, for an enterprise value of about $130 million in cash. Choice funds it with cash and its revolving credit facility. It expected the deal to close on October 1, 2026, and does not expect a material effect on its 2026 results or its share repurchase plans.

Last earnings

November 2, 2026 (8-K on sec.gov)

Next earnings

Expected about February 2, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 2, 2026 · chh-20260930
• 8-KEarnings releaseFiled November 2, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled October 1, 2026 · Read it on sec.gov
• 8-KChange of directors or officersFiled August 31, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled August 28, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 5, 2026 · chh-20260630
• 8-KEarnings releaseFiled August 5, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled July 1, 2026 · chh-20260626
• 8-KChange to shareholder rights or bylaws and Shareholder vote resultsFiled May 21, 2026 · Read it on sec.gov
• 8-KChange of directors or officersFiled May 20, 2026 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 1046311)

• Royalty fees depend on U.S. hotel revenue per room. Guidance for U.S. RevPAR growth in 2026 is only 1.5% to 2.5%, after 3.8% growth in Q3 2026. A weaker economy lowers travel by midscale and economy guests and reduces fees.
• Choice spends more on franchisee tools and guest delivery than it collects for these programs. This deficit caused it to lower its 2026 net income guidance in August and again in November 2026. If the spending does not raise franchisee revenue, profits stay lower.
• Debt rose with the new $500 million term loan and the borrowings for the Harvest Hosts purchase. Net debt was 3.2 times adjusted EBITDA at September 30, 2026, and higher debt leaves less room in a downturn.
• Choice changed its CEO in 2026, and its Chief Human Resources Officer leaves that role at the end of 2026. Leadership changes can slow the execution of its plans.

Choice Hotels funds itself with senior notes, a revolving credit facility and, since August 2026, a term loan. At September 30, 2026, debt principal was about $2.19 billion: senior notes of $400 million due 2029, $450 million due 2031 and $600 million due 2034, the $500 million term loan due August 2029, and about $240 million drawn on the $1 billion revolving credit facility due June 2029. Read more

Yield at the current rate

1.0% (current annual rate, at today’s price)

Dividend yield

1.0% (last 12 months, at today’s price of $120.01)

Paid per share

$1.152 in the last 12 months (4 payments)

Current annual rate

$1.152 ($0.288 × 4 a year)

Payout ratio

15% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

October 1, 2026, $0.288 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 38.6% a year. From 2015 to 2025, the dividend grew by about 3.8% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.