Choice Hotels sees FY global RevPAR -2 to 1%

Choice Hotels sees FY global RevPAR -2 to 1%

Choice Hotels International Revises Global RevPAR Outlook Amid Shifting Market Dynamics

Choice Hotels International, Inc. (NYSE: CHH) has updated its full-year 2025 global revenue per available room (RevPAR) forecast to a range of -2% to +1%, reflecting a cautious stance amid softening U.S. demand and evolving macroeconomic conditions. This revision marks a shift from earlier projections and underscores the company's strategic pivot toward international expansion to offset domestic headwinds.

The revised forecast follows a 2.9% year-over-year decline in U.S. RevPAR during the second quarter of 2025, attributed to a challenging comparative period marked by eclipse-related travel surges in 2024 and the timing of Easter. Additionally, the company cited broader industry pressures, including reduced international inbound and government travel, as key factors impacting performance. Despite these challenges, Choice Hotels reported strong financial results for 2023, including record revenues of $1.5 billion and adjusted EBITDA of $540.5 million, driven by growth in its upscale, extended stay, and midscale brands.

To mitigate U.S. market volatility, the company has accelerated international expansion. As of December 31, 2023, the international pipeline grew by 33% quarter-over-quarter, with strategic agreements in Canada, Spain, France, and Australia positioning the company to double its footprint in key markets. Executives emphasized that international diversification is reducing reliance on U.S. economic cycles, though domestic operations still account for the majority of revenue.

Choice Hotels also highlighted progress in integrating Radisson Hotels Americas, achieving $85 million in annual synergies, and maintaining a robust balance sheet with $650 million in liquidity as of late 2023. While the company's 2025 outlook reflects near-term caution, leadership remains focused on leveraging its conversion hotel expertise and technology platform to drive long-term value creation.

The updated RevPAR guidance underscores the hospitality sector's sensitivity to macroeconomic shifts and the importance of geographic diversification in stabilizing revenue streams. Investors will closely monitor the pace of international openings and the effectiveness of cost management initiatives in navigating the current environment.

Choice Hotels International Reports Fourth Quarter and Full-Year 2023 Results (February 20, 2024)
Choice Hotels Talks Up International Growth, U.S. Demand Softens (August 6, 2025)