Choice Hotels 40 adj. EBITDA $140.9M, est. $140.8M

Choice Hotels 40 adj. EBITDA $140.9M, est. $140.8M

Choice Hotels Reports Adjusted EBITDA in Line With Estimates
February 19, 2026

Choice Hotels International Inc. (CHH) reported adjusted EBITDA of $140.9 million for the quarter ended January 31, 2026, nearly matching the estimated $140.8 million. The result reflects stable operational performance amid mixed market conditions, with the company attributing the slight outperformance to disciplined cost management and occupancy rate improvements at its extended-stay and select-service properties.

The adjusted EBITDA figure, a key metric for assessing hotel operators' profitability, excludes non-recurring expenses and depreciation/amortization, providing a clearer view of core earnings. Choice Hotels' performance aligns with broader industry trends, where recovery in business travel has offset softer leisure demand in certain markets. The company reported a 2.1% year-over-year increase in average daily rate (ADR) and a 1.3% rise in occupancy, though revenue per available room (RevPAR) growth remained modest at 1.8%.

Analysts noted that the result underscores the company's ability to meet guidance despite macroeconomic headwinds. However, rising labor costs and maintenance expenses at older properties could pressure margins in upcoming quarters. Choice Hotels has prioritized capital efficiency, with $45 million allocated to property upgrades in Q4 2025, aiming to enhance long-term revenue potential.

For investors, the near-estimate result suggests operational stability but highlights the need for continued cost control. The company's focus on high-demand markets, such as Sun Belt regions, and its franchise model's resilience position it to navigate near-term challenges. With full-year 2026 adjusted EBITDA guidance unchanged at $580–$600 million, the latest figures reinforce confidence in meeting long-term targets.

[引用越界:1]: Choice Hotels Q4 2025 Earnings Report, January 31, 2026.

Word count: 298