Choice Hotels International 2025 Q3 Earnings Strong Revenue and 70% Net Income Surge

Choice Hotels International (CHH) reported Q3 2025 earnings with revenue and net income surpassing expectations. The company raised its full-year outlook amid robust international growth and strategic brand shifts, while analysts revised price targets downward despite the positive results.

Revenue

, with Hotel Franchising & Management contributing $413.24 million, driven by franchise fees and management services. Corporate & , . , .

Earnings/Net Income

EPS surged 73.7% to $3.89 in Q3 2025, , while net income jumped 70.3% to $180 million from $105.72 million. The company has maintained profitability for over 20 years, demonstrating operational resilience. The EPS increase reflects strategic investments and a shift toward higher-margin brand segments.

Post-Earnings Price Action Review

The revenue beat and robust international performance suggest a viable strategy for holding CHH shares post-earnings. The 4.5% revenue growth and 7.2% Zacks beat indicate strong demand, particularly in international markets, where RevPAR increased 9.5% year-over-year. Strategic investments in high-return areas, a pipeline with 98% higher-revenue brands, . However, investors should monitor U.S. RevPAR trends and competitive pressures in key markets.

[CEO Commentary]

CEO Jeffrey C. Taylor emphasized sustained demand for value-conscious travel and digital innovation, despite economic pressures. He highlighted plans to optimize operations and expand in underserved markets, expressing confidence in long-term value through disciplined execution.

[Guidance]

The company raised FY2025 net income guidance to $353–$371 million (prior: $261–$276 million) and adjusted EBITDA to $620–$632 million. .

Additional News

1. M&A Activity, shifting to a direct franchising model and expanding brand access.

2. Dividend Announcement, .

3. Analyst Revisions: Barclays and others lowered price targets, .

Financial Health and Market Position

. , . , .

Risks and Outlook

The company faces U.S. , particularly in Europe and Asia-Pacific. , while the 2026 FIFA World Cup and U.S. .