Choice Hotels Reports Strong Q1 2025 Financial Results

Choice Hotels International ( (CHH) ) has released its Q1 earnings. Here is a breakdown of the information Choice Hotels International presented to its investors.

Choice Hotels International, Inc., a prominent global lodging franchisor, operates over 7,500 hotels across 46 countries, offering a diverse range of brands from upscale to economy accommodations.

In its first quarter of 2025, Choice Hotels reported a robust financial performance, highlighted by a 44% increase in net income, reaching $44.5 million, and a 52% rise in diluted earnings per share compared to the previous year. The company’s adjusted EBITDA also set a first-quarter record at $129.6 million, marking a 4% increase from the same period in 2024.

Key financial metrics for the quarter included a 2.3% year-over-year growth in domestic revenue per available room (RevPAR), outperforming its chain scales by 60 basis points. The company also expanded its global net rooms system size by 2.8%, with significant growth in its upscale, extended stay, and midscale rooms portfolio. Additionally, the domestic extended stay segment saw a notable 10.8% increase in net rooms.

Choice Hotels continues to demonstrate resilience and strategic growth, as evidenced by its increased domestic average daily rate and occupancy levels. The company also maintained a strong balance sheet with $593.8 million in available liquidity and a net debt leverage ratio of 3.0 times.

Looking ahead, Choice Hotels is adjusting its outlook to reflect a more moderate domestic RevPAR growth expectation amid a changing macroeconomic environment. The company remains focused on leveraging its diversified growth avenues and strengthened brand portfolio to ensure stability and long-term growth.