Choice Hotels lowers FY25 adjusted EPS view to $6.88-$7.20 from $6.90-$7.22

Consensus $7.04. Backs FY25 adjusted EBITDA view $615M-$635M. Sees FY25 domestic RevPAR flat to down 3%. The company said, “The company is adjusting its RevPAR outlook to reflect a more moderate domestic expectation amidst a changing macroeconomic backdrop. The company’s adjusted EBITDA outlook reflects an incremental contribution of approximately $6 million for the remainder of 2025 from the acquisition of Choice Hotels (CHH) Canada. The outlook information below includes forward-looking non-GAAP financial measures, which management uses in forecasting performance. The adjusted numbers in the company’s outlook below exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, due diligence and transition costs, additional repurchases of company stock, and other items. These figures include the $2 million impact from the operating guarantee payment related to managed hotels incurred during the second quarter of 2025.”