AI Earnings Predictions for Choice Hotels International Inc. (CHH)

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CHOICE HOTELS INTERNATIONAL REPORTS THIRD QUARTER 2026 RESULTS

U.S. Net Rooms Growth Rate Improves for Third Consecutive Quarter

Owned Hotel Sales Advance Asset-Light Strategy

Full-Year 2026 RevPAR Outlook Raised

NORTH BETHESDA, Md., Nov. 2, 2026 – Choice Hotels International, Inc. (“Choice” or “the Company”) (NYSE: CHH), a leading global lodging franchisor with an asset-light model, today reported results for the third quarter ended September 30, 2026.

Highlights include:

•Net income was $58 million, or $1.28 per diluted share, for the third quarter.

•Adjusted EBITDA totaled $193 million and adjusted diluted EPS was $2.33 for the third quarter.

•The U.S. year-over-year net rooms growth rate continued to improve, with U.S. rooms approximately flat compared to September 30, 2025, as third-quarter room exits declined 23% compared to the same period of 2025.

•Global net rooms grew 1.7% compared to September 30, 2025, led by 2.5% growth across the higher-revenue extended stay, midscale, and upscale brands.

•U.S. RevPAR increased 3.8% in the third quarter compared to the same period of 2025, reflecting improvements in both occupancy and rate.

•U.S. franchise agreements awarded increased 24% in the third quarter compared to the same period of 2025, representing 6,900 new rooms for development.

•The U.S. conversion pipeline grew to 25,500 rooms, an increase of 6% from June 30, 2026, and 29% from September 30, 2025, driving sequential growth in the total U.S. pipeline.

•The U.S. average royalty rate expanded 8 basis points to 5.23% in the third quarter compared to the same period of 2025.

•Subsequent to quarter-end, the Company completed the sale of two owned hotels for estimated net cash proceeds of approximately $34 million, while retaining franchise agreements for both properties.

•The Company returned $211 million to shareholders through dividends and share repurchases during the first nine months of 2026.

•The Company raised its full-year U.S. and global RevPAR outlooks, revised its net income guidance, and raised its adjusted EBITDA guidance range.

“Our third-quarter results reflect continued progress against our key priorities: the U.S. net rooms growth rate improved for the third consecutive quarter, U.S. RevPAR growth strengthened, and capital recycling is underway,” said Dom Dragisich, President and Chief Executive Officer. “Our focus is on returning to the fundamentals that have driven our success for decades, while continuing to invest in commercial and technology capabilities that help franchisees capture more demand. We expect U.S. net rooms growth to accelerate to approximately 1% by year-end, and stronger demand trends support our increased full-year RevPAR outlook. These improvements position us to deliver more consistent financial performance and stronger long-term free cash flow for shareholders.”

Financial Performance

($ in millions, except per-share amounts) Three Months Ended September 30,Nine Months Ended September 30,

2026

2025

2026

2025

Total revenues $458$447$1,240$1,207

Revenue excl. revenue for reimbursable costs from franchised and managed properties1 $285$278$780$746

Net income $58$180$143$306

Diluted EPS $1.28$3.86$3.12$6.52

Adjusted net income $105$98$247$252

Adjusted diluted EPS $2.33$2.10$5.41$5.36

Adjusted EBITDA $193$190$494$485

•Net income was $58 million for the third quarter, a 68% decline compared to the same period of 2025. The decline primarily reflected a $100 million gain from the acquisition of a joint venture recognized in the prior-year quarter. Current-year results included a $24 million charge related to the termination of an arrangement involving an option to acquire a European hospitality business operating primarily under a lease-based model and a $6 million non-cash impairment charge related to two owned hotels. These impacts were partially offset by higher franchise and management fees. The prior-year gain and both current-year charges are excluded from adjusted results.

•Adjusted EBITDA increased 1% to $193 million for the third quarter compared to the same period of 2025, primarily driven by higher U.S. royalties, partially offset by lower liquidated damages revenue and higher adjusted SG&A expenses. Excluding liquidated damages revenue of $3.3 million and $9.5 million in the third quarters of 2026 and 2025, respectively, adjusted EBITDA increased 5% compared to the same period of 2025.

•Adjusted diluted EPS increased 11% for the third quarter compared to the same period of 2025, benefiting from higher franchise and management fees and share repurchases.

•Franchise and management fees increased 5% to $204 million for the third quarter compared to the same period of 2025, primarily reflecting higher U.S. royalties driven by RevPAR growth

1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $173 million and $169 million for thir

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CHOICE HOTELS INTERNATIONAL REPORTS SECOND QUARTER 2026 RESULTS

U.S. Net Rooms Growth Improved for the Second Consecutive Quarter, Supporting 2.6% Global Net Rooms Growth

NORTH BETHESDA, Md., August 5, 2026 – Choice Hotels International, Inc. (“Choice” or “the Company”) (NYSE: CHH), a leading global lodging franchisor with an asset-light model, today reported results for the second quarter ended June 30, 2026.

Highlights include:

•Net income was $64 million, or $1.41 per diluted share, for the second quarter.

•Adjusted EBITDA totaled $175 million, and adjusted diluted EPS reached $2.02 for the second quarter.

•U.S. room openings increased 27% in the second quarter compared to the same period of 2025, as the Company opened approximately 6,400 U.S. rooms—the highest second-quarter level since 2019, while exits declined to their lowest second-quarter level since 2020, supporting continued improvement in U.S. net rooms growth.

•Global net rooms grew 2.6% compared to June 30, 2025, driven by 3.6% growth in the higher revenue extended stay, midscale, and upscale brands.

•U.S. RevPAR increased 1.3% in the second quarter, compared to the same period of 2025, reflecting improvements in both occupancy and rate.

•U.S. franchise agreements awarded increased 30% in the second quarter compared to the same period of 2025, representing approximately 9,400 new U.S. rooms for development.

•The Company's U.S. conversion rooms pipeline grew 24% to 24,100 rooms, compared to June 30, 2025, and 6% sequentially from March 31, 2026.

•The U.S. royalty rate expanded 11 basis points to 5.2% in the second quarter, compared to the same period of 2025.

•The Company returned $139 million to shareholders through dividends and share repurchases year-to-date through June 30, 2026.

•The Company raised several full-year 2026 guidance ranges.

"Our second quarter results reflect encouraging progress across our key priorities, with U.S. net rooms growth improving for the second consecutive quarter to its strongest first-half performance since 2021 and U.S. RevPAR trends strengthening," said Dom Dragisich, Interim Chief Executive

Officer. "Over the past several years, we've built a stronger commercial engine and technology platform, and we continue to invest in both. Our biggest opportunity now is sharpening execution—leveraging those capabilities to further enhance franchisee economics by increasing the number and quality of the guests we deliver while lowering operating costs. While we still have work to do, this business has significantly more potential, and I'm confident we can realize it. The progress we delivered this quarter reinforces that confidence."

Financial Performance

($ in millions, except per-share amounts) Three Months Ended June 30,Six Months Ended June 30,

2026

2025

2026

2025

Total revenues $441$426$781$759

Revenue excl. revenue for reimbursable costs from franchised and managed properties1 $277$259$494$469

Net income $64$82$85$126

Adjusted net income $92$90$142$153

Diluted EPS $1.41$1.75$1.84$2.68

Adjusted diluted EPS $2.02$1.92$3.09$3.25

Adjusted EBITDA $175$165$301$295

•Net income was $64 million for the second quarter, a 21% decline compared to the same period of 2025. The year-over-year decrease primarily reflected a higher net reimbursable deficit from franchised and managed properties related to investments in franchisee-related tools and guest delivery capabilities, timing of SG&A expenses, and increased depreciation and amortization associated with owned hotels and the prior year acquisition of Choice Hotels Canada. These items were partially offset by higher franchise and management fees.2

•Adjusted EBITDA increased 6%, and adjusted diluted EPS increased 5% compared to the same period of 2025.

•Franchise and management fees increased 6% to $188 million for the second quarter, compared to the same period of 2025, reflecting higher international royalty fees, higher franchisee programs and services revenue, along with U.S. RevPAR and U.S. royalty rate improvement.

•Partnership services and fees increased 6% to $29 million for the second quarter, compared to the same period of 2025, primarily reflecting growth in procurement services revenue.

RevPAR

(% change on a currency-neutral basis)

Change vs. Prior Year Period

Three months ended

June 30, 2026

U.S.

1.3%

International 2.1%

Global 1.7%

1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $163 million and $167 million for second quarter 2026 and 2025, respectively, and $287 million and $291 million year-to-date through June 30, 2026 and June 30, 2025, respectively.

2 Selling, general and administrative expenses for the three months ended June 30, 2026 included $0.2 million of expense related to the post-employment benefits announced on May 20, 2026. The Company expects to recognize approximately $2.7 million of total post-employ

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CHOICE HOTELS INTERNATIONAL REPORTS FIRST QUARTER 2026 RESULTS

Global Net Rooms Increased 1.7%, with U.S. Net Rooms Growth Improving

Q1 U.S. Hotel Openings Hit Five-Year High

Global Franchise Agreements Awarded Increased 72%

NORTH BETHESDA, Md., April 30, 2026 – Choice Hotels International, Inc. (“Choice” or “the Company”) (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, today reported results for the first quarter ended March 31, 2026.

Highlights include:

•Total revenues reached a company record $340.6 million for the first quarter.

•Net income was $20.3 million for the first quarter, representing diluted EPS of $0.44.

•Adjusted EBITDA totaled $125.7 million, while adjusted diluted EPS reached $1.07 for the first quarter.

•U.S. royalty rate expanded 11 basis points to 5.22% for the first quarter, compared to the same period of 2025.

•Global net rooms grew 1.7% compared to March 31, 2025, driven by 2.5% growth in higher revenue extended stay, midscale, and upscale brands.

•U.S. room openings increased 32% in the first quarter compared to the same period of 2025, reaching the highest first-quarter level since 2023, while exits declined year-over-year to the lowest quarterly level since 2023, driving sequential net rooms growth from year-end 2025.

•Global franchise agreements awarded increased 72% in the first quarter, compared to the same period of 2025.

•U.S. pipeline grew sequentially to approximately 71,500 rooms, with the conversion rooms pipeline increasing 17% compared to March 31, 2025, and 3% sequentially from December 31, 2025.

•Capital recycling generated $24.6 million of proceeds in the first quarter, with hotel development and lending shifting from net outflows in the prior year to net inflows in the current period.

“Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends,” said Patrick Pacious, President and Chief Executive Officer. “We are driving sequentially improving U.S. net rooms growth, supported by our conversion-led model and more accretive pipeline, achieving faster, more capital-efficient

expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders.”

Financial Performance

($ in millions, except per-share amounts)

2026

2025

Total revenues $341$333

Revenue excl. revenue for reimbursable costs from franchised and managed properties1 $217$209

Net income $20$45

Adjusted net income $50$64

Diluted EPS $0.44$0.94

Adjusted diluted EPS $1.07$1.34

Adjusted EBITDA $126$130

•Revenue excluding reimbursable costs increased 3% to $216.7 million in the first quarter, from $209.4 million in the prior year.

•Adjusted EBITDA was $125.7 million for the first quarter, compared to $129.6 million in the prior year, primarily reflecting timing-related factors and in line with expectations.

•Adjusted diluted EPS was $1.07 for the first quarter, compared to $1.34 in the prior year, reflecting timing-related factors and a temporarily elevated effective income tax rate that is expected to be approximately 25% for the full year.

RevPAR

(% change on a currency-neutral basis)

Change vs. Prior Year Period

Three months ended

March 31, 2026

U.S.

-2.3%

International 2.6%

Global -0.8%

U.S. results included a significant hurricane-related impact of approximately 410 basis points, affecting the year-over-year comparison.

•U.S. RevPAR increased 1.8% in the first quarter, compared to the same period of 2025, excluding the prior-year hurricane-related impact.

•International RevPAR increased 2.6% on a currency-neutral basis in the first quarter, compared to the same period of 2025.

1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $124 million and $123 million for first quarter 2026 and 2025, respectively.

System Size and Development

(Rooms)

March 31, 2026

March 31, 2025

Change

U.S.

497,881505,601 -1.5%

U.S. upscale, extended stay, and midscale 440,464444,230 -0.8%

International 160,467141,986 13.0%

Global 658,348647,587 1.7%

Global upscale, extended stay, and midscale 595,580580,860 2.5%

•Global pipeline exceeded 77,700 rooms as of March 31, 2026, with 97% concentrated in extended stay, midscale, and upscale brands, supporting a more accretive future earnings profile.

•Franchise agreements awarded increased 65% in the U.S. and 113% in international markets in the first quarter of 2026, compared to the same period of 2025.

•International net rooms grew 13% compared to March 31, 2025, highlighted by a 59% increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, including Canada and EMEA.

•Ext