Overview
- Choice reported second-quarter results showing net income of $64 million, adjusted EBITDA of $175 million, and adjusted diluted EPS of $2.02.
- The company said U.S. performance improved with roughly 6,400 room openings, a 27% increase, and U.S. RevPAR up 1.3% year over year, driven by higher occupancy and modest rate gains.
- Development momentum accelerated as franchise agreements awarded rose and the U.S. conversion pipeline expanded to about 24,100 rooms, with extended-stay, midscale, and upscale brands accounting for most growth.
- Choice finished the quarter with $475 million in available liquidity, a net debt-to-adjusted EBITDA ratio of 3.1x, and returned $139 million to shareholders year-to-date through dividends and buybacks.
- Management said it will start recycling capital from 19 owned hotels with planned asset sales in the first half of 2027 subject to market conditions, a move that could boost franchise investment and free cash but will depend on timing and market demand.