Choice Hotels

Choice Hotels

Franchises hotels and manages accommodations

Overview

Choice Hotels operates a global hotel franchising network with a range of brands from upscale to economy. Its model lets property owners use the brand name by paying fees, while gaining access to centralized reservations, marketing, loyalty programs, and standardized quality guidelines; owners still handle day-to-day operations. Unlike some competitors that own hotels, Choice Hotels primarily franchises or leases properties and supports growth through its brand system. Its goal is to expand its franchise network worldwide and provide reliable guest experiences and predictable opportunities for franchisees through a broad, tiered brand lineup.

About Choice Hotels

Simplify's Rating
Why Choice Hotels is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Consulting

Real Estate

Company Size

1,001-5,000

Company Stage

IPO

Headquarters

Rockville, Maryland

Founded

1941

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Simplify's Take

What believers are saying

  • Q2 2026 revenue rose 3.4% to $440.8 million, beating estimates on August 5.
  • Adjusted EBITDA climbed 6% to $175 million, and management raised 2026 EBITDA guidance.
  • Choice renewed NBL27 on June 25, 2026, extending brand visibility across Australia and New Zealand.

What critics are saying

  • Patrick Pacious resigned May 20, 2026; Choice still lacks a permanent CEO.
  • Franchisee lawsuits over inflated fees and discrimination continued; Pennsylvania compelled arbitration March 19, 2026.
  • A weak franchisee network destroys Choice’s growth engine if property standards and economics slip.

What makes Choice Hotels unique

  • Choice’s 96% pipeline sits in extended-stay, midscale, and upscale brands, favoring higher royalties.
  • Its May 7, 2026 AI stack—EasyBid, CHARLIE, RAISE—targets owners, not consumers.
  • Choice’s conversion-led model turned 2026 agreements into openings within the same calendar year.

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Funding

Total Funding

$2.9M

Above

Industry Average

Funded Over

1 Rounds

Post IPO Equity funding comparison data is currently unavailable. We're working to provide this information soon!
Post IPO Equity Funding Comparison
Coming Soon

Benefits

Health Insurance

Dental Insurance

Vision Insurance

Paid Vacation

Paid Sick Leave

Paid Holidays

Hybrid Work Options

401(k) Retirement Plan

Employee Discounts

Stock Price

Growth & Insights and Company News

Headcount

6 month growth

3%

1 year growth

3%

2 year growth

3%
Yahoo Finance
Aug 12th, 2026
Choice Hotels Q2 2026 earnings: EBITDA up 6%, US rooms growth nears flat year-over-year

Choice Hotels reported improved second-quarter performance for 2026, with adjusted EBITDA rising 6% year-over-year. US net rooms growth nearly flattened compared to the previous year, marking the company's strongest first-half performance since 2021. Global rooms grew 2.6% in the quarter. US revenue per available room increased 1.3%, boosted partly by FIFA World Cup demand. Interim CEO Dominic Dragisich attributed the progress to investments in the company's commercial engine and technology platform. The hotel franchisor also reduced capital outlays for hotel development by 80% year-over-year in the first half, continuing its shift to an asset-light franchising model. Strong franchise agreement results during the quarter reinforced management's confidence in future global and US rooms growth.

Asian Hospitality
Aug 6th, 2026
Choice adds 6,400 U.S. rooms in Q2.

Choice adds 6,400 U.S. rooms in Q2. U.S. RevPAR increased 1.3 percent in the quarter * Choice opened 27 percent more U.S. rooms in Q2. * RevPAR rose 1.3 percent on rate, occupancy gains. * Net income fell 21 percent to $64 million in Q2. CHOICE HOTELS INTERNATIONAL Inc. reported a 27 percent increase in U.S. room openings in the second quarter, adding about 6,400 rooms. This was the highest second-quarter opening level since 2019. The company reported improved U.S. net rooms growth, supported by lower exits and development activity, Choice said in a statement. U.S. RevPAR increased 1.3 percent in the quarter, driven by a 0.7 percent rise in rate and a 40-basis-point increase in occupancy. International RevPAR increased 2.1 percent on a currency-neutral basis, led by the Caribbean and Latin America, with gains in Canada and Asia-Pacific. "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, Choice interim CEO. "Over the past several years, we've built a stronger commercial engine and technology platform, and we continue to invest in both." In May, Patrick Pacious, longtime president and CEO of Choice, stepped down from the position he had held since 2017, effective immediately. Dominic Dragisich, Choice's chief growth and strategy officer, was named interim CEO. Development growth U.S. franchise agreements awarded increased 30 percent, representing about 9,400 rooms under development, Choice said. The U.S. conversion pipeline grew 24 percent year on year to 24,100 rooms and increased 6 percent from March 31, 2026. U.S. extended-stay net rooms increased 13 percent compared with June 30, 2025, marking the 12th consecutive quarter of double-digit growth. Global room openings increased 16 percent to about 8,300 rooms during the quarter. International net rooms grew 12.5 percent, driven by growth in Asia-Pacific and EMEA, along with expansion in Canada, the statement said. Global franchise agreements awarded increased 20 percent, representing 11,200 rooms under development. Choice global pipeline stood at approximately 77,300 rooms as of June 30, including 71,100 U.S. rooms and 6,200 international rooms. About 96 percent of the pipeline was in extended-stay, midscale and upscale brands. Net income for the quarter was $64 million, or $1.41 per diluted share, down 21 percent from the same period in 2025, the statement said. The decline reflected a higher net reimbursable deficit from franchised and managed properties, increased SG&A expenses, and higher depreciation and amortization from owned hotels and the acquisition of Choice Hotels Canada. Choice reported first-quarter revenue of $340.6 million for the three months ended March 31, with global net rooms increasing 1.7 percent year on year, driven by growth in extended-stay, midscale and upscale brands.

Yahoo Finance
Aug 5th, 2026
Choice Hotels beats Q2 revenue expectations with $440.8M sales, up 3.4% year on year

Choice Hotels reported second-quarter results for 2026 that exceeded market expectations. Revenue reached $440.8 million, up 3.4% year-on-year and beating analyst estimates of $428.4 million. The hotel franchisor posted adjusted earnings of $2.02 per share, surpassing consensus estimates of $1.97. The company's adjusted EBITDA came in at $175.4 million with a 39.8% margin, beating expectations. Revenue per available room increased 6.4% to $61.95. However, management lowered full-year adjusted earnings guidance to $6.98 at the midpoint, a 0.7% decrease. Operating margin declined to 23.6% from 29.2% in the prior-year quarter, whilst free cash flow margin improved to 22.6% from 13.5%. Interim CEO Dom Dragisich highlighted strengthening US net rooms growth and revenue trends. Choice Hotels' market capitalisation stands at $4.9 billion.

Yahoo Finance
Aug 5th, 2026
Choice Hotels reports $175M adjusted EBITDA as US net rooms growth hits strongest first-half since 2021

Choice Hotels International reported second quarter 2026 results, with net income of $64 million, or $1.41 per diluted share. Adjusted EBITDA totaled $175 million, whilst adjusted diluted earnings per share reached $2.02. Global net rooms grew 2.6% compared to June 2025, driven by 3.6% growth in extended stay, midscale, and upscale brands. US room openings increased 27% year-over-year, with approximately 6,400 rooms opened—the highest second-quarter level since 2019. US revenue per available room increased 1.3% in the second quarter. The company's US conversion rooms pipeline grew 24% to 24,100 rooms compared to the previous year. Choice Hotels returned $139 million to shareholders through dividends and share repurchases year-to-date through 30 June 2026. The company raised several full-year 2026 guidance ranges.

CardGuru
Jul 31st, 2026
Choice Hotels offers college football ticket packages, some with $1,500 gift cards.

Choice Hotels offers college football ticket packages, some with $1,500 gift cards. Choice Hotels released new auction-style college football gameday experiences, some including tickets, hospitality, and $1,500 in gift cards. CardGuru Team about 2 hours ago # Choice Hotels offers college football ticket packages, some with $1,500 gift cards. Choice Hotels, a long-standing partner of college football, recently unveiled a new batch of gameday experiences through its dedicated Experiences website. Released yesterday, these packages primarily operate on an auction-style basis rather than a direct 'buy now' option. These offerings include tickets, hospitality, and notably, some packages come with an additional $1,500 in gift cards. This initiative continues Choice Hotels' engagement in providing exclusive access to college football events. CardGuru's take. While this specific promotion from Choice Hotels is tailored for the U.S. market, focusing on college football, it presents an excellent case study for how loyalty programs and strategic partnerships can deliver significant value beyond standard rewards. The inclusion of a substantial $1,500 in gift cards, alongside tickets and hospitality, demonstrates a compelling enhancement to the overall experience, even if offered through an auction model. For Indian credit card users, this highlights the importance of exploring the full spectrum of benefits offered by your credit cards and associated loyalty programs. Many premium credit cards in India offer exclusive access to events, travel experiences, or partnerships that can provide similar, albeit locally relevant, value. These could range from discounted event tickets to exclusive dining experiences or travel perks that go beyond mere points accumulation. CardGuru advises readers to regularly check the 'Experiences' or 'Privileges' sections on their bank's and credit card issuer's websites. Look for partnerships your card has with airlines, hotels, or event organizers for domestic sports, concerts, or cultural events. Always read the terms and conditions carefully, especially for auction-based offers or those with geographical restrictions, to ensure you understand the true value and eligibility before participating. Original source Find the perfect credit card. Use its smart tools to discover cards that match your spending habits.

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