Choice Hotels' Q2 net income declines

Choice Hotels International

06/08/2025 11:51

Overview

Choice Hotels Q2 adjusted EPS of $1.92 beats analyst expectations, per LSEG data

Net income for Q2 fell to $81.7 mln from $87.1 mln in 2024

Co highlights strategic international expansion with acquisitions and new agreements

Outlook

Company adjusts RevPAR outlook amidst changing macroeconomic backdrop

Choice Hotels expects $6 mln EBITDA contribution from Canada acquisition

Company forecasts full-year 2025 net income of $261-276 mln

Choice Hotels sees full-year 2025 adjusted EBITDA at $615-635 mln

Result Drivers

GLOBAL EXPANSION - Co accelerated international growth with strategic agreements in Brazil, France, and China, adding significant room capacity

DOMESTIC CHALLENGES - Domestic RevPAR declined due to macroeconomic uncertainty and difficult comparisons with 2024 events

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$1.92
$1.9 (11 Analysts)
Q2 EPS
$1.75
Q2 Adjusted Net Income
$90 mln
Q2 Net Income
$81.70 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."

Wall Street's median 12-month price target for Choice Hotels International Inc is $132.50, about 5.6% above its August 5 closing price of $125.12

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn8qTQf9a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)