Choice Hotels Q2 revenue and adjusted EPS beat estimates

Choice Hotels International

05/08/2026 11:41

Overview
U.S. lodging franchisor's Q2 revenue and adjusted EPS beat analyst expectations
Net income fell 21% yr/yr due to higher reimbursable deficits and SG&A expenses
Company returned $139 mln to shareholders via dividends and share repurchases year-to-date

Outlook
Choice Hotels lowers 2026 net income outlook to $230 mln-$241 mln from $265 mln-$275 mln
Company raises 2026 adjusted EBITDA guidance to $635 mln-$650 mln from $632 mln-$647 mln

Result Drivers
ROOM OPENINGS - U.S. room openings increased 27% yr/yr, supporting improved net rooms growth
FRANCHISE FEES - Franchise and management fees rose 6%, driven by higher international royalty fees, franchisee programs and services revenue, and U.S. RevPAR and royalty rate improvement
EXTENDED STAY GROWTH - U.S. extended stay net rooms grew 13% yr/yr, marking 12th consecutive quarter of double-digit growth

Company press release: ID:nPn9kRmdGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$440.76 mln
$430.35 mln (8 Analysts)
Q2 Adjusted EPS
Beat
$2.02
$1.96 (12 Analysts)
Q2 EPS
 
$1.41
 
Q2 Net Income
 
$64 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 4 "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 $113.50, about 4.5% above its August 4 closing price of $108.61
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Aug 3 - Marriott International's Q2 adj profit beats on fee growth
Aug 4 - Booking Holdings Q2 revenue beats estimates, partly on room night growth
Aug 4 - Global Business Travel Q2 revenue beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)