Choice Hotels Q1 revenue beats on higher hotel openings

Choice Hotels International

30/04/2026 11:49

Overview

US lodging franchisor's Q1 revenue hit record, beating analyst expectations

Adjusted diluted EPS for Q1 missed analyst expectations

Company returned $75.2 mln to shareholders via dividends and share repurchases

Outlook

Choice Hotels maintains full-year 2026 guidance for net income of $265 mln to $275 mln

Company expects 2026 adjusted EBITDA of $632 mln to $647 mln

Choice Hotels sees 2026 global RevPAR growth between -2% and 1%

Result Drivers

SEGMENT MIX - Growth in extended stay, midscale, and upscale brands drove global net rooms up 1.7%, with these segments rising 2.5% year-over-year

U.S. ROOM OPENINGS - U.S. hotel openings rose 32% year-over-year to a five-year high, while exits declined, supporting sequential net rooms growth

REVPAR IMPACT - U.S. RevPAR declined 2.3% year-over-year, mainly due to a hurricane-related impact in the prior year; excluding this, U.S. RevPAR rose 1.8%

Company press release: ID:nPn5cjPpWa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$340.60 mln
$332.38 mln (7 Analysts)
Q1 Adjusted EPS
Miss
$1.07
$1.32 (11 Analysts)
Q1 EPS
$0.44
Q1 Net Income
$20.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "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 $119.00, about 1.4% below its April 29 closing price of $117.36

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

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(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.)