Choice Hotels Q3 revenue growth beats analyst expectations

Choice Hotels International

05/11/2025 11:43

Overview

Choice Hotels Q3 revenue rises 5%, beating analyst expectations

Adjusted EPS for Q3 misses analyst estimates due to higher amortization and tax expenses

Net income for Q3 rises to $180 mln, up from $105.7 mln last year

Outlook

Choice revises full-year 2025 net income outlook to $353 mln-$371 mln

Adjusted diluted EPS for 2025 expected at $6.82-$7.05

Company projects U.S. RevPAR growth between -3% and -2% for 2025

Result Drivers

INTERNATIONAL EXPANSION - Co reports 8.3% growth in international net rooms, driven by new market entries and increased openings

HIGHER REVENUE SEGMENTS - 3.3% growth in upscale, extended stay, and midscale segments contributed to global net room growth

FRANCHISE AGREEMENTS - 54% increase in global franchise agreements awarded, indicating strong growth potential

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$447.30 mln
$426.32 mln (7 Analysts)
Q3 Adjusted EPS
Miss
$2.10
$2.18 (10 Analysts)
Q3 Net Income
$180 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "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 $121.00, about 24.4% above its November 4 closing price of $91.50

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn84KsQBa

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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.)