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Choice Hotels International reports first quarter 2025 Results
Choice Hotels International Inc. reported a 44 per cent increase in net income for the first quarter of 2025, reaching US$44.5 million, or 94 cents per diluted share, compared to US$31 million, or 62 cents per share, in the same period last year.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4 per cent year-over-year (YOY) to a record US$129.6 million.
Despite the strong quarterly performance, the company revised its full-year guidance downward, citing a 'changing macro backdrop' and more moderate expectations for domestic revenue per available room (RevPAR) growth. Choice now anticipates 2025 net income between US$275 million and US$290 million, down from its prior forecast of US$288 million to US$300 million. Adjusted diluted earnings per share are projected in the range of US$6.90 to US$7.22, compared to the earlier estimate of US$6.98 to US$7.24.
The company reported a 2.3 per cent YOY increase in domestic RevPAR for the first quarter, outperforming its chain scales by 60 basis points. Notably, the extended stay segment saw a 6.8 per cent RevPAR increase, surpassing industry averages by 410 basis points. The domestic net rooms portfolio expanded by 2.3 per cent, with upscale, extended stay, and midscale units growing 3.6 per cent.
As of March 31, 2025, Choice's global pipeline exceeded 95,000 rooms, including nearly 79,000 in the U.S. market. The company's liquidity stood at US$593.8 million, and it maintained a net debt leverage ratio of 3.0 times.
During the quarter, Choice returned US$78.1 million to shareholders through dividends and share repurchases. The company repurchased approximately 456,000 shares for US$64.6 million and paid US$13.5 million in dividends.
