Choice Hotels International (CHH) investor relations material

Executive summary

• Achieved record Q2 adjusted EBITDA of $165M, up 2% year-over-year, and record adjusted EPS of $1.92, up 4% year-over-year, driven by global room expansion and margin improvements.

• Net income for Q2 2025 was $81.7M, down 6% year-over-year; diluted EPS was $1.75, down from $1.80.

• Net global rooms increased 2.1% year-over-year, with international rooms up 5% and strong expansion in Brazil, France, and China.

• Acquired remaining 50% of Choice Hotels Canada for $112M, expanding Canadian portfolio to 327 units and over 26,000 rooms.

• Extended stay segment net rooms grew 10.5% year-over-year, now nearly 54,000 rooms, with double-digit domestic growth for eight consecutive quarters.

Financial highlights

• Q2 2025 total revenues were $426.4M, down 2% year-over-year; adjusted EBITDA reached $165M, up 2% year-over-year.

• Adjusted net income for Q2 2025 was $90M, up from $89M in Q2 2024.

• Adjusted SG&A declined 4% to $77.6M; excluding a $2M operating guarantee payment, adjusted SG&A was $75.6M, down 6% year-over-year.

• Operating cash flow for the first half of 2025 was $116.1M, up from $113.6M in 2024.

• Cash and cash equivalents at June 30, 2025: $58.6M; long-term debt: $1.9B.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance is $615M–$635M, including $6M incremental from the Canadian acquisition.

• Net income guidance for 2025 is $261M–$276M; adjusted net income $324M–$339M.

• Adjusted diluted EPS guidance is $6.90–$7.22; domestic RevPAR growth outlook revised to -3% to 0% year-over-year.

• Adjusted SG&A expected to grow at a low single-digit rate from 2024 base.

• Guidance does not include additional M&A or share repurchases after June 30.