Choice Hotels Raises 2026 RevPAR Outlook After Q3 Earnings
Choice Hotels reported third-quarter 2026 results, lifted its full-year RevPAR guidance, and advanced its asset-light strategy through owned hotel sales.
Choice Hotels International lifted its full-year 2026 revenue-per-available-room outlook following a third-quarter earnings report that showed continued momentum across the company's domestic portfolio, the North Bethesda, Maryland-based hotel franchisor announced Monday.
The company said its U.S. net rooms growth rate improved for the third consecutive quarter, a metric closely watched by analysts as an indicator of franchisee demand and brand expansion health. The sequential improvement signals that Choice Hotels is successfully adding rooms to its system faster than it is losing them, a balance that underpins long-term royalty revenue.
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Choice Hotels also advanced its asset-light strategy during the quarter by selling owned hotel properties. Shedding owned real estate allows the company to redeploy capital toward franchise development and technology while reducing balance-sheet exposure to property-level operating costs — a model that tends to generate higher margins and more predictable cash flows than traditional hotel ownership.
The raised RevPAR guidance reflects management's confidence that demand trends across its portfolio of economy, midscale, and extended-stay brands will remain constructive through year-end. RevPAR, a standard lodging-industry measure combining occupancy and average daily rate, is a primary driver of the franchise fees that account for the bulk of Choice Hotels' revenue.
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