Choice Hotels Raises 2026 Outlook After Third Quarter Gains
Choice Hotels lifted its full-year RevPAR forecast after reporting improved U.S. room growth and progress on its asset-light strategy.
Choice Hotels International raised its full-year 2026 revenue-per-available-room outlook after delivering third-quarter results that showed the company's U.S. net rooms growth rate improving for the third consecutive quarter, the North Bethesda, Md.-based lodging franchisor announced Nov. 2.
The quarterly performance also reflected advances in the company's asset-light strategy, with the sale of owned hotel properties helping to shift the portfolio further toward a franchise-fee-driven business model. Choice Hotels, which trades on the New York Stock Exchange under the ticker CHH, has been pursuing the approach to reduce capital intensity and improve returns.
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The consecutive improvement in U.S. net rooms growth signals strengthening demand for franchise agreements across Choice's portfolio of brands, a trend that analysts have broadly watched as a gauge of franchisor health in the mid-scale and extended-stay lodging segments where the company competes most heavily.
Raising a full-year RevPAR outlook partway through the final stretch of a fiscal year typically reflects management confidence that booking trends and average daily rates will hold through the year-end travel period. Choice's decision to lift guidance underscores its expectation that leisure and value-oriented travel demand will remain resilient into the fourth quarter.
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