The raised adjusted EBITDA guidance and strong operational metrics (room openings, RevPAR inflection) are positive, but the GAAP earnings decline and lowered net income guidance create uncertainty. Watch next quarter for sustained RevPAR growth and net rooms expansion to confirm the inflection thesis.
Price Chart
Executive Summary
Choice Hotels reported Q2 2026 adjusted diluted EPS of $2.02 (beat consensus $1.97 by 2.8%) and revenue of $440.8M (beat $431.1M by 2.3%). Adjusted EBITDA rose 6% YoY to $175M and full-year adjusted EBITDA guidance was raised to $635-650M. However, GAAP net income fell 21% to $64M and diluted EPS dropped to $1.41 from $1.75, while net income guidance was lowered to $230-241M. The mixed results reflect strong operational momentum (U.S. RevPAR +1.3%, room openings +27%) offset by higher reimbursable expenses and investments.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS $2.02 vs consensus $1.97 (beat 2.8%)
- Total revenues $440.8M vs consensus $431.1M (beat 2.3%)
- GAAP net income $64.3M, down 21% YoY; diluted EPS $1.41 vs $1.75
- Adjusted EBITDA $175.4M, up 6% YoY; full-year guidance raised to $635-650M
- Net income guidance lowered to $230-241M from $265-275M
- U.S. RevPAR +1.3% YoY; global net rooms +2.6%
- U.S. room openings +27% to ~6,400 rooms (highest Q2 since 2019)
- Company returned $139M to shareholders YTD through dividends and buybacks
Financial Impact
Adjusted EBITDA beat by ~$5M vs prior guidance midpoint; net income guidance cut by ~$35M at midpoint
Risk Factors
- Higher reimbursable expenses and SGA timing could continue pressuring GAAP earnings
- Net debt-to-adjusted EBITDA at 3.1x, near the top of the 3.0-4.0x target range
- Economy segment RevPAR declined 0.7% in Q2, indicating potential weakness in lower-tier brands
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001046311-26-000023 |
| Document: chh-20260805.htm | 0001046311-26-000023 |
| Document: 0001046311-26-000023-index-headers.html | 0001046311-26-000023 |
| Document: 0001046311-26-000023-index.html | 0001046311-26-000023 |
| Document: 0001046311-26-000023.txt | 0001046311-26-000023 |
| 8-K Data (Synthetic) | 0001046311-26-000023 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 31, 2026 4w ago | 8-K | $103.36 $104.25 | ▲ +0.86% | ▲ +1.05% | $103.41 (+0.05%) |
Aug 26, 2026 5w ago | Court Ruling | $109.86 $100.96 | ▼ −8.10% | ▼ −8.24% | $103.41 (−5.87%) |
Aug 14, 2026 7w ago | Court Ruling | $104.44 $96.54 | ▼ −7.56% | ▼ −5.57% | $103.41 (−0.99%) |
Aug 14, 2026 7w ago | Court Ruling | $104.44 $96.54 | ▼ −7.56% | ▼ −5.57% | $103.41 (−0.99%) |
Aug 7, 2026 8w ago | Court Ruling | $106.66 $100.62 | ▼ −5.66% | ▼ −5.27% | $103.41 (−3.05%) |
Aug 5, 2026 8w ago | 8-K | $111.79 $100.40 | ▼ −10.19% | ▼ −9.59% | $103.41 (−7.50%) |
Jul 1, 2026 13w ago | 8-K | $109.27 $115.65 | ▲ +5.84% | ▲ +8.02% | $103.41 (−5.36%) |
May 20, 2026 19w ago | DEFA14A | $111.49 $109.56 | ▼ −1.73% | ▼ −2.06% | $103.41 (−7.25%) |
May 20, 2026 19w ago | 8-K | $111.49 $109.56 | ▼ −1.73% | ▼ −2.06% | $103.41 (−7.25%) |
Apr 30, 2026 22w ago | 8-K | $99.08 $113.36 | ▼ −14.41% | ▼ −9.44% | $103.41 (−4.37%) |
US Market Status
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