Choice Hotels Raises 2026 RevPAR Outlook After Q3 Earnings
Choice Hotels lifted its full-year RevPAR forecast after reporting Q3 2026 results, marking a third straight quarter of U.S. net rooms growth.
Choice Hotels International posted third-quarter 2026 results that showed accelerating domestic expansion and prompted the North Bethesda, Maryland-based company to raise its full-year revenue-per-available-room outlook, the lodging franchisor announced Monday.
The company said U.S. net rooms growth improved for the third consecutive quarter, signaling sustained momentum in its development pipeline. The streak suggests franchisee demand for the Choice Hotels portfolio of brands remains resilient even as the broader hospitality industry navigates uneven travel demand.
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Management also advanced its asset-light strategy during the quarter through the sale of owned hotel properties. Disposing of company-held real estate is consistent with Choice Hotels' long-standing model of collecting franchise fees rather than carrying hotel assets on its balance sheet, a structure that typically generates higher returns on capital.
The upward revision to the full-year RevPAR outlook reflects improved confidence in both leisure and business travel trends heading into the final months of 2026. RevPAR is a key lodging industry metric that combines occupancy rates and average daily room rates into a single measure of revenue efficiency.
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