Q3 2026 Earnings Results

Q3 Financial Highlights

• $458M Revenue
  • +2% YoY
• $193M Adj. EBITDA1
  • +1% YoY
• $2.33 Adj. EPS2
  • +11% YoY

$211M Returned to Shareholders YTD 20263 

Dividends & Share Repurchases

“Our focus is on returning to the fundamentals that have driven our success for decades, while continuing to invest in commercial and technology capabilities that help franchises capture more demand.” — Doug Dragisich, Interim Chief Executive Officer

CEO’s Execution Priorities

• 1. Accelerate U.S. net rooms growth & establish a sustainable trajectory
• 2. Strengthen commercial competitiveness and franchisee economics
• 3. Return to a more capital-efficient, asset-light model

How Choice Creates Shareholder Value

• Strengthen Franchisee Economics
  • Grow RevPAR | Lower Owner Costs
• Drive Net Rooms Growth
• Generate Durable Earnings & Free Cash Flow
  • Return Excess Capital to Shareholders
    • Dividends | Buybacks
• Reinvest in High-Return Growth Opportunities

Strengthening Franchisee Economics

• Lower Costs
  • Hotel Prototype Costs
    • Decrease by up to 25% across key midscale brands
  • FF&E Procurement
    • Decrease by up to 20% across select categories
  • AI-Enabled Smart Response
    • Decrease by ~30% in reputation management fees
• Grow High-Quality Demand
  • Loyalty Program
    • Increase by 120+ bps loyalty contribution YoY
  • Business Direct Platform
    • Increase by 18% YoY SMB revenue
    • Reach 75% of enrolled business new to Choice
  • EasyBid AI Platform
    • Increase by 27% YoY group revenue
    • Increase by 210 bps bps group RFP conversion
• Operate More Effectively
  • Charlie AI Teammate
    • Simplifies routine hotel operations
    • Frees hotel teams to focus on guests

Q3 RevPAR Performance

YoY Growth4

• +3.8% U.S.
• +3.7% International 
• +3.9% Global 

Q3 Demand Drivers

• Value-Minded Leisure Travel
• Business & Infrastructure Demand
• World Cup Tailwind

Capturing Infrastructure-Driven Demand

• Data Centers: +400 bps higher Q3 RevPAR growth vs. remaining portfolio

• 30% of U.S. Choice Hotels are within 10 miles of a major data center

Global

Net Rooms YoY Growth

• Q3 2025:5
  • Global: 650K
  • International: 151K
  • U.S.: 498K
• Q2 2026:
  • Global: 661K
  • International: 162K
  • U.S.: 499K
• Q3 2026:6
  • Global: 661K
  • International: 162K
  • U.S.: 498K
• Flat U.S. YoY Growth
• +7.3% International YoY Growth
• +1.7% Global YoY Growth

U.S.

• 3rd consecutive quarter of improvement in U.S. net rooms growth rate
• +17% U.S. Room Openings, YTD YoY
• -44% U.S. Room Exits, YTD YoY

Canada

• +5.1% Net Rooms Growth YoY, Supported by the transition to direct franchising

Pipeline & Development

• 96% of pipeline in higher-revenue segments (Global upscale, midscale, and extended stay)

Development Activity

• +24% U.S. Franchisee Agreements Executed (Q3 2026 YoY)

Conversion Engine

• ~2/3 of U.S. conversion rooms opened within 3 months of signing (YTD 2026)
• +29% YoY U.S. Conversion Pipeline

Winning With The Value-Minded Traveler

Built for the Road Trip

Convenient Locations Along The Way And At The Destination

• 4,000+ hotels within a mile of an interstate exit 
• 2,000+ hotels near beaches or national parks
• Options for every budget:
  • Economy
  • Midscale
  • Extended Stay
  • Upscale
• Rewards that go further
  • New: Point Sharing
    • More flexibility in how Choice Privileges members use their rewards

Value Appeals across Income Levels

• 1 in 2 U.S. guests earn $100K+
• 1 in 5 earn $200K+

Serving Business & Leisure Travelers

• ~40% Business Travel 
• ~60% Leisure Travel

* Based on revenues

Growing Choice Privileges Engagement

• 78M Members
• +7% YoY
• +12% Revenue per New Member Who Stayed YoY, following the Choice Privileges relaunch

Expanding Our Reach Into Outdoor Travel

Harvest Hosts Acquisition (October 2026)7

Asset-light, recurring-revenue membership platform serving value-conscious RV travelers.

• ~2M Choice Privileges members participated in RV travel over the past year
• ~300K Active members

Returning to Our Asset-Light Roots

Significantly Lower Development Capital Outlays

YTD Progress8

• Down 46%
• $82M YTD 25
• $36M YTD 26

2026 Outlook

• Down ~80%
• $103M FY 25
• $20M FY 26

Net capital outlays for hotel development and lending activities

Owned Hotels Sales Underway

Monetizing Owned Assets While Retaining Franchise Agreements

• 2 Owned hotels sold7 
• ~$34M Estimated Net Cash Proceeds

Company Updates

• Extended Stay
  • 600th Extended Stay Hotel Opening
  • 13th Consecutive Quarter of Double-Digit Net Rooms Growth
• Awards
  • We are excited to be recognized as one of America’s Best Companies

Download Infographic

Please see our Q3 2026 Earnings Press Release posted on November 2, 2026 on our Investor Relations website (investor.choicehotels.com) for full financial data, the reconciliation of non-GAAP financial measures to the most comparable GAAP measures, and a forward-looking statement disclaimer. 

¹ Reported Net Income was $58M for Q3 2026.

² Diluted EPS was $1.28 for Q3 2026.

3 As of September 30, 2026.

4 International and global RevPAR growth on a currency-neutral basis.

5 Totals may not sum due to rounding.

6 Totals may not sum due to rounding..

7 Purchased in $130M all-cash transaction.

8  As of September 30 for both YTD periods.