One thing is becoming crystal clear in the hotel industry: operating hotels outside the U.S. is increasingly more cash effective than domestically.
Choice Hotels International on Wednesday reported a slight increase in global RevPAR of 0.2% in the third quarter compared to the same time a year ago. The divide between the U.S. and international RevPAR was stark, with the latter growing 9.5% and U.S. declining 3.2%, reflecting softer government and international inbound demand.
Total revenues for the quarter increased 5% to $447.3 million, up from $427.9 million a year earlier. Net income was $180 million, compared with $105.7 million in the third quarter of 2024.
“Choice Hotels International delivered another quarter of record profitability, underscoring the strength of our portfolio’s continued shift toward higher-value brand segments and multiple growth avenues beyond U.S. RevPAR,” said Patrick Pacious, president and CEO. “We are especially excited by the accelerating momentum in our international business, where we are on track to double profitability by 2027. With an accretive, high-quality pipeline that rapidly converts signings into openings, and an enhanced value proposition that is attracting a growing base of higher-value guests, Choice is exceptionally well-positioned to deliver long-term growth and create meaningful value for all stakeholders.”
Global net system rooms grew by 2.3% compared with September 30, 2024, driven by expansion in the upscale, extended-stay and midscale segments, which grew 3.3 percent. International rooms grew 8.3% year-over-year and 5.2% compared to June 30, 2025. U.S. net rooms increased by 0.6% to 498,307 from 495,194 a year earlier. Within the U.S., the upscale/extended-stay/midscale portfolio grew 1.6% to 438,865 rooms.
Franchise agreements awarded globally rose 54% in Q3 compared to the same period in 2024. At quarter-end, the global pipeline exceeded 86,000 rooms, with 98% of that pipeline concentrated in the upscale, extended-stay and midscale segments.Key international expansion milestones include: over 4,800 midscale rooms added in France via direct franchise agreements, the onboarding of nearly 80 percent of anticipated 9,500 rooms in China under a distribution agreement, and entry into Argentina via a direct franchise agreement.
Choice also announced that its loyalty program Choice Privileges will launch an “all-new rewards experience” in early 2026 designed to allow members to earn more frequently, achieve elite status faster and benefit from a new top-tier status.
Key changes include milestone rewards for every five qualifying nights, faster paths to status (Gold Elite at 5 nights; Platinum Elite at 15 nights; Diamond Elite at 35 nights), and a new Titanium elite tier achievable at 55 nights or 110,000 Elite Qualifying Credits, including a Titanium travel award: one room for up to seven nights at over 400 premium properties for half the points.
Additional benefits include “Return & Earn” bonus points after the second and third qualifying stays each year; points will never expire for Elite status holders; starting 2027 a “soft-landing” for status; and points-sharing among friends and family coming later in 2026.