Choice Hotels International's systemwide third-quarter revenue per available room increased 3.9 percent year over year to $67.41, the company reported Monday.
In the United States, RevPAR rose 3.8 percent year over year to $62.56, driven by a 1 percent increase in average daily rate to $100.99 and a 160-basis-point bump in occupancy to 61.9 percent. Performance was strongest in the West South Central and Midwest regions.
Business travel powered Choice's U.S. demand growth, according to Choice president and CEO Dominic Dragisich, and the company continues to benefit from infrastructure-related demand.
"Approximately 30 percent of our U.S. hotels are located within 10 miles of a major data center," Dragisich said during the company's earnings call, "and those hotels delivered more than 400 basis points higher RevPAR growth than the rest of our system during the quarter."
The company also is seeing growth in its Choice Business Direct small and midsized business program, which launched in May. Approximately 75 percent of enrolled businesses are new to Choice, and revenue from existing customers who have adopted the platform has increased 25 percent year over year, according to Dragisich.
Third-quarter revenue for the small and midsized business segment increased 18 percent year over year, Dragisich added.
Third-quarter group revenue rose 27 percent year over year, aided by Choice's AI-powered EasyBid platform.
Choice Q3 Metrics
Choice’s third-quarter systemwide ADR grew 1.8 percent year over year to $105.21 and occupancy rose 130 basis points to 64.1 percent.
By segment, extended-stay outperformed the rest of Choice’s portfolio with a 6.2 percent year-over-year gain in RevPAR, driven by a 4.2 percent increase in average daily rate to $69.56 and a 130-basis-point rise in occupancy to 72.3 percent. Extended-stay properties now account for more than 40 percent of Choice's U.S. pipeline, according to Choice CFO Scott Oaksmith.
Choice raised its full-year 2026 guidance, with systemwide RevPAR now expected to grow 1.5 percent to 2.5 percent year over year, up from its prior outlook of flat to a 1 percent increase.
Third-quarter total revenue increased 2.5 percent year over year to $458 million.
Third-quarter global net rooms grew 1.7 percent year over year, driven by 2.5 percent growth in extended stay, midscale and upscale brands.
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