Fourth-quarter Choice Hotels International global revenue per available room declined 2.5 percent year over year, the company announced Thursday.
Choice's results were weighed down by its performance in the U.S., where fourth-quarter RevPAR fell 7.6 percent year over year and full-year RevPAR dipped 3 percent.
Choice CFO Scott Oaksmith during the company's quarterly earnings call attributed the U.S. RevPAR declines to the U.S. government shutdown during the fourth quarter, continued softness in international inbound travel and difficult year-over-year comparisons owing to business gained from 2024 hurricanes.
CEO Patrick Pacious said the company enjoyed "robust group demand and business travel growth" last year.
"In 2025, group revenue increased 35 percent year over year, and small and midsized business revenue grew 13 percent," Pacious said, "led by resilient sectors such as construction, utilities, and high-tech manufacturing."
The business travel segment now represents about 40 percent of total stays at Choice. Pacious said the company is leveraging AI-enabled request-for-proposal tools to accelerate hotel responsiveness and drive high-value bookings.
Choice also teased the launch next quarter of a new dedicated digital platform for small and midsized businesses, which Pacious said targets "an estimated $13 billion addressable opportunity." The executive didn't indicate whether the new platform would be in support of or meant to replace Choice's existing business travel program for SMEs, Business Essentials.
Choice Q4, Full-Year 2025 Metrics
Choice's fourth-quarter systemwide RevPAR reached $49.82, pulled down by a 2.5 percent year-over-year drop in average daily rate to $92.50, and a 1.2 percentage-point dip in occupancy to 54 percent. Internationally, fourth-quarter RevPAR increased 3.2 percent to $60.52, bolstered by a 1.2 percent bump in ADR to $96.67, and a 1.2 percentage-point increase in occupancy to 62.6 percent.
saw global revenue per available room declines of 4.6 percent year over year for the fourth quarter and 1.2 percent for the full year 2025, the company reported Thursday.
Full-year systemwide RevPAR dropped 4.6 percent year over year to $55.70. Systemwide ADR decreased 0.7 percent to $96.89 and occupancy fell 0.3 percentage points to 57.5 percent. Internationally, full-year RevPAR rose 3.5 percent to $66.61, supported by a 1.8 percent boost in ADR to $102.45, and a 1 percentage-point increase in occupancy to 64 percent.
Looking ahead, Choice projects both full year systemwide and U.S. RevPAR to land between a 2 percent year-over-year decline and a 1 percent increase.
Choice reported fourth-quarter revenue of $390 million, nearly flat from the prior year, and full-year revenue of $1.6 billion, a 0.7 percent bump from 2025. Full-year net income was $369.9 million, a 21 percent increase from the prior year.
Choice's global net rooms as of Dec. 31 grew 1.2 percent year over year across the upscale, extended-stay and midscale segments. Its global pipeline totaled about 77,800 rooms, with 97 percent concentrated in those segments and 91 percent located in the U.S.
The Choice Privileges loyalty program now exceeds 74 million members, up 7 percent year over year. International enrollment increased 11 percent from the prior year, marking the strongest period ever of loyalty growth outside the U.S. for the company.
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