Choice Hotels International, Inc.
choicehotels.comWhat Do They Do?
Franchises hotels and provides brand licensing, reservation services and marketing to hotel owners and operators.
10-K for FY2025, filed Feb 19, 2026The hotel franchising business represents the Company's primary operations. The Company's U.S. operations are primarily conducted through…View ↗
Our Company generates revenues, income, and cash flows primarily from our hotel franchising operations. Revenues are also generated from…View ↗
Revenue RecognitionView ↗
The Company’s franchise agreements require the payment of marketing and reservation fees. The Company is obligated to use these marketing…View ↗
How Do They Make Money?
Hotel owners pay an upfront fee to join a brand, then monthly royalties tied to room revenue or specified transactions; franchisees also pay marketing and reservation fees. Travel partners and qualified vendors pay contract fees, sometimes monthly or in installments and sometimes based on sales.
10-K for FY2025, filed Feb 19, 2026Revenue RecognitionView ↗
Royalty fees - Royalty fees are earned in exchange for a license to brand intellectual property typically based on a percentage of gross…View ↗
The Company’s franchise agreements require the payment of marketing and reservation fees. The Company is obligated to use these marketing…View ↗
The Company is a party to various agreements with third-party partners, including the co-branding of the Choice Privileges credit card. The…View ↗
The Company generates revenue from qualified vendors. The qualified vendor revenue is generally based on the marketing services provided by…View ↗
-
10-K for FY2025, filed Feb 19, 2026
FY2025 revenue by product or service ↗
$1.6B
-
10-K for FY2025, filed Feb 19, 2026
$1.6B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Franchise and management fees
Mix
10-K for FY2025, filed Feb 19, 2026 |
42% |
Franchise and management fees, FY2025
$673.2M Sources
|
Mix |
|
Partnership services and fees
Recurring
|
7.1% |
Partnership services and fees, FY2025
$113.8M Sources
|
Recurring |
|
Owned hotels
|
7.6%
FY2022: 5.1%
|
Owned hotels, FY2025
$121.4M Sources
|
|
|
Other
|
4.5%
FY2022: 4.6%
|
Other, FY2025
$72.2M Sources
|
|
|
Revenue for reimbursable costs from franchised and managed properties
Usage-based
10-K for FY2025, filed Feb 19, 2026 |
39% |
Revenue for reimbursable costs from franchised and managed properties, FY2025
$616.2M Sources
|
Usage-based |
Who Are Their Customers?
Hotel owners and developers sign franchise agreements directly in the U.S.; international hotel owners may work with Choice directly or through master franchisees. Qualified vendors and travel partners contract to provide services and access to hotel owners and guests.
10-K for FY2025, filed Feb 19, 2026The hotel franchising business represents the Company's primary operations. The Company's U.S. operations are primarily conducted through…View ↗
Expansion of the number of hotels in our franchise system is important to our business model. We have identified key market areas for hotel…View ↗
The Company is a party to various agreements with third-party partners, including the co-branding of the Choice Privileges credit card. The…View ↗
The Company generates revenue from qualified vendors. The qualified vendor revenue is generally based on the marketing services provided by…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 23 cents of every revenue dollar as net income in FY2025.
10-K for FY2025, filed Feb 19, 2026
How Are They Changing?
10-Q for Q2 FY2026, filed Aug 5, 2026
Open tableView ↗
-
Aug 31, 2026
Named interim CEO Dominic Dragisich permanent president and CEO
Patrick Pacious also resigned from the board.
Sources
8-K, filed Aug 31, 2026
On August 30, 2026, the Board of Directors (the “Board”) of Choice Hotels International, Inc. (the “Company”) appointed Dominic E.…View ↗
-
Aug 5, 2026
Raised several full-year guidance ranges
Sources
8-K, filed Aug 5, 2026
Net income was $64 million, or $1.41 per diluted share, for the second quarter. Adjusted EBITDA totaled $175 million, and adjusted diluted…View ↗
-
May 20, 2026
Patrick Pacious stepped down; Dominic Dragisich became interim CEO
Sources
8-K, filed May 20, 2026
On May 20, 2026, Choice Hotels International, Inc. (the “Company”) announced a leadership transition under which Patrick S. Pacious will…View ↗
Growing. Revenue grew 49% in 4 years, from $1.1B in FY2021 to $1.6B in FY2025, about 11% a year.
Who Do They Compete With?
Competes with Marriott, Hilton, Hyatt, and Best Western
10-K for FY2025, filed Feb 19, 2026Radisson Blu, Marriott, Hilton, Hyatt, SheratonView ↗
Loading...
