Choice Hotels Raises Full-Year RevPAR Outlook After Q3 2026 Gains
Choice Hotels reports improving U.S. room growth and asset-light progress in Q3 2026, prompting an upgraded full-year revenue-per-available-room forecast.
Choice Hotels International lifted its full-year 2026 revenue-per-available-room outlook after posting third-quarter results that showed accelerating domestic network expansion and continued progress on its asset-light business strategy, the North Bethesda, Maryland-based company announced Monday.
The franchisor, which trades on the New York Stock Exchange under the ticker CHH, said its U.S. net rooms growth rate improved for the third consecutive quarter, a trend that signals sustained franchisee demand for its portfolio of midscale and extended-stay brands. Consecutive quarterly improvements in that metric suggest the company is successfully attracting new hotel development agreements despite a challenging construction financing environment.
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Choice Hotels also advanced its asset-light strategy through the sale of owned hotel properties during the quarter. Divesting company-owned real estate allows the franchisor to redeploy capital toward fee-generating franchise and management operations, a model that typically commands higher margins and reduces balance-sheet exposure to property-level volatility.
The raised RevPAR guidance reflects management's confidence that leisure and value-oriented travel demand — core drivers for Choice Hotels' midscale segment — will remain resilient through the remainder of the year. RevPAR, a standard hospitality industry measure combining occupancy rates and average daily room rates, serves as a key barometer of hotel system health.
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