The company’s global pipeline exceeded 93,000 rooms, including nearly 77,000 in the U.S. Its global system size grew 2.1 percent, including 3 percent growth in the upscale, extended-stay and midscale segments, Choice said in a statement.

“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, president and CEO. “We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders.”

Domestic RevPAR declined 2.9 percent, reflecting macroeconomic conditions and a difficult comparison with 2024 due to the timing of Easter and eclipse-related travel, the statement said. Excluding those effects, RevPAR fell approximately 1.6 percent. Meanwhile, the domestic extended-stay portfolio outperformed the broader lodging industry by 40 basis points in RevPAR, while the economy transient portfolio exceeded its chain scale by 320 basis points.

Adjusted EBITDA rose 2 percent to $165 million, or $167 million excluding a $2 million operating guarantee related to the Radisson Hotels Americas acquisition. Adjusted diluted EPS increased 4 percent to $1.92, the statement said.

Expansion and development

The domestic extended-stay portfolio grew 10.5 percent year over year, with a pipeline of nearly 43,000 rooms as of June 30, Choice said. The combined domestic upscale, extended-stay and midscale portfolio grew 2.3 percent. WoodSpring Suites expanded 9.7 percent to nearly 33,000 rooms and ranked first in guest satisfaction among economy extended-stay brands in the J.D. Power 2025 study. The domestic economy transient pipeline increased 8 percent to more than 1,700 rooms.

Choice acquired the remaining 50 percent interest in Choice Hotels Canada for approximately $112 million in July, funded through cash and credit. The deal expanded its Canadian brand portfolio from eight to 22 and added 327 properties and more than 26,000 rooms. The business is expected to contribute approximately $18 million in EBITDA in 2025.

International activity included a renewed master franchise agreement with Atlantica Hospitality International in Brazil for more than 10,000 rooms; a direct franchise deal with Zenitude Hotel-Residences in France, which nearly tripled room count and two agreements with SSAW Hotels & Resorts in China. These include a 9,500-room distribution deal for 2025 and a master franchise agreement projected to add 10,000 rooms over five years.

Global net rooms for upscale brands increased 14.7 percent year over year, the statement said. The pipeline for these brands rose 7 percent since March 31 to nearly 29,000 rooms.

2025 outlook

Choice revised its RevPAR outlook to reflect more moderate domestic expectations due to macroeconomic conditions, the statement said. The adjusted EBITDA forecast includes a $6 million contribution from the Choice Hotels Canada acquisition for the remainder of 2025. It also reflects the $2 million Radisson-related operating guarantee payment incurred in the second quarter.

Net income guidance was lowered to a range of $261 million to $276 million, down from $275 million to $290 million. Adjusted net income remains at $324 million to $339 million.

Domestic RevPAR growth was revised to between negative 3 percent and flat, compared to the earlier range of negative 1 percent to positive 1 percent. The global net system rooms growth projection remains at approximately 1 percent.

In May, Choice reported 2.3 percent year-over-year growth in domestic RevPAR for the first quarter.

The US vacation rental market is pulling ahead of the traditional hotel sector.

While much of the travel sector contended with shorter booking windows and uneven demand in Q2, vacation rentals have proved resilient, a new report suggests.

According to the Q2 2025 Vacation Rental Market Index by Key Data, STRs outperformed hotels in every region across the US, with an average RevPAR (revenue per available rental) advantage of 9 percentage points¹.

Key Data is a major provider of real-time market intelligence and benchmarking for the global short-term rental industry.

The data covers 13 million listings, and signals the STR sector is evolving.

Still, its performance isn’t evenly distributed. While many operators are thriving, others are feeling the strain.

Key Data’s analysis reveals a widening divide between high-performing and under-pressure regions, and between operators actively adapting to change and those falling behind.

Several regions posted impressive year-over-year growth in RevPAR, including:

Mid-Atlantic: +11% RevPAR YoY, driven by a +10% increase in occupancy

New England: +10% RevPAR, bolstered by seasonal demand and premium pricing

Rocky Mountains: +9% RevPAR, sustained by consistent traveler interest

Hawaiian Islands: +6% RevPAR, maintaining strong rate integrity in a competitive climate

In contrast, the Southwest saw the steepest drop, with RevPAR falling -4% YoY and new supply hindering rate growth.

The report suggests that even the strongest markets aren’t immune to emerging pressures.

Forward occupancy for September is down 11% year over year, it finds, and booking windows have shortened across key summer months.

While RevPAR remains strong in several regions, the landscape is becoming more fragmented.

Melanie Brown, VP of Data Insights at Key Data, said: “Performance is no longer just about location or seasonality. We’re seeing the STR sector evolve. Operators who succeed in this next phase won’t be the biggest, they’ll be the most responsive.”

The ability to track booking behavior, adjust pricing dynamically, and execute quickly is now what separates growth from stagnation.”

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