Choice Hotels International Raises Full-Year Outlook Amid Strong Q2 2026 Performance

Strong Second Quarter Fuels Revised Full-Year Forecasts

Choice Hotels International revised its full-year 2026 outlook upwards for both U.S. RevPAR and global net rooms growth, the company reported on 5 August 2026, when it released its second-quarter earnings.

Global Revenue Per Available Room (RevPAR) increased by 1.7% year-over-year during Q2 2026, while U.S. RevPAR saw a 1.3% rise, reflecting improvements in both occupancy and room rates, according to the earnings report. Furthermore, U.S. room openings by Choice Hotels increased by 27% year-over-year in Q2 2026, marking the highest second-quarter level since 2019.

Concurrently, portfolio exits declined by 50% year-over-year, reaching their lowest second-quarter level since 2020, as stated by Choice CFO Scott Oaksmith during an earnings call.

World Cup and Demand Trends Boost Performance

The gains in U.S. RevPAR during the second quarter were attributed to strengthening demand trends and a significant boost from the 2026 FIFA World Cup, Interim CEO Dom Dragisich explained during the earnings call.

Mr Dragisich noted that the World Cup drew a considerable number of first-time Choice guests and international travellers, expanding the company's reach into demographics where it had historically been underrepresented. Following these results, Choice Hotels now anticipates U.S. RevPAR growth for full-year 2026 to be in the range of 0% to 1.25%.

The company also projects full-year global net rooms growth of approximately 1.5%, an increase from its previous forecast of around 1%. In the U.S., Choice opened approximately 6,400 rooms in Q2, with net rooms growth improving for the second consecutive quarter, marking its strongest first-half performance since 2021, according to Mr Dragisich.

Conversions and Extended Stay Drive Growth Strategy

Conversions remain a primary driver of new openings for Choice Hotels, with these projects expected to account for approximately 90% of the company’s 2026 U.S. openings, CFO Scott Oaksmith stated.

U.S. conversion franchise agreements increased by 82% year-over-year in Q2, as conversions allow owners to open hotels more quickly and with less capital compared to new construction, which is crucial in the current development environment. The extended stay category also serves as a key growth area for Choice, representing over 40% of the company's U.S. pipeline.

Mr Oaksmith highlighted that extended stay properties benefit from varied longer-stay demand drivers, including workforce-related travel, relocations, infrastructure investment, and manufacturing activities. Approximately 45% of Choice’s U.S. extended stay portfolio is situated within 10 miles of major data centres, which generate unique demand.

Focus on Technology and Industry Implications

Choice Hotels is also advancing its artificial intelligence strategy, Interim CEO Dom Dragisich revealed. Franchisees seek a partner that lowers their costs, increases their revenue, and helps them operate more effectively, and technology supports these priorities.

During the second quarter, Choice partnered with AWS for an enterprise-wide AI deployment and launched several AI-powered tools for owners, demonstrating a commitment to leveraging technology for operational efficiency.

This positive outlook from Choice Hotels shows the hospitality industry's resilience and capacity for growth, particularly through strategic segment focus and technology adoption. For industry stakeholders, the emphasis on conversions and extended stay properties suggests these models remain attractive for development.

Travellers may observe a wider array of lodging choices, especially in the U.S., as Choice continues to expand its room count, though specific pricing impacts are not detailed.