Key Highlights

  • Choice Hotels' $0.2875 quarterly dividend goes ex-dividend October 1, 2026 and is payable October 15 to shareholders of record.
  • Second-quarter GAAP net income was $64 million, or $1.41 per diluted share, compared with $82 million, or $1.75.
  • Adjusted EBITDA, a non-GAAP measure, was $175 million, and adjusted diluted EPS was $2.02 versus $1.92 a year earlier.
  • U.S. room openings rose 27% to approximately 6,400 rooms, and global net rooms grew 2.6% year over year.

Overview

Choice Hotels International, Inc.'s (NYSE:CHH) $0.2875 quarterly dividend yields 1.10% and matches the amount paid July 15, 2026. It was declared September 17 and is payable October 15. Second-quarter GAAP diluted EPS was $1.41 and adjusted diluted EPS, a non-GAAP measure, was $2.02, against GAAP diluted EPS of $1.75 a year earlier.

Dividend Program and Shareholder Returns

Choice's board declared a regular quarterly dividend of $0.2875 per share on September 17, 2026, payable October 15 to shareholders of record on October 1. The $0.2875 rate was also the dividend paid July 15 to holders of record July 1.

The latest filing identifies no separate special or supplemental common dividend. Dividends are declared quarterly and remain subject to board approval.

About the Company

Choice Hotels is a global lodging franchisor with an asset-light model. Its brands span economy, midscale, upscale and extended-stay lodging, and the company earns franchise and management fees from independently owned and operated hotels. Growth depends on franchise development, brand mix, hotel demand and franchisee economics.

Financial Performance Behind the Payout

Choice reported second-quarter total revenues of $441 million versus $426 million, and revenue excluding reimbursable revenue from franchised and managed properties of $277 million versus $259 million. GAAP net income was $64 million, or $1.41 per diluted share, versus $82 million, or $1.75.

On a non-GAAP basis, adjusted net income was $92 million versus $90 million, adjusted EBITDA was $175 million versus $165 million, and adjusted diluted EPS was $2.02 versus $1.92.

For six months, GAAP net income was $85 million versus $126 million, and diluted EPS was $1.84 versus $2.68. The company attributes the GAAP decline to a higher net reimbursable deficit tied to investments in franchisee tools and guest delivery capabilities, timing of SG&A expenses, and higher depreciation and amortization from owned hotels and the Choice Hotels Canada acquisition.

System Growth and a Revised Full-Year Outlook

U.S. room openings rose 27% to approximately 6,400 rooms, the highest second-quarter level since 2019, while exits fell to their lowest second-quarter level since 2020. Global net rooms grew 2.6%, with 3.6% growth in the higher-revenue extended-stay, midscale and upscale brands. U.S. RevPAR rose 1.3%.

The company updated its full-year outlook: adjusted EBITDA of $635 million to $650 million, adjusted diluted EPS of $6.86 to $7.10, and net income of $230 million to $241 million versus a prior range of $265 million to $275 million. Interim CEO Dom Dragisich leads the company.

The CFO noted that third-quarter adjusted EBITDA comparisons include approximately $9.5 million of liquidated damages recognized in other revenue in the prior-year quarter.

Outlook

Choice's 2026 outlook is adjusted EBITDA of $635 million to $650 million, adjusted diluted EPS of $6.86 to $7.10 and net income of $230 million to $241 million, compared with a prior net income range of $265 million to $275 million. Net rooms growth, RevPAR and the investments in franchisee tools that the company links to its net reimbursable deficit are the items it reports alongside the outlook.