Choice Hotels Raises 2026 RevPAR Outlook After Q3 Gains
Choice Hotels lifted its full-year RevPAR forecast after a third straight quarter of U.S. net rooms growth and progress on its asset-light strategy.
Choice Hotels International raised its full-year 2026 revenue-per-available-room outlook following a third-quarter performance that showed continued momentum across its domestic portfolio, the North Bethesda, Maryland-based company announced Nov. 2.
The lodging franchisor reported a third consecutive quarter of improving U.S. net rooms growth, a metric closely watched by analysts as a gauge of franchisee demand and brand health. The streak signals that Choice's efforts to expand its network are gaining traction after a period of slower development activity across the broader hospitality sector.
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Choice Hotels also advanced its asset-light business model during the quarter through the sale of owned hotel properties. Shedding owned real estate allows the company to redeploy capital toward franchise operations and technology, reducing balance-sheet exposure to property-level risks while preserving fee-based revenue streams.
The upward revision to the company's RevPAR guidance reflects management's increased confidence in travel demand holding through the remainder of 2026. RevPAR, which combines occupancy rates and average daily rates, is a standard measure of lodging revenue productivity and a key indicator of profitability for hotel brands reliant on franchise royalties.
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