Choice Hotels — Aug 6, 2025 release

Outlook The company is adjusting its RevPAR outlook to reflect a more moderate domestic expectation amidst a changing macroeconomic backdrop. The company’s adjusted EBITDA outlook reflects an incremental contribution of approximately $6 million for the remainder of 2025 from the acquisition of Choice Hotels Canada. The outlook information below includes forward-looking non-GAAP financial measures, which management uses in forecasting performance. The adjusted numbers in the company’s outlook below exclude the net surplus or deficit generated from reimbursable revenue from franchised and managed properties, due diligence and transition costs, additional repurchases of company stock, and other items. These figures include the $2 million impact from the operating guarantee payment related to managed hotels incurred during the second quarter of 2025: Full-Year 2025 Prior Outlook Net Income $261 – $276 million $275 – $290 million Adjusted Net Income $324 – $339 million $324 – $339 million Adjusted EBITDA $615 – $635 million $615 – $635 million Diluted EPS $5.54 – $5.86 $5.86 – $6.18 Adjusted Diluted EPS $6.88 – $7.20 $6.90 – $7.22 Effective Income Tax Rate 25% 25% Full-Year 2025 vs. Full-Year 2024 Prior Outlook Domestic RevPAR Growth -3% to 0% -1% to 1% Domestic Effective Royalty Rate Growth Mid-single digits Mid-single digits Global Net System Rooms Growth Approximately 1% Approximately 1% Webcast and Conference Call Choice