Choice Hotels — Aug 5, 2026 release

Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, and other items. Full-Year 2026 Prior Outlook Net income $230 to $241 million $265 to $275 million Adjusted net income $312 to $323 million $320 to $330 million Adjusted EBITDA $635 to $650 million $632 to $647 million     Adjusted SG&A Mid-single digits Mid-single digits Diluted EPS $5.07 to $5.31 $5.72 to $5.94 Adjusted diluted EPS $6.86 to $7.10 $6.92 to $7.14 Effective tax rate 26% 25% Full-Year 2026 vs. 2025 Full-Year 2026 vs. 2025 Global RevPAR growth 0% to 1% -2% to 1%     U.S. RevPAR growth 0% to 1.25% -2% to 1% U.S. royalty rate growth 7 bps to 9 bps Mid-single digits Global net system rooms growth Approximately 1.5% Approximately 1% The net income guidance range has been revised from the Company's prior outlook primarily to reflect higher expected marketing and reservation system reimbursable expenses, driven by increased investment in franchisee-facing tools and guest delivery capabilities, as well as higher interest expense and a higher effective tax rate. The adjusted net income guidance range has been revised from the Company's prior outlook primarily to reflect higher expected interest expense and a higher effective tax rate. 3 Net capital outlays include investments in owned hotel properties, investments in affiliates, notes receivable issued, net of collections, proceeds from asset sales, and distribu