CHOICE HOTELS INTERNATIONAL INC /DE, 10-K filed on 2/19/2026
Annual Report
v3.25.4
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2025
Feb. 10, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-13393    
Entity Registrant Name CHOICE HOTELS INTERNATIONAL INC /DE    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 52-1209792    
Entity Address, Address Line One 915 Meeting Street    
Entity Address, Address Line Two Suite 600    
Entity Address, City or Town North Bethesda,    
Entity Address, State or Province MD    
Entity Address, Postal Zip Code 20852    
City Area Code 301    
Local Phone Number 592-5000    
Title of 12(b) Security Common Stock, Par Value $0.01 per share    
Trading Symbol CHH    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 3,445,513,422
Entity Common Stock, Shares Outstanding   45,971,393  
Documents Incorporated by Reference
Certain portions of our definitive proxy statement, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the Annual Meeting of Shareholders to be held on May 21, 2026, are incorporated by reference under Part III of this Form 10-K.
    
Entity Central Index Key 0001046311    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location Tysons, Virginia
v3.25.4
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
REVENUES      
Total revenues $ 1,596,793 $ 1,584,839 $ 1,544,165
OPERATING EXPENSES      
Selling, general and administrative 328,958 312,388 312,701
Business combination, diligence and transition costs 4,701 17,233 55,778
Depreciation and amortization 59,715 51,953 45,038
Total operating expenses 1,148,394 1,121,066 1,165,401
Impairment of long-lived assets 0 0 (3,736)
Operating income 448,399 463,773 375,028
OTHER EXPENSES AND (INCOME), NET      
Interest expense 91,148 87,131 63,780
Interest income (6,237) (8,646) (7,764)
Gain from an acquisition of a joint venture (100,025) 0 0
Gain on sale of assets (713) 0 0
Loss (gain) on extinguishment of debt 0 331 (4,416)
Other (gains) losses, net (6,989) 1,641 (10,649)
Equity in net loss (gain) of affiliates 14,324 (12,329) (2,879)
Total other expenses and (income), net (8,492) 68,128 38,072
Income before income taxes 456,891 395,645 336,956
Income tax expense 86,945 95,980 78,449
Net income $ 369,946 $ 299,665 $ 258,507
Basic earnings per share (in dollars per share) $ 7.97 $ 6.26 $ 5.11
Diluted earnings per share (in dollars per share) $ 7.90 $ 6.20 $ 5.07
Franchise and management fees      
REVENUES      
Total revenues $ 673,197 $ 669,637 $ 652,060
Partnership services and fees      
REVENUES      
Total revenues 113,789 99,491 91,790
Owned hotels      
REVENUES      
Total revenues 121,373 113,459 97,641
OPERATING EXPENSES      
Operating expenses 91,684 83,148 71,474
Other      
REVENUES      
Total revenues 72,230 64,060 55,097
Revenue for reimbursable costs from franchised and managed properties      
REVENUES      
Total revenues 616,204 638,192 647,577
OPERATING EXPENSES      
Operating expenses $ 663,336 $ 656,344 $ 680,410
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 369,946 $ 299,665 $ 258,507
Other comprehensive income (loss), net of tax:      
Foreign currency translation adjustment 886 (522) (460)
Other comprehensive income (loss), net of tax: 886 (522) (460)
Comprehensive income $ 370,832 $ 299,143 $ 258,047
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents $ 44,997 $ 40,177
Accounts receivables (net of allowance for credit losses of $51,189 and $45,610, respectively) 207,491 176,672
Income taxes receivable 13,456 5,419
Notes receivable (net of allowance for credit losses of $7,462 and $5,805, respectively) 94,686 75,501
Prepaid expenses and other current assets 45,368 41,317
Total current assets 405,998 339,086
Property and equipment, net 649,291 604,345
Operating lease right-of-use assets 77,670 83,451
Goodwill 305,758 220,187
Intangible assets, net 1,082,486 884,013
Notes receivable (net of allowance for credit losses of $1,019 and $1,526, respectively) 12,490 32,682
Investments for employee benefit plans, at fair value 50,227 47,603
Investments in affiliates 134,975 117,016
Deferred income taxes 75,371 108,308
Other assets 123,937 93,836
Total assets 2,918,203 2,530,527
Current liabilities    
Accounts payable 156,276 134,865
Accrued expenses and other current liabilities 125,282 136,729
Deferred revenue 100,698 102,114
Liability for guest loyalty program 85,035 89,013
Total current liabilities 467,291 462,721
Long-term debt 1,906,122 1,768,526
Long-term deferred revenue 130,505 132,259
Deferred compensation and retirement plan obligations 56,532 53,316
Deferred income taxes 25,303 0
Operating lease liabilities 107,963 113,255
Liability for guest loyalty program 39,771 40,607
Other liabilities 3,487 5,114
Total liabilities 2,736,974 2,575,798
Commitments and contingencies (Note 16)
Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2025 and December 31, 2024; 45,996,087 and 46,856,567 shares outstanding at December 31, 2025 and December 31, 2024, respectively 951 951
Additional paid-in-capital 403,927 370,201
Accumulated other comprehensive loss (5,307) (6,193)
Treasury stock, at cost; 49,069,551 and 48,209,071 shares at December 31, 2025 and December 31, 2024, respectively (2,536,373) (2,411,527)
Retained earnings 2,318,031 2,001,297
Total shareholders’ equity (deficit) 181,229 (45,271)
Total liabilities and shareholders’ equity (deficit) $ 2,918,203 $ 2,530,527
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 51,189 $ 45,610
Allowance for credit losses, current 7,462 5,805
Allowance for credit losses, noncurrent $ 1,019 $ 1,526
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 160,000,000 160,000,000
Common stock, shares issued (in shares) 95,065,638 95,065,638
Common stock, shares outstanding (in shares) 45,996,087 46,856,567
Treasury stock, shares (in shares) 49,069,551 48,209,071
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 369,946 $ 299,665 $ 258,507
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 59,715 51,953 45,038
Depreciation and amortization – reimbursable expenses from franchised and managed properties 19,554 18,907 30,697
Franchise agreement acquisition cost amortization 31,966 28,702 20,024
Gain from an acquisition of a joint venture (100,025) 0 0
Gain on sale of assets (713) 0 0
Loss (gain) on extinguishment of debt 0 331 (4,416)
Loss on impairment of long-lived assets 0 0 3,736
Non-cash share-based compensation and other charges 38,254 43,250 46,809
Non-cash interest, investments, and affiliate income, net (6,439) (7,282) (8,747)
Deferred income taxes 19,764 (19,028) (1,336)
Equity in net loss (gain) of affiliates, less distributions received 19,848 (2,327) (1,570)
Franchise agreement acquisition costs, net of reimbursements (83,444) (112,164) (98,316)
Change in working capital and other (97,979) 17,396 6,128
Net cash provided by operating activities 270,447 319,403 296,554
CASH FLOWS FROM INVESTING ACTIVITIES      
Investments in other property and equipment (38,924) (39,102) (47,717)
Investments in owned hotel properties (106,871) (106,750) (68,560)
Contributions to investments in affiliates (93,675) (52,768) (38,930)
Issuances of notes receivable (6,885) (37,994) (4,323)
Collections of notes receivable 7,373 32,100 10,852
Business acquisition, net of cash acquired (73,395) 0 0
Proceeds from the sale of assets 52,000 0 0
Purchases of equity securities 0 0 (112,420)
Proceeds from sales of equity securities 0 108,149 0
Distributions from sales of affiliates 44,617 15,850 868
Other items, net (2,504) (4,056) (5,396)
Net cash used in investing activities (218,264) (84,571) (265,626)
CASH FLOWS FROM FINANCING ACTIVITIES      
Net borrowings (repayments) pursuant to revolving credit facilities 132,982 111,500 (131,500)
Proceeds from the issuance of long-term debt 0 593,574 500,000
Proceeds from economic development loans 1,850 0 0
Repayment of long-term debt 0 (500,000) 0
Debt issuance costs 0 (8,069) (1,553)
Purchases of treasury stock (138,304) (380,743) (362,772)
Dividends paid (53,472) (55,497) (56,457)
Proceeds from the exercise of stock options 6,841 17,525 6,345
Net cash used in financing activities (50,103) (221,710) (45,937)
Net change in cash and cash equivalents 2,080 13,122 (15,009)
Effect of foreign exchange rate changes on cash and cash equivalents 2,740 301 197
Cash and cash equivalents, beginning of period 40,177 26,754 41,566
Cash and cash equivalents, end of period 44,997 40,177 26,754
Cash payments during the year for      
Federal income taxes, net of refunds and transferable tax credits 65,295 85,880 71,161
State income taxes, net of refunds [1] 14,325 18,237 20,771
Foreign income taxes, net of refunds [1] 5,088 4,056 2,410
Interest, net of capitalized interest 90,310 67,176 60,773
Non-cash investing and financing activities      
Dividends declared but not paid 13,218 13,471 14,902
Investments in property, equipment, and intangible assets recognized in accounts payable and accrued expense liabilities $ 18,273 $ 23,284 $ 10,291
[1] In 2025, 2024, and 2023, there were no individual jurisdictions for which the cash income taxes paid equaled or exceeded 5% of the total cash income taxes paid.
v3.25.4
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in- Capital
Accumulated Other Comprehensive Income (Loss)
 [1]
Treasury Stock
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2022   52,200,903        
Beginning balance at Dec. 31, 2022 $ 154,660 $ 951 $ 298,053 $ (5,211) $ (1,694,857) $ 1,555,724
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 258,507         258,507
Other comprehensive income(loss), net of tax (460)     (460)    
Share based payment activity (in shares) [2]   366,121        
Share based payment activity [2] 46,586   32,697   13,889  
Dividends declared (57,872)         (57,872)
Treasury purchases (in shares)   (3,040,779)        
Treasury purchases (365,823)       (365,823)  
Ending balance (in shares) at Dec. 31, 2023   49,526,245        
Ending balance at Dec. 31, 2023 35,598 $ 951 330,750 (5,671) (2,046,791) 1,756,359
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 299,665         299,665
Other comprehensive income(loss), net of tax (522)     (522)    
Share based payment activity (in shares) [2]   437,268        
Share based payment activity [2] 53,110   39,451   13,659  
Dividends declared (54,727)         (54,727)
Treasury purchases (in shares)   (3,106,946)        
Treasury purchases $ (378,395)       (378,395)  
Ending balance (in shares) at Dec. 31, 2024 46,856,567 46,856,567        
Ending balance at Dec. 31, 2024 $ (45,271) $ 951 370,201 (6,193) (2,411,527) 2,001,297
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 369,946         369,946
Other comprehensive income(loss), net of tax 886     886    
Share based payment activity (in shares) [2]   231,270        
Share based payment activity [2] 44,437   33,726   10,711  
Dividends declared (53,212)         (53,212)
Treasury purchases (in shares)   (1,091,750)        
Treasury purchases $ (135,557)       (135,557)  
Ending balance (in shares) at Dec. 31, 2025 45,996,087 45,996,087        
Ending balance at Dec. 31, 2025 $ 181,229 $ 951 $ 403,927 $ (5,307) $ (2,536,373) $ 2,318,031
[1] Accumulated other comprehensive income (loss) relates entirely to foreign currency items. There were no amounts reclassified from accumulated other comprehensive income (loss) during the years ended December 31, 2025, 2024, and 2023.
[2] During certain periods presented, accumulated dividends were paid to certain shareholders upon vesting of their PVRSUs, which are presented in Share-based payment activity.
v3.25.4
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Dividends declared (in dollars per share) $ 1.15 $ 1.15 $ 1.15
v3.25.4
Basis of Presentation and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements of Choice Hotels International, Inc. and subsidiaries (collectively, "Choice" or the "Company") have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation.
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying consolidated financial statements include all adjustments that are necessary to fairly present the Company's financial position and results of operations. Except as otherwise disclosed, all adjustments are of a normal recurring nature.
Certain prior year amounts in our consolidated financial statements have been reclassified in order to maintain comparability with the current year presentation. The reclassifications were not as a result of any error in our consolidated financial statements.
The Company reclassified certain prior year amounts in the consolidated statements of income in order to maintain comparability with the current year presentation.
•Royalty, licensing and management fees were revised to franchise and management fees in the consolidated statements of income, and now include the revenues previously presented in royalty, licensing and management fees, with the exception of partnership licensing revenues which are now presented in partnership services and fees in the consolidated statements of income, and the addition of the revenues generated from programs, platforms, and services associated with the Company's franchise operations which were previously presented in other revenues from franchised and managed properties in the consolidated statements of income.
•Initial franchise fees, which were previously presented as a standalone financial statement line item, are now presented within franchise and management fees in the consolidated statements of income.
•Platform and procurement services fees were revised to partnership services and fees in the consolidated statements of income, and now include the revenues previously presented in platform and procurement services fees, with the exception of the revenues from the Company’s annual franchisee convention which are now presented in other revenues, the addition of partnership licensing revenues which were previously presented in royalty, licensing and management fees, and the addition of the revenues generated from other non-franchising agreements which are primarily software as a service (“SaaS”) arrangements for non-franchised hoteliers which were previously presented in other revenues in the consolidated statements of income.
•Other revenues from franchised and managed properties were revised to revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income, and now include the revenues previously presented in other revenues from franchised and managed properties, with the exception of the revenues generated from programs, platforms, and services associated with the Company’s franchise operations which are now presented in franchise and management fees in the consolidated statements of income.
•Selling, general and administrative expenses were revised to include the expenses incurred related to programs, platforms, and services associated with the Company’s franchise operations, which were previously presented in other expenses from franchised and managed properties in the consolidated statements of income.
•Depreciation and amortization was revised to include amortization expense from information technology platforms, which was previously presented in other expenses from franchised and managed properties in the consolidated statements of income.
•Other expenses from franchised and managed properties were revised to reimbursable expenses from franchised and managed properties in the consolidated statements of income, and now include the expenses previously presented in other expenses from franchised and managed properties, with the exception of the expenses incurred from programs, platforms, and services associated with the Company’s franchise operations which are now presented in selling, general and administrative expenses, and amortization expense from information technology platforms which is now presented in depreciation and amortization expense in the consolidated statements of income.
The reclassifications had no effect on the Company's previously reported total revenues, total operating expenses, operating income, or net income.
The following table presents the effect of the reclassifications on the years ended December 31, 2024 and December 31, 2023 consolidated statements of income.
Year EndedYear Ended
December 31, 2024December 31, 2023
As previously reportedReclassificationAs reclassifiedAs previously reportedReclassificationAs reclassified
REVENUES
Franchise and management fees$514,569 $155,068 $669,637 $513,412 $138,648 $652,060 
Initial franchise fees25,606 (25,606)— 27,787 (27,787)— 
Partnership services and fees75,752 23,739 99,491 75,114 16,676 91,790 
Owned hotels113,459 — 113,459 97,641 97,641 
Other61,803 2,257 64,060 46,051 9,046 55,097 
Revenue for reimbursable costs from franchised and managed properties793,650 (155,458)638,192 784,160 (136,583)647,577 
Total revenues1,584,839 — 1,584,839 1,544,165 — 1,544,165 
OPERATING EXPENSES
Selling, general and administrative219,878 92,510 312,388 216,081 96,620 312,701 
Business combination, diligence and transition costs17,233 — 17,233 55,778 55,778 
Depreciation and amortization43,282 8,671 51,953 39,659 5,379 45,038 
Owned hotels83,148 — 83,148 71,474 71,474 
Reimbursable expenses from franchised and managed properties757,525 (101,181)656,344 782,409 (101,999)680,410 
Total operating expenses1,121,066 — 1,121,066 1,165,401 — 1,165,401 
Impairment of long-lived assets— — — (3,736)— (3,736)
Operating income$463,773 $— $463,773 $375,028 $— $375,028 
The Company also reclassified certain prior year amounts in the consolidated statements of cash flows in order to maintain comparability with the current year presentation. Depreciation and amortization was revised to include amortization expense from information technology platforms, which was previously presented in depreciation and amortization - other expenses from franchised and managed properties in the consolidated statements of cash flows. Depreciation and amortization - other expenses from franchised and managed properties was revised to depreciation and amortization - reimbursable expenses from franchised and managed properties in the consolidated statements of cash flows. Federal income taxes, net of refunds and transferable tax credits, state income taxes, net of refunds, and foreign income taxes, net of refunds, which were previously presented in income taxes, net of refunds, are now presented within standalone financial statement line items in the consolidated statements of cash flows. The reclassifications had no effect on the Company's previously reported net cash provided by operating activities, the net cash used in investing activities, or the net change in cash and cash equivalents.
Revenue Recognition
Franchise Agreements
The Company's revenues are primarily derived from franchise agreements with third-party hotel owners. The majority of the Company’s performance obligations are a series of distinct services, which are described in more detail below, for which the Company receives variable consideration through franchise fees. The Company enters into franchise agreements to provide franchisees with a limited non-exclusive license to utilize the Company’s registered brand tradenames and trademarks, marketing and reservation services, and other miscellaneous franchise services. These agreements typically have an initial term of 10 to 30 years with provisions permitting the franchisees or the Company to terminate the franchise agreement upon designated anniversaries of the hotel opening before the end of the initial term. An up-front initial franchise fee is assessed to the third-party hotel owners to affiliate with our brands, which is typically paid prior to the execution of the franchise agreement and is non-refundable. After hotel opening, franchise fees are typically generated based on a percentage of gross room revenues
or as designated transactions and events occur (such as when a reservation is delivered to the hotel through a specified channel) and are invoiced by the Company in the following month.
The franchise agreements are comprised of multiple performance obligations, which may require significant judgment in identifying. The primary performance obligations are as follows:
•License of brand intellectual property and related services (“brand intellectual property”) - Grants the right to access the Company’s intellectual property associated with the brand tradenames, trademarks, reservation systems, property management systems, and related services.
•Material rights for free or discounted goods or services to hotel guests - Primarily consists of the points issued under the Company’s guest loyalty program, Choice Privileges.
License of Brand Intellectual Property and Related Services
The fees generated from brand intellectual property are recognized to revenue over time as the hotel owners pay for access to these services for the duration of the franchise agreement. The franchise fees are typically based on the sales or usage of the underlying hotel (i.e., after the completion of a hotel stay), with the exception of fixed up-front fees that usually represent an insignificant portion of the transaction price. The variable transaction price is determined for the period when the underlying gross room revenues and the transactions or events which generate fees are known.
Franchise fees include the following:
•Royalty fees - Royalty fees are earned in exchange for a license to brand intellectual property typically based on a percentage of gross room revenues. The royalty fees are billed and collected monthly and the revenues are recognized in the same period that the underlying gross room revenues are earned by the Company’s franchisees. The royalty fees are presented within franchise and management fees in the consolidated statements of income.
•Initial franchise fees - Initial franchise fees are charged when (i) new hotels enter the franchise system, (ii) there is a change of ownership, or (iii) the existing franchise agreements are extended. The initial franchise fees are recognized as revenue ratably as the services are provided over the enforceable period of the franchise agreement, unless the franchise agreement is terminated and the hotel exits the franchise system whereby the remaining deferred amounts are recognized to revenue in the period of termination. The enforceable period is the period from the hotel's opening to the first point the franchisee or the Company can terminate the franchise agreement without incurring a significant penalty. The initial franchise fees are presented within franchise and management fees in the consolidated statements of income.
•System implementation fees - System implementation fees charged to the franchisees are deferred and recognized as revenue over the enforceable period of the franchise agreement. The system implementation fees charged to the franchisees are primarily presented within franchise and management fees in the consolidated statements of income.
•Other fees - Other fees are a combination of miscellaneous non-marketing and reservation fees, which includes quality assurance, non-compliance, and franchisee training fees. Other fees are recognized in the period that the designated transaction or event has occurred. Other fees are presented within franchise and management fees and other revenues in the consolidated statements of income.
The Company’s franchise agreements require the payment of marketing and reservation fees. The Company is obligated to use these marketing and reservation fees to provide marketing and reservation services, such as marketing, media, advertising, access to centralized reservation systems, and certain franchise services to support the operation of the overall franchise system. The marketing and reservation fees are presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income. These services are comprised of multiple fees including the following:
•Fees based on a percentage of gross room revenues are recognized in the period the gross room revenue was earned, based on the underlying hotel’s sales or usage.
•Fees based on the occurrence of a designated transaction or event are recognized in the period the transaction or event occurred.
•Marketing and reservation system activities also include revenues generated from the Company’s guest loyalty programs. The revenue recognition of these programs is discussed in the Material rights for free or discounted goods or services to hotel guests section below.
Marketing and reservation expenses are the expenses that are incurred to facilitate the delivery of the marketing and reservation services, including direct expenses and an allocation of costs for certain administrative activities that are required to carry out
marketing and reservation services. Marketing and reservation expenses are recognized when the services are incurred or the goods are received within reimbursable expenses from franchised and managed properties in the consolidated statements of income. As a result, the marketing and reservation expenses may not equal the marketing and reservation revenues in a specific period but are expected to equal the revenues earned from the franchisees over time. The Company’s franchise agreements provide the Company the right to advance monies to the franchise system when the needs of the franchisor system surpass the balances currently available. The Company has the right to recover such advances in future periods through additional fee assessments or reduced spending.
Material Rights for Free or Discounted Goods or Services to Hotel Guests
Choice Privileges is the Company’s guest loyalty program, which enable members to earn points based on their spending levels with the Company’s franchisees or certain vendors (refer to the Partnership Agreements section below). The points, which the Company accumulates and tracks on the members’ behalf, may be redeemed for free accommodations or other benefits (e.g. gift cards to participating retailers). The Company collects from the franchisees a percentage of the loyalty program members’ gross room revenue from completed stays to operate the programs. At such time the points are redeemed for free accommodations or other benefits, the Company reimburses the franchisees or third parties based on a rate derived in accordance with the franchise or vendor agreement.
The loyalty points represent a performance obligation attributable to the usage of the points, and thus the revenues are recognized at the point in time when the loyalty points are redeemed by the members for benefits (with both franchisees and third-party partners), net of the cost of redemptions. For the years ended December 31, 2025, 2024, and 2023, the loyalty net revenues, inclusive of adjustments to the estimated redemption rates, were $125.6 million, $123.2 million, and $93.1 million, respectively. The transaction price is variable and determined in the period when the loyalty points are earned and the underlying gross room revenues are known. No loyalty program revenues are recognized at the time the loyalty points are issued.
The Company is an agent in coordinating the delivery of the services between the loyalty program member and the franchisee or third party, and as a result, the revenues are recognized net of the cost of redemptions. The estimated value of the future redemptions is reflected in the current and non-current liability for guest loyalty program in the consolidated balance sheets. The liability for the guest loyalty program is developed based on an estimate of the eventual redemption rates and point values using various actuarial methods. These significant judgments determine the required point liability attributable to the outstanding points, which is relieved as the redemption costs are processed. The amount of the loyalty program fees in excess of the guest loyalty program point liability represents current and non-current deferred revenue, which is recognized to revenue as the points are redeemed including an estimate of the future forfeitures (“breakage”). The anticipated redemption pattern of the points is the basis for the current and non-current designation of each liability. As of December 31, 2025, the current and non-current deferred revenue balances were $78.2 million and $36.7 million, respectively. The loyalty points are typically redeemed within three years of issuance. The loyalty program point redemption revenues are presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
Partnership Agreements
The Company is a party to various agreements with third-party partners, including the co-branding of the Choice Privileges credit card. The agreements typically provide for use of the Company’s marks, limited access to the Company’s distribution channels, and the sale of Choice Privileges loyalty points, in exchange for fees primarily comprising variable consideration that is paid each month. Loyalty members can earn points through participation in the partner’s program.
The partnership agreements include multiple performance obligations. The primary performance obligations are for the brand intellectual property and material rights for free or discounted goods or services to hotel guests. The allocation of the fixed and variable consideration to the performance obligations is based on the standalone selling price, which is estimated based on the market and income methods, which contain significant judgments. The amounts allocated to the brand intellectual property are recognized on a gross basis over time using the output measure of the time elapsed and presented within partnership services and fees in the consolidated statements of income. The amounts allocated to the material rights for free or discounted goods or services to hotel guests are recognized to revenue as the points are redeemed including an estimate of the breakage and presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
Qualified Vendors
The Company generates revenue from qualified vendors. The qualified vendor revenue is generally based on the marketing services provided by the Company on behalf of, and the access provided to, the qualified vendors to the hotel owners and guests. The Company provides these services in exchange for either fixed consideration or a percentage of the revenues earned by the qualified vendor pertaining to purchases by the Company’s franchisees or guests. The fixed consideration is paid in
installments based on a contractual schedule, with an initial payment typically due at contract execution. The variable consideration is typically paid quarterly after the sales to the franchisees or guests have occurred.
The qualified vendor agreements comprise a single performance obligation, which is satisfied over time based on the access afforded, and the services provided, to the qualified vendor for the stated duration of the agreement. The fixed consideration is allocated and recognized ratably to each period over the term of the agreement. The variable consideration is determined and recognized in the period when the vendors' sales to the franchisees or guests are known or the cash payment has been remitted. The qualified vendor revenues are presented within partnership services and fees in the consolidated statements of income.
SaaS Arrangements
The Company is a party to other non-franchising agreements that generate revenue, which are primarily SaaS arrangements for non-franchised hoteliers, and is presented within partnership services and fees in the consolidated statements of income. SaaS agreements typically include fixed consideration for installment and other initiation fees that are paid at the beginning of the contract, and variable consideration for recurring subscription revenue that is typically paid on a monthly basis. SaaS agreements comprise a single performance obligation, which is satisfied over time based on the access to the software for the stated duration of the agreement. The fixed consideration is allocated and recognized ratably to each period over the term of the agreement. The variable consideration is determined at the conclusion of each period, and allocated to and recognized in the current period.
Managed Hotels
The Company manages 13 hotels (inclusive of four owned hotels). The management agreements provide for the use of the Company's marks and hotel management services, which include providing day-to-day management services in the operation of the hotels for the hotel owners. The fees generated from the management agreements are recognized to revenue over time as the hotel owners pay for access to these services for the duration of the management agreement, and include base and incentive management fees. Base management fees are generally based on a percentage of the hotel's monthly gross revenue and are invoiced and collected monthly. Incentive management fees are generally based on a percentage of the hotel's operating profits and are invoiced on an annual basis. Base and incentive management fee revenues are presented within franchise and management fees in the consolidated statements of income.
The Company's management agreements include amounts that are contractually reimbursed to the Company by the hotel owners, either directly or indirectly, relating to certain costs and expenses that are paid by the Company in support of the operations of these hotel properties. The reimbursements include payroll costs and certain other operating costs of the managed properties' operations, which are reimbursed to the Company by the hotel owners as the expenses are incurred. The revenue related to these direct reimbursements is recognized based on the amount of the expenses incurred by the Company, which are presented within reimbursable expenses from franchised and managed properties in the consolidated statements of income. The hotel owner typically reimburses the Company on a monthly basis, which results in no net effect to operating income or net income. The revenues related to marketing and reservations are recognized over time and are intended to reimburse the Company, indirectly, for the expenses incurred in performing the marketing and reservation services. These managed revenues are presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
Owned Hotels
The Company owned 17 hotels, 12 hotels, and 10 hotels as of December 31, 2025, 2024, and 2023, respectively, from which the Company generates revenues. As a hotel owner, the Company has performance obligations to provide accommodations to hotel guests and in return, the Company earns a nightly fee for an agreed upon period that is generally payable at the time the hotel guest checks out of the hotel. The Company typically satisfies the performance obligations over the length of the stay and recognizes the revenue on a daily basis, as the hotel rooms are occupied and the services are rendered.
Other ancillary goods and services at the owned hotels are purchased independently of the hotel stay at the standalone selling prices and are considered separate performance obligations, which are satisfied at the point in time when the related good or service is provided to the guest. These primarily consist of food and beverage, incidentals, and parking fees. The hotel room night and other ancillary goods and services revenues are presented within owned hotels revenue in the consolidated statements of income.
Sales Taxes
The Company presents the taxes collected from customers and then remitted to governmental authorities on a net basis and, therefore, the taxes are excluded from revenues in the consolidated financial statements.
Business Combination, Diligence and Transition Costs
The Company incurs costs during the review of potential business combinations, including legal fees, financial advisory, and other professional service fees. If the Company is successful in completing a business combination, then the Company may incur transition and integration costs, including professional service fees, technology costs, and employee-related costs such as bonuses, retention, and severance. The business combination, diligence and transition costs are expensed as incurred in the consolidated statements of income.
Notes & Accounts Receivable and Allowances for Credit Losses
The Company provides financing in the form of notes receivable loans to franchisees to support the development or conversion of properties in strategic markets.
The Company accrues interest for notes receivable loans in accordance with loan provisions. The Company considers notes receivable loans past due and in default when payments are not made when due in accordance with the then-current loan provisions or the terms extended to the borrowers, including loans with concessions or interest deferral. The Company suspends the accrual of interest when payments on loans are more than 30 days past due or upon a loan being classified as collateral-dependent. The Company applies the payments received for loans on a non-accrual status first to interest and then to principal. The Company does not resume an interest accrual until all delinquent payments are received based on the then-current loan provisions.
The Company has developed a systematic methodology to determine its allowance for credit losses across our portfolio of notes receivable loans. The Company monitors the risk and performance of our portfolio by the level of security in the collateral (i.e., senior, subordinated, or unsecured), which is the Company's credit quality indicator. As each of the Company’s notes receivable loans has unique risk characteristics, the Company deploys its methodology to calculate allowances for credit losses at the individual notes receivable loan level.
The Company primarily utilizes a discounted cash flow ("DCF") technique to measure the credit allowance, influenced by the key economic variables of each note receivable loan. The Company identified the key economic variables for these loans to be the loan-to-cost ("LTC") or loan-to-value ("LTV") ratios and a debt service coverage ratio ("DSCR"). The LTC or LTV ratio represents the loan principal relative to the project cost or value and is an indication of the loan principal's ability to be re-paid at loan maturity. The DSCR represents property-specific net operating income as a percentage of the interest and principal payments incurred (i.e., debt service) on all debt of the borrower for the property and is an indication of the borrower's ability to make timely payments during the term of the loan. The LTC or LTV ratios and DSCR are considered during the loan underwriting process as indications of risk and, accordingly, we believe these factors are the most representative risk indicators for calculating the allowance for credit loss. Loans with higher LTC or LTV ratios and lower DSCR ratios generally are representative of loans with greater risk and, accordingly, have higher credit allowances as a percentage of loan principal. Conversely, loans with lower LTC or LTV ratios and higher DSCR ratios generally are representative of loans with lesser risk and, accordingly, have lower credit allowances as a percentage of loan principal. In preparing or updating a DCF model to measure the credit allowance, the Company develops various recovery scenarios and, based on the key economic variables, the present status of the loan, and the underlying collateral, applies a probability-weighting to the outputs of the scenarios.
Collateral-dependent financial assets are financial assets for which repayment is expected to be derived substantially through the operation or sale of the collateral and when the borrower is experiencing financial difficulty. For collateral-dependent loans, the expected credit losses are based on the fair value of the collateral, less the selling costs if repayment will be from the sale of the collateral. The Company calculates the fair value of the collateral using a DCF technique to project the cash flows or a market approach via quoted market prices. In developing the cash flow projections, the Company will review the borrower's financial statements for the property, economic trends, industry projections for the market where the property is located, and comparable sales capitalization rates.
Management assesses the credit quality of the notes receivable portfolio and the adequacy of the credit loss allowances on a quarterly basis and recognizes the provisions for credit losses in selling, general and administrative expenses in the consolidated statements of income. Significant judgment is required in this analysis.
Accounts receivable consists primarily of the franchise and related fees due from the hotel franchisees and are recorded at the invoiced amount. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses inherent in the accounts receivable balance. The Company determines the allowance considering its historical write-off experience, a review of the aged receivable balances and customer payment trends, the economic environment, and other available evidence. The Company presents the provisions for credit losses on accounts receivable in selling, general and administrative expenses and reimbursable expenses from franchised and managed properties in the consolidated statements of income.
When the Company determines that a trade or note receivable is not collectible, then the account is written-off to the associated allowance for credit losses.
Refer to Note 3 for more information on the receivables and the allowances for credit losses.
Advertising Costs
The Company expenses advertising costs as incurred. Advertising expense was $207.8 million, $194.6 million, and $195.2 million for the years ended December 31, 2025, 2024, and 2023, respectively. The Company presents advertising costs primarily in reimbursable expenses from franchised and managed properties in the consolidated statements of income.
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains cash balances at U.S. banks, which at times may exceed the limits of the amounts insured by the Federal Deposit Insurance Corporation. In addition, the Company also maintains cash balances at international banks which do not provide deposit insurance.
Capitalization Policies
Property and equipment are generally recorded at cost and depreciated for financial reporting purposes using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets. Major renovations and replacements incurred during construction are capitalized. The costs for computer software developed for internal use are capitalized during the application development stage and amortized using the straight-line method over the estimated useful lives of the software. The capitalized software licenses pertaining to cloud computing arrangements are amortized using the straight-line method over the shorter of the cloud computing arrangement term or the estimated useful lives of the software. The Company capitalizes the interest incurred during the construction and development of property and equipment, including software. The total interest capitalized as a cost of property and equipment was $8.1 million and $9.4 million during the years ended December 31, 2025 and 2024, respectively.
As construction in progress and software development are completed and then placed in service, the assets are transferred to the appropriate property and equipment categories and depreciation and amortization begins. Upon the sale or the retirement of the property, the cost and the related accumulated depreciation are eliminated from the accounts and any related gain or loss is recognized in the consolidated statements of income. Repairs and maintenance, and minor replacements, are charged to expense as incurred.
The Company has made certain acquisitions of hotel assets, which are recognized at the fair value of the consideration exchanged. The Company acquires land parcels with the intention to develop hotels, which are recognized at cost within property and equipment, net in the consolidated balance sheets. If the Company determines that it will not progress to active construction and development of a land parcel, then the land parcel is reclassified to other assets in the consolidated balance sheets.
The table below summarizes the estimated useful lives for the respective assets for depreciation and amortization purposes:
Computer equipment and software
2 - 7 years
Buildings and leasehold improvements
10 - 40 years
Furniture, fixtures, vehicles and equipment
3 - 10 years
Assets Held for Sale
The Company considers assets to be held for sale when all of the following criteria are met:
•Management commits to a plan to sell an asset;
•It is unlikely that the disposal plan will be significantly modified or discontinued;
•The asset is available for immediate sale in its present condition;
•Actions required to complete the sale of the asset have been initiated;
•The sale of the asset is probable and the Company expects the completed sale will occur within one year; and
•The asset is actively being marketed for sale at a price that is reasonable given its current market value.
Upon designation as an asset held for sale, the Company recognizes the carrying value of each asset as a component of other current assets at the lower of its carrying value or its estimated fair value, less the estimated costs to sell, and immediately ceases the recognition of depreciation or amortization expense on the asset.
If, at any time, these criteria are no longer met, subject to certain exceptions, then the assets previously classified as held for sale are reclassified as held and used and measured individually at the lower of (a) the carrying amount before the asset was classified as held for sale, adjusted for any depreciation or amortization expense that would have been recognized had the asset been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell.
Long-Lived Assets, Goodwill, and Intangible Assets
The Company groups its long-lived assets, including property and equipment and definite-lived intangible assets (e.g., franchise rights and franchise agreement acquisition costs), at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company evaluates the potential impairment of its long-lived asset groups annually as of October 1st or earlier when other circumstances indicate that the Company may not be able to recover the carrying value of the asset group. During the year ended December 31, 2025, the Company changed its annual impairment assessment date from December 31st to October 1st. When indicators of impairment are present, then the recoverability is assessed based on undiscounted expected cash flows. If the undiscounted expected cash flows are less than the carrying amount of the asset group, then an impairment charge is measured and recognized, as applicable, for the excess of the carrying value over the fair value of the asset group. The fair value of the long-lived asset groups are estimated primarily using discounted cash flow analyses representing the highest and best use by an independent market participant. Significant management judgment is involved in evaluating any indicators of impairment and developing any required projections to test for the recoverability or the estimated fair value.

The Company did not identify any indicators of impairment of long-lived assets from the Hotel Franchising reporting unit during the years ended December 31, 2025, 2024, and 2023, other than impairments on franchise sales commission assets and franchise agreement acquisition cost intangible assets, which are presented within selling, general and administrative expenses and reimbursable expenses from franchised and managed properties in the consolidated statements of income. Refer to Note 2 for additional information.
During the year ended December 31, 2023, the Company recognized an impairment loss on the long-lived assets associated with the legacy Radisson corporate office lease. Refer to Note 5 for additional information.
The Company evaluates the impairment of goodwill and intangible assets with indefinite lives annually as of October 1st or earlier upon the occurrence of substantive unfavorable changes in economic conditions, industry trends, costs, cash flows, or ongoing declines in market capitalization that indicate that the Company may not be able to recover the carrying amount of the asset. During the year ended December 31, 2025, the Company changed its annual impairment assessment date from December 31st to October 1st. In evaluating these assets for impairment, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit or the indefinite-lived intangible asset is less than its carrying amount. If the conclusion is that it is not more likely than not that the fair value of the asset is less than its carrying value, then no further testing is required. If the conclusion is that it is more likely than not that the fair value of the asset is less than its carrying value, then a quantitative impairment test is performed whereby the carrying value is compared to the fair value of the asset and an impairment charge is recognized, as applicable, for the excess of the carrying value over the fair value. The Company may elect to forgo the qualitative assessment and move directly to the quantitative impairment tests for goodwill and indefinite-lived intangible assets. The Company determines the fair value of its reporting units and indefinite-lived intangible assets using the income and market methods.
Goodwill is allocated to the Company's reporting units. The Company's reporting units are determined primarily by the availability of discrete financial information relied upon by the chief operating decision maker ("CODM") to assess performance and make operating segment resource allocation decisions. As of December 31, 2025, the Company's goodwill is allocated solely to the Hotel Franchising reporting unit. The Company performed the qualitative impairment analysis for the Hotel Franchising reporting unit, concluding that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount. As such, a quantitative test was not required and no impairment was recorded.
Variable Interest Entities
In accordance with the guidance for the consolidation of variable interest entities ("VIE"), the Company identifies its variable interests and analyzes to determine if the entity in which the Company has a variable interest is a VIE. The Company's variable interests include equity investments, loans, and guaranties. The determination of whether a variable interest is a VIE includes both quantitative and qualitative considerations. For those entities determined to be VIEs, a further quantitative and qualitative analysis is performed to determine if the Company is deemed to be the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impacts the entity's economic performance and who has an obligation to absorb the losses of the entity or a right to receive the benefits from the entity that could potentially be significant. The Company consolidates those entities in which it is determined to be the primary beneficiary. As of December 31, 2025, the Company is not the primary beneficiary of any VIE. The Company's qualitative analysis is based on its review of
the design of the entity, the organizational structure including its decision-making ability, and the relevant development, operating management, and financial agreements.
The investments in unconsolidated affiliates where the Company is not deemed to be the primary beneficiary but where the Company exercises significant influence over the operating and financial policies of the investee are accounted for using the equity method of accounting.
Investments in Affiliates
The Company evaluates an investment in an affiliate for impairment when circumstances indicate that the carrying value may not be recoverable, such as a loan default, significant under-performance relative to historical or projected operating performance, and/or significant negative industry, market, or economic trends. When there is an indication that a loss in value has occurred, the Company evaluates the carrying value compared to the estimated fair value of the investment. The fair value is based upon internally-developed discounted cash flow models, third-party appraisals, or current estimated net sales proceeds from pending offers. There are judgments and assumptions in each of these fair value determinations, including our selection of comparable market transactions, the amount and timing of expected future cash flows, long-term growth rates, and sales capitalization rates. These nonrecurring fair value measurements are classified as level three in the fair value measurement hierarchy, as the Company utilizes unobservable inputs which are significant to the overall fair value. If the estimated fair value is less than the carrying value, then management uses its judgment to determine if the decline in value is other-than-temporary. In determining this, the Company considers factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition, near-term financial projections, the Company's intent and ability to recover the lost value, and current economic conditions. For declines in value that are deemed to be other-than-temporary, then the impairment charge is recognized to earnings.
Investments in Equity Securities
The Company's investments in equity securities are recognized at fair value in the consolidated balance sheets, and the unrealized gains and losses on the investments in equity securities are recognized as other (gains) losses, net in the consolidated statements of income. The realized gains and losses on the investments in equity securities are recognized upon the disposition of the equity securities using the specific identification method as other (gains) losses, net in the consolidated statements of income.
Foreign Operations
The U.S. dollar is the functional currency of the consolidated entities operating in the U.S. The functional currency for the consolidated entities operating outside of the U.S. is generally the currency of the primary economic environment in which the entity primarily generates and expends cash. The Company translates the financial statements of the consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars. The Company translates the assets and liabilities at the exchange rate in effect as of the financial statement date, and translates income statement accounts using the approximate weighted average exchange rate for the period. The Company includes translation adjustments from foreign exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity (deficit). The Company presents foreign currency transaction gains and losses, and the effect of intercompany transactions of a short-term or trading nature, within other (gains) losses, net in the consolidated statements of income. For the year ended December 31, 2025, the foreign currency transaction losses were $0.1 million. For the years ended December 31, 2024 and 2023, the foreign currency transaction gains were $2.1 million and $0.5 million, respectively.
Share-Based Compensation
The Company has stock compensation plans pursuant to which it is authorized to grant share-based awards, including restricted stock, stock options, stock appreciation rights, and performance-based share awards, to officers, key employees, and non-employee directors with contractual terms that are set by the Compensation and Management Development Committee of the Board of Directors.
Stock Options - The Company recognizes compensation expense related to the fair value of these awards on a straight-line basis over the requisite service period for the share-based awards that ultimately vest. The fair value of the stock options is estimated on the grant date using the Black-Scholes options-pricing model.
Restricted Stock Units ("RSUs") - The Company recognizes compensation expense related to the fair value of the restricted stock awards on a straight-line basis over the requisite service period for the restricted stock awards that ultimately vest. The fair value of the grants is measured by the market price of the Company’s common stock on the date of grant. The restricted stock awards generally vest ratably over the service period beginning on the first anniversary of the grant date. The
restricted stock awards granted to retirement eligible non-employee directors are recognized over the shorter of the requisite service period or the length of time until retirement since the terms of the grant provide that awards will vest upon retirement.
Performance Vested Restricted Stock Units ("PVRSUs") - The Company has granted PVRSUs to certain employees. The Company grants three types of PVRSU awards: (i) PVRSUs with performance conditions based on internal performance metrics, (ii) PVRSUs with market conditions based on the Company's total shareholder return ("TSR") relative to a predetermined peer group, and (iii) PVRSUs with both performance and market conditions. The vesting of the PVRSU awards is contingent upon the Company achieving the internal performance and/or TSR targets over a specified period and the employees' continued employment over the service period. The performance and market conditions affect the number of shares that will ultimately vest.
The fair value of the PVRSUs with performance conditions based on internal performance metrics is measured by the market price of the Company's common stock on the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period based on the Company's estimate of achieving the performance conditions.
The fair value of the PVRSUs with market conditions is estimated using a Monte Carlo simulation method as of the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period regardless of whether the market conditions are achieved and the awards ultimately vest.
The fair value of the PVRSUs with both performance and market conditions is estimated using a Monte Carlo simulation as of the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period based on the Company's estimate of achieving the performance conditions, with subsequent adjustments being made for the performance-based leveraging of any unvested PVRSUs, as necessary.
Over the life of the share-based award grant, the Company's estimate of the share-based compensation expense for the share-based awards with performance and/or service requirements will be adjusted so that compensation expense is recognized only for the share-based awards that will ultimately vest. The expected forfeiture rate is calculated based on the number of shares that have historically been forfeited due to termination within one year of the grant date.
Leases
The Company determines if an arrangement is a lease, and the classification as either an operating lease or a financing lease, at lease inception. Operating leases are included in operating lease right-of-use assets, accrued expenses and other current liabilities, and operating lease liabilities in our consolidated balance sheets. As of December 31, 2025 and 2024, the Company did not have any leases classified as a financing lease.
On the commencement date, operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The operating lease right-of-use assets are further offset by prepaid rent, lease incentives, and initial direct costs incurred. When a lease agreement does not provide an implicit rate, the Company utilizes its incremental borrowing rate based on the information available at the commencement date in determining the present value of the future minimum lease payments.
Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments include certain index-based changes in rent, certain non-lease components (such as maintenance and other services provided by the lessor), and other charges included in the lease. Variable lease payments are excluded from the future minimum lease payments and expensed as incurred.
The Company has made an election to not separate the lease and the non-lease components for all classes of underlying assets in which it is the lessee. In addition, the Company has made an election to not recognize short-term leases with an initial term of 12 months or less in the consolidated balance sheets. These short-term leases are expensed on a straight-line basis over the lease term.
Non-Qualified Retirement, Savings, and Investment Plans
The Company has an Executive Deferred Compensation Plan ("EDCP") and a Non-Qualified Retirement Savings and Investment Plan ("Non-Qualified Plan") (together, the "Deferred Compensation Plan"). Under the EDCP, certain executive officers may defer a portion of their salary into an irrevocable trust and invest these amounts in a selection of available diversified investment options. The Non-Qualified Plan allows certain employees who do not participate in the EDCP to defer a portion of their salary and invest these amounts in a selection of available diversified investment options. The long-term deferred compensation and retirement plan liabilities related to the deferrals and the credited investment returns under the Deferred Compensation Plan are presented in deferred compensation and retirement plan obligations in the consolidated balance sheets. The corresponding long-term deferred compensation and retirement plan assets are presented in investments for employee benefit plans, at fair value in the consolidated balance sheets. Compensation expense or benefit is recognized in
selling, general and administrative expenses in the consolidated statements of income based on the change in the deferred compensation and retirement plan obligations related to the earnings credited to the participants as well as the changes in the fair value of the diversified investments.
Business Combinations
The Company allocates the purchase price of an acquisition to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The Company recognizes goodwill as the amount by which the purchase price of an acquired entity exceeds the fair values assigned to the assets acquired and liabilities assumed. For a business combination achieved in stages, in which there is a change in ownership interest and control is obtained when there is a previously held equity interest, a gain or loss from remeasurement of the previously held equity interest to fair value is recognized in the period that control was obtained.
Recently Adopted & Issued Accounting Standards
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 is designed to provide additional information to financial statement users in regards to how an entity's operations, risks, and planning affect its tax rate, opportunities, and future cash flows. ASU 2023-09 is effective for the annual reporting period beginning after December 15, 2024. The Company adopted ASU 2023-09 on a prospective basis effective December 31, 2025. The adoption of this standard did not have an impact on the Company's consolidated financial statements, but it did require enhanced income tax disclosures in the notes to the consolidated financial statements. Refer to Note 11 for more information.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires public entities to provide detailed disclosure of the income statement expenses in the footnotes to the consolidated financial statements. ASU 2024-03 does not require any changes to the expense captions on the face of the consolidated income statement. ASU 2024-03 is effective for the annual reporting period beginning after December 15, 2026 and for the interim periods within the annual reporting period beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the potential impact that ASU 2024-03 will have on the Company's consolidated financial statements.
v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Contract Liabilities
Contract liabilities relate to (i) advance consideration received related to services considered to be a part of the brand intellectual property performance obligation, such as initial franchise fees that are paid when a franchise agreement is executed and system implementation fees that are paid at the time of installation, and (ii) amounts received when loyalty points are issued but the associated revenue has not yet been recognized because the related loyalty points have not been redeemed.
Deferred revenues from initial franchise fees are typically recognized over a ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby the remaining deferred revenue amounts are recognized to revenue in the period of termination. As of December 31, 2025 and 2024, deferred revenues from initial franchise fees were $103.0 million and $111.2 million, respectively. Loyalty points are typically redeemed within three years of issuance. As of December 31, 2025 and 2024, deferred revenues from the loyalty program were $114.9 million and $110.4 million, respectively.
The following table summarizes the significant changes in the contract liabilities balances during the year ended December 31, 2025:
(in thousands)
Balance as of December 31, 2024
$216,697 
Increases to the contract liability balance due to cash received153,031 
Revenue recognized in the period(149,388)
Balance as of December 31, 2025
$220,340 
Remaining Performance Obligations
The aggregate amount of the transaction price that is allocated to unsatisfied, or partially unsatisfied, performance obligations was $220.3 million as of December 31, 2025. This amount represents the fixed transaction price that will be recognized as revenue in future periods, which is presented as current and non-current deferred revenue in the consolidated balance sheets.
Based on the practical expedient elections permitted by ASU 2014-09, Revenue From Contracts with Customers (Topic 606) and subsequent amendments ("Topic 606"), the Company does not disclose the value of unsatisfied performance obligations for (i) variable consideration subject to the sales or usage-based royalty constraint or comprising a component of a series (including franchise, partnership, qualified vendor, and SaaS agreements), (ii) variable consideration for which the Company recognizes revenue at the amount to which it has the right to invoice for the services performed, or (iii) contracts with an expected original duration of one year or less.
Capitalized Franchise Agreement Costs
Sales commissions earned by Company personnel upon execution of a franchise agreement (“franchise sales commissions”) meet the requirement to be capitalized as an incremental cost of obtaining a contract with a customer. The capitalized franchise sales commissions are amortized on a straight-line basis over the estimated benefit period of the arrangement, unless the franchise agreement is terminated and the hotel exits the system whereby the remaining capitalized amounts will be expensed in the period of termination. The estimated benefit period is the Company's estimate of the duration a hotel will remain in the Choice system. As of December 31, 2025 and 2024, the capitalized franchise sales commissions were $69.0 million and $59.5 million, respectively, which are presented within other assets in the consolidated balance sheets. For the years ended December 31, 2025, 2024, and 2023, amortization expense and impairment charges were $13.2 million, $10.2 million, and $13.1 million, respectively, which are presented within selling, general and administrative expenses in the consolidated statements of income.
The Company makes certain payments to customers as an incentive to enter into new franchise agreements (“franchise agreement acquisition costs”). These payments are recognized as an adjustment to the transaction price and capitalized as an intangible asset in the consolidated balance sheets. The franchise agreement acquisition cost intangible assets are amortized on a straight-line basis over the estimated benefit period of the arrangement as a reduction to franchise and management fees and revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income. For the years ended December 31, 2025 and 2023, the net impairments from adverse franchise agreement activity, including terminations and significant delinquencies in invoice payments, were $1.1 million and $7.3 million, respectively, which are presented within selling, general and administrative expenses and reimbursable expenses from franchised and managed properties in the consolidated statements of income. For the year ended December 31, 2024, the net recoveries from adverse franchise agreement activity, including terminations and significant delinquencies in invoice payments, were $0.4 million, which is presented within selling, general and administrative expenses and reimbursable expenses from franchised and managed properties in the consolidated statements of income
v3.25.4
Receivables and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract]  
Receivables and Allowance for Credit Losses Receivables and Allowance for Credit Losses
Notes Receivable
The Company has provided financing in the form of notes receivable loans to franchisees in order to support the development of hotel properties in strategic markets. The Company's credit quality indicator is the level of security in the note receivable.
The following table summarizes the composition of the notes receivable balances by credit quality indicator and the allowance for credit losses:
December 31,
(in thousands)20252024
Senior$98,257 $94,963 
Subordinated13,356 15,433 
Unsecured4,044 5,118 
Total notes receivable115,657 115,514 
Less: allowance for credit losses8,481 7,331 
Total notes receivable, net of allowance for credit losses$107,176 $108,183 
Current portion, net of allowance for credit losses$94,686 $75,501 
Long-term portion, net of allowance for credit losses$12,490 $32,682 
The following table summarizes the amortized cost basis of the notes receivable by the year of origination and credit quality indicator:
(in thousands)20252024202320222021PriorTotal
Senior$1,713 $40,832 $— $— $— $55,712 $98,257 
Subordinated1,501 — 3,503 — — 8,352 13,356 
Unsecured386 125 — — 771 2,762 4,044 
Total notes receivable$3,600 $40,957 $3,503 $— $771 $66,826 $115,657 
The following table summarizes the activity related to the Company’s notes receivable allowance for credit losses:
December 31,
(in thousands)20252024
Beginning balance$7,331 $8,616 
Provision (reversal) for credit losses1,150 (609)
Recoveries— (676)
Ending balance$8,481 $7,331 
During the year ended December 31, 2024, the recoveries were primarily associated with cash collections pursuant to a settlement agreement with a borrower.
As of December 31, 2025 and December 31, 2024, three and one note receivable loans, respectively, with senior credit quality indicators met the definition of collateral-dependent and are collateralized by the membership interests in the borrowing entities, the associated land parcel, or the operating hotel. The Company used both a market approach that uses quoted market prices and an income approach that uses discounted cash flows to value the underlying collateral. The Company reviewed the borrower's financial statements, economic trends, industry projections for the market, and comparable sales capitalization rates, which represent significant inputs to the cash flow projections. These nonrecurring fair value measurements are classified as Level 3 in the fair value measurement hierarchy because they are unobservable inputs which are significant to the overall fair value. Based on the Company's analysis, the fair value of the collateral secures substantially all of the carrying value of the respective note receivable loans. The allowance for credit losses attributable to the collateral-dependent note receivable loans were $4.6 million and $2.2 million as of December 31, 2025 and 2024, respectively.
The following table summarizes the past due balances by credit quality indicator of the notes receivable:
(in thousands)1-30 days
Past Due		31-89 days
Past Due		> 90 days
Past Due		Total
Past Due		CurrentTotal Notes Receivable
As of December 31, 2025
Senior$— $— $42,900 $42,900 $55,357 $98,257 
Subordinated— — — — 13,356 13,356 
       Unsecured— — 404 404 3,640 4,044 
$— $— $43,304 $43,304 $72,353 $115,657 
As of December 31, 2024
Senior$— $— $15,200 $15,200 $79,763 $94,963 
Subordinated— — 2,264 2,264 13,169 15,433 
       Unsecured— — 784 784 4,334 5,118 
$— $— $18,248 $18,248 $97,266 $115,514 
The amortized cost basis of the notes receivable in a non-accrual status was $42.9 million and $17.5 million as of December 31, 2025 and 2024, respectively.
Variable Interest through Notes Receivable
The Company has issued notes receivable loans to certain entities that have created variable interests in the associated borrowers totaling $103.2 million and $103.1 million as of December 31, 2025 and 2024, respectively. The Company has determined that it is not the primary beneficiary of these variable interest entities ("VIEs"). For the collateral-dependent loans, the Company has no exposure to the borrowing VIE beyond the respective note receivable and the limited commitments which are addressed in Note 16.
Transactions with Unconsolidated Affiliates
The Company has extended loans to various unconsolidated affiliates or members of our unconsolidated affiliates. The Company had a total principal balance on these loans of $65.3 million and $66.2 million as of December 31, 2025 and December 31, 2024, respectively.
Accounts Receivable
Accounts receivable consists primarily of franchise and related fees due from the hotel franchisees and are recorded at the invoiced amount.
During the year ended December 31, 2025, the Company recognized provisions for credit losses on accounts receivable of $20.2 million in selling, general and administrative expenses, and $15.0 million in reimbursable expenses from franchised and managed properties, in the consolidated statements of income. During the year ended December 31, 2024, the Company recognized provisions for credit losses on accounts receivable of $11.0 million in selling, general and administrative expenses, and $9.7 million in reimbursable expenses from franchised and managed properties, in the consolidated statements of income. For the years ended December 31, 2025 and 2024, the Company recorded write-offs, net of recoveries, through the accounts receivable allowance for credit losses of $29.6 million and $14.4 million, respectively.
v3.25.4
Property and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
The components of property and equipment were the following:
December 31,
(in thousands)20252024
Land and land improvements$67,451 $51,045 
Construction in progress and software under development88,125 151,756 
Computer equipment and software114,031 105,196 
Buildings and leasehold improvements462,543 354,689 
Furniture, fixtures, vehicles and equipment79,254 67,562 
Property and equipment811,404 730,248 
Less: Accumulated depreciation and amortization(162,113)(125,903)
Property and equipment, net$649,291 $604,345 
For the years ended December 31, 2025, 2024, and 2023, the Company recognized depreciation and amortization expense of $35.3 million, $31.3 million, and $25.2 million, respectively, in depreciation and amortization in the consolidated statements of income. Additionally, for the years ended December 31, 2025, 2024, and 2023, the Company recognized depreciation and amortization expense of $18.4 million, $17.4 million, and $27.9 million, respectively, in reimbursable expenses from franchised and managed properties in the consolidated statements of income.
For the years ended December 31, 2025, 2024, and 2023, the Company recognized amortization of capitalized software development costs of $27.6 million, $22.8 million, and $30.3 million, respectively, which are included in the total depreciation and amortization expense amounts that are disclosed in the paragraph above. As of December 31, 2025 and 2024, unamortized capitalized software development costs were $65.1 million and $65.3 million, respectively.
v3.25.4
Goodwill and Impairment of Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Impairment of Assets Goodwill and Impairment of Assets
Goodwill
The following table summarizes the carrying amount of the Company's goodwill:
 December 31,
 (in thousands)20252024
Goodwill, excluding goodwill arising from the Choice Hotels Canada acquisition$227,765 $227,765 
Goodwill arising from the Choice Hotels Canada acquisition86,194 — 
Effect of foreign currency translation(623)— 
Total goodwill, gross carrying amount313,336 227,765 
Accumulated impairment losses(7,578)(7,578)
Goodwill, net carrying amount$305,758 $220,187 
As of December 31, 2025 and 2024, goodwill is entirely attributable to the Hotel Franchising reporting unit. The Company assessed the qualitative factors attributable to the Hotel Franchising reporting unit and determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount. The Hotel Franchising reporting unit is included in the Hotel Franchising & Management reportable segment in Note 15.
Long-lived Asset Group Impairments
Legacy Radisson Corporate Office Lease
On October 12, 2023, the Company executed an agreement to sublease the legacy Radisson corporate office space in Minneapolis, Minnesota. As a result of the intended change of use, the Company determined the assets associated with the legacy Radisson corporate office space represent their own long-lived asset group, inclusive of the head lease right-of-use asset and leasehold improvements, with a carrying value of $9.5 million. The legacy Radisson corporate office space long-lived asset group was determined to be impaired due to the carrying value exceeding its fair value, which resulted in the recognition of a $3.4 million impairment loss, which is presented within impairments of long-lived assets in the consolidated statements of income and the Corporate & Other segment in Note 15. This nonrecurring fair value measurement, which is based on a discounted cash flows analysis, is classified as Level 3 in the fair value measurement hierarchy because there are unobservable inputs which are significant to the overall fair value.
v3.25.4
Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
The components of the Company's intangible assets were the following:
As of December 31, 2025As of December 31, 2024
(in thousands)Gross Carrying AmountAccumulated AmortizationNet Carrying ValueGross Carrying AmountAccumulated AmortizationNet Carrying Value
Franchise Rights (1)
$352,710 $90,059 $262,651 $278,956 $67,620 $211,336 
Reacquired Territory Rights (2)
75,971 1,000 74,971 — — — 
Franchise Agreement Acquisition Costs (3)
644,997 159,630 485,367 548,544 128,932 419,612 
Trademarks & Other (4)
10,603 4,569 6,034 12,444 6,414 6,030 
Capitalized SaaS Licenses (5)
1,959 1,317 642 6,392 6,071 321 
Total amortizing intangible assets1,086,240 256,575 829,665 846,336 209,037 637,299 
Trademarks & Other (non-amortizing) (6)
252,821 — 252,821 246,714 — 246,714 
Total intangible assets$1,339,061 $256,575 $1,082,486 $1,093,050 $209,037 $884,013 
(1)Represents the purchase price assigned to long-term franchise contracts. The unamortized balance relates primarily to the franchise rights established from the Radisson Hotels Americas acquisition, the Choice Hotels Canada acquisition, as well as the active WoodSpring franchise rights since the acquisition. The franchise rights are being amortized over useful lives ranging from 12 to 15 years on a straight-line basis.
(2)Represents the reacquired territory rights for the use of certain Choice brands within Canada. The reacquired territory rights are being amortized on a straight-line basis over a useful life of 38 years.
(3)Represents certain payments to customers as an incentive to enter into new franchise agreements, which are amortized as a reduction to franchise and management fees and revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income over useful lives generally ranging from 10 to 30 years on a straight-line basis commencing at hotel opening. The gross and accumulated amortization amounts are written off upon full amortization recognition, including the termination of an associated franchise agreement.
(4)Represents definite-lived trademarks and other amortizing assets, including management agreements, which are generally amortized on a straight-line basis over a period of 10 years to 30 years.
(5)Represents software licenses that have been capitalized under a SaaS agreement, which are generally amortized on a straight-line basis over an average period of 3 years.
(6)Represents the purchase price assigned to the Radisson, WoodSpring, and Suburban trademarks and other intellectual property that were recognized at the time of their respective acquisitions. The trademarks and other intellectual property are non-amortizing assets because they are expected to generate future cash flows for an indefinite period of time.
For the years ended December 31, 2025, 2024, and 2023, the Company recognized amortization on the amortizing intangible assets of $24.4 million, $20.7 million, and $19.8 million, respectively, in depreciation and amortization in the consolidated statements of income and $1.2 million, $1.5 million, and $2.8 million, respectively, in reimbursable expenses from franchised and managed properties in the consolidated statements of income. Additionally, for the years ended December 31, 2025, 2024, and 2023, the Company recognized amortization on the amortizing intangible assets of $20.6 million, $16.2 million, and $11.6 million, respectively, as a reduction to franchise and management fees in the consolidated statements of income and $12.1 million, $12.5 million, and $8.3 million, respectively, as a reduction to revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
The estimated annual amortization on the amortizing intangible assets for each of the next five years is as follows:
 
(in thousands)
2026$63,758 
2027$62,193 
2028$60,689 
2029$59,477 
2030$53,910 
v3.25.4
Investments in Affiliates
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Affiliates Investments in Affiliates
The Company has equity method investments in affiliates primarily related to the Company's program to offer equity support to qualified franchisees to develop and operate Cambria Hotels and Everhome Suites in strategic markets.
As of December 31, 2025 and 2024, the Company had total investments in affiliates in the consolidated balance sheets of $135.0 million and $117.0 million, respectively, which included investments in affiliates that represent VIEs of $134.4 million and $104.2 million, respectively. The Company has determined that it is not the primary beneficiary of any of these VIEs, however the Company does exercise significant influence through its equity ownership and as a result, the investments in these affiliates are accounted for under the equity method of accounting. During the years ended December 31, 2025, 2024, and 2023,
the Company recognized losses of $16.1 million, gains of $6.9 million, and losses of $3.4 million, respectively, from these investments that represent VIEs. The Company's maximum exposure to losses related to its investments in the VIEs is limited to the total of its respective equity investment as well as certain limited payment guaranties, which are described in Note 16 to these consolidated financial statements.
The Company has entered into franchise agreements with certain of its unconsolidated affiliates. Pursuant to these franchise agreements, the Company recognized royalty fees and marketing and reservation fees of approximately $19.6 million, $34.5 million, and $30.9 million for the years ended December 31, 2025, 2024, and 2023, respectively.
On July 10, 2025 the Company entered into a joint venture agreement to develop and operate Everhome Suites in certain strategic markets (the "Joint Venture"). The Company contributed $71.6 million in cash to the Joint Venture in exchange for an equity ownership interest. The Company concluded that the Joint Venture represents a VIE. The Company determined that it is not the primary beneficiary of the VIE, however, the Company does exercise significant influence through its equity ownership and as a result, the Company's investment in the Joint Venture is accounted for under the equity method of accounting and reported within investments in affiliates in the consolidated balance sheets.
Subsequent to the formation of the Joint Venture, the following transactions were completed:
•The Joint Venture entered into a loan facility for up to $500 million. In connection with the loan facility, the Company has provided a limited payment guarantee, which applies to all hotel projects funded by the loan facility, with the applicable guaranteed amount being determined on a hotel project by hotel project basis. The Company’s obligation under the limited payment guarantee with respect to any hotel project is effective upon the earlier of (a) the hotel's opening date or (b) 18 months after the date on which construction first started for the hotel. The maximum exposure to losses related to this limited payment guarantee is described in Note 16 to these consolidated financial statements.
•The Company sold four wholly-owned Everhome Suites hotels under construction to the Joint Venture for an aggregate sale price of $52.0 million, resulting in a gain of $0.7 million which is reported within gain on sale of assets in the consolidated statements of income. Prior to the sale, the four wholly-owned Everhome Suites hotels were reported within property and equipment in the consolidated balance sheets.
•Seven of the Company's unconsolidated affiliates, which the Company previously accounted for under the equity method of accounting, contributed their underlying assets to the Joint Venture. Prior to the transaction, the seven unconsolidated affiliates had an aggregate investment balance of $42.1 million, which was reported within investments in affiliates in the consolidated balance sheets.
During the year ended December 31, 2024, the Company received distributions from the sale of affiliates of $15.9 million and recognized net gains of $7.2 million, which was recognized in equity in net gain of affiliates in the consolidated statements of income. During the year ended December 31, 2023, the Company received distributions from the sale of affiliates of $0.9 million which resulted in no net gains (losses).
During the years ended December 31, 2025, 2024, and 2023, the Company recognized no impairment charges related to its equity method investments.
The Company's ownership interests in its affiliates were as follows:
Ownership Interest
December 31, 2025December 31, 2024
Choice Hotels Canada, Inc. (1) (2)
— %50 %
Main Street WP Hotel Associates, LLC50 %50 %
CS Hotel West Orange, LLC50 %50 %
926 James M. Wood Boulevard, LLC75 %75 %
EH Glendale JV, LLC80 %80 %
CS Lakeside Santa Clara LLC50 %50 %
BL 219 Holdco, LP50 %50 %
Integrated 32 West Randolph, LLC20 %20 %
EH Nampa JV LLC80 %80 %
Radisson Hotel La Crosse (1)
14 %14 %
CH East Avenue, LLC65 %65 %
EH Cheyenne JV, LLC80 %80 %
EH Clarksville JV, LLC80 %80 %
EH Waco JV, LLC (3)
— %80 %
EH Amarillo JV, LLC (3)
— %80 %
EH Yuma JV, LLC (3)
— %80 %
EH El Paso JV, LLC (3)
— %80 %
EH Brownsville JV, LLC (3)
— %80 %
EH Wichita JV, LLC (3)
— %80 %
EH Salem JV, LLC (3)
— %80 %
EH Facility JV, LLC (3)
86 %— %
(1) Non-VIE investments.
(2) During the year ended December 31, 2025, the Company completed the acquisition of the remaining 50% of the outstanding shares of Choice Hotels Canada, Inc. As a result of the acquisition, Choice Hotels Canada, Inc. is now a wholly-owned and consolidated subsidiary of the Company. Refer to Note 17 for additional information.
(3) During the year ended December 31, 2025, seven of the Company's unconsolidated affiliates contributed their underlying assets to EH Facility JV, LLC.

The following tables present summarized financial information for all of the unconsolidated joint ventures in which the Company holds an investment in affiliate that is accounted for under the equity method of accounting:
Year Ended December 31,
(in thousands)202520242023
Revenues$73,113 $65,732 $65,634 
Operating income$13,091 $14,199 $12,504 
(Loss) income before income taxes$(13,990)$(1,203)$314 
Net loss$(14,443)$(3,488)$(1,255)
As of December 31,
(in thousands)20252024
Current assets$27,787 $71,737 
Non-current assets502,562 412,269 
Total assets$530,349 $484,006 
Current liabilities$30,988 $84,966 
Non-current liabilities352,594 257,130 
Total liabilities$383,582 $342,096 
v3.25.4
Accrued Expenses and Other Current Liabilities
 12 Months Ended
Dec. 31, 2025
Accrued Liabilities [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
December 31,
(in thousands)20252024
Accrued compensation and benefits$47,451 $55,806 
Accrued interest24,761 27,333 
Dividends payable13,542 13,888 
Income taxes payable862 10,405 
Current operating lease liabilities8,364 5,367 
Other liabilities30,302 23,930 
Total accrued expenses and other current liabilities$125,282 $136,729 
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
Debt consisted of the following:
 December 31,
20252024
(in thousands)
$400 million senior unsecured notes due 2029 ("2019 Senior Notes") with an effective interest rate of 3.88%, less a discount and deferred issuance costs of $2.4 million and $3.0 million at December 31, 2025 and December 31, 2024, respectively
$397,643 $397,042 
$450 million senior unsecured notes due 2031 ("2020 Senior Notes") with an effective interest rate of 3.86%, less a discount and deferred issuance costs of $3.1 million and $3.7 million at December 31, 2025 and December 31, 2024, respectively
446,910 446,300 
$600 million senior unsecured notes due 2034 ("2024 Senior Notes") with an effective interest rate of 6.11%, less a discount and deferred issuance costs of $10.1 million and $11.2 million at December 31, 2025 and December 31, 2024, respectively
589,936 588,764 
$1 billion senior unsecured revolving credit facility with an effective interest rate of 5.22%, less deferred issuance costs of $2.8 million and $3.6 million at December 31, 2025 and December 31, 2024, respectively
469,783 336,420 
Economic development loans with an effective interest rate of 3.00% at December 31, 2025
1,850 — 
Total long-term debt$1,906,122 $1,768,526 
As of December 31, 2025, the scheduled principal maturities of debt, net of unamortized discounts, premiums, and deferred issuance costs, were as follows:
(in thousands)Senior NotesRevolving Credit
Facility		Other Notes PayableTotal
2026$— $— $— $— 
2027— — — — 
2028— — — — 
2029397,643 469,783 — 867,426 
2030— — — — 
Thereafter1,036,846 — 1,850 1,038,696 
Total payments$1,434,489 $469,783 $1,850 $1,906,122 
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company estimates the fair value of its financial instruments utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The following summarizes the three levels of inputs, as well as the assets that the Company values using those levels of inputs on a recurring basis.
Level 1 - Quoted prices in active markets for identical assets and liabilities. The Company’s Level 1 assets consist of mutual funds held in the Company's Deferred Compensation Plan.
Level 2 - Observable inputs, other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable. The Company’s Level 2 assets consist of money market funds held in the Company's Deferred Compensation Plan.
Level 3 - Unobservable inputs, supported by little or no market data available, where the reporting entity is required to develop its own assumptions to determine the fair value of the instrument. The Company does not currently have any assets recorded at fair value on a recurring basis whose fair value was determined using Level 3 inputs and there were no transfers of Level 3 assets during the years ended December 31, 2025 and 2024.
The Company recognized the following assets at fair value on a recurring basis in the consolidated balance sheets:
Fair Value Measurements at Reporting Date Using
(in thousands)TotalLevel 1Level 2Level 3
As of December 31, 2025
Mutual funds(1)
$47,713 $47,713 $— $— 
Money market funds(1)
4,281 — 4,281 — 
Total$51,994 $47,713 $4,281 $— 
As of December 31, 2024
Mutual funds(1)
$43,887 $43,887 $— $— 
Money market funds(1)
5,439 — 5,439 — 
Total$49,326 $43,887 $5,439 $— 
(1)The current assets at fair value noted above are presented in prepaid expenses and other current assets in the consolidated balance sheets. The long-term assets at fair value noted above are presented in investments for employee benefit plans, at fair value in the consolidated balance sheets.
Other Financial Instruments Disclosure
The Company believes that the fair values of its current assets and current liabilities approximate their reported carrying amounts due to the short-term nature of these items. In addition, the interest rate on the senior unsecured revolving credit facility adjusts frequently based on current market interest rates; therefore, the Company believes the carrying amount approximates the fair value.
The fair values of the Company's senior unsecured notes are classified as Level 2 because the significant inputs are observable in an active market. Refer to Note 9 for additional information on debt. As of December 31, 2025 and 2024, the carrying amounts and the fair values were as follows:
December 31, 2025December 31, 2024
(in thousands)Carrying AmountFair ValueCarrying AmountFair Value
2019 Senior Notes Due 2029$397,643 $389,612 $397,042 $371,600 
2020 Senior Notes Due 2031$446,910 $428,963 $446,300 $405,351 
2024 Senior Notes Due 2034$589,936 $612,612 $588,764 $601,836 
The fair value estimates are determined at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. The settlement of such fair value amounts may not be possible or a prudent management decision.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's income before income taxes, classified by source of income, was as follows:
 Year Ended December 31,
(in thousands)202520242023
U.S.$324,611 $370,395 $303,337 
Outside the U.S.132,280 25,250 33,619 
Income before income taxes$456,891 $395,645 $336,956 
The provision for income taxes, classified by the timing and the location of payment, was as follows:
Year Ended December 31,
(in thousands)202520242023
Current tax expense
Federal$45,262 $89,716 $60,493 
State10,890 21,518 16,890 
Foreign4,5682,609 1,593 
Deferred tax expense (benefit)
Federal17,330 (18,378)(2,022)
State4,343 (2,908)(1,874)
Foreign4,552 3,423 3,369 
Income tax expense$86,945 $95,980 $78,449 
The net deferred tax assets were as follows:
December 31,
(in thousands)20252024
Deferred tax assets:
Accrued compensation$21,571 $20,958 
Deferred revenue36,209 40,946 
Receivable, net13,888 12,345 
Tax credits34,615 24,663 
Operating lease liabilities27,872 28,455 
Partnership interests2,896 5,130 
Capitalized research and experimental expenditures35,253 44,946 
Foreign net operating losses7,651 7,870 
Non-U.S. intellectual property7,555 11,333 
Other5,015 7,235 
Total gross deferred tax assets192,525 203,881 
Less: Valuation allowance(33,542)(29,660)
       Deferred tax assets$158,983 $174,221 
Deferred tax liabilities:
Property, equipment and intangible assets$(87,465)$(42,895)
Operating lease ROU assets(18,601)(20,016)
Other(2,849)(3,002)
       Deferred tax liabilities(108,915)(65,913)
Net deferred tax assets$50,068 $108,308 
The Company assesses all positive and negative evidence to estimate whether sufficient future taxable income will be generated to use its deferred tax assets. Based on this evaluation, the Company recorded a net change to its valuation allowance of $3.9 million due to state tax credits and foreign NOLs.
The Company has $28.0 million of state income tax credit carryforwards as of December 31, 2025. It is unlikely that the Company will realize these benefits. Accordingly, the Company has provided a full valuation allowance against these carryforwards.
As of December 31, 2025, the Company had gross foreign net operating losses ("NOLs") of $28.3 million, all of which have indefinite carryforward lives. The Company has recorded a tax-effected valuation allowance of $2.4 million for these NOLs, primarily related to Australia and India. In addition, the Company has a Dutch deferred tax asset of $7.6 million, for which it has recorded a valuation allowance of $3.0 million. The Dutch valuation allowance did not change during the year ended December 31, 2025.

The following table presents a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate for continuing operations, in accordance with ASU 2023-09 for the year ended December 31, 2025. Refer to Note 1 for more information on the adoption of ASU 2023-09.
 Year Ended December 31,
 2025
(in thousands, except percentages)AmountPercent
U.S. federal statutory tax rate$95,989 21.0 %
State and local income taxes, net of federal income tax effect (1)
11,996 2.6 
Foreign tax effects:
Canada:
Federal statutory tax rate difference between Canada and U.S.(6,137)(1.3)
Non-taxable gain(15,026)(3.3)
Netherlands1,169 0.3 
Other foreign jurisdictions (2)
2,130 0.4 
Effects of cross-border tax laws(903)(0.2)
Tax credits
  Research & development tax credits(4,861)(1.1)
  Other(3,107)(0.7)
Nontaxable or nondeductible items:
Expenses related to compensation, net5,271 1.2 
Other927 0.2 
Changes in unrecognized tax benefits(455)(0.1)
Other(48)— 
Effective income tax rate$86,945 19.0 %
(1) State taxes in Minnesota, California, New York, Illinois, Georgia, Florida, Tennessee, and Wisconsin made up the majority (greater than 50%) of the tax effect of this category.
(2) All other foreign jurisdictions do not exceed the 5% threshold at the jurisdiction level in total or for individual reconciling items of the same nature within each jurisdiction.
The Company's effective income tax rate from continuing operations was 19.0% for the year ended December 31, 2025.
The effective income tax rate for the year ended December 31, 2025 was lower than the U.S. federal income tax rate of 21.0% primarily due to the impact of a $100.0 million non-taxable gain from an acquisition of a joint venture and federal income tax credits, which were partially offset by the impact of state income taxes and tax expense related to compensation.

The following table presents a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate for continuing operations as previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09.
 Year Ended December 31,
 20242023
Statutory U.S. federal income tax rate21.0 %21.0 %
State income taxes, net of federal tax benefit3.5 %3.2 %
Expenses related to foreign operations0.7 %0.3 %
Expenses related to compensation, net1.3 %1.0 %
Unrecognized tax positions(0.8)%0.5 %
Tax credits(2.4)%(2.4)%
Valuation allowance0.6 %0.6 %
Other0.4 %(0.9)%
Effective income tax rate24.3 %23.3 %
The Company's effective income tax rates from continuing operations were 24.3% and 23.3% for the years ended December 31, 2024 and 2023, respectively.
The effective income tax rates for the years ended December 31, 2024 and 2023 were higher than the U.S. federal income tax rate of 21.0% primarily due to the impact of state income taxes and tax expense related to compensation, which were partially offset by federal income tax credits.
For the years ended December 31, 2025, 2024, and 2023, the Company’s gross unrecognized tax benefits totaled $5.8 million, $6.9 million, and $13.4 million, respectively. After considering the deferred income tax accounting impact, it is expected that approximately $3.5 million of the total as of December 31, 2025 would reduce the effective income tax rate if resolved in the Company’s favor.
The following table presents a reconciliation of the beginning and ending amounts of the unrecognized tax benefits:
(in thousands)202520242023
Balance, January 1$6,914 $13,434 $11,876 
Changes for tax positions of prior years91 (776)2,338 
Increases for tax positions related to the current year1,400 1,516 1,670 
Settlements and lapsing of statutes of limitations(2,573)(7,260)(2,450)
Balance, December 31$5,832 $6,914 $13,434 
The Company files income tax returns in the U.S. federal jurisdiction and various state, local, and foreign jurisdictions. The Company's federal income tax returns for the 2022, 2023, 2024, and 2025 tax years are subject to examination by the Internal Revenue Service.
The Company's policy is to recognize interest and penalties related to income tax matters in the provision for income taxes. The Company did not incur any material interest or penalties during the years ended December 31, 2025, 2024, and 2023. The Company had no accrued interest and penalties as of December 31, 2025. The Company had $0.3 million of accrued interest and penalties as of December 31, 2024.
v3.25.4
Share-Based Compensation and Capital Stock
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation and Capital Stock Share-Based Compensation and Capital Stock
Share-Based Compensation
The Company has stock compensation plans pursuant to which it is authorized to grant share-based awards, including restricted stock, stock options, stock appreciation rights, and performance-based share awards, to officers, key employees, and non-employee directors with contractual terms that are set by the Compensation and Management Development Committee of the Board of Directors. Approximately 1.9 million shares of the Company's common stock remain available for grant as of December 31, 2025. The Company’s policy allows the issuance of new common stock shares or treasury shares to satisfy the share-based awards.
For the year ended December 31, 2025, the following table presents a summary of the share-based award activity:
2025
Stock OptionsRestricted StockPerformance Vested
Restricted Stock Units
OptionsWeighted Average Exercise PriceWeighted
Average
Remaining Contractual
Life 		SharesWeighted
Average Grant
Date Fair Value		SharesWeighted
Average Grant
Date Fair Value
Outstanding as of January 1, 2025771,641 $111.15 355,405 $136.67 467,521 $137.74 
Granted— — 65,223 132.64 148,709 150.77 
Performance-based leveraging*— — — — (41,012)125.90 
Exercised/vested(62,025)107.71 (65,961)129.32 (116,107)151.76 
Expired(12,850)135.92 — — — — 
Forfeited(1,683)137.55 (11,502)125.14 (14,300)146.55 
Outstanding as of December 31, 2025695,083 $110.98 5.2 years343,165 $138.02 444,811 $138.89 
Options exercisable as of December 31, 2025560,223 $107.84 4.7 years
* Any revisions to the outstanding PVRSUs during the year ended December 31, 2025 are based on the Company's performance relative to the targeted performance conditions in the respective PVRSUs.
The components of the Company’s share-based compensation expense were as follows:
For the Year Ended December 31,
(in thousands)202520242023
Stock options$3,946 $5,265 $5,816 
Restricted stock12,785 12,728 13,774 
Performance vested restricted stock units21,590 20,447 20,924 
Total share-based compensation expense$38,321 $38,440 $40,514 
The following table as of December 31, 2025 is a summary of the total unrecognized compensation expense related to the share-based awards that have not yet vested and the related weighted average remaining amortization periods over which the compensation expense will be recognized:
(in thousands)Unrecognized Compensation Expense on Unvested AwardsWeighted Average Remaining Amortization Period
Stock options$1,776 1.5 years
Restricted stock18,507 1.9 years
Performance vested restricted stock units18,749 1.7 years
Total$39,032 
Stock Options
The following table is a summary of the activity related to the stock options:
For the Year Ended December 31,
202520242023
Number of options granted— 78,988 88,733 
Fair value of options granted (in thousands)$— $3,069 $3,779 
Total intrinsic value of stock options exercised (in thousands)$2,356 $12,185 $9,170 
Total fair value of stock options vested (in thousands)$5,108 $5,032 $4,857 
The stock options granted by the Company had an exercise price equal to the market price of the Company’s common stock on the date of grant. As of December 31, 2025, the aggregate intrinsic value of the stock options outstanding and exercisable was $1.5 million and $1.5 million, respectively.
The fair value of the options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:
 
202520242023
Risk-free interest rate— 4.27 %4.10 %
Expected volatility— 31.34 %30.90 %
Expected life of stock option— 6.0 years6.0 years
Dividend yield— 1.03 %0.90 %
Requisite service period— 4 years4 years
Contractual life— 10 years10 years
Weighted average fair value of the stock options granted (per stock option)$— $38.85 $42.59 
The expected life of the stock options and the expected volatility are based on historical data which is believed to be indicative of future exercise patterns and volatility. The historical volatility is calculated based on a period that corresponds to the expected life of the stock option. The dividend yield and the risk-free interest rate are calculated on the grant date based on the then-current dividend rate and the risk-free interest rate for the period corresponding to the expected life of the stock option.
Restricted Stock
The following table is a summary of the activity related to the restricted stock:
For the Year Ended December 31,
202520242023
Restricted shares granted65,223 69,249 65,991 
Weighted average grant date fair value per share$132.64 $115.57 $123.65 
Aggregate grant date fair value (in thousands)$8,651 $8,003 $8,160 
Restricted shares forfeited11,502 16,246 13,202 
Vesting service period for the restricted shares granted
9 - 48 months
9 - 48 months
9 - 48 months
Fair value of the restricted shares vested (in thousands)$8,790 $6,804 $11,134 
Performance Vested Restricted Stock Units
The following table is a summary of the activity related to the PVRSUs:
For the Year Ended December 31,
202520242023
PVRSUs granted at target148,709 147,943 110,636 
Weighted average grant date fair value per share$150.77 $115.04 $128.71 
Aggregate grant date fair value (in thousands)$22,421 $17,019 $14,240 
PVRSUs forfeited & expired14,300 23,710 16,504 
Requisite service period
9 - 48 months
9 - 48 months
9 - 48 months
Fair value of PVRSUs vested (in thousands)$17,621 $15,773 $17,413 
During the year ended December 31, 2025, the Company granted PVRSUs with performance conditions, PVRSUs with market conditions, and PVRSUs with performance and market conditions, with requisite service periods between 9 months and 48 months and with award vesting ranges generally between 0% and 230% of the initial units granted.
Share Repurchases and Redemptions
During the years ended December 31, 2025, 2024, and 2023, the Company redeemed 71,386, 120,601, and 114,242 shares of common stock, respectively, at a total cost of approximately $9.9 million, $12.4 million, and $14.2 million, respectively, from employees to satisfy the stock option exercise price and the statutory minimum tax-withholding requirements related to exercising stock options and the vesting of performance vested restricted stock units and restricted stock grants. These redemptions were outside of the share repurchase program.
v3.25.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The Company’s shares of restricted stock contain rights to receive nonforfeitable dividends and thus are participating securities requiring the computation of basic earnings per share using the two-class method. The shares of restricted stock are both potential shares of common stock and participating securities so the Company calculates diluted earnings per share by using the more dilutive of the treasury stock method or the two-class method. The calculation of earnings per share for the net income available to common shareholders excludes the distribution of dividends and the undistributed earnings attributable to the participating securities from the numerator. The diluted earnings per share includes stock options, PVRSUs, and RSUs in the calculation of the weighted average shares of common stock outstanding.
The computation of basic and diluted earnings per share was as follows:
 Year Ended December 31,
 (in thousands, except per share amounts)202520242023
Numerator:
Net income$369,946 $299,665 $258,507 
Income allocated to participating securities(1,780)(1,521)(1,379)
Net income available to common shareholders$368,166 $298,144 $257,128 
Denominator:
Weighted average shares of common stock outstanding - basic46,170 47,653 50,341 
Basic earnings per share$7.97 $6.26 $5.11 
Numerator:
Net income$369,946 $299,665 $258,507 
Income allocated to participating securities(1,780)(1,521)(1,379)
Net income available to common shareholders$368,166 $298,144 $257,128 
Denominator:
Weighted average shares of common stock outstanding - basic46,170 47,653 50,341 
Dilutive effect of stock options, PVRSUs, and RSUs410 425 359 
Weighted average shares of common stock outstanding - diluted46,580 48,078 50,700 
Diluted earnings per share$7.90 $6.20 $5.07 
The following securities have been excluded from the calculation of the diluted weighted average shares of common stock outstanding because the inclusion of these securities would have an anti-dilutive effect:
 Year Ended December 31,
(in thousands)202520242023
Stock options202 147 232 
PVRSUs46 7 71 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company has operating leases for office spaces, buildings, and equipment. The Company's leases, excluding the assumed ground lease discussed below, have remaining lease terms of two to nine years, some of which include options to extend the lease for up to ten years. Additionally, the Company has a ground lease on an owned hotel with a remaining lease term of 86.3 years.
The Company's lease costs were as follows:
Year Ended December 31,
(in thousands)20252024
Operating lease cost$12,130 $11,979 
Sublease income(937)(789)
Total lease cost$11,193 $11,190 
Other information related to the Company's lease arrangements were as follows:
Year Ended December 31,
(in thousands)20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$8,602 $6,637 
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating lease assets obtained in exchange for operating lease liabilities$427 $4,585 
Weighted-average remaining lease term31.6 years31.7 years
Weighted-average discount rate5.09 %5.07 %
As of December 31, 2025, the future minimum lease payments were as follows:
(in thousands)
2026$13,071 
202713,697 
202813,594 
202913,586 
203013,642 
Thereafter297,944 
Total minimum lease payments$365,534 
Less: imputed interest249,207 
Present value of the minimum lease payments$116,327 
Leases Leases
The Company has operating leases for office spaces, buildings, and equipment. The Company's leases, excluding the assumed ground lease discussed below, have remaining lease terms of two to nine years, some of which include options to extend the lease for up to ten years. Additionally, the Company has a ground lease on an owned hotel with a remaining lease term of 86.3 years.
The Company's lease costs were as follows:
Year Ended December 31,
(in thousands)20252024
Operating lease cost$12,130 $11,979 
Sublease income(937)(789)
Total lease cost$11,193 $11,190 
Other information related to the Company's lease arrangements were as follows:
Year Ended December 31,
(in thousands)20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$8,602 $6,637 
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating lease assets obtained in exchange for operating lease liabilities$427 $4,585 
Weighted-average remaining lease term31.6 years31.7 years
Weighted-average discount rate5.09 %5.07 %
As of December 31, 2025, the future minimum lease payments were as follows:
(in thousands)
2026$13,071 
202713,697 
202813,594 
202913,586 
203013,642 
Thereafter297,944 
Total minimum lease payments$365,534 
Less: imputed interest249,207 
Present value of the minimum lease payments$116,327 
v3.25.4
Reportable Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Reportable Segment Information Reportable Segment Information
The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations which consists of its 22 brands and brand extensions and the hotel management operations of 13 hotels (inclusive of four owned hotels). The 22 brands and brand extensions and hotel management operations are aggregated together within this reportable segment because they have similar economic characteristics, types of customers, distribution channels, and regulatory business environments. The revenues from the hotel franchising and management business include royalty fees, initial franchise fees and relicensing fees, cost reimbursement revenues, partnership services and fees, base and incentive management fees, and other hotel franchising and management-related revenue. The Company provides certain services under its franchise and management agreements which result in direct and indirect reimbursements. The cost reimbursement revenues received from the franchisees are included in Hotel Franchising & Management revenues and are offset by the related expenses in order to calculate Hotel Franchising & Management operating income. The equity in the earnings or losses from the hotel franchising-related investment in affiliates is allocated to the Hotel Franchising & Management reportable segment.
The Company evaluates its Hotel Franchising & Management reportable segment based primarily on the operating income of the segment without allocating corporate expenses or indirect general and administrative expenses. The Corporate & Other column includes the operations of the Company's owned hotels.
Intersegment Eliminations to revenues is the elimination of Hotel Franchising & Management revenue which includes royalty fees, management and cost reimbursement fees charged to our owned hotels against the franchise and management fee expense that is recognized by our owned hotels in Corporate & Other operating income (loss).
Our President and Chief Executive Officer, who is our chief operating decision maker ("CODM"), utilizes budgeted and forecasted financial information as well as industry metrics, such as RevPar, Occupancy, and ADR, to assess the performance and to make resource allocation decisions. The CODM does not use assets by operating segment when assessing the performance or when making operating segment resource allocation decisions and therefore, assets by segment are not disclosed below.
The following tables presents the financial information for the Company's segments:
 For the Year Ended December 31, 2025
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$1,472,535 $137,439 $(13,181)$1,596,793 
Other Segment Items (1)
834,953 266,907 (13,181)1,088,679 
Depreciation and amortization34,520 25,195 — 59,715 
Operating income (loss)603,062 (154,663)— 448,399 
Reconciliation of segment profit or loss:
Interest expense91,148 
Interest income(6,237)
Gain from an acquisition of a joint venture(100,025)
Gain on sale of assets(713)
Other gains, net(6,989)
Equity in net loss of affiliates14,324 
Income before income taxes$456,891 
 For the Year Ended December 31, 2024
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$1,470,592 $126,450 $(12,203)$1,584,839 
Other Segment Items (1)
857,843 223,473 (12,203)1,069,113 
Depreciation and amortization28,450 23,503 — 51,953 
Operating income (loss)584,299 (120,526)— 463,773 
Reconciliation of segment profit or loss:
Interest expense87,131 
Interest income(8,646)
Loss on extinguishment of debt331 
Other losses, net1,641 
Equity in net gain of affiliates(12,329)
Income before income taxes$395,645 
 For the Year Ended December 31, 2023
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$1,444,394 $110,854 $(11,083)$1,544,165 
Other Segment Items (1)
911,301 223,881 (11,083)1,124,099 
Depreciation and amortization24,562 20,476 — 45,038 
Operating income (loss)508,531 (133,503)— 375,028 
Reconciliation of segment profit or loss:
Interest expense63,780 
Interest income(7,764)
Gain on extinguishment of debt(4,416)
Other gains, net(10,649)
Equity in net gain of affiliates(2,879)
Income before income taxes$336,956 
(1) Other segment items for the reportable segment include selling, general and administrative expenses and reimbursable expenses from franchised and managed properties.
For the years ended December 31, 2025, 2024, and 2023, the revenues generated by the international operations, including royalty fees, cost reimbursement revenues, partnership services and fees, and other revenues, were $117.8 million, $102.7 million, and $103.2 million, respectively.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
The Company is not a party to any litigation other than litigation in the ordinary course of business. The Company's management and legal counsel do not expect that the ultimate outcome of any of its current legal proceedings, individually or in the aggregate, will have a material adverse effect on the Company's financial position, results of operations, or cash flows.
Contingencies
The Company entered into various limited payment guaranties with regards to the Company’s VIEs in order to support its efforts to develop and own hotels that are franchised under the Company’s brands. Under these limited payment guaranties, the Company has agreed to guarantee a portion of the outstanding debt until certain conditions are met, such as (a) the loan matures, (b) certain debt covenants are achieved, (c) the maximum amount guaranteed by the Company is paid in full, or (d) the Company, through its affiliates, ceases to be a member of the VIE. As of December 31, 2025, the maximum unrecorded exposure of the principal associated with these limited payment guaranties was $38.5 million, plus unpaid expenses and accrued but unpaid interest. The Company believes the likelihood of having to perform under these guaranties is remote. In the event of performance, the Company has recourse for certain of the guaranties in the form of partial guaranties from third parties.
Commitments
The Company had the following outstanding commitments as of December 31, 2025:
•As part of the acquisition of Radisson Hotels Americas in August 2022, the Company entered into a long-term management arrangement, with an expiration date of July 31, 2031, to manage hotels owned by a third-party. As of December 31, 2025, the Company managed seven hotels pursuant to the long-term management arrangement. In conjunction with the management arrangement, the Company entered into a guarantee with the third-party to fund any shortfalls in the payment of the third-party owner’s priority that is stipulated in the management agreement. As of December 31, 2025, no liability was recognized in the consolidated balance sheets. For the year ended December 31, 2025, the Company recognized guarantee payments of $3.8 million in selling, general and administrative expenses in the consolidated statements of income. As of December 31, 2025, the maximum unrecorded exposure of the guarantee was $18.2 million.
•The Company strategically deploys capital in the form of franchise agreement acquisition cost payments across our brands to incentivize franchise development. These payments are typically made at the commencement of construction or the hotel's opening, in accordance with agreed upon provisions in the individual franchise agreements. The timing and the amount of the franchise agreement acquisition cost payments are dependent on various factors, including the implementation of various development and brand incentive programs, the level of franchise sales, and the ability of our franchisees to complete construction or convert their hotels to one of the Company’s brands.
•The Company has committed to provide financing in the form of loans or credit facilities to franchisees for brand development efforts. As of December 31, 2025, the Company had remaining commitments of up to $3.5 million, if certain conditions are met.
•The Company’s franchise agreements require the payment of franchise fees, which include marketing and reservation fees. In accordance with the terms of our franchise agreements, the Company is obligated to use the marketing and reservation revenues it collects from the current franchisees to provide marketing and reservation services that are appropriate to support the operation of the overall system. To the extent the revenues collected exceed the expenditures incurred, the Company has a commitment to the franchisee system to make expenditures in future years. Conversely, to the extent the expenditures incurred exceed the revenues collected, the Company has the contractual enforceable right to assess and collect such amounts from the franchisees.
•The Company has committed to purchase transferable production tax credits generated by qualified solar energy facilities for an aggregate purchase price of approximately $193 million over an eleven year period, from 2026 through 2036. The Company’s commitments are contingent upon the satisfaction of certain legal and contractual conditions from the sellers, and the continued availability of the credits under federal tax laws. The Company expects to utilize these credits in the same quarter in which they are purchased, offsetting federal income tax estimated payments and reducing income tax expense each year.
In the ordinary course of business, the Company enters into numerous agreements that contain standard indemnities whereby the Company indemnifies another party for breaches of representations and warranties. Such indemnifications are granted under various agreements, including those governing (i) purchases or sales of assets or businesses, (ii) leases of real estate,
(iii) licensing of trademarks, (iv) access to credit facilities, (v) issuances of debt or equity securities, and (vi) certain operating agreements. The indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) franchisees in licensing agreements, (iv) financial institutions in credit facility arrangements, (v) underwriters in debt or equity security issuances, and (vi) parties under certain operating agreements. In addition, these parties are also generally indemnified against any third-party claim resulting from the transaction that is contemplated in the underlying agreement. While some of these indemnities extend only for the duration of the underlying agreement, many survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of the future payments that the Company could be required to make under these indemnities, nor is the Company able to develop an estimate of the maximum potential amount of the future payments that could be made under these indemnifications as the triggering events are not subject to predictability. With respect to certain of the aforementioned indemnities, such as the indemnifications of the landlords against third-party claims for the use of real estate property leased by the Company, the Company maintains insurance coverage that mitigates any potential liability.
v3.25.4
Acquisitions
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Choice Hotels Canada Acquisition
On July 2, 2025, the Company completed the acquisition (the “Transaction”) of the remaining 50% of the outstanding shares of Choice Hotels Canada, Inc. ("Choice Hotels Canada") and amended the existing master franchise agreement for a purchase price of approximately $114.5 million, inclusive of preliminary customary adjustments related to working capital and cash. The acquisition was funded with available cash and borrowings under the Company's senior unsecured revolving credit facility. Choice Hotels Canada franchises more than 26,000 rooms in Canada, which have historically been included in the Company's franchised hotel statistics as a result of the prior master franchise agreement. Choice Hotels Canada now has the ability to offer developers access to all of the Company's 22 hotel brands and brand extensions, including the Company's extended stay brands. Prior to the acquisition date, the Company owned 50% of the outstanding shares of Choice Hotels Canada, which was accounted for under the equity method of accounting and reported within investments in affiliates in the consolidated balance sheets. As a result of the Transaction, Choice Hotels Canada is now a wholly-owned and consolidated subsidiary of the Company, and the Transaction was accounted for as a business combination using the acquisition method.
In connection with the Transaction, the Company remeasured the value of its previously held 50% equity investment to its acquisition date fair value of $114.5 million, which resulted in a gain of approximately $100.0 million that is reported within gain from an acquisition of a joint venture in the consolidated statements of income. The fair value of the previously held equity investment was determined using a market approach based on the cash consideration exchanged for the newly acquired 50% equity interest.
The following is a summary of the purchase consideration transferred:
Purchase Consideration
(in thousands)
Cash consideration transferred for the newly acquired interest$114,470 
Fair value of the previously held interest114,470 
Effective settlement of intercompany payables3,280 
Total consideration, including previously held interest$232,220 
During the year ended December 31, 2025, the Company recognized transaction and transition costs of $2.2 million in business combination, diligence and transition costs in the consolidated statements of income.
Preliminary Fair Values of the Assets Acquired and the Liabilities Assumed
The Company allocated the purchase price based upon a preliminary assessment of the fair value of the assets acquired and the liabilities assumed on July 2, 2025. The preliminary fair values are based on management’s estimates and assumptions, using the best information available at the time of this filing. The final valuation and related allocation of the purchase price will be completed no later than 12 months after the closing date of the acquisition. The final acquisition accounting adjustments could be materially different and may include (1) changes in the allocations to the intangible assets as well as goodwill, and (2) other changes to assets and liabilities, such as working capital. The preliminary allocation of the purchase price is as follows:
(in thousands)July 2, 2025
Assets acquired
Cash and cash equivalents$44,356 
Accounts receivable10,706 
Income taxes receivable149 
Prepaid expenses and other current assets335 
Operating lease right-of-use assets358 
Intangible assets150,665 
Total assets acquired$206,569 
Liabilities assumed
Accounts payable$5,235 
Accrued expenses and other current liabilities1,926 
Deferred revenue - current333 
Liability for guest loyalty program - current7,194 
Deferred income taxes38,045 
Long-term deferred revenue1,845 
Operating lease liabilities358 
Liability for guest loyalty program - noncurrent5,607 
Total liabilities assumed$60,543 
Fair value of net assets acquired$146,026 
Goodwill86,194 
Total consideration, including previously held interest$232,220 
Identified Intangible Assets
The following table presents the estimated fair values of the acquired identified intangible assets and their estimated useful lives:
Estimated Useful LifeEstimated Fair Value
(in years)(in thousands)
Reacquired territory rights38$76,523 
Franchise agreements1274,142 
Total intangible assets$150,665 
The reacquired territory rights represent the reacquired rights for the use of certain Choice brands within Canada. The fair value of the reacquired territory rights and the franchise agreements was estimated using a multi-period excess earnings method, which is a variation of the income approach. This method uses the present value of the incremental after-tax cash flows attributable to the intangible asset in order to estimate the fair value. This valuation methodology utilizes Level 3 inputs, and the Company is continuing to assess the assumptions used in estimating these values as well as the respective useful lives, which could result in changes to the provisional values.
Income Taxes
As the Transaction is accounted for as a business combination, deferred tax assets and liabilities are generally recognized on the differences between the fair value of the assets acquired and the liabilities assumed and the tax bases of the assets acquired and the liabilities assumed in the business combination. The Transaction consists of a foreign entity, so the Company asserts an indefinite reinvestment and has not recorded a deferred tax liability on the outside basis difference in its investment.
Pro Forma Results of Operations
The following unaudited pro forma information presents the combined results of operations of Choice and Choice Hotels Canada as if the Company had completed the Transaction on January 1, 2024, but using the preliminary fair values of the assets acquired and the liabilities assumed as of the acquisition date. The unaudited pro forma information reflects adjustments relating to (i) the allocation of the purchase price and related adjustments, including the incremental amortization expense based on the preliminary fair values of the intangible assets acquired, (ii) the incremental impact of the senior unsecured revolving credit facility draw on interest expense, (iii) nonrecurring transaction costs, and (iv) the income tax impact of the aforementioned pro forma adjustments.
As required by GAAP, these unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Transaction had occurred at the beginning of the period presented, nor are they indicative of the future results of operations.
Year Ended December 31,
(in thousands)20252024
Revenues$1,613,116 $1,623,945 
Net income (1)
$268,603 $296,040 
(1) The gain on the previously held 50% equity interest in Choice Hotels Canada is excluded from the pro forma results of operations.
Choice Hotels Canada Results of Operations
The Company's consolidated statements of income include Choice Hotels Canada's results of operations since the July 2, 2025 acquisition date. Choice Hotels Canada contributed $24.9 million and $9.4 million in total revenues and net income, respectively, for the year ended December 31, 2025.
Goodwill
The $86.2 million of goodwill recognized is primarily attributable to the value that the Company expects to realize from the existing customer base, cost synergies, and new agreements signed with new franchisees and developers. The goodwill for the Transaction is fully attributable to the Hotel Franchising & Management reportable segment and is not deductible for tax purposes. Refer to Note 5 for the reconciliation of the Company's goodwill balance.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
The following table describes, for the fourth quarter of 2025, each trading arrangement for the sale or purchase of Company securities adopted or terminated by our directors and officers that is either (i) a contract, instruction, or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a “Rule 10b5-1 trading arrangement”), or (ii) a “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(c) of Regulation S-K):
Name
(Title)		Action Taken (Date of Action)Type of Trading ArrangementNature of Trading ArrangementDuration of Trading ArrangementAggregate Number of Securities Covered
Patrick S. Pacious
(President and Chief Executive Officer)
Adopted (December 12, 2025)
Rule 10b5-1 trading arrangementSale
Expires June 10, 2026, unless earlier terminated
31,732
Scott E. Oaksmith
(Chief Financial Officer)
Adopted (December 12, 2025)
Rule 10b5-1 trading arrangementSale(1)(1)
(1)This trading plan relates to up to 7,280 shares of the Company's common stock and has a scheduled expiration date of March 31, 2026, unless terminated earlier. The actual number of shares that may be sold will depend on (i) the vesting of the underlying equity award, which is subject to the achievement of certain performance criteria, and (ii) the number of shares that may be withheld to satisfy the minimum tax-withholding requirements related to the vesting of such award.
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Patrick S. Pacious [Member]  
Trading Arrangements, by Individual  
Name Patrick S. Pacious
Title President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 12, 2025
Expiration Date June 10, 2026
Arrangement Duration 180 days
Aggregate Available 31,732
Scott E. Oaksmith [Member]  
Trading Arrangements, by Individual  
Name Scott E. Oaksmith
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 12, 2025
Expiration Date March 31, 2026
Arrangement Duration 109 days
Aggregate Available 7,280
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Strategy
Cybersecurity is an important element of the Company’s overall enterprise risk management program. The Company has a multilayered system intended to assess, identify, and manage cybersecurity risks. The system is designed to help protect the Company’s information assets and operations from internal and external cyber threats. The system is used to understand and manage risks to help support business resiliency and to protect data subjects' information from unauthorized access or attack, as well as to secure the Company’s networks, systems, devices, products, and services. Cybersecurity is incorporated into the Company’s enterprise risk management program through membership within and regular reporting to the Enterprise Risk Committee.
The Company devotes significant resources to help protect and evolve the security of its computer systems, software, networks, and other technology assets, and the Company’s cybersecurity risk management program includes physical, administrative, and technical safeguards. The Company’s cybersecurity policies, standards, and procedures include data breach response plans, which are reviewed regularly. The Company annually assesses its cybersecurity program and safeguards against the National Institute of Standards of Technology Cybersecurity Framework (the “Framework”). The Company's cyber incident response plan is designed to help coordinate our response to, and recovery from, cybersecurity incidents, and includes processes intended
to triage, assess the severity of, escalate, contain, investigate, and remediate incidents, as well as to comply with applicable legal obligations.
The Company endeavors to continually refine its policies and practices to help protect its platform, adapt to changes in regulations, identify potential and emerging security risks, and develop mitigations for those risks. For example, the Company seeks to conduct incident simulations and assessments regularly to help discover potential vulnerabilities, with the objective to improve decision-making and prioritize and promote the monitoring and reporting across compliance functions. As part of its overall risk mitigation strategy, the Company also maintains cyber insurance coverage.
The Company engages external parties, including consultants, computer security firms, and risk management and governance experts, as part of its cybersecurity program. For example, the Company’s independent assessor provides a periodic assessment of the Company’s risk posture to help identify threats as well as opportunities to enhance safeguards. Annually, the Company’s adherence to the Payment Card Industry Data Security Standard is assessed by an external party which includes one or more penetration tests of the Company’s applicable technological environment. The Company has engaged an independent security assessor to evaluate the Company’s cybersecurity program against the Framework. Additionally, the cybersecurity program is subject to regular assessment by internal audit and the Company's external auditors. The Company participates in the Retail & Hospitality Information Sharing and Analysis Center (“RH-ISAC”) where peer companies are engaged on industry trends and emerging threats, including those relating to cybersecurity.
To help oversee and identify risks from cybersecurity threats associated with the Company’s use of third-party service providers, the Company has a third-party information risk management program intended to minimize the likelihood of misuse of Choice data by third parties and business partners and requires that third-party service providers complete a periodic security risk assessment. Depending upon the identified risk, actions such as obligating the third party to remediate the identified deficiencies or termination of the relationship may occur. Also, depending upon the nature of the relationship and data, third party agreements include security and privacy provisions that oblige third parties to abide with applicable regulations and employ reasonable security controls.
The Company’s Board of Directors does not believe that there are currently any risks from cybersecurity threats that have materially affected, or are reasonably likely to materially affect, the Company or its business strategy, financial condition, results of operations, or cash flows. However, we have been the target of cybersecurity incidents and we expect them to continue as cybersecurity threats continue to evolve. We cannot eliminate all risks from cybersecurity threats or provide assurances that we have not experienced an undetected cybersecurity incident in the past or that we will not experience such an incident in the future. For more information on the risks from cybersecurity threats that we face, refer to Part I, Item 1A. Risk Factors.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Cybersecurity is an important element of the Company’s overall enterprise risk management program. The Company has a multilayered system intended to assess, identify, and manage cybersecurity risks. The system is designed to help protect the Company’s information assets and operations from internal and external cyber threats. The system is used to understand and manage risks to help support business resiliency and to protect data subjects' information from unauthorized access or attack, as well as to secure the Company’s networks, systems, devices, products, and services. Cybersecurity is incorporated into the Company’s enterprise risk management program through membership within and regular reporting to the Enterprise Risk Committee.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
The Audit Committee of the Company’s Board of Directors maintains oversight over cybersecurity risk, in coordination with the full Board of Directors. The Board of Directors and the Audit Committee receive and provide feedback on quarterly updates from management regarding cybersecurity, including highlights of recent incidents throughout the industry and the emerging threat landscape, as well as the prompt notice of any cybersecurity threats or incidents with the potential to significantly impact the Company, including its financial condition, results of operations, and cash flows, and regular updates about incidents with a lesser impact. Cybersecurity updates are rotated quarterly between the Board of Directors and the Audit Committee. The reports generally focus on items such as risk reduction efforts, emerging and existing threats, training initiatives, the status of projects to strengthen cybersecurity, emerging security and privacy regulatory policies and regulations, cybersecurity technologies and best practices, cyber readiness, results of third-party assessments, mitigation efforts, and response plans.
The Company has a Chief Information Security Officer (“CISO”) whose team is responsible for leading company-wide cybersecurity strategy, policy, standards, and processes and works across all of the units of the Company to help protect the Company and its employees against cybersecurity risks. The CISO has significant cybersecurity expertise, including prior cybersecurity leadership in banking and insurance organizations. The CISO holds a Master of Business Administration, as well as Certified Information Systems Security Professional, Certified Information Systems Auditor, and Certified Information Security Manager cybersecurity-related certifications. The CISO also serves as Chair of the Board for RH-ISAC.
The Company has also established a cross-functional cybersecurity oversight committee led by our CISO serving as the chair and consisting of executive-level leaders, that is responsible for the Company’s cybersecurity, disaster recovery, and business continuity programs. The Company’s internal audit team also provides independent assurance on the functional components of the Company’s cybersecurity program and reports the results of these audits in its quarterly reports to the Audit Committee.
In an effort to prevent and detect cyber threats, the Company annually provides all employees, including part-time and temporary, with cybersecurity and privacy training, which covers timely and relevant topics, including social engineering,
phishing, password protection, data protection, physical security, and educates employees on the importance of reporting all incidents immediately.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Company has a Chief Information Security Officer (“CISO”) whose team is responsible for leading company-wide cybersecurity strategy, policy, standards, and processes and works across all of the units of the Company to help protect the Company and its employees against cybersecurity risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors and the Audit Committee receive and provide feedback on quarterly updates from management regarding cybersecurity, including highlights of recent incidents throughout the industry and the emerging threat landscape, as well as the prompt notice of any cybersecurity threats or incidents with the potential to significantly impact the Company, including its financial condition, results of operations, and cash flows, and regular updates about incidents with a lesser impact. Cybersecurity updates are rotated quarterly between the Board of Directors and the Audit Committee. The reports generally focus on items such as risk reduction efforts, emerging and existing threats, training initiatives, the status of projects to strengthen cybersecurity, emerging security and privacy regulatory policies and regulations, cybersecurity technologies and best practices, cyber readiness, results of third-party assessments, mitigation efforts, and response plans.
Cybersecurity Risk Role of Management [Text Block]
The Company has a Chief Information Security Officer (“CISO”) whose team is responsible for leading company-wide cybersecurity strategy, policy, standards, and processes and works across all of the units of the Company to help protect the Company and its employees against cybersecurity risks. The CISO has significant cybersecurity expertise, including prior cybersecurity leadership in banking and insurance organizations. The CISO holds a Master of Business Administration, as well as Certified Information Systems Security Professional, Certified Information Systems Auditor, and Certified Information Security Manager cybersecurity-related certifications. The CISO also serves as Chair of the Board for RH-ISAC.
The Company has also established a cross-functional cybersecurity oversight committee led by our CISO serving as the chair and consisting of executive-level leaders, that is responsible for the Company’s cybersecurity, disaster recovery, and business continuity programs. The Company’s internal audit team also provides independent assurance on the functional components of the Company’s cybersecurity program and reports the results of these audits in its quarterly reports to the Audit Committee.
In an effort to prevent and detect cyber threats, the Company annually provides all employees, including part-time and temporary, with cybersecurity and privacy training, which covers timely and relevant topics, including social engineering,
phishing, password protection, data protection, physical security, and educates employees on the importance of reporting all incidents immediately.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Company has a Chief Information Security Officer (“CISO”) whose team is responsible for leading company-wide cybersecurity strategy, policy, standards, and processes and works across all of the units of the Company to help protect the Company and its employees against cybersecurity risks.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The CISO has significant cybersecurity expertise, including prior cybersecurity leadership in banking and insurance organizations. The CISO holds a Master of Business Administration, as well as Certified Information Systems Security Professional, Certified Information Systems Auditor, and Certified Information Security Manager cybersecurity-related certifications. The CISO also serves as Chair of the Board for RH-ISAC.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Board of Directors and the Audit Committee receive and provide feedback on quarterly updates from management regarding cybersecurity, including highlights of recent incidents throughout the industry and the emerging threat landscape, as well as the prompt notice of any cybersecurity threats or incidents with the potential to significantly impact the Company, including its financial condition, results of operations, and cash flows, and regular updates about incidents with a lesser impact. Cybersecurity updates are rotated quarterly between the Board of Directors and the Audit Committee. The reports generally focus on items such as risk reduction efforts, emerging and existing threats, training initiatives, the status of projects to strengthen cybersecurity, emerging security and privacy regulatory policies and regulations, cybersecurity technologies and best practices, cyber readiness, results of third-party assessments, mitigation efforts, and response plans.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Basis of Presentation and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements of Choice Hotels International, Inc. and subsidiaries (collectively, "Choice" or the "Company") have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation.
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying consolidated financial statements include all adjustments that are necessary to fairly present the Company's financial position and results of operations. Except as otherwise disclosed, all adjustments are of a normal recurring nature.
Reclassification
Certain prior year amounts in our consolidated financial statements have been reclassified in order to maintain comparability with the current year presentation. The reclassifications were not as a result of any error in our consolidated financial statements.
The Company reclassified certain prior year amounts in the consolidated statements of income in order to maintain comparability with the current year presentation.
•Royalty, licensing and management fees were revised to franchise and management fees in the consolidated statements of income, and now include the revenues previously presented in royalty, licensing and management fees, with the exception of partnership licensing revenues which are now presented in partnership services and fees in the consolidated statements of income, and the addition of the revenues generated from programs, platforms, and services associated with the Company's franchise operations which were previously presented in other revenues from franchised and managed properties in the consolidated statements of income.
•Initial franchise fees, which were previously presented as a standalone financial statement line item, are now presented within franchise and management fees in the consolidated statements of income.
•Platform and procurement services fees were revised to partnership services and fees in the consolidated statements of income, and now include the revenues previously presented in platform and procurement services fees, with the exception of the revenues from the Company’s annual franchisee convention which are now presented in other revenues, the addition of partnership licensing revenues which were previously presented in royalty, licensing and management fees, and the addition of the revenues generated from other non-franchising agreements which are primarily software as a service (“SaaS”) arrangements for non-franchised hoteliers which were previously presented in other revenues in the consolidated statements of income.
•Other revenues from franchised and managed properties were revised to revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income, and now include the revenues previously presented in other revenues from franchised and managed properties, with the exception of the revenues generated from programs, platforms, and services associated with the Company’s franchise operations which are now presented in franchise and management fees in the consolidated statements of income.
•Selling, general and administrative expenses were revised to include the expenses incurred related to programs, platforms, and services associated with the Company’s franchise operations, which were previously presented in other expenses from franchised and managed properties in the consolidated statements of income.
•Depreciation and amortization was revised to include amortization expense from information technology platforms, which was previously presented in other expenses from franchised and managed properties in the consolidated statements of income.
•Other expenses from franchised and managed properties were revised to reimbursable expenses from franchised and managed properties in the consolidated statements of income, and now include the expenses previously presented in other expenses from franchised and managed properties, with the exception of the expenses incurred from programs, platforms, and services associated with the Company’s franchise operations which are now presented in selling, general and administrative expenses, and amortization expense from information technology platforms which is now presented in depreciation and amortization expense in the consolidated statements of income.
Revenue Recognition
Revenue Recognition
Franchise Agreements
The Company's revenues are primarily derived from franchise agreements with third-party hotel owners. The majority of the Company’s performance obligations are a series of distinct services, which are described in more detail below, for which the Company receives variable consideration through franchise fees. The Company enters into franchise agreements to provide franchisees with a limited non-exclusive license to utilize the Company’s registered brand tradenames and trademarks, marketing and reservation services, and other miscellaneous franchise services. These agreements typically have an initial term of 10 to 30 years with provisions permitting the franchisees or the Company to terminate the franchise agreement upon designated anniversaries of the hotel opening before the end of the initial term. An up-front initial franchise fee is assessed to the third-party hotel owners to affiliate with our brands, which is typically paid prior to the execution of the franchise agreement and is non-refundable. After hotel opening, franchise fees are typically generated based on a percentage of gross room revenues
or as designated transactions and events occur (such as when a reservation is delivered to the hotel through a specified channel) and are invoiced by the Company in the following month.
The franchise agreements are comprised of multiple performance obligations, which may require significant judgment in identifying. The primary performance obligations are as follows:
•License of brand intellectual property and related services (“brand intellectual property”) - Grants the right to access the Company’s intellectual property associated with the brand tradenames, trademarks, reservation systems, property management systems, and related services.
•Material rights for free or discounted goods or services to hotel guests - Primarily consists of the points issued under the Company’s guest loyalty program, Choice Privileges.
License of Brand Intellectual Property and Related Services
The fees generated from brand intellectual property are recognized to revenue over time as the hotel owners pay for access to these services for the duration of the franchise agreement. The franchise fees are typically based on the sales or usage of the underlying hotel (i.e., after the completion of a hotel stay), with the exception of fixed up-front fees that usually represent an insignificant portion of the transaction price. The variable transaction price is determined for the period when the underlying gross room revenues and the transactions or events which generate fees are known.
Franchise fees include the following:
•Royalty fees - Royalty fees are earned in exchange for a license to brand intellectual property typically based on a percentage of gross room revenues. The royalty fees are billed and collected monthly and the revenues are recognized in the same period that the underlying gross room revenues are earned by the Company’s franchisees. The royalty fees are presented within franchise and management fees in the consolidated statements of income.
•Initial franchise fees - Initial franchise fees are charged when (i) new hotels enter the franchise system, (ii) there is a change of ownership, or (iii) the existing franchise agreements are extended. The initial franchise fees are recognized as revenue ratably as the services are provided over the enforceable period of the franchise agreement, unless the franchise agreement is terminated and the hotel exits the franchise system whereby the remaining deferred amounts are recognized to revenue in the period of termination. The enforceable period is the period from the hotel's opening to the first point the franchisee or the Company can terminate the franchise agreement without incurring a significant penalty. The initial franchise fees are presented within franchise and management fees in the consolidated statements of income.
•System implementation fees - System implementation fees charged to the franchisees are deferred and recognized as revenue over the enforceable period of the franchise agreement. The system implementation fees charged to the franchisees are primarily presented within franchise and management fees in the consolidated statements of income.
•Other fees - Other fees are a combination of miscellaneous non-marketing and reservation fees, which includes quality assurance, non-compliance, and franchisee training fees. Other fees are recognized in the period that the designated transaction or event has occurred. Other fees are presented within franchise and management fees and other revenues in the consolidated statements of income.
The Company’s franchise agreements require the payment of marketing and reservation fees. The Company is obligated to use these marketing and reservation fees to provide marketing and reservation services, such as marketing, media, advertising, access to centralized reservation systems, and certain franchise services to support the operation of the overall franchise system. The marketing and reservation fees are presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income. These services are comprised of multiple fees including the following:
•Fees based on a percentage of gross room revenues are recognized in the period the gross room revenue was earned, based on the underlying hotel’s sales or usage.
•Fees based on the occurrence of a designated transaction or event are recognized in the period the transaction or event occurred.
•Marketing and reservation system activities also include revenues generated from the Company’s guest loyalty programs. The revenue recognition of these programs is discussed in the Material rights for free or discounted goods or services to hotel guests section below.
Marketing and reservation expenses are the expenses that are incurred to facilitate the delivery of the marketing and reservation services, including direct expenses and an allocation of costs for certain administrative activities that are required to carry out
marketing and reservation services. Marketing and reservation expenses are recognized when the services are incurred or the goods are received within reimbursable expenses from franchised and managed properties in the consolidated statements of income. As a result, the marketing and reservation expenses may not equal the marketing and reservation revenues in a specific period but are expected to equal the revenues earned from the franchisees over time. The Company’s franchise agreements provide the Company the right to advance monies to the franchise system when the needs of the franchisor system surpass the balances currently available. The Company has the right to recover such advances in future periods through additional fee assessments or reduced spending.
Material Rights for Free or Discounted Goods or Services to Hotel Guests
Choice Privileges is the Company’s guest loyalty program, which enable members to earn points based on their spending levels with the Company’s franchisees or certain vendors (refer to the Partnership Agreements section below). The points, which the Company accumulates and tracks on the members’ behalf, may be redeemed for free accommodations or other benefits (e.g. gift cards to participating retailers). The Company collects from the franchisees a percentage of the loyalty program members’ gross room revenue from completed stays to operate the programs. At such time the points are redeemed for free accommodations or other benefits, the Company reimburses the franchisees or third parties based on a rate derived in accordance with the franchise or vendor agreement.
The loyalty points represent a performance obligation attributable to the usage of the points, and thus the revenues are recognized at the point in time when the loyalty points are redeemed by the members for benefits (with both franchisees and third-party partners), net of the cost of redemptions. For the years ended December 31, 2025, 2024, and 2023, the loyalty net revenues, inclusive of adjustments to the estimated redemption rates, were $125.6 million, $123.2 million, and $93.1 million, respectively. The transaction price is variable and determined in the period when the loyalty points are earned and the underlying gross room revenues are known. No loyalty program revenues are recognized at the time the loyalty points are issued.
The Company is an agent in coordinating the delivery of the services between the loyalty program member and the franchisee or third party, and as a result, the revenues are recognized net of the cost of redemptions. The estimated value of the future redemptions is reflected in the current and non-current liability for guest loyalty program in the consolidated balance sheets. The liability for the guest loyalty program is developed based on an estimate of the eventual redemption rates and point values using various actuarial methods. These significant judgments determine the required point liability attributable to the outstanding points, which is relieved as the redemption costs are processed. The amount of the loyalty program fees in excess of the guest loyalty program point liability represents current and non-current deferred revenue, which is recognized to revenue as the points are redeemed including an estimate of the future forfeitures (“breakage”). The anticipated redemption pattern of the points is the basis for the current and non-current designation of each liability.The loyalty points are typically redeemed within three years of issuance. The loyalty program point redemption revenues are presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
Partnership Agreements
The Company is a party to various agreements with third-party partners, including the co-branding of the Choice Privileges credit card. The agreements typically provide for use of the Company’s marks, limited access to the Company’s distribution channels, and the sale of Choice Privileges loyalty points, in exchange for fees primarily comprising variable consideration that is paid each month. Loyalty members can earn points through participation in the partner’s program.
The partnership agreements include multiple performance obligations. The primary performance obligations are for the brand intellectual property and material rights for free or discounted goods or services to hotel guests. The allocation of the fixed and variable consideration to the performance obligations is based on the standalone selling price, which is estimated based on the market and income methods, which contain significant judgments. The amounts allocated to the brand intellectual property are recognized on a gross basis over time using the output measure of the time elapsed and presented within partnership services and fees in the consolidated statements of income. The amounts allocated to the material rights for free or discounted goods or services to hotel guests are recognized to revenue as the points are redeemed including an estimate of the breakage and presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
Qualified Vendors
The Company generates revenue from qualified vendors. The qualified vendor revenue is generally based on the marketing services provided by the Company on behalf of, and the access provided to, the qualified vendors to the hotel owners and guests. The Company provides these services in exchange for either fixed consideration or a percentage of the revenues earned by the qualified vendor pertaining to purchases by the Company’s franchisees or guests. The fixed consideration is paid in
installments based on a contractual schedule, with an initial payment typically due at contract execution. The variable consideration is typically paid quarterly after the sales to the franchisees or guests have occurred.
The qualified vendor agreements comprise a single performance obligation, which is satisfied over time based on the access afforded, and the services provided, to the qualified vendor for the stated duration of the agreement. The fixed consideration is allocated and recognized ratably to each period over the term of the agreement. The variable consideration is determined and recognized in the period when the vendors' sales to the franchisees or guests are known or the cash payment has been remitted. The qualified vendor revenues are presented within partnership services and fees in the consolidated statements of income.
SaaS Arrangements
The Company is a party to other non-franchising agreements that generate revenue, which are primarily SaaS arrangements for non-franchised hoteliers, and is presented within partnership services and fees in the consolidated statements of income. SaaS agreements typically include fixed consideration for installment and other initiation fees that are paid at the beginning of the contract, and variable consideration for recurring subscription revenue that is typically paid on a monthly basis. SaaS agreements comprise a single performance obligation, which is satisfied over time based on the access to the software for the stated duration of the agreement. The fixed consideration is allocated and recognized ratably to each period over the term of the agreement. The variable consideration is determined at the conclusion of each period, and allocated to and recognized in the current period.
Managed Hotels
The Company manages 13 hotels (inclusive of four owned hotels). The management agreements provide for the use of the Company's marks and hotel management services, which include providing day-to-day management services in the operation of the hotels for the hotel owners. The fees generated from the management agreements are recognized to revenue over time as the hotel owners pay for access to these services for the duration of the management agreement, and include base and incentive management fees. Base management fees are generally based on a percentage of the hotel's monthly gross revenue and are invoiced and collected monthly. Incentive management fees are generally based on a percentage of the hotel's operating profits and are invoiced on an annual basis. Base and incentive management fee revenues are presented within franchise and management fees in the consolidated statements of income.
The Company's management agreements include amounts that are contractually reimbursed to the Company by the hotel owners, either directly or indirectly, relating to certain costs and expenses that are paid by the Company in support of the operations of these hotel properties. The reimbursements include payroll costs and certain other operating costs of the managed properties' operations, which are reimbursed to the Company by the hotel owners as the expenses are incurred. The revenue related to these direct reimbursements is recognized based on the amount of the expenses incurred by the Company, which are presented within reimbursable expenses from franchised and managed properties in the consolidated statements of income. The hotel owner typically reimburses the Company on a monthly basis, which results in no net effect to operating income or net income. The revenues related to marketing and reservations are recognized over time and are intended to reimburse the Company, indirectly, for the expenses incurred in performing the marketing and reservation services. These managed revenues are presented within revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income.
Owned Hotels
The Company owned 17 hotels, 12 hotels, and 10 hotels as of December 31, 2025, 2024, and 2023, respectively, from which the Company generates revenues. As a hotel owner, the Company has performance obligations to provide accommodations to hotel guests and in return, the Company earns a nightly fee for an agreed upon period that is generally payable at the time the hotel guest checks out of the hotel. The Company typically satisfies the performance obligations over the length of the stay and recognizes the revenue on a daily basis, as the hotel rooms are occupied and the services are rendered.
Other ancillary goods and services at the owned hotels are purchased independently of the hotel stay at the standalone selling prices and are considered separate performance obligations, which are satisfied at the point in time when the related good or service is provided to the guest. These primarily consist of food and beverage, incidentals, and parking fees. The hotel room night and other ancillary goods and services revenues are presented within owned hotels revenue in the consolidated statements of income.
Sales Taxes
The Company presents the taxes collected from customers and then remitted to governmental authorities on a net basis and, therefore, the taxes are excluded from revenues in the consolidated financial statements.
Business Combination, Diligence and Transition Costs
Business Combination, Diligence and Transition Costs
The Company incurs costs during the review of potential business combinations, including legal fees, financial advisory, and other professional service fees. If the Company is successful in completing a business combination, then the Company may incur transition and integration costs, including professional service fees, technology costs, and employee-related costs such as bonuses, retention, and severance. The business combination, diligence and transition costs are expensed as incurred in the consolidated statements of income.
Business Combinations
The Company allocates the purchase price of an acquisition to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The Company recognizes goodwill as the amount by which the purchase price of an acquired entity exceeds the fair values assigned to the assets acquired and liabilities assumed. For a business combination achieved in stages, in which there is a change in ownership interest and control is obtained when there is a previously held equity interest, a gain or loss from remeasurement of the previously held equity interest to fair value is recognized in the period that control was obtained.
Notes & Accounts Receivable and Allowances for Credit Losses
Notes & Accounts Receivable and Allowances for Credit Losses
The Company provides financing in the form of notes receivable loans to franchisees to support the development or conversion of properties in strategic markets.
The Company accrues interest for notes receivable loans in accordance with loan provisions. The Company considers notes receivable loans past due and in default when payments are not made when due in accordance with the then-current loan provisions or the terms extended to the borrowers, including loans with concessions or interest deferral. The Company suspends the accrual of interest when payments on loans are more than 30 days past due or upon a loan being classified as collateral-dependent. The Company applies the payments received for loans on a non-accrual status first to interest and then to principal. The Company does not resume an interest accrual until all delinquent payments are received based on the then-current loan provisions.
The Company has developed a systematic methodology to determine its allowance for credit losses across our portfolio of notes receivable loans. The Company monitors the risk and performance of our portfolio by the level of security in the collateral (i.e., senior, subordinated, or unsecured), which is the Company's credit quality indicator. As each of the Company’s notes receivable loans has unique risk characteristics, the Company deploys its methodology to calculate allowances for credit losses at the individual notes receivable loan level.
The Company primarily utilizes a discounted cash flow ("DCF") technique to measure the credit allowance, influenced by the key economic variables of each note receivable loan. The Company identified the key economic variables for these loans to be the loan-to-cost ("LTC") or loan-to-value ("LTV") ratios and a debt service coverage ratio ("DSCR"). The LTC or LTV ratio represents the loan principal relative to the project cost or value and is an indication of the loan principal's ability to be re-paid at loan maturity. The DSCR represents property-specific net operating income as a percentage of the interest and principal payments incurred (i.e., debt service) on all debt of the borrower for the property and is an indication of the borrower's ability to make timely payments during the term of the loan. The LTC or LTV ratios and DSCR are considered during the loan underwriting process as indications of risk and, accordingly, we believe these factors are the most representative risk indicators for calculating the allowance for credit loss. Loans with higher LTC or LTV ratios and lower DSCR ratios generally are representative of loans with greater risk and, accordingly, have higher credit allowances as a percentage of loan principal. Conversely, loans with lower LTC or LTV ratios and higher DSCR ratios generally are representative of loans with lesser risk and, accordingly, have lower credit allowances as a percentage of loan principal. In preparing or updating a DCF model to measure the credit allowance, the Company develops various recovery scenarios and, based on the key economic variables, the present status of the loan, and the underlying collateral, applies a probability-weighting to the outputs of the scenarios.
Collateral-dependent financial assets are financial assets for which repayment is expected to be derived substantially through the operation or sale of the collateral and when the borrower is experiencing financial difficulty. For collateral-dependent loans, the expected credit losses are based on the fair value of the collateral, less the selling costs if repayment will be from the sale of the collateral. The Company calculates the fair value of the collateral using a DCF technique to project the cash flows or a market approach via quoted market prices. In developing the cash flow projections, the Company will review the borrower's financial statements for the property, economic trends, industry projections for the market where the property is located, and comparable sales capitalization rates.
Management assesses the credit quality of the notes receivable portfolio and the adequacy of the credit loss allowances on a quarterly basis and recognizes the provisions for credit losses in selling, general and administrative expenses in the consolidated statements of income. Significant judgment is required in this analysis.
Accounts receivable consists primarily of the franchise and related fees due from the hotel franchisees and are recorded at the invoiced amount. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses inherent in the accounts receivable balance. The Company determines the allowance considering its historical write-off experience, a review of the aged receivable balances and customer payment trends, the economic environment, and other available evidence. The Company presents the provisions for credit losses on accounts receivable in selling, general and administrative expenses and reimbursable expenses from franchised and managed properties in the consolidated statements of income.
When the Company determines that a trade or note receivable is not collectible, then the account is written-off to the associated allowance for credit losses.
Advertising Costs
Advertising Costs
The Company expenses advertising costs as incurred.The Company presents advertising costs primarily in reimbursable expenses from franchised and managed properties in the consolidated statements of income.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains cash balances at U.S. banks, which at times may exceed the limits of the amounts insured by the Federal Deposit Insurance Corporation. In addition, the Company also maintains cash balances at international banks which do not provide deposit insurance.
Capitalization Policies
Capitalization Policies
Property and equipment are generally recorded at cost and depreciated for financial reporting purposes using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets. Major renovations and replacements incurred during construction are capitalized. The costs for computer software developed for internal use are capitalized during the application development stage and amortized using the straight-line method over the estimated useful lives of the software. The capitalized software licenses pertaining to cloud computing arrangements are amortized using the straight-line method over the shorter of the cloud computing arrangement term or the estimated useful lives of the software. The Company capitalizes the interest incurred during the construction and development of property and equipment, including software.
As construction in progress and software development are completed and then placed in service, the assets are transferred to the appropriate property and equipment categories and depreciation and amortization begins. Upon the sale or the retirement of the property, the cost and the related accumulated depreciation are eliminated from the accounts and any related gain or loss is recognized in the consolidated statements of income. Repairs and maintenance, and minor replacements, are charged to expense as incurred.
Assets Held For Sale
Assets Held for Sale
The Company considers assets to be held for sale when all of the following criteria are met:
•Management commits to a plan to sell an asset;
•It is unlikely that the disposal plan will be significantly modified or discontinued;
•The asset is available for immediate sale in its present condition;
•Actions required to complete the sale of the asset have been initiated;
•The sale of the asset is probable and the Company expects the completed sale will occur within one year; and
•The asset is actively being marketed for sale at a price that is reasonable given its current market value.
Upon designation as an asset held for sale, the Company recognizes the carrying value of each asset as a component of other current assets at the lower of its carrying value or its estimated fair value, less the estimated costs to sell, and immediately ceases the recognition of depreciation or amortization expense on the asset.
If, at any time, these criteria are no longer met, subject to certain exceptions, then the assets previously classified as held for sale are reclassified as held and used and measured individually at the lower of (a) the carrying amount before the asset was classified as held for sale, adjusted for any depreciation or amortization expense that would have been recognized had the asset been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell.
Long-Lived Assets, Goodwill, and Intangible Assets
Long-Lived Assets, Goodwill, and Intangible Assets
The Company groups its long-lived assets, including property and equipment and definite-lived intangible assets (e.g., franchise rights and franchise agreement acquisition costs), at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company evaluates the potential impairment of its long-lived asset groups annually as of October 1st or earlier when other circumstances indicate that the Company may not be able to recover the carrying value of the asset group. During the year ended December 31, 2025, the Company changed its annual impairment assessment date from December 31st to October 1st. When indicators of impairment are present, then the recoverability is assessed based on undiscounted expected cash flows. If the undiscounted expected cash flows are less than the carrying amount of the asset group, then an impairment charge is measured and recognized, as applicable, for the excess of the carrying value over the fair value of the asset group. The fair value of the long-lived asset groups are estimated primarily using discounted cash flow analyses representing the highest and best use by an independent market participant. Significant management judgment is involved in evaluating any indicators of impairment and developing any required projections to test for the recoverability or the estimated fair value.

The Company did not identify any indicators of impairment of long-lived assets from the Hotel Franchising reporting unit during the years ended December 31, 2025, 2024, and 2023, other than impairments on franchise sales commission assets and franchise agreement acquisition cost intangible assets, which are presented within selling, general and administrative expenses and reimbursable expenses from franchised and managed properties in the consolidated statements of income. Refer to Note 2 for additional information.
During the year ended December 31, 2023, the Company recognized an impairment loss on the long-lived assets associated with the legacy Radisson corporate office lease. Refer to Note 5 for additional information.
The Company evaluates the impairment of goodwill and intangible assets with indefinite lives annually as of October 1st or earlier upon the occurrence of substantive unfavorable changes in economic conditions, industry trends, costs, cash flows, or ongoing declines in market capitalization that indicate that the Company may not be able to recover the carrying amount of the asset. During the year ended December 31, 2025, the Company changed its annual impairment assessment date from December 31st to October 1st. In evaluating these assets for impairment, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit or the indefinite-lived intangible asset is less than its carrying amount. If the conclusion is that it is not more likely than not that the fair value of the asset is less than its carrying value, then no further testing is required. If the conclusion is that it is more likely than not that the fair value of the asset is less than its carrying value, then a quantitative impairment test is performed whereby the carrying value is compared to the fair value of the asset and an impairment charge is recognized, as applicable, for the excess of the carrying value over the fair value. The Company may elect to forgo the qualitative assessment and move directly to the quantitative impairment tests for goodwill and indefinite-lived intangible assets. The Company determines the fair value of its reporting units and indefinite-lived intangible assets using the income and market methods.
Goodwill is allocated to the Company's reporting units. The Company's reporting units are determined primarily by the availability of discrete financial information relied upon by the chief operating decision maker ("CODM") to assess performance and make operating segment resource allocation decisions. As of December 31, 2025, the Company's goodwill is allocated solely to the Hotel Franchising reporting unit. The Company performed the qualitative impairment analysis for the Hotel Franchising reporting unit, concluding that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount. As such, a quantitative test was not required and no impairment was recorded.
Variable Interest Entities
Variable Interest Entities
In accordance with the guidance for the consolidation of variable interest entities ("VIE"), the Company identifies its variable interests and analyzes to determine if the entity in which the Company has a variable interest is a VIE. The Company's variable interests include equity investments, loans, and guaranties. The determination of whether a variable interest is a VIE includes both quantitative and qualitative considerations. For those entities determined to be VIEs, a further quantitative and qualitative analysis is performed to determine if the Company is deemed to be the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impacts the entity's economic performance and who has an obligation to absorb the losses of the entity or a right to receive the benefits from the entity that could potentially be significant. The Company consolidates those entities in which it is determined to be the primary beneficiary. As of December 31, 2025, the Company is not the primary beneficiary of any VIE. The Company's qualitative analysis is based on its review of
the design of the entity, the organizational structure including its decision-making ability, and the relevant development, operating management, and financial agreements.
The investments in unconsolidated affiliates where the Company is not deemed to be the primary beneficiary but where the Company exercises significant influence over the operating and financial policies of the investee are accounted for using the equity method of accounting.
Investments in Affiliates
Investments in Affiliates
The Company evaluates an investment in an affiliate for impairment when circumstances indicate that the carrying value may not be recoverable, such as a loan default, significant under-performance relative to historical or projected operating performance, and/or significant negative industry, market, or economic trends. When there is an indication that a loss in value has occurred, the Company evaluates the carrying value compared to the estimated fair value of the investment. The fair value is based upon internally-developed discounted cash flow models, third-party appraisals, or current estimated net sales proceeds from pending offers. There are judgments and assumptions in each of these fair value determinations, including our selection of comparable market transactions, the amount and timing of expected future cash flows, long-term growth rates, and sales capitalization rates. These nonrecurring fair value measurements are classified as level three in the fair value measurement hierarchy, as the Company utilizes unobservable inputs which are significant to the overall fair value. If the estimated fair value is less than the carrying value, then management uses its judgment to determine if the decline in value is other-than-temporary. In determining this, the Company considers factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition, near-term financial projections, the Company's intent and ability to recover the lost value, and current economic conditions. For declines in value that are deemed to be other-than-temporary, then the impairment charge is recognized to earnings.
Investments in Equity Securities
Investments in Equity Securities
The Company's investments in equity securities are recognized at fair value in the consolidated balance sheets, and the unrealized gains and losses on the investments in equity securities are recognized as other (gains) losses, net in the consolidated statements of income. The realized gains and losses on the investments in equity securities are recognized upon the disposition of the equity securities using the specific identification method as other (gains) losses, net in the consolidated statements of income.
Foreign Operations
Foreign Operations
The U.S. dollar is the functional currency of the consolidated entities operating in the U.S. The functional currency for the consolidated entities operating outside of the U.S. is generally the currency of the primary economic environment in which the entity primarily generates and expends cash. The Company translates the financial statements of the consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars. The Company translates the assets and liabilities at the exchange rate in effect as of the financial statement date, and translates income statement accounts using the approximate weighted average exchange rate for the period. The Company includes translation adjustments from foreign exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity (deficit). The Company presents foreign currency transaction gains and losses, and the effect of intercompany transactions of a short-term or trading nature, within other (gains) losses, net in the consolidated statements of income.
Share-Based Compensation
Share-Based Compensation
The Company has stock compensation plans pursuant to which it is authorized to grant share-based awards, including restricted stock, stock options, stock appreciation rights, and performance-based share awards, to officers, key employees, and non-employee directors with contractual terms that are set by the Compensation and Management Development Committee of the Board of Directors.
Stock Options - The Company recognizes compensation expense related to the fair value of these awards on a straight-line basis over the requisite service period for the share-based awards that ultimately vest. The fair value of the stock options is estimated on the grant date using the Black-Scholes options-pricing model.
Restricted Stock Units ("RSUs") - The Company recognizes compensation expense related to the fair value of the restricted stock awards on a straight-line basis over the requisite service period for the restricted stock awards that ultimately vest. The fair value of the grants is measured by the market price of the Company’s common stock on the date of grant. The restricted stock awards generally vest ratably over the service period beginning on the first anniversary of the grant date. The
restricted stock awards granted to retirement eligible non-employee directors are recognized over the shorter of the requisite service period or the length of time until retirement since the terms of the grant provide that awards will vest upon retirement.
Performance Vested Restricted Stock Units ("PVRSUs") - The Company has granted PVRSUs to certain employees. The Company grants three types of PVRSU awards: (i) PVRSUs with performance conditions based on internal performance metrics, (ii) PVRSUs with market conditions based on the Company's total shareholder return ("TSR") relative to a predetermined peer group, and (iii) PVRSUs with both performance and market conditions. The vesting of the PVRSU awards is contingent upon the Company achieving the internal performance and/or TSR targets over a specified period and the employees' continued employment over the service period. The performance and market conditions affect the number of shares that will ultimately vest.
The fair value of the PVRSUs with performance conditions based on internal performance metrics is measured by the market price of the Company's common stock on the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period based on the Company's estimate of achieving the performance conditions.
The fair value of the PVRSUs with market conditions is estimated using a Monte Carlo simulation method as of the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period regardless of whether the market conditions are achieved and the awards ultimately vest.
The fair value of the PVRSUs with both performance and market conditions is estimated using a Monte Carlo simulation as of the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period based on the Company's estimate of achieving the performance conditions, with subsequent adjustments being made for the performance-based leveraging of any unvested PVRSUs, as necessary.
Over the life of the share-based award grant, the Company's estimate of the share-based compensation expense for the share-based awards with performance and/or service requirements will be adjusted so that compensation expense is recognized only for the share-based awards that will ultimately vest. The expected forfeiture rate is calculated based on the number of shares that have historically been forfeited due to termination within one year of the grant date.
Leases
Leases
The Company determines if an arrangement is a lease, and the classification as either an operating lease or a financing lease, at lease inception. Operating leases are included in operating lease right-of-use assets, accrued expenses and other current liabilities, and operating lease liabilities in our consolidated balance sheets. As of December 31, 2025 and 2024, the Company did not have any leases classified as a financing lease.
On the commencement date, operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The operating lease right-of-use assets are further offset by prepaid rent, lease incentives, and initial direct costs incurred. When a lease agreement does not provide an implicit rate, the Company utilizes its incremental borrowing rate based on the information available at the commencement date in determining the present value of the future minimum lease payments.
Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments include certain index-based changes in rent, certain non-lease components (such as maintenance and other services provided by the lessor), and other charges included in the lease. Variable lease payments are excluded from the future minimum lease payments and expensed as incurred.
The Company has made an election to not separate the lease and the non-lease components for all classes of underlying assets in which it is the lessee. In addition, the Company has made an election to not recognize short-term leases with an initial term of 12 months or less in the consolidated balance sheets. These short-term leases are expensed on a straight-line basis over the lease term.
Non-Qualified Retirement, Savings, and Investment Plans
Non-Qualified Retirement, Savings, and Investment Plans
The Company has an Executive Deferred Compensation Plan ("EDCP") and a Non-Qualified Retirement Savings and Investment Plan ("Non-Qualified Plan") (together, the "Deferred Compensation Plan"). Under the EDCP, certain executive officers may defer a portion of their salary into an irrevocable trust and invest these amounts in a selection of available diversified investment options. The Non-Qualified Plan allows certain employees who do not participate in the EDCP to defer a portion of their salary and invest these amounts in a selection of available diversified investment options. The long-term deferred compensation and retirement plan liabilities related to the deferrals and the credited investment returns under the Deferred Compensation Plan are presented in deferred compensation and retirement plan obligations in the consolidated balance sheets. The corresponding long-term deferred compensation and retirement plan assets are presented in investments for employee benefit plans, at fair value in the consolidated balance sheets. Compensation expense or benefit is recognized in
selling, general and administrative expenses in the consolidated statements of income based on the change in the deferred compensation and retirement plan obligations related to the earnings credited to the participants as well as the changes in the fair value of the diversified investments.
Recently Adopted & Issued Accounting Standards
Recently Adopted & Issued Accounting Standards
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 is designed to provide additional information to financial statement users in regards to how an entity's operations, risks, and planning affect its tax rate, opportunities, and future cash flows. ASU 2023-09 is effective for the annual reporting period beginning after December 15, 2024. The Company adopted ASU 2023-09 on a prospective basis effective December 31, 2025. The adoption of this standard did not have an impact on the Company's consolidated financial statements, but it did require enhanced income tax disclosures in the notes to the consolidated financial statements. Refer to Note 11 for more information.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires public entities to provide detailed disclosure of the income statement expenses in the footnotes to the consolidated financial statements. ASU 2024-03 does not require any changes to the expense captions on the face of the consolidated income statement. ASU 2024-03 is effective for the annual reporting period beginning after December 15, 2026 and for the interim periods within the annual reporting period beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the potential impact that ASU 2024-03 will have on the Company's consolidated financial statements.
v3.25.4
Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Effect of the Reclassifications
The following table presents the effect of the reclassifications on the years ended December 31, 2024 and December 31, 2023 consolidated statements of income.
Year EndedYear Ended
December 31, 2024December 31, 2023
As previously reportedReclassificationAs reclassifiedAs previously reportedReclassificationAs reclassified
REVENUES
Franchise and management fees$514,569 $155,068 $669,637 $513,412 $138,648 $652,060 
Initial franchise fees25,606 (25,606)— 27,787 (27,787)— 
Partnership services and fees75,752 23,739 99,491 75,114 16,676 91,790 
Owned hotels113,459 — 113,459 97,641 97,641 
Other61,803 2,257 64,060 46,051 9,046 55,097 
Revenue for reimbursable costs from franchised and managed properties793,650 (155,458)638,192 784,160 (136,583)647,577 
Total revenues1,584,839 — 1,584,839 1,544,165 — 1,544,165 
OPERATING EXPENSES
Selling, general and administrative219,878 92,510 312,388 216,081 96,620 312,701 
Business combination, diligence and transition costs17,233 — 17,233 55,778 55,778 
Depreciation and amortization43,282 8,671 51,953 39,659 5,379 45,038 
Owned hotels83,148 — 83,148 71,474 71,474 
Reimbursable expenses from franchised and managed properties757,525 (101,181)656,344 782,409 (101,999)680,410 
Total operating expenses1,121,066 — 1,121,066 1,165,401 — 1,165,401 
Impairment of long-lived assets— — — (3,736)— (3,736)
Operating income$463,773 $— $463,773 $375,028 $— $375,028 
Schedule of Estimated Useful Lives
The table below summarizes the estimated useful lives for the respective assets for depreciation and amortization purposes:
Computer equipment and software
2 - 7 years
Buildings and leasehold improvements
10 - 40 years
Furniture, fixtures, vehicles and equipment
3 - 10 years
The components of property and equipment were the following:
December 31,
(in thousands)20252024
Land and land improvements$67,451 $51,045 
Construction in progress and software under development88,125 151,756 
Computer equipment and software114,031 105,196 
Buildings and leasehold improvements462,543 354,689 
Furniture, fixtures, vehicles and equipment79,254 67,562 
Property and equipment811,404 730,248 
Less: Accumulated depreciation and amortization(162,113)(125,903)
Property and equipment, net$649,291 $604,345 
v3.25.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Changes in Contract Liabilities
The following table summarizes the significant changes in the contract liabilities balances during the year ended December 31, 2025:
(in thousands)
Balance as of December 31, 2024
$216,697 
Increases to the contract liability balance due to cash received153,031 
Revenue recognized in the period(149,388)
Balance as of December 31, 2025
$220,340 
v3.25.4
Receivables and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2025
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract]  
Schedule of Notes Receivable
The following table summarizes the composition of the notes receivable balances by credit quality indicator and the allowance for credit losses:
December 31,
(in thousands)20252024
Senior$98,257 $94,963 
Subordinated13,356 15,433 
Unsecured4,044 5,118 
Total notes receivable115,657 115,514 
Less: allowance for credit losses8,481 7,331 
Total notes receivable, net of allowance for credit losses$107,176 $108,183 
Current portion, net of allowance for credit losses$94,686 $75,501 
Long-term portion, net of allowance for credit losses$12,490 $32,682 
Schedule of Amortized Cost Basis of Notes Receivable
The following table summarizes the amortized cost basis of the notes receivable by the year of origination and credit quality indicator:
(in thousands)20252024202320222021PriorTotal
Senior$1,713 $40,832 $— $— $— $55,712 $98,257 
Subordinated1,501 — 3,503 — — 8,352 13,356 
Unsecured386 125 — — 771 2,762 4,044 
Total notes receivable$3,600 $40,957 $3,503 $— $771 $66,826 $115,657 
Schedule of Notes Receivable Allowance for Credit Losses
The following table summarizes the activity related to the Company’s notes receivable allowance for credit losses:
December 31,
(in thousands)20252024
Beginning balance$7,331 $8,616 
Provision (reversal) for credit losses1,150 (609)
Recoveries— (676)
Ending balance$8,481 $7,331 
During the year ended December 31, 2024, the recoveries were primarily associated with cash collections pursuant to a settlement agreement with a borrower.
Schedule of Past Due Balances of Notes Receivable
The following table summarizes the past due balances by credit quality indicator of the notes receivable:
(in thousands)1-30 days
Past Due		31-89 days
Past Due		> 90 days
Past Due		Total
Past Due		CurrentTotal Notes Receivable
As of December 31, 2025
Senior$— $— $42,900 $42,900 $55,357 $98,257 
Subordinated— — — — 13,356 13,356 
       Unsecured— — 404 404 3,640 4,044 
$— $— $43,304 $43,304 $72,353 $115,657 
As of December 31, 2024
Senior$— $— $15,200 $15,200 $79,763 $94,963 
Subordinated— — 2,264 2,264 13,169 15,433 
       Unsecured— — 784 784 4,334 5,118 
$— $— $18,248 $18,248 $97,266 $115,514 
v3.25.4
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
The table below summarizes the estimated useful lives for the respective assets for depreciation and amortization purposes:
Computer equipment and software
2 - 7 years
Buildings and leasehold improvements
10 - 40 years
Furniture, fixtures, vehicles and equipment
3 - 10 years
The components of property and equipment were the following:
December 31,
(in thousands)20252024
Land and land improvements$67,451 $51,045 
Construction in progress and software under development88,125 151,756 
Computer equipment and software114,031 105,196 
Buildings and leasehold improvements462,543 354,689 
Furniture, fixtures, vehicles and equipment79,254 67,562 
Property and equipment811,404 730,248 
Less: Accumulated depreciation and amortization(162,113)(125,903)
Property and equipment, net$649,291 $604,345 
v3.25.4
Goodwill and Impairment of Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Carrying Amount of Goodwill
The following table summarizes the carrying amount of the Company's goodwill:
 December 31,
 (in thousands)20252024
Goodwill, excluding goodwill arising from the Choice Hotels Canada acquisition$227,765 $227,765 
Goodwill arising from the Choice Hotels Canada acquisition86,194 — 
Effect of foreign currency translation(623)— 
Total goodwill, gross carrying amount313,336 227,765 
Accumulated impairment losses(7,578)(7,578)
Goodwill, net carrying amount$305,758 $220,187 
v3.25.4
Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets
The components of the Company's intangible assets were the following:
As of December 31, 2025As of December 31, 2024
(in thousands)Gross Carrying AmountAccumulated AmortizationNet Carrying ValueGross Carrying AmountAccumulated AmortizationNet Carrying Value
Franchise Rights (1)
$352,710 $90,059 $262,651 $278,956 $67,620 $211,336 
Reacquired Territory Rights (2)
75,971 1,000 74,971 — — — 
Franchise Agreement Acquisition Costs (3)
644,997 159,630 485,367 548,544 128,932 419,612 
Trademarks & Other (4)
10,603 4,569 6,034 12,444 6,414 6,030 
Capitalized SaaS Licenses (5)
1,959 1,317 642 6,392 6,071 321 
Total amortizing intangible assets1,086,240 256,575 829,665 846,336 209,037 637,299 
Trademarks & Other (non-amortizing) (6)
252,821 — 252,821 246,714 — 246,714 
Total intangible assets$1,339,061 $256,575 $1,082,486 $1,093,050 $209,037 $884,013 
(1)Represents the purchase price assigned to long-term franchise contracts. The unamortized balance relates primarily to the franchise rights established from the Radisson Hotels Americas acquisition, the Choice Hotels Canada acquisition, as well as the active WoodSpring franchise rights since the acquisition. The franchise rights are being amortized over useful lives ranging from 12 to 15 years on a straight-line basis.
(2)Represents the reacquired territory rights for the use of certain Choice brands within Canada. The reacquired territory rights are being amortized on a straight-line basis over a useful life of 38 years.
(3)Represents certain payments to customers as an incentive to enter into new franchise agreements, which are amortized as a reduction to franchise and management fees and revenue for reimbursable costs from franchised and managed properties in the consolidated statements of income over useful lives generally ranging from 10 to 30 years on a straight-line basis commencing at hotel opening. The gross and accumulated amortization amounts are written off upon full amortization recognition, including the termination of an associated franchise agreement.
(4)Represents definite-lived trademarks and other amortizing assets, including management agreements, which are generally amortized on a straight-line basis over a period of 10 years to 30 years.
(5)Represents software licenses that have been capitalized under a SaaS agreement, which are generally amortized on a straight-line basis over an average period of 3 years.
(6)Represents the purchase price assigned to the Radisson, WoodSpring, and Suburban trademarks and other intellectual property that were recognized at the time of their respective acquisitions. The trademarks and other intellectual property are non-amortizing assets because they are expected to generate future cash flows for an indefinite period of time.
Schedule of Estimated Annual Amortization on Amortizing Intangible Assets
The estimated annual amortization on the amortizing intangible assets for each of the next five years is as follows:
 
(in thousands)
2026$63,758 
2027$62,193 
2028$60,689 
2029$59,477 
2030$53,910 
v3.25.4
Investments in Affiliates (Tables)
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investment Ownership Interests and Financial Information
The Company's ownership interests in its affiliates were as follows:
Ownership Interest
December 31, 2025December 31, 2024
Choice Hotels Canada, Inc. (1) (2)
— %50 %
Main Street WP Hotel Associates, LLC50 %50 %
CS Hotel West Orange, LLC50 %50 %
926 James M. Wood Boulevard, LLC75 %75 %
EH Glendale JV, LLC80 %80 %
CS Lakeside Santa Clara LLC50 %50 %
BL 219 Holdco, LP50 %50 %
Integrated 32 West Randolph, LLC20 %20 %
EH Nampa JV LLC80 %80 %
Radisson Hotel La Crosse (1)
14 %14 %
CH East Avenue, LLC65 %65 %
EH Cheyenne JV, LLC80 %80 %
EH Clarksville JV, LLC80 %80 %
EH Waco JV, LLC (3)
— %80 %
EH Amarillo JV, LLC (3)
— %80 %
EH Yuma JV, LLC (3)
— %80 %
EH El Paso JV, LLC (3)
— %80 %
EH Brownsville JV, LLC (3)
— %80 %
EH Wichita JV, LLC (3)
— %80 %
EH Salem JV, LLC (3)
— %80 %
EH Facility JV, LLC (3)
86 %— %
(1) Non-VIE investments.
(2) During the year ended December 31, 2025, the Company completed the acquisition of the remaining 50% of the outstanding shares of Choice Hotels Canada, Inc. As a result of the acquisition, Choice Hotels Canada, Inc. is now a wholly-owned and consolidated subsidiary of the Company. Refer to Note 17 for additional information.
(3) During the year ended December 31, 2025, seven of the Company's unconsolidated affiliates contributed their underlying assets to EH Facility JV, LLC.

The following tables present summarized financial information for all of the unconsolidated joint ventures in which the Company holds an investment in affiliate that is accounted for under the equity method of accounting:
Year Ended December 31,
(in thousands)202520242023
Revenues$73,113 $65,732 $65,634 
Operating income$13,091 $14,199 $12,504 
(Loss) income before income taxes$(13,990)$(1,203)$314 
Net loss$(14,443)$(3,488)$(1,255)
As of December 31,
(in thousands)20252024
Current assets$27,787 $71,737 
Non-current assets502,562 412,269 
Total assets$530,349 $484,006 
Current liabilities$30,988 $84,966 
Non-current liabilities352,594 257,130 
Total liabilities$383,582 $342,096 
v3.25.4
Accrued Expenses and Other Current Liabilities (Tables)
 12 Months Ended
Dec. 31, 2025
Accrued Liabilities [Abstract]  
Schedule of Accrued Expenses
Accrued expenses and other current liabilities consisted of the following:
December 31,
(in thousands)20252024
Accrued compensation and benefits$47,451 $55,806 
Accrued interest24,761 27,333 
Dividends payable13,542 13,888 
Income taxes payable862 10,405 
Current operating lease liabilities8,364 5,367 
Other liabilities30,302 23,930 
Total accrued expenses and other current liabilities$125,282 $136,729 
v3.25.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Components of Debt
Debt consisted of the following:
 December 31,
20252024
(in thousands)
$400 million senior unsecured notes due 2029 ("2019 Senior Notes") with an effective interest rate of 3.88%, less a discount and deferred issuance costs of $2.4 million and $3.0 million at December 31, 2025 and December 31, 2024, respectively
$397,643 $397,042 
$450 million senior unsecured notes due 2031 ("2020 Senior Notes") with an effective interest rate of 3.86%, less a discount and deferred issuance costs of $3.1 million and $3.7 million at December 31, 2025 and December 31, 2024, respectively
446,910 446,300 
$600 million senior unsecured notes due 2034 ("2024 Senior Notes") with an effective interest rate of 6.11%, less a discount and deferred issuance costs of $10.1 million and $11.2 million at December 31, 2025 and December 31, 2024, respectively
589,936 588,764 
$1 billion senior unsecured revolving credit facility with an effective interest rate of 5.22%, less deferred issuance costs of $2.8 million and $3.6 million at December 31, 2025 and December 31, 2024, respectively
469,783 336,420 
Economic development loans with an effective interest rate of 3.00% at December 31, 2025
1,850 — 
Total long-term debt$1,906,122 $1,768,526 
Schedule of Principal Maturities of Debt
As of December 31, 2025, the scheduled principal maturities of debt, net of unamortized discounts, premiums, and deferred issuance costs, were as follows:
(in thousands)Senior NotesRevolving Credit
Facility		Other Notes PayableTotal
2026$— $— $— $— 
2027— — — — 
2028— — — — 
2029397,643 469,783 — 867,426 
2030— — — — 
Thereafter1,036,846 — 1,850 1,038,696 
Total payments$1,434,489 $469,783 $1,850 $1,906,122 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets
The Company recognized the following assets at fair value on a recurring basis in the consolidated balance sheets:
Fair Value Measurements at Reporting Date Using
(in thousands)TotalLevel 1Level 2Level 3
As of December 31, 2025
Mutual funds(1)
$47,713 $47,713 $— $— 
Money market funds(1)
4,281 — 4,281 — 
Total$51,994 $47,713 $4,281 $— 
As of December 31, 2024
Mutual funds(1)
$43,887 $43,887 $— $— 
Money market funds(1)
5,439 — 5,439 — 
Total$49,326 $43,887 $5,439 $— 
(1)The current assets at fair value noted above are presented in prepaid expenses and other current assets in the consolidated balance sheets. The long-term assets at fair value noted above are presented in investments for employee benefit plans, at fair value in the consolidated balance sheets.
Schedule of Carrying Amounts and Fair Values
The fair values of the Company's senior unsecured notes are classified as Level 2 because the significant inputs are observable in an active market. Refer to Note 9 for additional information on debt. As of December 31, 2025 and 2024, the carrying amounts and the fair values were as follows:
December 31, 2025December 31, 2024
(in thousands)Carrying AmountFair ValueCarrying AmountFair Value
2019 Senior Notes Due 2029$397,643 $389,612 $397,042 $371,600 
2020 Senior Notes Due 2031$446,910 $428,963 $446,300 $405,351 
2024 Senior Notes Due 2034$589,936 $612,612 $588,764 $601,836 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax, Domestic and Foreign
The Company's income before income taxes, classified by source of income, was as follows:
 Year Ended December 31,
(in thousands)202520242023
U.S.$324,611 $370,395 $303,337 
Outside the U.S.132,280 25,250 33,619 
Income before income taxes$456,891 $395,645 $336,956 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes, classified by the timing and the location of payment, was as follows:
Year Ended December 31,
(in thousands)202520242023
Current tax expense
Federal$45,262 $89,716 $60,493 
State10,890 21,518 16,890 
Foreign4,5682,609 1,593 
Deferred tax expense (benefit)
Federal17,330 (18,378)(2,022)
State4,343 (2,908)(1,874)
Foreign4,552 3,423 3,369 
Income tax expense$86,945 $95,980 $78,449 
Schedule of Deferred Tax Assets and Liabilities
The net deferred tax assets were as follows:
December 31,
(in thousands)20252024
Deferred tax assets:
Accrued compensation$21,571 $20,958 
Deferred revenue36,209 40,946 
Receivable, net13,888 12,345 
Tax credits34,615 24,663 
Operating lease liabilities27,872 28,455 
Partnership interests2,896 5,130 
Capitalized research and experimental expenditures35,253 44,946 
Foreign net operating losses7,651 7,870 
Non-U.S. intellectual property7,555 11,333 
Other5,015 7,235 
Total gross deferred tax assets192,525 203,881 
Less: Valuation allowance(33,542)(29,660)
       Deferred tax assets$158,983 $174,221 
Deferred tax liabilities:
Property, equipment and intangible assets$(87,465)$(42,895)
Operating lease ROU assets(18,601)(20,016)
Other(2,849)(3,002)
       Deferred tax liabilities(108,915)(65,913)
Net deferred tax assets$50,068 $108,308 
Schedule of Effective Income Tax Rate Reconciliation
The following table presents a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate for continuing operations, in accordance with ASU 2023-09 for the year ended December 31, 2025. Refer to Note 1 for more information on the adoption of ASU 2023-09.
 Year Ended December 31,
 2025
(in thousands, except percentages)AmountPercent
U.S. federal statutory tax rate$95,989 21.0 %
State and local income taxes, net of federal income tax effect (1)
11,996 2.6 
Foreign tax effects:
Canada:
Federal statutory tax rate difference between Canada and U.S.(6,137)(1.3)
Non-taxable gain(15,026)(3.3)
Netherlands1,169 0.3 
Other foreign jurisdictions (2)
2,130 0.4 
Effects of cross-border tax laws(903)(0.2)
Tax credits
  Research & development tax credits(4,861)(1.1)
  Other(3,107)(0.7)
Nontaxable or nondeductible items:
Expenses related to compensation, net5,271 1.2 
Other927 0.2 
Changes in unrecognized tax benefits(455)(0.1)
Other(48)— 
Effective income tax rate$86,945 19.0 %
(1) State taxes in Minnesota, California, New York, Illinois, Georgia, Florida, Tennessee, and Wisconsin made up the majority (greater than 50%) of the tax effect of this category.
(2) All other foreign jurisdictions do not exceed the 5% threshold at the jurisdiction level in total or for individual reconciling items of the same nature within each jurisdiction.
The following table presents a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate for continuing operations as previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09.
 Year Ended December 31,
 20242023
Statutory U.S. federal income tax rate21.0 %21.0 %
State income taxes, net of federal tax benefit3.5 %3.2 %
Expenses related to foreign operations0.7 %0.3 %
Expenses related to compensation, net1.3 %1.0 %
Unrecognized tax positions(0.8)%0.5 %
Tax credits(2.4)%(2.4)%
Valuation allowance0.6 %0.6 %
Other0.4 %(0.9)%
Effective income tax rate24.3 %23.3 %
The Company's effective income tax rates from continuing operations were 24.3% and 23.3% for the years ended December 31, 2024 and 2023
Schedule of Reconciliation of the Beginning and Ending Amounts of the Unrecognized Tax Benefits
The following table presents a reconciliation of the beginning and ending amounts of the unrecognized tax benefits:
(in thousands)202520242023
Balance, January 1$6,914 $13,434 $11,876 
Changes for tax positions of prior years91 (776)2,338 
Increases for tax positions related to the current year1,400 1,516 1,670 
Settlements and lapsing of statutes of limitations(2,573)(7,260)(2,450)
Balance, December 31$5,832 $6,914 $13,434 
v3.25.4
Share-Based Compensation and Capital Stock (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Change in Stock-Based Award Activity
For the year ended December 31, 2025, the following table presents a summary of the share-based award activity:
2025
Stock OptionsRestricted StockPerformance Vested
Restricted Stock Units
OptionsWeighted Average Exercise PriceWeighted
Average
Remaining Contractual
Life 		SharesWeighted
Average Grant
Date Fair Value		SharesWeighted
Average Grant
Date Fair Value
Outstanding as of January 1, 2025771,641 $111.15 355,405 $136.67 467,521 $137.74 
Granted— — 65,223 132.64 148,709 150.77 
Performance-based leveraging*— — — — (41,012)125.90 
Exercised/vested(62,025)107.71 (65,961)129.32 (116,107)151.76 
Expired(12,850)135.92 — — — — 
Forfeited(1,683)137.55 (11,502)125.14 (14,300)146.55 
Outstanding as of December 31, 2025695,083 $110.98 5.2 years343,165 $138.02 444,811 $138.89 
Options exercisable as of December 31, 2025560,223 $107.84 4.7 years
* Any revisions to the outstanding PVRSUs during the year ended December 31, 2025 are based on the Company's performance relative to the targeted performance conditions in the respective PVRSUs.
Schedule of Pre-Tax Stock-Based Compensation Expenses and Associated Income Tax Benefits
The components of the Company’s share-based compensation expense were as follows:
For the Year Ended December 31,
(in thousands)202520242023
Stock options$3,946 $5,265 $5,816 
Restricted stock12,785 12,728 13,774 
Performance vested restricted stock units21,590 20,447 20,924 
Total share-based compensation expense$38,321 $38,440 $40,514 
Schedule of Unrecognized Compensation Cost, Nonvested Awards
The following table as of December 31, 2025 is a summary of the total unrecognized compensation expense related to the share-based awards that have not yet vested and the related weighted average remaining amortization periods over which the compensation expense will be recognized:
(in thousands)Unrecognized Compensation Expense on Unvested AwardsWeighted Average Remaining Amortization Period
Stock options$1,776 1.5 years
Restricted stock18,507 1.9 years
Performance vested restricted stock units18,749 1.7 years
Total$39,032 
Schedule of Activity Related to Stock Options
The following table is a summary of the activity related to the stock options:
For the Year Ended December 31,
202520242023
Number of options granted— 78,988 88,733 
Fair value of options granted (in thousands)$— $3,069 $3,779 
Total intrinsic value of stock options exercised (in thousands)$2,356 $12,185 $9,170 
Total fair value of stock options vested (in thousands)$5,108 $5,032 $4,857 
Schedule of Weighted Average Assumptions of Black-Scholes Option-Pricing Model
The fair value of the options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:
 
202520242023
Risk-free interest rate— 4.27 %4.10 %
Expected volatility— 31.34 %30.90 %
Expected life of stock option— 6.0 years6.0 years
Dividend yield— 1.03 %0.90 %
Requisite service period— 4 years4 years
Contractual life— 10 years10 years
Weighted average fair value of the stock options granted (per stock option)$— $38.85 $42.59 
Schedule of Activity Related to Restricted Stock Grants
The following table is a summary of the activity related to the restricted stock:
For the Year Ended December 31,
202520242023
Restricted shares granted65,223 69,249 65,991 
Weighted average grant date fair value per share$132.64 $115.57 $123.65 
Aggregate grant date fair value (in thousands)$8,651 $8,003 $8,160 
Restricted shares forfeited11,502 16,246 13,202 
Vesting service period for the restricted shares granted
9 - 48 months
9 - 48 months
9 - 48 months
Fair value of the restricted shares vested (in thousands)$8,790 $6,804 $11,134 
Schedule of Activity Related to PVRSU Grants
The following table is a summary of the activity related to the PVRSUs:
For the Year Ended December 31,
202520242023
PVRSUs granted at target148,709 147,943 110,636 
Weighted average grant date fair value per share$150.77 $115.04 $128.71 
Aggregate grant date fair value (in thousands)$22,421 $17,019 $14,240 
PVRSUs forfeited & expired14,300 23,710 16,504 
Requisite service period
9 - 48 months
9 - 48 months
9 - 48 months
Fair value of PVRSUs vested (in thousands)$17,621 $15,773 $17,413 
v3.25.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Earnings Per Common Share
The computation of basic and diluted earnings per share was as follows:
 Year Ended December 31,
 (in thousands, except per share amounts)202520242023
Numerator:
Net income$369,946 $299,665 $258,507 
Income allocated to participating securities(1,780)(1,521)(1,379)
Net income available to common shareholders$368,166 $298,144 $257,128 
Denominator:
Weighted average shares of common stock outstanding - basic46,170 47,653 50,341 
Basic earnings per share$7.97 $6.26 $5.11 
Numerator:
Net income$369,946 $299,665 $258,507 
Income allocated to participating securities(1,780)(1,521)(1,379)
Net income available to common shareholders$368,166 $298,144 $257,128 
Denominator:
Weighted average shares of common stock outstanding - basic46,170 47,653 50,341 
Dilutive effect of stock options, PVRSUs, and RSUs410 425 359 
Weighted average shares of common stock outstanding - diluted46,580 48,078 50,700 
Diluted earnings per share$7.90 $6.20 $5.07 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following securities have been excluded from the calculation of the diluted weighted average shares of common stock outstanding because the inclusion of these securities would have an anti-dilutive effect:
 Year Ended December 31,
(in thousands)202520242023
Stock options202 147 232 
PVRSUs46 7 71 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease Cost
The Company's lease costs were as follows:
Year Ended December 31,
(in thousands)20252024
Operating lease cost$12,130 $11,979 
Sublease income(937)(789)
Total lease cost$11,193 $11,190 
Schedule of Operating Leases, Other Information
Other information related to the Company's lease arrangements were as follows:
Year Ended December 31,
(in thousands)20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$8,602 $6,637 
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating lease assets obtained in exchange for operating lease liabilities$427 $4,585 
Weighted-average remaining lease term31.6 years31.7 years
Weighted-average discount rate5.09 %5.07 %
Schedule of Operating Lease Maturities
As of December 31, 2025, the future minimum lease payments were as follows:
(in thousands)
2026$13,071 
202713,697 
202813,594 
202913,586 
203013,642 
Thereafter297,944 
Total minimum lease payments$365,534 
Less: imputed interest249,207 
Present value of the minimum lease payments$116,327 
v3.25.4
Reportable Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Financial Information for Company's Franchising Segment
The following tables presents the financial information for the Company's segments:
 For the Year Ended December 31, 2025
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$1,472,535 $137,439 $(13,181)$1,596,793 
Other Segment Items (1)
834,953 266,907 (13,181)1,088,679 
Depreciation and amortization34,520 25,195 — 59,715 
Operating income (loss)603,062 (154,663)— 448,399 
Reconciliation of segment profit or loss:
Interest expense91,148 
Interest income(6,237)
Gain from an acquisition of a joint venture(100,025)
Gain on sale of assets(713)
Other gains, net(6,989)
Equity in net loss of affiliates14,324 
Income before income taxes$456,891 
 For the Year Ended December 31, 2024
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$1,470,592 $126,450 $(12,203)$1,584,839 
Other Segment Items (1)
857,843 223,473 (12,203)1,069,113 
Depreciation and amortization28,450 23,503 — 51,953 
Operating income (loss)584,299 (120,526)— 463,773 
Reconciliation of segment profit or loss:
Interest expense87,131 
Interest income(8,646)
Loss on extinguishment of debt331 
Other losses, net1,641 
Equity in net gain of affiliates(12,329)
Income before income taxes$395,645 
 For the Year Ended December 31, 2023
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$1,444,394 $110,854 $(11,083)$1,544,165 
Other Segment Items (1)
911,301 223,881 (11,083)1,124,099 
Depreciation and amortization24,562 20,476 — 45,038 
Operating income (loss)508,531 (133,503)— 375,028 
Reconciliation of segment profit or loss:
Interest expense63,780 
Interest income(7,764)
Gain on extinguishment of debt(4,416)
Other gains, net(10,649)
Equity in net gain of affiliates(2,879)
Income before income taxes$336,956 
(1) Other segment items for the reportable segment include selling, general and administrative expenses and reimbursable expenses from franchised and managed properties.
v3.25.4
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Purchase Consideration Transferred
The following is a summary of the purchase consideration transferred:
Purchase Consideration
(in thousands)
Cash consideration transferred for the newly acquired interest$114,470 
Fair value of the previously held interest114,470 
Effective settlement of intercompany payables3,280 
Total consideration, including previously held interest$232,220 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The preliminary allocation of the purchase price is as follows:
(in thousands)July 2, 2025
Assets acquired
Cash and cash equivalents$44,356 
Accounts receivable10,706 
Income taxes receivable149 
Prepaid expenses and other current assets335 
Operating lease right-of-use assets358 
Intangible assets150,665 
Total assets acquired$206,569 
Liabilities assumed
Accounts payable$5,235 
Accrued expenses and other current liabilities1,926 
Deferred revenue - current333 
Liability for guest loyalty program - current7,194 
Deferred income taxes38,045 
Long-term deferred revenue1,845 
Operating lease liabilities358 
Liability for guest loyalty program - noncurrent5,607 
Total liabilities assumed$60,543 
Fair value of net assets acquired$146,026 
Goodwill86,194 
Total consideration, including previously held interest$232,220 
The following table presents the estimated fair values of the acquired identified intangible assets and their estimated useful lives:
Estimated Useful LifeEstimated Fair Value
(in years)(in thousands)
Reacquired territory rights38$76,523 
Franchise agreements1274,142 
Total intangible assets$150,665 
Schedule of Pro Forma Information
The following unaudited pro forma information presents the combined results of operations of Choice and Choice Hotels Canada as if the Company had completed the Transaction on January 1, 2024, but using the preliminary fair values of the assets acquired and the liabilities assumed as of the acquisition date. The unaudited pro forma information reflects adjustments relating to (i) the allocation of the purchase price and related adjustments, including the incremental amortization expense based on the preliminary fair values of the intangible assets acquired, (ii) the incremental impact of the senior unsecured revolving credit facility draw on interest expense, (iii) nonrecurring transaction costs, and (iv) the income tax impact of the aforementioned pro forma adjustments.
As required by GAAP, these unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Transaction had occurred at the beginning of the period presented, nor are they indicative of the future results of operations.
Year Ended December 31,
(in thousands)20252024
Revenues$1,613,116 $1,623,945 
Net income (1)
$268,603 $296,040 
(1) The gain on the previously held 50% equity interest in Choice Hotels Canada is excluded from the pro forma results of operations.
Schedule of Carrying Amount of Goodwill
The following table summarizes the carrying amount of the Company's goodwill:
 December 31,
 (in thousands)20252024
Goodwill, excluding goodwill arising from the Choice Hotels Canada acquisition$227,765 $227,765 
Goodwill arising from the Choice Hotels Canada acquisition86,194 — 
Effect of foreign currency translation(623)— 
Total goodwill, gross carrying amount313,336 227,765 
Accumulated impairment losses(7,578)(7,578)
Goodwill, net carrying amount$305,758 $220,187 
v3.25.4
Basis of Presentation and Significant Accounting Policies - Effect of the Reclassifications (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 12, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues   $ 1,596,793 $ 1,584,839 $ 1,544,165
Selling, general and administrative   328,958 312,388 312,701
Business combination, diligence and transition costs   4,701 17,233 55,778
Depreciation and amortization   59,715 51,953 45,038
Total operating expenses   1,148,394 1,121,066 1,165,401
Impairment of long-lived assets $ (3,400) 0 0 (3,736)
Operating income   448,399 463,773 375,028
Franchise and management fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues   673,197 669,637 652,060
Initial franchise fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     0 0
Partnership services and fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues   113,789 99,491 91,790
Owned hotels        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues   121,373 113,459 97,641
Operating expenses   91,684 83,148 71,474
Other        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues   72,230 64,060 55,097
Revenue for reimbursable costs from franchised and managed properties        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues   616,204 638,192 647,577
Operating expenses   $ 663,336 656,344 680,410
As previously reported        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     1,584,839 1,544,165
Selling, general and administrative     219,878 216,081
Business combination, diligence and transition costs     17,233 55,778
Depreciation and amortization     43,282 39,659
Total operating expenses     1,121,066 1,165,401
Impairment of long-lived assets     0 (3,736)
Operating income     463,773 375,028
As previously reported | Franchise and management fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     514,569 513,412
As previously reported | Initial franchise fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     25,606 27,787
As previously reported | Partnership services and fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     75,752 75,114
As previously reported | Owned hotels        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     113,459 97,641
Operating expenses     83,148 71,474
As previously reported | Other        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     61,803 46,051
As previously reported | Revenue for reimbursable costs from franchised and managed properties        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     793,650 784,160
Operating expenses     757,525 782,409
Reclassification        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     0 0
Selling, general and administrative     92,510 96,620
Business combination, diligence and transition costs     0
Depreciation and amortization     8,671 5,379
Total operating expenses     0 0
Impairment of long-lived assets     0 0
Operating income     0 0
Reclassification | Franchise and management fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     155,068 138,648
Reclassification | Initial franchise fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     (25,606) (27,787)
Reclassification | Partnership services and fees        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     23,739 16,676
Reclassification | Owned hotels        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     0
Operating expenses     0
Reclassification | Other        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     2,257 9,046
Reclassification | Revenue for reimbursable costs from franchised and managed properties        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Total revenues     (155,458) (136,583)
Operating expenses     $ (101,181) $ (101,999)
v3.25.4
Basis of Presentation and Significant Accounting Policies - Revenue Recognition (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
ownedHotel
hotel
Dec. 31, 2024
USD ($)
hotel
Dec. 31, 2023
USD ($)
hotel
Revenue from External Customer [Line Items]      
Deferred revenue $ 100,698 $ 102,114  
Long-term deferred revenue $ 130,505 $ 132,259  
Loyalty points redemption period 3 years    
Number of hotels managed | hotel 13    
Number of properties acquired | ownedHotel 4    
Number of hotels acquired | hotel 17 12 10
Owned hotels | Other point in time      
Revenue from External Customer [Line Items]      
Revenue $ 125,600 $ 123,200 $ 93,100
Loyalty Points      
Revenue from External Customer [Line Items]      
Deferred revenue 78,200    
Long-term deferred revenue $ 36,700    
Minimum      
Revenue from External Customer [Line Items]      
Franchise agreement initial term in years 10 years    
Maximum      
Revenue from External Customer [Line Items]      
Franchise agreement initial term in years 30 years    
v3.25.4
Basis of Presentation and Significant Accounting Policies - Narratives (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
award_type
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Significant Accounting Policies [Line Items]      
Advertising expense $ 207.8 $ 194.6 $ 195.2
Foreign currency transaction gains (losses) $ (0.1) 2.1 $ 0.5
Performance vested restricted stock units      
Significant Accounting Policies [Line Items]      
Number of types of awards granted | award_type 3    
Property and equipment      
Significant Accounting Policies [Line Items]      
Interest costs capitalized $ 8.1 $ 9.4  
v3.25.4
Basis of Presentation and Significant Accounting Policies - Schedule of Estimated Useful Lives (Details)
Dec. 31, 2025
Computer equipment and software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 2 years
Computer equipment and software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 7 years
Buildings and leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 10 years
Buildings and leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 40 years
Furniture, fixtures, vehicles and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Furniture, fixtures, vehicles and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 10 years
v3.25.4
Revenue - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Deferred revenue, recognition period 10 years    
Revenue, remaining performance obligation, amount $ 220.3    
Capitalized franchise sales commissions 69.0 $ 59.5  
Selling, General and Administrative Expenses      
Disaggregation of Revenue [Line Items]      
Amortization expense and impairment loss 13.2 10.2 $ 13.1
Selling, General and Administrative Expenses and Marketing and Reservation System Expenses      
Disaggregation of Revenue [Line Items]      
Amortization expense and impairment loss 1.1 (0.4) $ 7.3
Initial franchise fees      
Disaggregation of Revenue [Line Items]      
Contract with customer, liability $ 103.0 111.2  
Franchise and management fees      
Disaggregation of Revenue [Line Items]      
Redemption of loyalty points period 3 years    
Loyalty program      
Disaggregation of Revenue [Line Items]      
Contract with customer, liability $ 114.9 $ 110.4  
v3.25.4
Revenue - Schedule of Changes in Contract Liabilities (Details) - Initial Fees, Sustem Implementation Fees, Franchise Agreements, Loyalty Points
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Changes in Contract Liability [Roll Forward]  
Balance as of December 31, 2024 $ 216,697
Increases to the contract liability balance due to cash received 153,031
Revenue recognized in the period (149,388)
Balance as of December 31, 2025 $ 220,340
v3.25.4
Receivables and Allowance for Credit Losses - Schedule of Notes Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total notes receivable $ 115,657 $ 115,514  
Less: allowance for credit losses 8,481 7,331 $ 8,616
Total notes receivable, net of allowance for credit losses 107,176 108,183  
Current portion, net of allowance for credit losses 94,686 75,501  
Long-term portion, net of allowance for credit losses 12,490 32,682  
Senior      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total notes receivable 98,257 94,963  
Subordinated      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total notes receivable 13,356 15,433  
Unsecured      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total notes receivable $ 4,044 $ 5,118  
v3.25.4
Receivables and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Notes Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
2025 $ 3,600  
2024 40,957  
2023 3,503  
2022 0  
2021 771  
Prior 66,826  
Total 115,657 $ 115,514
Senior    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
2025 1,713  
2024 40,832  
2023 0  
2022 0  
2021 0  
Prior 55,712  
Total 98,257 94,963
Subordinated    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
2025 1,501  
2024 0  
2023 3,503  
2022 0  
2021 0  
Prior 8,352  
Total 13,356 15,433
Unsecured    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
2025 386  
2024 125  
2023 0  
2022 0  
2021 771  
Prior 2,762  
Total $ 4,044 $ 5,118
v3.25.4
Receivables and Allowance for Credit Losses - Schedule of Notes Receivable Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable Allowance For Credit Losses Roll Forward [Abstract]    
Beginning balance $ 7,331 $ 8,616
Provision (reversal) for credit losses 1,150 (609)
Recoveries 0 (676)
Ending balance $ 8,481 $ 7,331
v3.25.4
Receivables and Allowance for Credit Losses - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for credit losses $ 8,481 $ 7,331 $ 8,616
Notes receivable 12,490 32,682  
Write-offs, net of recoveries 29,600 14,400  
Affiliated Entity | Related Party      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans to various unconsolidated joint ventures 65,300 66,200  
Selling, General and Administrative Expenses      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Provision for credit losses 20,200 11,000  
Marketing and reservation fees      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Provision for credit losses 15,000 9,700  
Variable Interest Entity, Not Primary Beneficiary      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Notes receivable 103,200 103,100  
Collateral Dependent Loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for credit losses 4,600 2,200  
Impaired Loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Average notes on nonaccrual status $ 42,900 $ 17,500  
v3.25.4
Receivables and Allowance for Credit Losses - Schedule of Past Due Balances of Notes Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Past Due [Line Items]    
Notes receivable $ 115,657 $ 115,514
Senior    
Financing Receivable, Past Due [Line Items]    
Notes receivable 98,257 94,963
Subordinated    
Financing Receivable, Past Due [Line Items]    
Notes receivable 13,356 15,433
Unsecured    
Financing Receivable, Past Due [Line Items]    
Notes receivable 4,044 5,118
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Notes receivable 43,304 18,248
Total Past Due | Senior    
Financing Receivable, Past Due [Line Items]    
Notes receivable 42,900 15,200
Total Past Due | Subordinated    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 2,264
Total Past Due | Unsecured    
Financing Receivable, Past Due [Line Items]    
Notes receivable 404 784
1-30 days Past Due    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
1-30 days Past Due | Senior    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
1-30 days Past Due | Subordinated    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
1-30 days Past Due | Unsecured    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
31-89 days Past Due    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
31-89 days Past Due | Senior    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
31-89 days Past Due | Subordinated    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
31-89 days Past Due | Unsecured    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 0
> 90 days Past Due    
Financing Receivable, Past Due [Line Items]    
Notes receivable 43,304 18,248
> 90 days Past Due | Senior    
Financing Receivable, Past Due [Line Items]    
Notes receivable 42,900 15,200
> 90 days Past Due | Subordinated    
Financing Receivable, Past Due [Line Items]    
Notes receivable 0 2,264
> 90 days Past Due | Unsecured    
Financing Receivable, Past Due [Line Items]    
Notes receivable 404 784
Current    
Financing Receivable, Past Due [Line Items]    
Notes receivable 72,353 97,266
Current | Senior    
Financing Receivable, Past Due [Line Items]    
Notes receivable 55,357 79,763
Current | Subordinated    
Financing Receivable, Past Due [Line Items]    
Notes receivable 13,356 13,169
Current | Unsecured    
Financing Receivable, Past Due [Line Items]    
Notes receivable $ 3,640 $ 4,334
v3.25.4
Property and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment $ 811,404 $ 730,248
Less: Accumulated depreciation and amortization (162,113) (125,903)
Property and equipment, net 649,291 604,345
Land and land improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 67,451 51,045
Construction in progress and software under development    
Property, Plant and Equipment [Line Items]    
Property and equipment 88,125 151,756
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property and equipment 114,031 105,196
Buildings and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 462,543 354,689
Furniture, fixtures, vehicles and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 79,254 $ 67,562
v3.25.4
Property and Equipment - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation, excluding other expenses from franchised and managed properties $ 35,300 $ 31,300 $ 25,200
Depreciation, including other expenses from franchised and managed properties 18,400 17,400 27,900
Depreciation and amortization 59,715 51,953 45,038
Property and equipment, net 649,291 604,345  
Software development      
Property, Plant and Equipment [Line Items]      
Depreciation and amortization 27,600 22,800 $ 30,300
Property and equipment, net $ 65,100 $ 65,300  
v3.25.4
Goodwill and Impairment of Assets - Schedule of Carrying Amount of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Goodwill, excluding goodwill arising from the Choice Hotels Canada acquisition $ 227,765 $ 227,765
Goodwill arising from the Choice Hotels Canada acquisition 86,194 0
Effect of foreign currency translation (623) 0
Total goodwill, gross carrying amount 313,336 227,765
Accumulated impairment losses (7,578) (7,578)
Goodwill, net carrying amount $ 305,758 $ 220,187
v3.25.4
Goodwill and Impairment of Assets - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 12, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]        
Carrying value of office space inclusive of right of use assets and leasehold improvements $ 9,500      
Loss on impairment of long-lived assets $ 3,400 $ 0 $ 0 $ 3,736
v3.25.4
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,086,240 $ 846,336
Accumulated Amortization 256,575 209,037
Net Carrying Value 829,665 637,299
Trademarks & Other (non-amortizing) 252,821 246,714
Gross Carrying Amount 1,339,061 1,093,050
Net Carrying Value 1,082,486 884,013
Franchise agreements    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 352,710 278,956
Accumulated Amortization 90,059 67,620
Net Carrying Value 262,651 211,336
Reacquired territory rights    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 75,971 0
Accumulated Amortization 1,000 0
Net Carrying Value $ 74,971 0
Finite-lived intangible asset, useful life 38 years  
Franchise Agreement Acquisition Costs    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 644,997 548,544
Accumulated Amortization 159,630 128,932
Net Carrying Value 485,367 419,612
Trademarks & Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 10,603 12,444
Accumulated Amortization 4,569 6,414
Net Carrying Value 6,034 6,030
Capitalized SaaS Licenses    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1,959 6,392
Accumulated Amortization 1,317 6,071
Net Carrying Value $ 642 $ 321
Finite-lived intangible asset, useful life 3 years  
Minimum | Franchise Agreement Acquisition Costs    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset, useful life 10 years  
Minimum | Trademarks & Other    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset, useful life 10 years  
Maximum | Franchise Agreement Acquisition Costs    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset, useful life 30 years  
Maximum | Trademarks & Other    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset, useful life 30 years  
WoodSpring | Minimum | Franchise agreements    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset, useful life 12 years  
WoodSpring | Maximum | Franchise agreements    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset, useful life 15 years  
v3.25.4
Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Depreciation, Depletion and Amortization      
Finite-Lived Intangible Assets [Line Items]      
Amortization of Intangible Assets $ 24.4 $ 20.7 $ 19.8
Cost of Sales      
Finite-Lived Intangible Assets [Line Items]      
Amortization of Intangible Assets 1.2 1.5 2.8
Reduction To Franchise And Management Fees      
Finite-Lived Intangible Assets [Line Items]      
Amortization of Intangible Assets 20.6 16.2 11.6
Reduction To Revenue For Reimbursable Costs From Franchised And Managed Properties      
Finite-Lived Intangible Assets [Line Items]      
Amortization of Intangible Assets $ 12.1 $ 12.5 $ 8.3
v3.25.4
Intangible Assets - Schedule of Estimated Annual Amortization on Amortizing Intangible Assets (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2026 $ 63,758
2027 62,193
2028 60,689
2029 59,477
2030 $ 53,910
v3.25.4
Investments in Affiliates - Narrative (Details) - USD ($)
 12 Months Ended
Jul. 10, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jul. 09, 2025
Variable Interest Entity [Line Items]          
Assets   $ 2,918,203,000 $ 2,530,527,000    
Payments to acquire interest in joint venture $ 71,600,000        
Gain on sale of assets 700,000 713,000 0 $ 0  
Investments in affiliates   134,975,000 117,016,000    
Distributions from sales of affiliates   44,617,000 15,850,000 868,000  
Gains (losses) on equity method investment     7,200,000 0  
Equity method investment impairment   0 0 0  
Member of Unconsolidated Joint Venture          
Variable Interest Entity [Line Items]          
Royalty and marketing and reservation system fees   19,600,000 34,500,000 30,900,000  
Equity Method Investment, Nonconsolidated Investee, Other          
Variable Interest Entity [Line Items]          
Assets   530,349,000 484,006,000    
Investments in affiliates         $ 42,100,000
Revolving Credit Facility | Line of Credit          
Variable Interest Entity [Line Items]          
Line of credit maximum borrowing capacity 500,000,000        
Aggregate sale price $ 52,000,000.0        
Consolidated Entity, Excluding Consolidated VIE          
Variable Interest Entity [Line Items]          
Assets   135,000,000.0 117,000,000.0    
Variable Interest Entity, Not Primary Beneficiary          
Variable Interest Entity [Line Items]          
Assets   134,400,000 104,200,000    
Net gains (losses) attributable to variable interest entities   $ (16,100,000) $ 6,900,000 $ (3,400,000)  
v3.25.4
Investments in Affiliates - Investments Ownership Interest (Details) - affiliate
Dec. 31, 2025
Jul. 02, 2025
Dec. 31, 2024
Schedule of Equity Method Investments [Line Items]      
Contribution of assets, number of unconsolidated affiliates 7    
Choice Hotels Canada, Inc.      
Schedule of Equity Method Investments [Line Items]      
Business combination, remaining percentage 50.00% 50.00%  
Choice Hotels Canada, Inc.      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   50.00%
Main Street WP Hotel Associates, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 50.00%   50.00%
CS Hotel West Orange, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 50.00%   50.00%
926 James M. Wood Boulevard, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 75.00%   75.00%
EH Glendale JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 80.00%   80.00%
CS Lakeside Santa Clara LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 50.00%   50.00%
BL 219 Holdco, LP      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 50.00%   50.00%
Integrated 32 West Randolph, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 20.00%   20.00%
EH Nampa JV LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 80.00%   80.00%
Radisson Hotel La Crosse      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 14.00%   14.00%
CH East Avenue, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 65.00%   65.00%
EH Cheyenne JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 80.00%   80.00%
EH Clarksville JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 80.00%   80.00%
EH Waco JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH Amarillo JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH Yuma JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH El Paso JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH Brownsville JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH Wichita JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH Salem JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 0.00%   80.00%
EH Facility JV, LLC      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage (as a percent) 86.00%   0.00%
v3.25.4
Investments in Affiliates - Schedule of Financial Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Revenues $ 1,596,793 $ 1,584,839 $ 1,544,165
Assets      
Current assets 405,998 339,086  
Total assets 2,918,203 2,530,527  
Liabilities      
Current liabilities 467,291 462,721  
Total liabilities 2,736,974 2,575,798  
Equity Method Investment, Nonconsolidated Investee, Other      
Income Statement [Abstract]      
Revenues 73,113 65,732 65,634
Operating income 13,091 14,199 12,504
(Loss) income before income taxes (13,990) (1,203) 314
Net loss (14,443) (3,488) $ (1,255)
Assets      
Current assets 27,787 71,737  
Non-current assets 502,562 412,269  
Total assets 530,349 484,006  
Liabilities      
Current liabilities 30,988 84,966  
Non-current liabilities 352,594 257,130  
Total liabilities $ 383,582 $ 342,096  
v3.25.4
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accrued Liabilities [Abstract]    
Accrued compensation and benefits $ 47,451 $ 55,806
Accrued interest 24,761 27,333
Dividends payable 13,542 13,888
Income taxes payable 862 10,405
Current operating lease liabilities 8,364 5,367
Other liabilities 30,302 23,930
Total accrued expenses and other current liabilities $ 125,282 $ 136,729
Operating lease liability, current [Extensible List] Total accrued expenses and other current liabilities Total accrued expenses and other current liabilities
v3.25.4
Debt - Schedule of Components of Debt (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Long-term debt $ 1,906,122,000 $ 1,768,526,000
Economic Development Loan    
Debt Instrument [Line Items]    
Long-term debt $ 1,850,000 0
Debt instrument effective interest rate 3.00%  
2019 Senior Notes | Senior    
Debt Instrument [Line Items]    
Long-term debt $ 397,643,000 397,042,000
Debt instrument, face amount $ 400,000,000  
Debt instrument effective interest rate 3.88%  
Deferred issuance costs $ 2,400,000 3,000,000.0
2020 Senior Notes | Senior    
Debt Instrument [Line Items]    
Long-term debt 446,910,000 446,300,000
Debt instrument, face amount $ 450,000,000  
Debt instrument effective interest rate 3.86%  
Deferred issuance costs $ 3,100,000 3,700,000
2024 Senior Notes | Senior    
Debt Instrument [Line Items]    
Long-term debt 589,936,000 588,764,000
Debt instrument, face amount $ 600,000,000  
Debt instrument effective interest rate 6.11%  
Deferred issuance costs $ 10,100,000 11,200,000
Unsecured Credit Facility | Senior    
Debt Instrument [Line Items]    
Long-term debt 469,783,000 336,420,000
Debt instrument, face amount $ 1,000,000,000  
Debt instrument effective interest rate 5.22%  
Deferred issuance costs $ 2,800,000 $ 3,600,000
v3.25.4
Debt - Schedule of Principal Maturities of Debt (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]  
2026 $ 0
2027 0
2028 0
2029 867,426
2030 0
Thereafter 1,038,696
Total payments 1,906,122
Senior Notes  
Long-term Debt, Fiscal Year Maturity [Abstract]  
2026 0
2027 0
2028 0
2029 397,643
2030 0
Thereafter 1,036,846
Total payments 1,434,489
Revolving Credit Facility  
Long-term Debt, Fiscal Year Maturity [Abstract]  
2026 0
2027 0
2028 0
2029 469,783
2030 0
Thereafter 0
Total payments 469,783
Other Notes Payable  
Long-term Debt, Fiscal Year Maturity [Abstract]  
2026 0
2027 0
2028 0
2029 0
2030 0
Thereafter 1,850
Total payments $ 1,850
v3.25.4
Fair Value Measurements - Schedule of Fair Value of Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total $ 51,994 $ 49,326
Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 47,713 43,887
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 4,281 5,439
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 47,713 43,887
Level 1 | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 47,713 43,887
Level 1 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 4,281 5,439
Level 2 | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 0 0
Level 2 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 4,281 5,439
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 0 0
Level 3 | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value 0 0
Level 3 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mutual funds and money market funds, fair value $ 0 $ 0
v3.25.4
Fair Value Measurements - Schedule of Carrying Amounts and Fair Values (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt $ 1,906,122 $ 1,768,526
Senior | 2019 Senior Notes Due 2029    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 397,643 397,042
Senior | 2019 Senior Notes Due 2029 | Level 2 | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 397,643 397,042
Senior | 2019 Senior Notes Due 2029 | Level 2 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 389,612 371,600
Senior | 2020 Senior Notes Due 2031    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 446,910 446,300
Senior | 2020 Senior Notes Due 2031 | Level 2 | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 446,910 446,300
Senior | 2020 Senior Notes Due 2031 | Level 2 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 428,963 405,351
Senior | 2024 Senior Notes Due 2034 | Level 2 | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt 589,936 588,764
Senior | 2024 Senior Notes Due 2034 | Level 2 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt $ 612,612 $ 601,836
v3.25.4
Income Taxes - Pretax Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Examination [Line Items]      
Income before income taxes $ 456,891 $ 395,645 $ 336,956
U.S.      
Income Tax Examination [Line Items]      
Income before income taxes 324,611 370,395 303,337
Outside the U.S.      
Income Tax Examination [Line Items]      
Income before income taxes $ 132,280 $ 25,250 $ 33,619
v3.25.4
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current tax expense      
Federal $ 45,262 $ 89,716 $ 60,493
State 10,890 21,518 16,890
Foreign 4,568 2,609 1,593
Deferred tax expense (benefit)      
Federal 17,330 (18,378) (2,022)
State 4,343 (2,908) (1,874)
Foreign 4,552 3,423 3,369
Income tax expense $ 86,945 $ 95,980 $ 78,449
v3.25.4
Income Taxes - Net Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Accrued compensation $ 21,571 $ 20,958
Deferred revenue 36,209 40,946
Receivable, net 13,888 12,345
Tax credits 34,615 24,663
Operating lease liabilities 27,872 28,455
Partnership interests 2,896 5,130
Capitalized research and experimental expenditures 35,253 44,946
Foreign net operating losses 7,651 7,870
Non-U.S. intellectual property 7,555 11,333
Other 5,015 7,235
Total gross deferred tax assets 192,525 203,881
Less: Valuation allowance (33,542) (29,660)
Deferred tax assets 158,983 174,221
Deferred tax liabilities:    
Property, equipment and intangible assets (87,465) (42,895)
Operating lease ROU assets (18,601) (20,016)
Other (2,849) (3,002)
Deferred tax liabilities (108,915) (65,913)
Net deferred tax assets $ 50,068 $ 108,308
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Loss Carryforwards [Line Items]        
Net operating loss, state tax jurisdictions $ 28,000      
Dutch deferred tax asset 192,525 $ 203,881    
Valuation allowance $ 33,542 $ 29,660    
Effective income tax rate (percent) 19.00% 24.30% 23.30%  
Gain from an acquisition of a joint venture $ 100,025 $ 0 $ 0  
Unrecognized tax benefits 5,832 6,914 $ 13,434 $ 11,876
Unrecognized tax benefits, impact on effective tax rate 3,500      
Income tax penalties and interest accrued   $ 300    
Dutch Tax Authority        
Operating Loss Carryforwards [Line Items]        
Dutch deferred tax asset 7,600      
Valuation allowance 3,000      
Foreign Operations        
Operating Loss Carryforwards [Line Items]        
Foreign net operating loss carryforwards 28,300      
France and India Tax Authorities        
Operating Loss Carryforwards [Line Items]        
Valuation allowance on foreign net operating loss carryforwards 2,400      
Deferred Tax Assets, Tax Credit Carryforwards, Foreign        
Operating Loss Carryforwards [Line Items]        
Net change in valuation allowance $ 3,900      
v3.25.4
Income Taxes - Schedule of Reconciliation of Statutory United States Federal Income Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory tax rate $ 95,989    
State and local income taxes, net of federal income tax effect 11,996    
Effects of cross-border tax laws (903)    
Research & development tax credits (4,861)    
Other (3,107)    
Expenses related to compensation, net 5,271    
Other 927    
Changes in unrecognized tax benefits (455)    
Other (48)    
Income tax expense $ 86,945 $ 95,980 $ 78,449
Percent      
U.S. federal statutory tax rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect 2.60% 3.50% 3.20%
Federal statutory tax rate difference between Canada and U.S.   0.70% 0.30%
Effects of cross-border tax laws (0.20%)    
Research & development tax credits (1.10%)    
Other (0.70%)    
Expenses related to compensation, net 1.20%    
Other 0.20%    
Unrecognized tax positions (0.10%)    
Other 0.00% 0.40% (0.90%)
Effective income tax rate 19.00% 24.30% 23.30%
Canada      
Amount      
Federal statutory tax rate difference between Canada and U.S. $ (6,137)    
Non-taxable gain $ (15,026)    
Percent      
Federal statutory tax rate difference between Canada and U.S. (1.30%)    
Non-taxable gain (3.30%)    
Netherlands      
Amount      
Federal statutory tax rate difference between Canada and U.S. $ 1,169    
Percent      
Federal statutory tax rate difference between Canada and U.S. 0.30%    
Other foreign jurisdictions      
Amount      
Federal statutory tax rate difference between Canada and U.S. $ 2,130    
Percent      
Federal statutory tax rate difference between Canada and U.S. 0.40%    
v3.25.4
Income Taxes - Effective Rate (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00%
State income taxes, net of federal tax benefit 2.60% 3.50% 3.20%
Expenses related to foreign operations   0.70% 0.30%
Expenses related to compensation, net   1.30% 1.00%
Unrecognized tax positions   (0.80%) 0.50%
Tax credits   (2.40%) (2.40%)
Valuation allowance   0.60% 0.60%
Other 0.00% 0.40% (0.90%)
Effective income tax rate 19.00% 24.30% 23.30%
v3.25.4
Income Taxes - Tax Contingency (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 6,914 $ 13,434 $ 11,876
Changes for tax positions of prior years   (776)  
Changes for tax positions of prior years 91   2,338
Increases for tax positions related to the current year 1,400 1,516 1,670
Settlements and lapsing of statutes of limitations (2,573) (7,260) (2,450)
Unrecognized tax benefits, ending balance $ 5,832 $ 6,914 $ 13,434
v3.25.4
Share-Based Compensation and Capital Stock - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for grant (in shares) 1,900,000    
Stock redeemed during period (in shares) 71,386 120,601 114,242
Stock redeemed during period $ 9.9 $ 12.4 $ 14.2
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate intrinsic value of stock, options, outstanding 1.5    
Aggregate intrinsic value of the stock options, exercisable $ 1.5    
v3.25.4
Share-Based Compensation and Capital Stock - Schedule of Change In Stock-Based Award Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock Options      
Options      
Outstanding, beginning balance (in shares) 771,641    
Granted (in shares) 0 78,988 88,733
Performance-based leveraging (in shares) 0    
Exercised/vested (in shares) (62,025)    
Expired ( in shares) (12,850)    
Forfeited (in shares) (1,683)    
Outstanding, ending balance (in shares) 695,083 771,641  
Options exercisable (in shares) 560,223    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 111.15    
Granted (in dollars per share) 0    
Performance-based leveraging (in dollars per share) 0    
Exercised/vested (in dollars per share) 107.71    
Expired (in dollars per share) 135.92    
Forfeited (in dollars per share) 137.55    
Ending balance (in dollars per share) 110.98 $ 111.15  
Options exercisable - weighted average exercise price (in dollars per share) $ 107.84    
Weighted Average Remaining Contractual Life      
Outstanding 5 years 2 months 12 days    
Options exercisable 4 years 8 months 12 days    
Restricted Stock      
Restricted Stock and Performance Vested Restricted Stock Units, Shares      
Outstanding, beginning balance (in shares) 355,405    
Granted (in shares) 65,223 69,249 65,991
Performance-based leveraging (in shares) 0    
Exercised/vested (in shares) (65,961)    
Expired (in shares) 0    
Forfeited (in shares) (11,502) (16,246) (13,202)
Outstanding, ending balance (in shares) 343,165 355,405  
Restricted Stock and Performance Vested Restricted Stock Units, Weighted Average Grant Date Fair Value      
Outstanding, beginning balance (in dollars per share) $ 136.67    
Granted in dollars per share) 132.64 $ 115.57 $ 123.65
Performance-based leveraging (in dollars per share) 0    
Exercised/vested (in dollars per share) 129.32    
Expired (in dollars per share) 0    
Forfeited (in dollars per share) 125.14    
Outstanding, ending balance (in dollars per share) $ 138.02 $ 136.67  
Performance Vested Restricted Stock Units      
Restricted Stock and Performance Vested Restricted Stock Units, Shares      
Outstanding, beginning balance (in shares) 467,521    
Granted (in shares) 148,709 147,943 110,636
Performance-based leveraging (in shares) (41,012)    
Exercised/vested (in shares) (116,107)    
Expired (in shares) 0    
Forfeited (in shares) (14,300)    
Outstanding, ending balance (in shares) 444,811 467,521  
Restricted Stock and Performance Vested Restricted Stock Units, Weighted Average Grant Date Fair Value      
Outstanding, beginning balance (in dollars per share) $ 137.74    
Granted in dollars per share) 150.77 $ 115.04 $ 128.71
Performance-based leveraging (in dollars per share) 125.90    
Exercised/vested (in dollars per share) 151.76    
Expired (in dollars per share) 0    
Forfeited (in dollars per share) 146.55    
Outstanding, ending balance (in dollars per share) $ 138.89 $ 137.74  
v3.25.4
Share-Based Compensation and Capital Stock - Pretax Stock-Based Compensation Expenses and Associated Income Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 38,321 $ 38,440 $ 40,514
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 3,946 5,265 5,816
Restricted stock awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 12,785 12,728 13,774
Performance vested restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 21,590 $ 20,447 $ 20,924
v3.25.4
Share-Based Compensation and Capital Stock - Unrecognized Compensation (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense on Unvested Awards $ 39,032
Stock options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense on Unvested Awards $ 1,776
Weighted Average Remaining Amortization Period 1 year 6 months
Restricted stock awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense on Unvested Awards $ 18,507
Weighted Average Remaining Amortization Period 1 year 10 months 24 days
Performance vested restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense on Unvested Awards $ 18,749
Weighted Average Remaining Amortization Period 1 year 8 months 12 days
v3.25.4
Share-Based Compensation and Capital Stock - Schedule of Activity Related to Stock Options (Details) - Stock options - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options granted (in shares) 0 78,988 88,733
Fair value of options granted (in thousands) $ 0 $ 3,069 $ 3,779
Total intrinsic value of stock options exercised (in thousands) 2,356 12,185 9,170
Total fair value of stock options vested (in thousands) $ 5,108 $ 5,032 $ 4,857
v3.25.4
Share-Based Compensation and Capital Stock - Weighted Average Assumptions of Black-Scholes Option-Pricing Model (Details) - Stock options - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 0.00% 4.27% 4.10%
Expected volatility 0.00% 31.34% 30.90%
Expected life of stock option 0 years 6 years 6 years
Dividend yield 0.00% 1.03% 0.90%
Requisite service period 0 years 4 years 4 years
Contractual life 0 years 10 years 10 years
Weighted average fair value of options granted (in dollars per share) $ 0 $ 38.85 $ 42.59
v3.25.4
Share-Based Compensation and Capital Stock - Schedule of Activity Related to Restricted Stock Grants (Details) - Restricted stock awards - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Restricted shares granted (in shares) 65,223 69,249 65,991
Weighted average grant date fair value per share (in dollars per share) $ 132.64 $ 115.57 $ 123.65
Aggregate grant date fair value (in thousands) $ 8,651 $ 8,003 $ 8,160
Restricted shares forfeited (in shares) 11,502 16,246 13,202
Fair value of the restricted shares vested (in thousands) $ 8,790 $ 6,804 $ 11,134
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting service period for the restricted shares granted 9 months 9 months 9 months
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting service period for the restricted shares granted 48 months 48 months 48 months
v3.25.4
Share-Based Compensation and Capital Stock - Schedule of Activity Related to PVRSU Grants (Details) - Performance vested restricted stock units - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
PVRSUs granted at target (in shares) 148,709 147,943 110,636
Weighted average grant date fair value per share (in dollars per share) $ 150.77 $ 115.04 $ 128.71
Aggregate grant date fair value (in thousands) $ 22,421 $ 17,019 $ 14,240
PVRSUs forfeited and expired (in shares) 14,300 23,710 16,504
Fair value of PVRSUs vested (in thousands) $ 17,621 $ 15,773 $ 17,413
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Requisite service period 9 months 9 months 9 months
Vesting range 0.00%    
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Requisite service period 48 months 48 months 48 months
Vesting range 230.00%    
v3.25.4
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income $ 369,946 $ 299,665 $ 258,507
Income allocated to participating securities (1,780) (1,521) (1,379)
Net income available to common shareholders $ 368,166 $ 298,144 $ 257,128
Denominator:      
Weighted average shares of common stock outstanding – basic (in shares) 46,170 47,653 50,341
Basic earnings per share (in dollars per share) $ 7.97 $ 6.26 $ 5.11
Numerator:      
Net income $ 369,946 $ 299,665 $ 258,507
Income allocated to participating securities (1,780) (1,521) (1,379)
Net income available to common shareholders $ 368,166 $ 298,144 $ 257,128
Denominator:      
Weighted average shares of common stock outstanding – basic (in shares) 46,170 47,653 50,341
Dilutive effect of stock options, PVRSUs, and RSUs (in shares) 410 425 359
Weighted average shares of common stock outstanding - diluted 46,580 48,078 50,700
Diluted earnings per share (in dollars per share) $ 7.90 $ 6.20 $ 5.07
v3.25.4
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock options (in shares) 202 147 232
Performance vested restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock options (in shares) 46 7 71
v3.25.4
Leases - Narrative (Details)
Dec. 31, 2025
Operating Leased Assets [Line Items]  
Operating lease, renewal term (up to) 10 years
Radisson Hotels Americas  
Operating Leased Assets [Line Items]  
Remaining lease term 86 years 3 months 18 days
Minimum  
Operating Leased Assets [Line Items]  
Remaining lease term 1 year 8 months 4 days
Maximum  
Operating Leased Assets [Line Items]  
Remaining lease term 9 years
v3.25.4
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease cost $ 12,130 $ 11,979
Sublease income (937) (789)
Total lease cost $ 11,193 $ 11,190
v3.25.4
Leases - Schedule of Operating Leases, Other Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 8,602 $ 6,637
ROU assets obtained in exchange for lease liabilities in non-cash transactions:    
Operating lease assets obtained in exchange for operating lease liabilities $ 427 $ 4,585
Weighted-average remaining lease term 31 years 7 months 6 days 31 years 8 months 12 days
Weighted-average discount rate 5.09% 5.07%
v3.25.4
Leases - Schedule of Operating Lease Maturities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 13,071
2027 13,697
2028 13,594
2029 13,586
2030 13,642
Thereafter 297,944
Total minimum lease payments 365,534
Less: imputed interest 249,207
Present value of the minimum lease payments $ 116,327
v3.25.4
Reportable Segment Information - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
ownedHotel
brand
hotel
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Aug. 11, 2022
hotel
Segment Reporting Information [Line Items]        
Number of reportable segments disclosed by definition flag reportable segment      
Number of brands | brand 22      
Number of hotels managed | hotel 13      
Number of properties acquired | ownedHotel 4      
Total revenues | $ $ 1,596,793 $ 1,584,839 $ 1,544,165  
Radisson Hotels Americas        
Segment Reporting Information [Line Items]        
Number of properties acquired | hotel       4
Foreign Operations        
Segment Reporting Information [Line Items]        
Total revenues | $ $ 117,800 $ 102,700 $ 103,200  
v3.25.4
Reportable Segment Information - Schedule of Financial Information for Company's Franchising Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jul. 10, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]        
Revenues   $ 1,596,793 $ 1,584,839 $ 1,544,165
Other Segment Items   1,088,679 1,069,113 1,124,099
Depreciation and amortization   59,715 51,953 45,038
Operating income (loss)   448,399 463,773 375,028
Interest expense   91,148 87,131 63,780
Interest income   (6,237) (8,646) (7,764)
Gain from an acquisition of a joint venture   (100,025) 0 0
Gain on sale of assets $ (700) (713) 0 0
Loss (gain) on extinguishment of debt   0 331 (4,416)
Other (gains) losses, net   (6,989) 1,641 (10,649)
Equity in net loss (gain) of affiliates   14,324 (12,329) (2,879)
Income before income taxes   456,891 395,645 336,956
Operating Segments | Hotel Franchising & Management        
Segment Reporting Information [Line Items]        
Revenues   1,472,535 1,470,592 1,444,394
Other Segment Items   834,953 857,843 911,301
Depreciation and amortization   34,520 28,450 24,562
Operating income (loss)   603,062 584,299 508,531
Corporate & Other        
Segment Reporting Information [Line Items]        
Revenues   137,439 126,450 110,854
Other Segment Items   266,907 223,473 223,881
Depreciation and amortization   25,195 23,503 20,476
Operating income (loss)   (154,663) (120,526) (133,503)
Intersegment Eliminations        
Segment Reporting Information [Line Items]        
Revenues   (13,181) (12,203) (11,083)
Other Segment Items   (13,181) (12,203) (11,083)
Depreciation and amortization   $ 0 0 0
Operating income (loss)     $ 0 $ 0
v3.25.4
Commitments and Contingencies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
hotel
Loss Contingencies [Line Items]  
Limited payment guaranties $ 38.5
Number of hotels managed | hotel 13
Guarantee payments $ 3.8
Maximum amount of guarantee 18.2
Purchase obligation $ 193.0
Purchase obligation period 11 years
Maximum  
Loss Contingencies [Line Items]  
Other commitment $ 3.5
Radisson Hotels Americas | Affiliated Entity  
Loss Contingencies [Line Items]  
Number of hotels managed | hotel 7
v3.25.4
Acquisitions - Choice Hotels Canada Acquisition - Narrative (Details)
$ in Thousands
 12 Months Ended
Jul. 02, 2025
USD ($)
brand
room
Dec. 31, 2025
USD ($)
brand
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jul. 01, 2025
Business Combination [Line Items]          
Number of brands | brand   22      
Business combination, diligence and transition costs   $ 4,701 $ 17,233 $ 55,778  
Goodwill   $ 305,758 220,187    
Choice Hotels Canada, Inc.          
Business Combination [Line Items]          
Business combination, remaining percentage 50.00% 50.00%      
Payments to acquire businesses, gross $ 114,470        
Number of rooms | room 26,000        
Number of brands | brand 22        
Business combination percentage   50.00%     50.00%
Fair value of the previously held interest $ 114,470        
Gain from an acquisition of a joint venture   $ 100,000      
Business Combination, Achieved in Stages, Preacquisition Equity Interest in Acquiree, Remeasurement, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]   Gain from an acquisition of a joint venture      
Business combination, diligence and transition costs   $ 2,200      
Revenue   $ 24,900      
Net income     $ 9,400    
Goodwill $ 86,194        
v3.25.4
Acquisitions - Schedule of Purchase Consideration Transferred (Details) - Choice Hotels Canada, Inc.
$ in Thousands
Jul. 02, 2025
USD ($)
Business Combination [Line Items]  
Cash consideration transferred for the newly acquired interest $ 114,470
Fair value of the previously held interest 114,470
Effective settlement of intercompany payables 3,280
Total consideration, including previously held interest $ 232,220
v3.25.4
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Jul. 02, 2025
Dec. 31, 2024
Liabilities assumed      
Goodwill $ 305,758   $ 220,187
Choice Hotels Canada, Inc.      
Assets acquired      
Cash and cash equivalents   $ 44,356  
Accounts receivable   10,706  
Income taxes receivable   149  
Prepaid expenses and other current assets   335  
Operating lease right-of-use assets   358  
Intangible assets   150,665  
Total assets acquired   206,569  
Liabilities assumed      
Accounts payable   5,235  
Accrued expenses and other current liabilities   1,926  
Deferred revenue - current   333  
Liability for guest loyalty program - current   7,194  
Deferred income taxes   38,045  
Long-term deferred revenue   1,845  
Operating lease liabilities   358  
Liability for guest loyalty program - noncurrent   5,607  
Total liabilities assumed   60,543  
Fair value of net assets acquired   146,026  
Goodwill   86,194  
Total consideration, including previously held interest   $ 232,220  
v3.25.4
Acquisitions - Schedule of Indefinite-Lived Intangible Assets (Details) - Choice Hotels Canada, Inc.
$ in Thousands
Jul. 02, 2025
USD ($)
Business Combination [Line Items]  
Estimated Fair Value $ 150,665
Reacquired territory rights  
Business Combination [Line Items]  
Estimated Useful Life 38 years
Estimated Fair Value $ 76,523
Franchise agreements  
Business Combination [Line Items]  
Estimated Useful Life 12 years
Estimated Fair Value $ 74,142
v3.25.4
Acquisitions - Schedule of Pro Forma Information (Details) - Choice Hotels Canada, Inc. - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Jul. 01, 2025
Business Combination [Line Items]      
Revenues $ 1,613,116 $ 1,623,945  
Net income $ 268,603 $ 296,040  
Gain on previously held equity interest 50.00%   50.00%