Choice Hotels Talks Up International Growth as U.S. Demand Softens

International expansion is gaining ground at Choice, with full control in Canada and rising overseas openings. But its fortunes still depend heavily on the U.S.

With domestic U.S. demand softening – and a new, slightly lower earnings forecast – Choice Hotels executives were eager on Wednesday to talk up their push to diversify internationally and how the company is becoming less dependent on U.S. market cycles.

Highlights from the second-quarter earnings call:

Weak second quarter and new forecast: The company now expects U.S. revenue per available room (RevPAR) to land between a decline of 3% and flat for 2025. The prior forecast was for between a decline of 1% and a gain of 1%.

The company attributed the revision to a "changing macroeconomic backdrop."

Domestic RevPAR fell 2.9% year-over-year, partly because of the timing of Easter and a tough comparison with a surge in eclipse-related travel a year ago.

"The two headwinds the whole industry is experiencing are international inbound and government travel. Those a