Dive Brief:
- Choice Hotels International increased its global system size by 3.3% year over year in 2024 to 653,810 rooms, according to an earnings report published Thursday.
- During 2024, Choice opened 407 hotels globally, a 21% increase year over year, including its 500th extended stay hotel in the fourth quarter. In the U.S., the company’s domestic extended stay net rooms portfolio grew by 9.8% year over year in 2024, per the report. Additionally, Choice’s global upscale net rooms portfolio increased 43.9% year over year on the heels of a strategic push in the segment.
- Choice’s systems growth throughout the year, set to capture strong travel demand, was spurred by the relaunch of four Radisson brands as well as expanded partnerships, according to CEO Patrick Pacious.
Dive Insight:
At year-end 2024, Choice had 515 extended stay hotels open, Pacious said on a Thursday earnings call. Additionally, the company currently has more than 110,000 rooms in upscale and higher chain scales in its overall system, which is almost two times its economy portfolio, Pacious shared.
Demand for the upscale segment remains strong, Pacious said. Throughout 2024, Choice continued a strategic push in higher-tier chain scales, relaunching four Radisson brands.
Choice continued to expand its system size in early 2025, entering a strategic partnership with Westgate Resorts that added 21 hotels, or 14,471 rooms, to the company’s domestic portfolio.
Choice’s expanded portfolio scale is intended to capture strong travel demand in both the business and leisure sectors, Pacious said on the call. In the first quarter of 2025, business travel, particularly, is trending up for the company, he added.
Corporate group travel will continue to gain momentum in 2025, hospitality pros shared with Hotel Dive earlier this year.
Beyond portfolio growth, Choice reported net income growth of 16% year over year in 2024 as well as 12% year-over-year growth in adjusted EBITDA for the year, to a company record of $604.1 million, exceeding the top end of the company’s full-year 2024 guidance.
