Choice's Brands Continue to Resonate With Owners Amid Near-Term Economic Uncertainty

With about 90% of Choice Hotels' US portfolio within one mile of an interstate, the company is positioned to benefit from US infrastructure and onshoring activity even as near-term demand is hindered by US tariff policy uncertainty. Long term, we expect Choice to gradually expand room share in the hotel industry in the next decade, with its keys increasing more than 2% on average annually, above the 1%-2% supply lift we estimate for the US industry over that time. This growth is supported by a rejuvenated Comfort brand (26% of 2024 total domestic rooms), newer Cambria, Ascend, and Everhome concepts (10% combined), extended-stay brand WoodSpring (6%), the acquisition of the higher-scale Radisson brand in 2022, the partnership with upscale Westgate resorts in 2024 (about 3%), new Canada and China franchise relationships in 2025, and a solid loyalty program with 73 million members as of Sept. 30, 2025, up from 44 million in 2019.