Choice adjusts guidance, focuses on extended-stay for growth

from Hotel Management, by Jena Tesse Fox, May 8, 2025

Extended-stay brands like Choice Hotels International's Everhome Suites now make up half of the total domestic room pipeline, President and CEO Patrick Pacious said on a call with investors. (Choice Hotels International)  

The lowered guidance follows an overarching trend among the major public hotel companies. Hilton, Hyatt, Wyndham and Marriott have also adjusted their expectations for the year in the wake of economic uncertainty. Windsor, England-based IHG, however, maintained its guidance for the year, suggesting that the uncertainty could be localized or affected by reduced U.S. government spending.

“Many of them have gotten ahead of the whole tariff impact by bringing inventory here sooner. And then secondly, many of them told us they have figured out ways not to pass that cost on to the owners.” Those who did expect to raise prices only expected to do so within the 10 percent range, he added— “which is very absorbable in the way our franchisees are thinking about development moving forward.” 

The company also increased the net rooms portfolio for its domestic extended-stay segment 10.8 percent, and the segment's pipeline reached more than 40,000 rooms as of March 31.