CHOICE HOTELS INTERNATIONAL INC /DE
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
CHH$118.91+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001046311-25-000015
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001046311-25-000023
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 131 current paragraphs.
78 unchanged; 26 reworded; 19 added; 0 removed; 1 previous and 8 current paragraphs rearranged.
Tables are not compared: 3 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
For the three months ended June 30, 2025, the Company recognized income before income taxes of $108.6 million, which is an $8.0 million decrease from the same period in the prior year. The decrease in income before income taxes was primarily due to an $8.0 million decrease in operating income and an $8.0 million decrease in the equity in net loss (gain) of affiliates, all of which were partially offset by a $7.9 million increase in other (gain) loss.
Current report
Operating income decreased $8.0 million primarily due to a $5.9 million increase in the net reimbursable deficit from franchised and managed properties and a $2.7 million decrease in franchise and management fees.
Current report
Selling, General and Administrative
Current report
Selling, general and administrative expenses increased $0.6 million primarily due to a $2.0 million increase in operating guarantee payments for a portfolio of managed hotels, which was acquired in connection with the Company's purchase of Radisson Hotels Americas, and general increases in costs to operate the franchising business, all of which were partially offset by a $2.4 million litigation settlement that was recognized during the three months ended June 30, 2024.
Current report
Other (Gain) Loss
Current report
Other (gain) loss increased $7.9 million primarily due to a $3.1 million increase in the Company's deferred compensation assets based on increases in the fair value of the underlying investments, a $1.5 million increase in foreign currency translation gains, and a $3.2 million unrealized loss on investments in equity securities that was recognized during the three months ended June 30, 2024.
Current report
Equity in Net Loss (Gain) of Affiliates
Current report
Equity in net loss (gain) of affiliates decreased $8.0 million primarily due to a distribution from an unconsolidated affiliate, which sold its underlying assets, resulting in the recognition of a $7.2 million gain during the three months ended June 30, 2024.
Current report
Results of Operations
Current report
Franchise and Management Fees
Current report
Domestic royalty fees decreased $2.1 million to $215.8 million for the six months ended June 30, 2025 from $217.9 million for the six months ended June 30, 2024. The decrease in domestic royalty fees was primarily due to a 0.7% domestic system-wide RevPAR decrease as a result of a 0.3% decrease in average daily rates and a 20 basis points decrease in occupancy, which was partially offset by a system-wide 7 basis points increase in the effective royalty rate from 5.04% for the six months ended June 30, 2024 to 5.11% for the six months ended June 30, 2025.
Current report
International royalty fees increased $0.2 million to $14.4 million for the six months ended June 30, 2025 from $14.2 million for the six months ended June 30, 2024. The increase in international royalty fees was primarily due to an increase in the size of the international franchise system by 48 hotels (from 1,210 hotels as of June 30, 2024 to 1,258 hotels as of June 30, 2025) and 6,858 rooms (from 136,980 rooms as of June 30, 2024 to 143,838 rooms as of June 30, 2025), which was partially offset by a decrease in international RevPar.
Current report
Selling, General and Administrative
Current report
Selling, general and administrative expenses increased $2.5 million primarily due to a $2.0 million increase in operating guarantee payments for a portfolio of managed hotels, which was acquired in connection with the Company's purchase of Radisson Hotels Americas, and general increases in costs to operate the franchising business, all of which were partially offset by a $2.4 million litigation settlement that was recognized during the six months ended June 30, 2024.
Current report
Other (Gain) Loss
Current report
Other (gain) loss increased $8.8 million primarily due to an $8.4 million unrealized loss on investments in equity securities that was recognized during the six months ended June 30, 2024.
Current report
Equity in Net Loss (Gain) of Affiliates
Current report
Equity in net loss (gain) of affiliates decreased $7.9 million primarily due to a distribution from an unconsolidated affiliate, which sold its underlying assets, resulting in the recognition of a $7.2 million gain during the six months ended June 30, 2024.
Current report
Income Tax Expense
Reworded paragraphs (26)
Previous wording
We are primarily a hotel franchisor operating in 49 states, the District of Columbia, and 46 countries and territories. As of March 31, 2025, we had 7,527 hotels with 647,587 rooms open and operating, and 947 hotels with 95,089 rooms under construction, awaiting conversion or approved for development, or committed to future franchise development on outstanding master development agreements (collectively, "pipeline") in our global system. Our brand names include Radisson Blu®, Park Plaza®, Cambria® Hotels, Ascend Hotel Collection®, Radisson RED®, Radisson Individuals®, Radisson®, Radisson Collection®, Clarion®, Clarion Pointe™, Comfort Inn®, Comfort Suites®, Country Inn & Suites® by Radisson, Radisson Inn & Suites SM, Sleep Inn®, Quality®, Park Inn by Radisson®, Everhome Suites®, WoodSpring Suites®, MainStay Suites®, Suburban Studios™, Econo Lodge®, and Rodeway Inn®.
Current wording
We are primarily a hotel franchisor operating in 49 states, the District of Columbia, and 46 countries and territories. As of June 30, 2025, we had 7,481 hotels with 644,400 rooms open and operating, and 931 hotels with 93,218 rooms under construction, awaiting conversion or approved for development, or committed to future franchise development on outstanding master development agreements (collectively, "pipeline") in our global system. Our brand names include Radisson Blu®, Park Plaza®, Cambria® Hotels, Ascend Hotel Collection®, Radisson RED®, Radisson Individuals®, Radisson®, Radisson Collection®, Clarion®, Clarion Pointe™, Comfort Inn®, Comfort Suites®, Country Inn & Suites® by Radisson, Radisson Inn & Suites SM, Sleep Inn®, Quality®, Park Inn by Radisson®, Everhome Suites®, WoodSpring Suites®, MainStay Suites®, Suburban Studios™, Econo Lodge®, and Rodeway Inn®.
Previous wording
The hotel franchising business represents the Company's primary operations. The Company's domestic operations are conducted through direct franchising relationships, the ownership of 13 open and operating hotels, and the management of 13 hotels (inclusive of four owned hotels), while its international franchise operations are conducted through a combination of direct franchising and master franchising relationships. Master franchising relationships are governed by master franchising agreements which generally provide the master franchisee with the right to use our brands and sub-license the use of our brands in a specific geographic region, usually for a fee. As a result of our master franchise relationships and international market conditions, our revenues are primarily concentrated in the United States. Therefore, our description of our business is primarily focused on the domestic operations, which encompasses the United States.
Current wording
The hotel franchising business represents the Company's primary operations. The Company's domestic operations are conducted through direct franchising relationships, the ownership of 13 open and operating hotels, and the management of 13 hotels (inclusive of four owned hotels), while its international franchise operations are conducted through a combination of direct franchising and master franchising relationships. Master franchising relationships are governed by master franchising agreements which generally provide the master franchisee with the right to use our brands and sub-license the use of our brands in a specific geographic region, usually for a fee. As a result of our master franchise relationships and international market conditions, our revenues are primarily concentrated in the United States. Therefore, our description of our business is primarily focused on the domestic franchising operations, which encompasses the United States.
Previous wording
Due to the seasonal nature of the Company’s hotel franchising and management business and the multi-year investments required to support the franchise operations, quarterly and/or annual surpluses or deficits may be generated. During the three months ended March 31, 2025 and 2024, reimbursable expenses from franchised and managed properties exceeded revenue for reimbursable costs from franchised and managed properties by $20.4 million and $22.6 million, respectively.
Current wording
Due to the seasonal nature of the Company’s hotel franchising and management business and the multi-year investments required to support the franchise operations, quarterly and/or annual surpluses or deficits may be generated. During the three months ended June 30, 2025 and 2024, reimbursable expenses from franchised and managed properties exceeded revenue for reimbursable costs from franchised and managed properties by $9.0 million and $3.1 million, respectively. During the six months ended June 30, 2025 and 2024, reimbursable expenses from franchised and managed properties exceeded revenue for reimbursable costs from franchised and managed properties by $29.4 million and $25.7 million, respectively.
Previous wording
Domestic royalty fees increased $1.7 million to $94.6 million for the three months ended March 31, 2025 from $92.9 million for the three months ended March 31, 2024. The increase in domestic royalty fees was primarily due to a 2.3% domestic system-wide RevPAR increase as a result of a 1.7% increase in average daily rates and a 30 basis points increase in occupancy during the current period, and a system-wide 8 basis points increase in the effective royalty rate from 5.03% for the three months ended March 31, 2024 to 5.11% for the three months ended March 31, 2025.
Current wording
Domestic royalty fees decreased $3.7 million to $121.3 million for the three months ended June 30, 2025 from $125.0 million for the three months ended June 30, 2024. The decrease in domestic royalty fees was primarily due to a 2.9% domestic system-wide RevPAR decrease as a result of a 1.8% decrease in average daily rates and a 70 basis points decrease in occupancy during the current period, which was partially offset by a system-wide 8 basis points increase in the effective royalty rate from 5.04% for the three months ended June 30, 2024 to 5.12% for the three months ended June 30, 2025.
Previous wording
International royalty fees decreased $0.3 million to $6.6 million for the three months ended March 31, 2025 from $6.9 million for the three months ended March 31, 2024. The decrease in international royalty fees was primarily due to a decrease in international RevPAR, which was partially offset by an increase in the international franchise system size by 33 hotels (from 1,215 hotels as of March 31, 2024 to 1,248 hotels as of March 31, 2025) and 5,954 rooms (from 136,032 rooms as of March 31, 2024 to 141,986 rooms as of March 31, 2025).
Current wording
International royalty fees increased $0.5 million to $7.8 million for the three months ended June 30, 2025 from $7.3 million for the three months ended June 30, 2024. The increase in international royalty fees was primarily due to an increase in the international franchise system size by 48 hotels (from 1,210 hotels as of June 30, 2024 to 1,258 hotels as of June 30, 2025) and 6,858 rooms (from 136,980 rooms as of June 30, 2024 to 143,838 rooms as of June 30, 2025), which was partially offset by a decrease in international RevPAR.
Previous wording
The Company's effective income tax rates were 25.5% and 22.9% for the three months ended March 31, 2025 and 2024, respectively. The effective income tax rates were higher than the U.S. federal income tax rate of 21.0% primarily due to the impact of state income taxes.
Current wording
The Company's effective income tax rates were 24.7% and 25.3% for the three months ended June 30, 2025 and 2024, respectively. The effective income tax rates were higher than the U.S. federal income tax rate of 21.0% primarily due to the impact of state income taxes.
Previous wording
For the three months ended March 31, 2025, the Company recognized income before income taxes of $59.8 million, which is a $19.6 million increase from the same period in the prior year. The increase in income before income taxes was primarily due to a $19.8 million increase in operating income.
Current wording
For the six months ended June 30, 2025, the Company recognized income before income taxes of $168.4 million, which is an $11.6 million increase from the same period in the prior year. The increase in income before income taxes is primarily due to an $11.8 million increase in operating income and an $8.8 million increase in other (gain) loss, all of which were partially offset by a $7.9 million decrease in equity in net loss (gain) of affiliates.
Previous wording
Operating income increased $19.8 million primarily due to a $5.5 million increase in partnership services and fees, a $15.7 million decrease in business combination, diligence and transition costs, and a $1.7 million increase in franchise and management fees, all of which were partially offset by a $3.6 million decrease in other revenues.
Current wording
Operating income increased $11.8 million primarily due to a $5.2 million increase in partnership services and fees and a $16.3 million decrease in business combination, diligence and transition costs, all of which were partially offset by a $3.8 million increase in the net reimbursable deficit from franchised and managed properties, a $2.2 million decrease in other revenue, and a $2.5 million increase in selling, general and administrative expenses.
Previous wording
Partnership services and fees increased $5.5 million primarily due to an increase in the fees generated from the Company's co-branded credit card agreement and qualified vendors.
Current wording
Partnership services and fees increased $5.2 million primarily due to an increase in the fees generated from the Company's co-branded credit card agreement and qualified vendors.
Previous wording
Other revenues decreased $3.6 million primarily due to a decrease in liquidated damages resulting from the early termination of franchise agreements.
Current wording
Other revenues decreased $2.2 million primarily due to a decrease in liquidated damages resulting from the early termination of franchise agreements.
Previous wording
Business combination, diligence and transition costs decreased $15.7 million primarily due to the termination of the Wyndham acquisition pursuit on March 8, 2024.
Current wording
Business combination, diligence and transition costs decreased $16.3 million primarily due to the termination of the Wyndham acquisition pursuit on March 8, 2024.
Previous wording
As of March 31, 2025, the Company's primary sources of liquidity consisted of $593.8 million in cash and cash equivalents and available borrowing capacity under the senior unsecured revolving credit facility. As of March 31, 2025, the Company was in compliance with all of its financial covenants under its credit agreements and the Company expects to remain in such compliance. The Company believes that its cash on hand, available borrowing capacity under the senior unsecured revolving credit facility, cash flows from operations, and access to additional capital in the debt markets will provide sufficient liquidity to meet the expected future operating, investing, and financing needs of the business.
Current wording
As of June 30, 2025, the Company's primary sources of liquidity consisted of $587.5 million in cash and cash equivalents and available borrowing capacity under the senior unsecured revolving credit facility. As of June 30, 2025, the Company was in compliance with all of its financial covenants under its credit agreements and the Company expects to remain in such compliance. The Company believes that its cash on hand, available borrowing capacity under the senior unsecured revolving credit facility, cash flows from operations, and access to additional capital in the debt markets will provide sufficient liquidity to meet the expected future operating, investing, and financing needs of the business.
Previous wording
Our board of directors authorized a program which permits us to offer financing, investment, and guaranty support to qualified franchisees, and to acquire or develop and then resell hotels to incentivize franchise development of our brands in strategic markets. We primarily engage in these financial support activities to encourage acceleration of the growth of our Cambria Hotels and Everhome Suites brands. With respect to these activities, the Company had approximately $636.6 million in financial support of the Cambria Hotels and Everhome Suites brands reflected in the consolidated balance sheet as of March 31, 2025. The Company is generally targeting to recycle these investments within a five year period, and expects our outstanding investments to not exceed $1.2 billion at any point in time based on the current board of directors' authorization. The deployment and annual pace of future financial support activities will depend upon market and other conditions, including among others, our franchise sales results, the environment for new construction hotel development, and the hotel lending environment.
Current wording
Our board of directors authorized a program which permits us to offer financing, investment, and guaranty support to qualified franchisees, and to acquire or develop and then resell hotels to incentivize franchise development of our brands in strategic markets. We primarily engage in these financial support activities to encourage acceleration of the growth of our Cambria Hotels and Everhome Suites brands. With respect to these activities, the Company had approximately $667.5 million in financial support of the Cambria Hotels and Everhome Suites brands reflected in the consolidated balance sheet as of June 30, 2025. The Company is generally targeting to recycle these investments within a five year period, and expects our outstanding investments to not exceed $1.2 billion at any point in time based on the current board of directors' authorization. The deployment and annual pace of future financial support activities will depend upon market and other conditions, including among others, our franchise sales results, the environment for new construction hotel development, and the hotel lending environment.
Previous wording
The Company has historically generated cash flows from operating activities that are in excess of the capital needed to invest in growth opportunities and to service debt obligations. As a result, the Company maintains a share repurchase program and typically pays a quarterly dividend. On March 11, 2024, the Company's board of directors approved an increase of 5 million shares in the number of shares authorized to be repurchased under its share repurchase program. As of March 31, 2025, the Company had 3.4 million shares remaining under the current share repurchase authorization. The projected 2025 annual dividend rate is $1.15 per share or approximately $53.6 million in aggregate dividend payments, which is subject to future declarations by our board of directors.
Current wording
The Company has historically generated cash flows from operating activities that are in excess of the capital needed to invest in growth opportunities and to service debt obligations. As a result, the Company maintains a share repurchase program and typically pays a quarterly dividend. On March 11, 2024, the Company's board of directors approved an increase of 5 million shares in the number of shares authorized to be repurchased under its share repurchase program. As of June 30, 2025, the Company had 3.0 million shares remaining under the current share repurchase authorization. The projected 2025 annual dividend rate is $1.15 per share or approximately $53.5 million in aggregate dividend payments, which is subject to future declarations by our board of directors.
Previous wording
During the three months ended March 31, 2025 and 2024, the net cash provided by operating activities was $20.5 million and $1.7 million, respectively. Our operating cash flows increased $18.8 million primarily due to a decrease in business combination, diligence and transition costs associated with the timing of the termination of the Wyndham acquisition pursuit during the first quarter of 2024 and a decrease in the franchise agreement acquisition cost payments, all of which were partially offset by the timing of working capital items.
Current wording
During the six months ended June 30, 2025 and 2024, the net cash provided by operating activities was $116.1 million and $113.6 million, respectively. Our operating cash flows increased $2.5 million primarily due to a decrease in business combination, diligence and transition costs associated with the timing of the termination of the Wyndham acquisition pursuit during the first quarter of 2024 and a decrease in the franchise agreement acquisition cost payments, all of which were partially offset by the timing of working capital items.
Previous wording
In conjunction with brand and development programs, we strategically make certain franchise agreement acquisition cost payments to franchisees as an incentive to enter into new franchise agreements or perform-designated improvements to properties under existing franchise agreements. If the franchisee remains in the franchise system in good standing over the term specified in the incentive agreement, then the Company forgives the incentive ratably. If the franchisee exits our franchise system or is not operating their franchise in accordance with our quality or credit standards and is terminated, then the franchisee must repay the unamortized franchise agreement acquisition cost payment plus interest to the Company. During the three months ended March 31, 2025 and 2024, the Company's net franchise agreement acquisition costs were $26.3 million and $33.5 million, respectively.
Current wording
In conjunction with brand and development programs, we strategically make certain franchise agreement acquisition cost payments to franchisees as an incentive to enter into new franchise agreements or perform-designated improvements to properties under existing franchise agreements. If the franchisee remains in the franchise system in good standing over the term specified in the incentive agreement, then the Company forgives the incentive ratably. If the franchisee exits our franchise system or is not operating their franchise in accordance with our quality or credit standards and is terminated, then the franchisee must repay the unamortized franchise agreement acquisition cost payment plus interest to the Company. During the six months ended June 30, 2025 and 2024, the Company's net franchise agreement acquisition costs were $41.5 million and $52.0 million, respectively.
Previous wording
The Company’s franchise agreements require the payment of marketing and reservation system fees to be used by the Company for the expenses associated with providing franchise services, such as national marketing, media advertising, and central reservation systems. Additionally, the Company's management agreements include cost reimbursements, primarily related to the payroll costs at the managed hotels where the Company is the employer. These activities are reflected in revenue for reimbursable costs from franchised and managed properties and reimbursable expenses from franchised and managed properties. During the three months ended March 31, 2025 and 2024, reimbursable expenses from franchised and managed properties exceeded revenue for reimbursable costs from franchised and managed properties by $20.4 million and $22.6 million, respectively.
Current wording
The Company’s franchise agreements require the payment of marketing and reservation system fees to be used by the Company for the expenses associated with providing franchise services, such as national marketing, media advertising, and central reservation systems. Additionally, the Company's management agreements include cost reimbursements, primarily related to the payroll costs at the managed hotels where the Company is the employer. These activities are reflected in revenue for reimbursable costs from franchised and managed properties and reimbursable expenses from franchised and managed properties. During the six months ended June 30, 2025 and 2024, reimbursable expenses from franchised and managed properties exceeded revenue for reimbursable costs from franchised and managed properties by $29.4 million and $25.7 million, respectively.
Previous wording
The net cash used in investing activities was $53.0 million and $42.7 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
The net cash used in investing activities was $95.1 million and $62.0 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
During the three months ended March 31, 2025 and 2024, investments in owned hotel properties totaled $35.5 million and $25.6 million, respectively. These investments related to the ongoing hotel development efforts to support the continued growth of the Cambria Hotels and Everhome Suites brands. During the three months ended March 31, 2025 and 2024, investments in other property and equipment totaled $10.5 million and $7.2 million, respectively. These investments primarily related to leasehold improvements, office equipment, and capitalized software.
Current wording
During the six months ended June 30, 2025 and 2024, investments in owned hotel properties totaled $65.7 million and $50.9 million, respectively. These investments related to the ongoing hotel development efforts to support the continued growth of the Cambria Hotels and Everhome Suites brands. During the six months ended June 30, 2025 and 2024, investments in other property and equipment totaled $18.3 million and $22.7 million, respectively. These investments primarily related to leasehold improvements, office equipment, and capitalized software.
Previous wording
The Company has equity method investments in affiliates related to the Company's program to offer equity support to qualified franchisees to develop and operate Cambria Hotels and Everhome Suites branded-hotels in strategic markets. During the three months ended March 31, 2025 and 2024, the Company invested $5.4 million and $9.3 million, respectively, to support these efforts.
Current wording
The Company has equity method investments in affiliates related to the Company's program to offer equity support to qualified franchisees to develop and operate Cambria Hotels and Everhome Suites branded-hotels in strategic markets. During the six months ended June 30, 2025 and 2024, the Company invested $9.4 million and $19.5 million, respectively, to support these efforts.
Previous wording
The Company provides financing to franchisees for hotel development efforts and other purposes in the form of notes receivable loans. The loans bear interest and are expected to be repaid in accordance with the terms of the loan agreements. During the three months ended March 31, 2025, the Company issued $2.0 million in notes receivable loans and received $1.5 million in notes receivable loan repayments. During the three months ended March 31, 2024, the Company issued $1.0 million in notes receivable loans and received $0.9 million in notes receivable loan repayments.
Current wording
The Company provides financing to franchisees for hotel development efforts and other purposes in the form of notes receivable loans. The loans bear interest and are expected to be repaid in accordance with the terms of the loan agreements. During the six months ended June 30, 2025, the Company issued $3.4 million in notes receivable loans and received $2.8 million in notes receivable loan repayments. During the six months ended June 30, 2024, the Company issued $1.5 million in notes receivable loans and received $1.7 million in notes receivable loan repayments.
Previous wording
The Restated Credit Agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of the Company under the Restated Credit Agreement to be immediately due and payable. As of March 31, 2025, the Company maintained a total leverage ratio of 2.89x, including outstanding debt of approximately $442.1 million on the senior unsecured revolving credit facility. The Company was in compliance with all financial covenants under the Restated Credit Agreement.
Current wording
The Restated Credit Agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of the Company under the Restated Credit Agreement to be immediately due and payable. As of June 30, 2025, the Company maintained a total leverage ratio of 2.91x, including outstanding debt of approximately $466.8 million on the senior unsecured revolving credit facility. The Company was in compliance with all financial covenants under the Restated Credit Agreement.
Previous wording
During the three months ended March 31, 2025, the Company paid $13.5 million in cash dividends. Based on the current per share dividend amount and our outstanding share count, the aggregate annual dividends for the year ended December 31, 2024 is projected to be $1.15 per share or approximately $53.6 million in aggregate dividend payments.
Current wording
During the six months ended June 30, 2025, the Company paid $26.9 million in cash dividends. Based on the current per share dividend amount and our outstanding share count, the aggregate annual dividends for the year ended December 31, 2025 is projected to be $1.15 per share or approximately $53.5 million in aggregate dividend payments.
Previous wording
The Company has a share repurchase program. Treasury stock activity is recorded at cost in the consolidated balance sheets. During the three months ended March 31, 2025, the Company repurchased 0.4 million shares of its common stock under the share repurchase program at a total cost, including accrued excise tax, of $55.3 million. In total, the Company has repurchased 61.6 million shares of its common stock (including 33.0 million shares prior to the two-for-one stock split effected in October 2005) under the share repurchase program at a total cost of $2.7 billion. Considering the effect of the two-for-one stock split, the Company has repurchased 94.6 million shares at an average price of $28.45 per share. As of March 31, 2025, the Company had 3.4 million shares remaining under the current share repurchase authorization.
Current wording
The Company has a share repurchase program. Treasury stock activity is recorded at cost in the consolidated balance sheets. During the six months ended June 30, 2025, the Company repurchased 0.7 million shares of its common stock under the share repurchase program at a total cost, including accrued excise tax, of $100.4 million. In total, the Company has repurchased 62.0 million shares of its common stock (including 33.0 million shares prior to the two-for-one stock split effected in October 2005) under the share repurchase program at a total cost of $2.7 billion. Considering the effect of the two-for-one stock split, the Company has repurchased 95.0 million shares at an average price of $28.81 per share. As of June 30, 2025, the Company had 3.0 million shares remaining under the current share repurchase authorization.
Previous wording
During the three months ended March 31, 2025, the Company redeemed 0.1 million shares of common stock at a total cost of $9.3 million from employees to satisfy the option exercise price and the statutory minimum tax-withholding requirements related to the exercising of stock options and the vesting of PVRSUs and restricted stock grants. These redemptions were outside the share repurchase program. During the three months ended March 31, 2025, the Company received proceeds of $4.8 million from stock options exercised by employees.
Current wording
During the six months ended June 30, 2025, the Company redeemed 0.1 million shares of common stock at a total cost of $9.6 million from employees to satisfy the option exercise price and the statutory minimum tax-withholding requirements related to the exercising of stock options and the vesting of PVRSUs and restricted stock grants. These redemptions were outside the share repurchase program. During the six months ended June 30, 2025, the Company received proceeds of $6.4 million from stock options exercised by employees.
Previous wording
The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, the reported amounts of revenues and expenses during the reporting periods, and the related disclosures in the consolidated financial statements and the accompanying footnotes. We have discussed the estimates that we believe are critical because they involve a higher degree of judgment in their application and are based on information that is inherently uncertain in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. During the three months ended March 31, 2025, there were no material changes to the critical accounting estimates that were previously disclosed.
Current wording
The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, the reported amounts of revenues and expenses during the reporting periods, and the related disclosures in the consolidated financial statements and the accompanying footnotes. We have discussed the estimates that we believe are critical because they involve a higher degree of judgment in their application and are based on information that is inherently uncertain in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. During the six months ended June 30, 2025, there were no material changes to the critical accounting estimates that were previously disclosed.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Comparison of the Operating Results for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
The primary reasons for these fluctuations are described in more detail below.
Current report — wording carried from elsewhere
A summary of the operating performance for the Company's domestic franchised hotels, organized by chain scale, was as follows:
Current report — wording carried from elsewhere
(1)Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.
Current report — wording carried from elsewhere
(2)Includes Clarion, Comfort Inn, Country Inn & Suites, Park Inn, Quality, and Sleep Inn brands.
Current report — wording carried from elsewhere
(3)Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.
Current report — wording carried from elsewhere
(4)Includes Econo Lodge and Rodeway brands.
Current report — wording carried from elsewhere
The Company's effective income tax rates were 25.0% and 24.6% for the six months ended June 30, 2025 and 2024, respectively. The effective income tax rates were higher than the U.S. federal income tax rate of 21.0% primarily due to the impact of state income taxes.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS