Choice Hotels Counters U.S. Revenue Drop With Overseas Growth
Photo Credit: Radisson Aquatica Resort Barbados. Choice Hotels
Skift Take
Choice’s challenge underscores how U.S. economy hotels are struggling while international and upscale segments are proving more resilient.
Choice Hotels has been leaning on international expansion to offset demand softness in its U.S. home market.
The hotel franchisor said Tuesday that its U.S. revenue per available room was down 3.2% in the third quarter and that its roadside hotels struggled with weaker demand. For the full year, Choice cut its projection for U.S. RevPAR to decline by between -2% and -3%, worse than a previous range of between 0% and -3%.
Executives at Choice said they have been deliberately shifting the company's portfolio mix, adding more properties to its upscale brands, such as Cambria Hotels and Radisson, than to its budget names, like Econo Lodge and Rodeway Inn.
International hotels performed better. Choice's overseas RevPAR climbed 9.5%, with particularly strong growth in Europe, the Middle East, and Africa, where RevPAR rose 11%.
"We are especially excited by the accelerating momentum in our international business, where we are on track to double prof
