Slides
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Q3 2026 EARNINGS RESULTS
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$211M Q3 FINANCIAL HIGHLIGHTS RETURNED TO SHAREHOLDERS YTD 20263 Dividends & Share Repurchases $193M ADJ. EBITDA1 +1% YoY $458M REVENUE +2% YoY $2.33 ADJ. EPS2 +11% YoY
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Our focus is on returning to the fundamentals that have driven our success for decades, while continuing to invest in commercial and technology capabilities that help franchisees capture more demand. — Dom Dragisich, President & Chief Executive Officer
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CEO’S EXECUTION PRIORITIES ACCELERATE U.S. net rooms growth & establish a sustainable trajectory STRENGTHEN Commercial competitiveness & franchisee economics RETURN To a more capital-efficient asset-light model
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RETURN Excess Capital To Shareholders Dividends | Buybacks STRENGTHEN Franchisee Economics Grow RevPAR | Lower Owner Costs REINVEST in High-Return Growth Opportunities GENERATE Durable Earnings & Free Cash Flow DRIVE Net Rooms Growth HOW CHOICE CREATES LONG-TERM SHAREHOLDER VALUE
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STRENGTHENING FRANCHISEE ECONOMICS LOWER COSTS GROW HIGH-QUALITY DEMAND Hotel Prototype Costs ↓ Up to 25% across key midscale brands FF&E Procurement ↓ Up to 20% across select categories AI-Enabled Smart Response ↓ ~30% in reputation management fees Loyalty Program ↑ 140+ bps loyalty contribution YoY Business Direct Platform ↑ 18% YoY SMB revenue → 75% of enrolled business new to Choice EasyBid AI Platform ↑ 27% YoY group revenue ↑ 210 bps group RFP conversion Charlie AI Teammate → Simplifies routine hotel operations → Frees hotel teams to focus on guests OPERATE MORE EFFECTIVELY
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Q3 REVPAR PERFORMANCE YoY GROWTH4 U.S. INTERNATIONAL GLOBAL Q3 DEMAND DRIVERS +3.8% +3.7% +3.9% Value-Minded Travelers Business & Infrastructure Demand World Cup Tailwind
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HOTELS WITHIN 10 MILES OF A MAJOR DATA CENTERCHOICE HOTELS U.S. FOOTPRINT CAPTURING INFRASTRUCTURE-DRIVEN DEMAND +400 bps Higher Q3 RevPAR growth vs. the remaining U.S. portfolio of U.S. Choice Hotels are within 10 miles of a major data center 30%
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151K 498K 498K499K 162K 162K Q3 255 Q2 26 Q3 266 U.S. ROOMS INTERNATIONAL ROOMS +7.3% International YoY Growth FLAT U.S. YoY Growth +1.7% Global YoY Growth GLOBAL NET ROOMS YOY GROWTH 650K 661K 661K
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+17% U.S. ROOM OPENINGS YTD YoY -44% U.S. ROOM EXITS YTD YoY 3RD CONSECUTIVE QUARTER OF IMPROVEMENT IN U.S. NET ROOMS GROWTH RATE U.S.
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CANADA +5.1% Net Rooms Growth YoY Supported by the transition to direct franchising
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PIPELINE & DEVELOPMENT +29%YoY U.S. CONVERSION PIPELINE +24% U.S. FRANCHISE AGREEMENTS EXECUTED Q3 2026 YoY 96% OF PIPELINE IN HIGHER-REVENUE SEGMENTS Global upscale, midscale, and extended stay CONVERSION ENGINEDEVELOPMENT ACTIVITY ~2/3 OF U.S. CONVERSION ROOMS OPENED WITHIN 3 MONTHS OF SIGNING
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OPTIONS FOR EVERY BUDGET • Economy • Midscale • Extended Stay • Upscale REWARDS THAT GO FURTHER New: Point Sharing More flexibility in how Choice Privileges members use their rewards 4,000+ HOTELS WITHIN ONE MILE OF AN INTERSTATE EXIT BUILT FOR THE ROAD TRIP Convenient Locations Along the Way and at the Destination 2,000+ HOTELS NEAR BEACHES OR NATIONAL PARKS WINNING WITH THE VALUE-MINDED TRAVELER
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1 IN 2 U.S. GUESTS EARN $100K+ 1 IN 5 EARN $200K+ VALUE APPEALS ACROSS INCOME LEVELS ~60% LEISURE~40% BUSINESS *Based on revenues SERVING BUSINESS & LEISURE TRAVELERS
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78M MEMBERS REVENUE PER NEW MEMBER WHO STAYED YoY, following the Choice Privileges relaunch +12% GROWING CHOICE PRIVILEGES ENGAGEMENT +7% YoY
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EXPANDING OUR REACH INTO OUTDOOR TRAVEL Harvest Hosts acquisition (October 2026)⁷ Asset-light, recurring-revenue membership platform serving value-minded RV travelers Choice Privileges members who participated in RV travel over the past year ~2M Active members ~300K
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RETURNING TO OUR ASSET-LIGHT ROOTS $15M ↓56% ↓~80% SIGNIFICANTLY LOWER DEVELOPMENT CAPITAL OUTLAYS YTD 25 YTD 26 YTD Progress⁸ 2026 Outlook $82M Net capital outlays for hotel development and lending activities FY 25 FY 26 $103M $20M $36M
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MONETIZING OWNED ASSETS WHILE RETAINING FRANCHISE AGREEMENTS OWNED HOTEL SALES UNDERWAY 2 OWNED HOTELS SOLD Subsequent to quarter-end Estimated Net Cash Proceeds ~$34M
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COMPANY UPDATES EXTENDED STAY 600TH Extended Stay Hotel Opening 13TH CONSECUTIVE QUARTER of Double-Digit Net Rooms Growth AWARDS WE ARE EXCITED TO BE RECOGNIZED AS ONE OF 1 Reported Net Income was $58M for Q3 2026. 2 Diluted EPS was $1.28 for Q3 2026. 3 As of September 30, 2026. 4 International and global RevPAR growth on a currency-neutral basis. 5 Totals may not sum due to rounding. 6 Totals may not sum due to rounding. 7 Purchased in $130M all-cash transaction. 8 As of September 30 for both YTD periods. Please see our Q3 2026 Earnings Press Release posted on November 2, 2026on our Investor Relations website (investor.choicehotels.com) for full financial data, the reconciliation of non-GAAP financial measures to the most comparable GAAP measures, and a forward-looking statement disclaimer.