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Item 1. Business

2026-02-19 compared with 2025-02-20 · 189 added, 179 removed, 432 unchanged (46% of the section changed)

We are primarily a hotel franchisor operating in 49 states, the District of Columbia, and 50 countries and territories.

As of December 31, 2024, we had 7,586 hotels with 653,810 rooms open and operating, and 964 hotels with 97,325 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 Comfort Inn®, Comfort Suites®, Quality®, Clarion®, Clarion Pointe™, Ascend Hotel Collection®, Sleep Inn®, Econo Lodge®, Rodeway Inn®, MainStay Suites®, Suburban Studios™, WoodSpring Suites®, Everhome Suites®, and Cambria® Hotels (collectively, the "legacy Choice brands").

Additionally, through the Radisson Hotels Americas acquisition completed on August 11, 2022, our brands expanded to include Radisson Blu®, Radisson RED®, Radisson®, Park Plaza®, Country Inn & Suites® by

Radisson, Radisson Inn & Suites SM , Park Inn by Radisson®, Radisson Individuals®, and Radisson Collection® (collectively, the "legacy Radisson brands"), which are located across the United States, Canada, the Caribbean and Latin America (the "Americas").

As of December 31, 2025, we had 7,575 hotels with 656,825 rooms open and operating, and 825 hotels with 77,862 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 Clarion®, Clarion Pointe™, Comfort Inn®, Comfort Suites®, Country Inn & Suites® by Radisson, Sleep Inn®, Quality®, Park Inn by Radisson®, Everhome Suites®, WoodSpring Suites®, MainStay Suites®, Suburban Studios™, Radisson Blu®, Park Plaza®, Cambria® Hotels, Ascend Collection®, Radisson RED®, Radisson Individuals®, Radisson®, Radisson Collection®, Radisson Inn & Suites SM , Econo Lodge®, and Rodeway Inn®.

The hotel franchising business represents the Company's primary operations.

The Company's domestic operations are conducted through direct franchising relationships, the ownership of eight Cambria, one Everhome Suites, one Radisson RED, one Radisson Blu, and one Country Inn & Suites 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.

The Company's U.S.

operations are primarily conducted through direct franchising relationships, the ownership of 10 Cambria, four Everhome Suites, one Radisson RED, one Radisson Blu, and one Country Inn & Suites 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.

As a result of our master franchise relationships and international market conditions, our revenues are primarily concentrated in the U.S.

Therefore, our description of our business is primarily focused on the U.S.

Our Company generates revenues, income, and cash flows primarily from our hotel franchising operations.

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Because our primary focus is hotel franchising, we benefit from the economies of scale inherent in the franchising business.

The fee and cost structure of our franchising business provides opportunities to improve our operating results by increasing the number of franchised hotel rooms and the effective royalty rates in our franchise contracts resulting in increased initial franchise fees, ongoing royalty and licensing fees, and platform and procurement services fees.

In addition, our operating results can also be improved through our company-wide efforts related to improving property-level performance and expanding the number of partnerships with travel-related and other companies with products and services that appeal to our guests.

The fee and cost structure of our franchising business provides opportunities to improve our operating results by increasing the number of franchised hotel rooms and the royalty rates in our franchise contracts.

The primary factors that affect the Company’s results are:

the number and relative mix of hotel rooms in the various hotel lodging price categories, growth in the number of hotel rooms owned and under franchise, occupancy and room rates achieved by the hotels in our system, the effective royalty rate achieved in our franchise agreements, the level of franchise sales and relicensing activity, the number of qualified vendor arrangements and partnerships and the level of engagement with these partners by our franchisees and guests, and our ability to manage costs.

the number and relative mix of hotel rooms in the various hotel lodging price categories, growth in the number of hotel rooms owned and under franchise, occupancy and room rates achieved by the hotels in our system, the average royalty rates achieved in our franchise agreements, the level of franchise sales and relicensing activity, the number of qualified vendor arrangements and partnerships and the level of engagement with these partners by our franchisees and guests, and our ability to manage costs.

The number of rooms in our hotel system and the occupancy and room rates at those hotel properties significantly affect the Company’s results because our fees are based upon room revenues or the number of rooms at owned and franchised hotels.

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Accordingly, over the long-term, the continued growth of our franchise business should enable us to realize the benefits from the operating leverage in place and improve our operating results.

We are required by our franchise agreements to use the marketing and reservation system fees we collect for system-wide marketing and reservation system activities.

We are required by our franchise agreements to use the marketing and reservation fees we collect for system-wide marketing and reservation activities.

These expenditures, which include advertising costs and the costs to maintain our central reservations systems, enhance awareness and consumer preference for our brands and deliver guests to our franchisees.

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Our Company focuses on the following strategic priorities:

Profitable Growth - Our success is dependent on improving the performance of our hotels, increasing the size of our system by selling additional hotel franchises with a focus on revenue-intense chain scales and markets, improving our effective royalty rate, expanding our qualified vendor and partnership platform programs and maintaining a disciplined cost structure.

We attempt to improve our revenues and overall profitability by providing a variety of products and services designed to increase

business delivery and/or reduce operating and development costs.

Profitable Growth - Our success is dependent on improving the performance of our hotels, increasing the size of our system by selling additional hotel franchises with a focus on revenue-intense chain scales and markets, improving our royalty rates, expanding our qualified vendor and partnership programs and maintaining a disciplined cost structure.

We attempt to improve our revenues and overall profitability by providing a variety of products and services designed to increase business delivery

and/or reduce operating and development costs.

These products and services include national marketing campaigns, a guest loyalty program, a central reservation system, property and yield management programs and systems, revenue management services, quality assurance standards, and qualified vendor relationships and partnerships with companies that provide products and services to our franchisees and guests.

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Management's Discussion and Analysis of Financial Condition and Results of Operations for more information regarding our capital returns to shareholders.

In addition to our hotel franchising business, we have also developed or acquired eight Cambria, one Everhome Suites, one Radisson RED, one Radisson Blu, and one Country Inn & Suites open and operating hotels.

We intend to continue to strategically develop hotels to increase the presence of our newly introduced brands in the United States, drive greater guest satisfaction and brand preference, and ultimately increase the number of franchise agreements awarded.

In addition to our hotel franchising business, we have also developed or acquired 10 Cambria, four Everhome Suites, one Radisson RED, one Radisson Blu, and one Country Inn & Suites open and operating hotels.

Owning hotels allows us to increase the presence of our newly introduced brands in the U.S., drive greater guest satisfaction and brand preference, and ultimately increase the number of franchise agreements awarded.

When developing hotels, we seek key markets with strong growth potential that will deliver strong operating performance and improve the recognition of our brands.

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We believe our growth investments and strategic priorities, when properly implemented, will enhance our profitability, maximize our financial returns, and continue to generate value for our shareholders.

Our direct real estate exposure is currently limited to activity in the United States, including our owned hotel assets open and under development.

Our direct real estate exposure is currently limited to activity in the U.S., including our owned hotel assets open and under development.

In addition, our development activities that involve financing, equity investments, and guaranty support to hotel developers create limited additional exposure to the real estate markets.

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• Franchisors license their brands to a hotel owner, giving the hotel owner the right to use the brand name, logo, operating practices, and reservations systems in exchange for a fee and an agreement to operate the hotel in accordance with the franchisor’s brand standards.

Under a typical franchise agreement, the hotel owner pays the franchisor an initial fee, a percentage-of-revenue royalty fee, and a marketing & reservation systems fee.

Under a typical franchise agreement, the hotel owner pays the franchisor an initial fee, a percentage-of-revenue royalty fee, and a marketing & reservation fee.

A franchisor’s revenues are dependent on the number of rooms in its system and the top-line revenue performance of those hotels.

Earnings drivers include RevPAR increases, unit growth, and effective royalty rate improvement.

Earnings drivers include RevPAR increases, unit growth, and royalty rate improvement.

Franchisors enjoy significant operating leverage in their business model since it typically costs little to add a new hotel franchise to an existing system.

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We operate primarily as a hotel franchisor and deploy our family of 22 brands and brand extensions, which represent both new construction and conversion brands and compete at various hotel consumer and developer price points.

Economics of the Franchising Business - The fee and cost structure of our business provides opportunities for us to improve operating results by increasing the number of franchised hotel rooms, improving RevPAR performance, and increasing the effective royalty rates in our franchise contracts.

As a hotel franchisor, we derive our revenue primarily from various franchise fees, which consist primarily of an initial fee and ongoing royalty, marketing and reservation system fees that are typically based on a percentage of the franchised hotel’s gross room revenues.

As a hotel franchisor, we derive our revenue primarily from various franchise fees, which consist primarily of an initial fee and ongoing royalty, marketing, and reservation fees that are typically based on a percentage of the franchised hotel’s gross room revenues.

The initial fee and the ongoing royalty portion of the franchise fees are intended to cover our operating expenses, which are the expenses incurred in business development, quality assurance, administrative support, certain franchise services, and to provide us with operating profits.

The marketing and reservation system fees are used for the expenses associated with marketing, media, advertising, providing a central reservation system, and certain franchise services.

Our fees depend on the number of rooms in our system, the gross room revenues generated by our franchisees, and the effective royalty rates in our franchise contracts.

The marketing and reservation fees are used for the expenses associated with marketing, media, advertising, providing a central reservation system, and certain franchise services.

Our fees depend on the number of rooms in our system, the gross room revenues generated by our franchisees, and the royalty rates in our franchise contracts.

We enjoy significant operating leverage since the variable operating costs associated with the franchise system growth of our established brands have historically been less than the incremental fees generated from new franchises.

We believe that our business is well positioned in the lodging industry since we generally benefit from both increases in RevPAR and unit growth from new hotel construction or conversion of existing hotel assets into our system.

In addition, improving business delivery to our franchisees should allow us to improve the effective royalty rate in our franchise contracts.

In addition, improving business delivery to our franchisees should allow us to improve the royalty rates in our franchise contracts.

Our family of well-known and diversified brands positions us well within the lodging industry.

Our new hotel development brands, such as Cambria Hotels, Comfort, Sleep Inn, WoodSpring Suites, Everhome Suites, and Country Inn & Suites, offer hotel developers an array of choices at various price points for transient and extended stay business during periods of supply growth in the various hotel chain scale categories.

Certain of our brands, such as Quality, Clarion Pointe, Ascend Hotel Collection, Econo Lodge, and Radisson, offer conversion opportunities during both industry contraction and growth cycles to independent operators and non-Choice affiliated hotels who desire to affiliate with our brands and take advantage of the services we have to offer.

Certain of our brands, such as Quality, Clarion Pointe, Ascend Collection, Econo Lodge, and Radisson, offer conversion opportunities during both industry contraction and growth cycles to independent operators and non-Choice affiliated hotels who desire to affiliate with our brands and take advantage of the services we have to offer.

Strategy - Our mission is a commitment to franchisee profitability by providing our franchisees with hotel franchises that strive to generate the highest return on investment of any hotel franchise.

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Specific elements of our strategy include building strong brands, delivering exceptional services, reaching more consumers, and leveraging our size, scale, and distribution to reduce costs for hotel owners.

We believe that by focusing on these elements we can increase the gross room revenues generated by our franchisees by increasing the business delivered to existing franchisees and expanding our market share of franchised hotels in the chain scale categories in which we operate or

seek to operate.

Improving the desirability of our brands should also allow us to continue to improve the effective royalty rate in our contracts.

Improving the desirability of our brands should also allow us to continue to improve the royalty rates in our franchise contracts.

Building Strong Brands - Each of our brands has particular attributes and strengths, including awareness with both consumers and developers.

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Our strategy is to maximize the effectiveness of these activities in delivering both leisure and business travelers to Choice-branded hotels.

The Company intends to continue to increase awareness of its brands through its national marketing campaigns and its loyalty program promotions.

The Company intends to continue to increase awareness of its brands through its national marketing campaigns and continual enhancements to its loyalty program, including promotions.

These campaigns are intended to generate a compelling message to consumers to create even greater awareness for our brands with the ultimate goal of driving business through our central reservation system.

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Our continued focus on overall brand quality coupled with our marketing initiatives is designed to stimulate room demand for our franchised hotels through improved guest awareness and satisfaction.

Our central reservations system is a critical technology used to deliver guests to our franchisees through multiple channels, including our call centers, proprietary web and mobile sites, global distribution systems (e.g., SABRE, Amadeus), online travel agents ("OTAs") (e.g., Expedia, Booking.com) and internet referral or booking services (e.g., Kayak, Trip Advisor).

Our central reservations system is a critical technology used to deliver guests to our franchisees through multiple channels, including our call centers, proprietary web and mobile sites, global distribution systems (e.g., SABRE, Amadeus), online travel agents ("OTAs") (e.g., Expedia, Booking.com), and internet referral or booking services (e.g., Kayak, Tripadvisor).

We believe our well-known brands, combined with our relationships with many internet distribution websites, benefits our franchisees by facilitating increased rate and reservations delivery, and reducing costs and operational complexity.

Leveraging Size, Scale, and Distribution - We continually focus on identifying methods to utilize our significant platform of hotels in our system and our relationships with hospitality-related vendors and partnerships with travel-related providers in order to reduce costs and increase returns for our franchisees.

We are focused on expanding our platform business through key partnerships, new technology, and other key franchisee resources, which is reflected in our procurement services revenues.

The expansion of these relationships has enabled us to further drive our top-line revenue and deliver tangible value-added solutions

to our hotel owners and customers.

We are focused on expanding our business through key partnerships, new technology, and other key franchisee resources, which is reflected in our partnership services and fees revenues.

The expansion of these relationships has enabled us to further drive our top-line revenue and deliver tangible value-added solutions to our hotel owners and customers.

For example, we create relationships with qualified vendors to:

(i) make low-cost products available to our franchisees, (ii) streamline the purchasing process, and (iii) maintain brand standards and consistency.

(i) make low-cost products available to our franchisees, (ii) streamline the purchasing process, and (iii) maintain brand standards and

We also create relationships with key partners to market their services directly to our guests.

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We continue to expand these relationships and identify new methods for decreasing hotel operating costs by increasing penetration within our existing franchise system and enhancing our existing vendor relationships and/or creating new vendor relationships.

We believe our efforts to leverage the Company’s size, scale and distribution benefit the Company by enhancing brand quality and consistency, improving our franchisees returns and satisfaction, and generating procurement services revenues.

We believe our efforts to leverage the Company’s size, scale, and distribution benefit the Company by enhancing brand quality and consistency, improving our franchisees returns and satisfaction, and generating partnership services and fees revenues.

Industry Positioning

Our brands offer consumers and developers a wide range of options for transient and extended stay customers, including economy, midscale, upper midscale, upscale, and upper upscale hotels.

Our brands are as follows:

Cambria Hotels - Cambria Hotels is a select service hotel brand that operates in the upscale chain scale category, targeting the top primary market locations and secondary markets with a mix of business and leisure demand.

Cambria offers guests a distinct experience with simple, guilt-free indulgences and little luxuries allowing them to stay at their best while on the road.

The environment matches guests' casual lifestyles but tailored to the needs of the modern traveler.

The properties feature a compelling design inspired by the location, spacious and comfortable rooms, spa inspired bathrooms, outdoor spaces featuring pools and rooftop bars, flexible meeting space, and a locally sourced menu and craft beer.

The principal competitor brands include Courtyard by Marriott, Aloft, Hyatt Place, Hotel Indigo, AC Hotels, and Hilton Garden Inn.

Ascend Hotel Collection - The Ascend Hotel Collection is an innovative global soft brand collection offering resort, boutique and historic properties that reflect, and are woven into, the fabric of their destination.

Ascend enables upscale hotels to retain their individual brand equity and identity, and yet have access to Choice Hotels' global distribution, technology, performance support services, training, and loyalty benefits.

The Ascend Hotel Collection offers the best of both worlds, including an independence backed by a powerful platform for customer acquisition, delivery and distribution, volume purchasing benefits, and operational efficiencies.

The properties can be found in suburban, small towns, and resorts.

The principal competitor brands include BW Signature Collection, BW Premier Collection, Trademark, and Voco.

Radisson - Radisson is a full service hotel brand that provides an upscale travel experience.

Innovating to meet the evolving needs of guests, Radisson hotels offer functional guestrooms, upscale on-site services such as modern fitness facilities, restaurants and bars, and free Wi-Fi, which is designed for travelers seeking simplicity, authenticity, and modern imperatives during each hotel stay.

Radisson hotels are found in key urban, suburban, resort, and airport locations.

The principal competitor brands include DoubleTree by Hilton, Delta Hotels, and Crowne Plaza.

Radisson RED - An upscale, select service hotel brand, Radisson RED is characterized by a love of bold design, social connectedness, and playful twists on the conventional.

These urban hotels inject new life into hospitality through informal services where anything goes.

Hotel spaces kick-start the fun with vibrant designs, encourage social sharing, and easily switch from work to play and back.

Connected, trend-savvy travelers will love this unique opportunity to tailor their stay to their style.

The principal competitor brands include Tapestry Collection by Hilton, Citizen M, and Aloft Hotels.

Radisson Blu - Radisson Blu hotels offer full service, upper upscale accommodations that are redefining the hospitality experience.

Scandinavian-inspired minimalist design prioritizes comfort and distinctiveness in the guestrooms, in addition to unique dining concepts, multipurpose workspaces with complimentary Wi-Fi, smart TVs, and wellness facilities.

Radisson Blu hotels are located in urban and resort locations in key RevPAR markets.

The principal competitor brands include Le Meridien and Kimpton .

Radisson Individuals - Radisson Individuals is an upper upscale collection brand that brings together independent and boutique hotels, inspiring curious travelers to uncover the untold stories of each destination.

Blending a spirit of exploration with service excellence, these hotels offer curated amenities like distinctive dining and wellness facilities.

Found in urban, suburban, and resort locations, the principal competitor brands include Autograph Collection, Curio, JdV, Tapestry, and Tribute.

Comfort - The Comfort brand family, inclusive of Comfort Inn, Comfort Suites, and Comfort Inn & Suites, is an upper midscale brand that offers guests a warm and welcoming experience designed to help them feel refreshed and ready to take on the day.

The properties feature spacious rooms, modern amenities, friendly staff, and a signature free hot breakfast.

Comfort hotels are tailored to meet the needs of today’s leisure and business travelers alike.

The principal competitor brands include Hampton Inn, Holiday Inn Express, and Fairfield Inn & Suites.

Country Inn & Suites by Radisson - Country Inn & Suites exemplifies “modern country warmth”, offering a heartfelt experience to travelers through inviting design, premium touches, and genuine service.

Guests can expect a mix of spacious standard and suite accommodations along with free amenities like a hot breakfast, all-day coffee and tea, freshly baked cookies in the afternoon, Wi-Fi, printer access, a fitness facility, and cozy seating by the living room fireplace.

Most hotels also feature a patio or porch with an outdoor fire pit, den, casual workspace, swimming pool, meeting space, and an “Inn Case Market.” Guests feel like they matter at Country Inn & Suites.

The principal competitor brands include Holiday Inn Express, Fairfield Inn & Suites, Best Western Plus, and Hampton Inn.

Our brands consist of the following:

Clarion - Clarion helps owners of existing assets with food and beverage capabilities achieve strong returns with reasonable investment.

Clarion allows a more focused and efficient food and beverage operational model that works well with a variety of conversion property configurations.

Clarion helps business and leisure guests "get together" by providing meeting/banquet facilities, restaurants, and lounges.

Clarion helps business and leisure guests "Get Together Here™" by providing meeting/banquet facilities, restaurants, and lounges.

Amenities include free high-speed internet access, a pool or fitness center, and a business center.

The principal competitor brands include Holiday Inn and Ramada.

Clarion Pointe - Launched in 2019, Clarion Pointe is ideal for owners who want to strategically reposition their limited-service property into a brand with strong awareness and a concept that satisfies the expectations of emerging travelers.

Clarion Pointe - Clarion Pointe is ideal for owners who want to strategically reposition their limited-service property into a brand with strong awareness and a concept that satisfies the expectations of emerging travelers.

The hotels offer guests a convenient and affordable experience with elevated essentials in just the right places, including contemporary design touches, curated food and beverage options, and on-demand connectivity.

The principal competitor brands include Best Western and Wingate.

Quality Inn - Quality helps both guests and owners "Get Your Money's Worth™" in the midscale chain scale category.

Quality hotels provide clean, comfortable, and affordable accommodations, as well as the "Value Qs" of a Q Bed, Q Breakfast, Q Shower, Q Service, and Q Essentials.

The brand delivers warm, friendly service, a hot breakfast, and premium bedding.

The principal competitor brands include Best Western and Ramada.

Comfort - The Comfort brand family is the flagship brand in the Choice Hotels portfolio and is inclusive of Comfort Inn, Comfort Suites, and Comfort Inn & Suites.

Comfort is an upper midscale brand that allows guests to unlock the joy of traveling while enabling owners to capitalize on a trusted brand with proven performance and market leadership.

The properties offer guest rooms and public spaces that can transform from day to night or business to leisure – blending form and function to optimize the guest experience and the owner’s investment.

The principal competitor brands include Hampton by Hilton, Holiday Inn Express, and Fairfield by Marriott.

Country Inn & Suites by Radisson - Country Inn & Suites delivers “generous hospitality with touches of home”, creating heartfelt experiences for travelers through inviting design, thoughtful touches, and genuine service.

Guests enjoy a mix of spacious standard rooms and suites, cozy seating by the living room fireplace, and complementary offerings including a hot breakfast, all-day coffee and tea, freshly baked cookies upon arrival, free Wi-Fi, and printer access.

Country Inn & Suites properties are equipped with fitness and laundry facilities, outdoor patios with fire pit features, casual workspaces, swimming pools, and meeting spaces.

Guests feel cared for and valued at Country Inn & Suites, enabling them to maintain their routines while away from home.

The principal competitor brands include Holiday Inn Express, Fairfield by Marriott, Best Western Plus, and Hampton by Hilton.

Sleep Inn - A new-construction brand, every Sleep Inn hotel is built with a specific vision in mind, which is to be a sanctuary for travelers as well as a cost-efficient property to build, operate, and maintain.

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The principal competitor brands include Baymont and Best Western.

Quality Inn - Quality helps both guests and owners "Get Your Money's Worth™" in the midscale chain scale category.

Quality hotels provide clean, comfortable, and affordable accommodations, as well as the "Value Qs" of a Q Bed, Q Breakfast, Q Shower, Q Service, and Q Essentials.

The brand delivers warm, friendly service, a hot breakfast, and premium bedding.

The principal competitor brands include Days Inn, Baymont, La Quinta, Best Western, and Ramada.

Park Inn by Radisson - Park Inn by Radisson is Choice Hotels' premium value conversion brand focused on delivering the basics to "brighten up the stay".

The properties feature a smoke-free environment, fast and free Wi-Fi, ample charging outlets, and hot coffee with a convenient grab-and-go breakfast, all of which are complemented by a bright welcome and friendly service.

The principal competitor brands include Days Inn, Baymont, and SureStay.

Park Plaza - Park Plaza combines engaging service, contemporary elegance, and local flavor.

At each hotel, team members warmly welcome guests and make it a point to foster genuine and meaningful interactions.

Refined spaces incorporate the essence of each location and provide a vibrant social setting for guests and the local community alike.

Located in capital cities and key business and leisure destinations, these charmingly distinctive hotels help travelers connect with the authentic character and culture of their location.

The principal competitor brands include Staybridge Suites, DoubleTree, and Residence Inn.

Everhome Suites - Everhome Suites operates in the midscale extended stay chain scale category, offering developers a value-engineered new construction prototype for entry into major markets.

Everhome Suites provides a “Closer to Home” experience, empowering longer staying guests to stay productive and feel connected while away from home.

All suites include a fully equipped kitchen with defined spaces to work, relax, and eat.

Larger one-bedroom suites come equipped with in-unit washers and dryers, larger kitchens, and a dedicated bedroom.

Guests have access to free high-speed internet, a modern fitness room with Peloton stationary bikes, outdoor amenity space with grills and fire pits, 24/7 laundry facilities, and weekly housekeeping service.

Each hotel also has a “Homebase Market” with food, drink, and personal items available for purchase.

Small kitchen

appliances are available to check out at the front desk through the “Homebase Essentials” program.

The principal competitor brands include Candlewood Suites, Stay APT, Extended Stay America Premier Suites, StudioRes, and LivSmart.

WoodSpring Suites - WoodSpring Suites are all new construction, value-engineered hotels that operate in the economy extended stay chain scale category.

WoodSpring developers adhere to strict prototype and design specifications and an operating model that embodies WoodSpring’s promise of “It’s Simple.

Done Better.” Every suite includes a well-designed kitchen, seating area, and a free premium movie channel.

Guests have access to free high-speed internet, 24/7 laundry facilities, and bi-weekly housekeeping.

The principal competitor brands include Extended Stay America, MyPlace, Studio 6, Echo Suites, and LivAway.

MainStay Suites - MainStay Suites operates in the midscale extended stay chain scale category, offering developers flexible conversion and new construction opportunities in a variety of market types.

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Guests also have complimentary access to small kitchen appliances through the "Things I Use at Home" program.

The principal competitor brands include Candlewood Suites, Extended Stay America Premier Suites, My Place Hotels, as well as new entrants to the extended stay segment such as StudioRes, LivSmart, and LivAway.

Everhome Suites - Everhome Suites operates in the midscale extended stay chain scale category, offering developers a value-engineered new construction prototype for entry into major markets.

Everhome Suites provides a “Closer to Home” experience, empowering longer staying guests to stay productive and feel connected while away from home.

All suites include a fully equipped kitchen with defined-spaces to work, relax, and eat.

Larger one-bedroom suites come equipped with in-unit washers and dryers, larger kitchens, and a dedicated bedroom.

Guests have access to free high-speed internet, a modern fitness room, outdoor amenity space, 24/7 laundry facilities, and weekly housekeeping service.

Each hotel also has a “Homebase Market” with food, drink, and personal items available for purchase.

Small kitchen appliances are available to check out at the front desk through the “Homebase Essentials” program.

The principal competitor brands include Candlewood Suites, Home2 Suites, TownePlace Suites, and Extended Stay America Premier Suites, as well as new entrants to the extended stay segment such as StudioRes, LivSmart, and LivAway.

The principal competitor brands include Candlewood Suites, Extended Stay America Premier Suites, My Place Hotels, StudioRes, and LivAway.

Suburban Studios - Suburban Studios operate in the economy extended stay chain scale category, offering developers access to this category through flexible conversion options.

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Guests have access to free high-speed internet, 24/7 laundry facilities, and bi-weekly housekeeping.

The principal competitor brands include Extended Stay America, InTown Suites, HomeTowne Studios, SureStay Studios, Studio 6, as well as new entrants to the extended stay segment such as Echo Suites.

WoodSpring Suites - WoodSpring Suites are all new construction, value-engineered hotels that operate in the economy extended stay chain scale category.

WoodSpring developers adhere to strict prototype and design specifications and an operating model that embodies WoodSpring’s promise of “It’s Simple.

Done Better.” Every suite includes a well-designed kitchen, seating area, and a free premium movie channel.

Guests have access to free high-speed internet, 24/7 laundry facilities, and bi-weekly housekeeping.

The principal competitor brands include Extended Stay America, MyPlace, Studio 6, as well as new entrants to the extended stay segment such as Echo Suites.

Econo Lodge - Econo Lodge is Choice Hotel’s economy brand, which provides an “easy stop on the road” for value-oriented travelers.

Free high-speed internet, bedside recharge outlets, refrigerators and free morning coffee are just some of the amenities that position Econo Lodge as a great value to the guest.

The principal competitor brands include Extended Stay America, InTown Suites, HomeTowne Studios, SureStay Studios, Studio 6, and Echo Suites.

Radisson Blu - Radisson Blu hotels offer full-service, upper upscale accommodations that are redefining the hospitality experience.

Radisson Blu hotels are located in urban and resort locations in key RevPAR markets.

The principal competitor brands include Le Meridien and Kimpton .

Park Plaza - Park Plaza combines engaging service, contemporary elegance, and local flavor.

At each hotel, team members

warmly welcome guests and make it a point to foster genuine and meaningful interactions.

Refined spaces incorporate the

essence of each location and provide a vibrant social setting for guests and the local community alike.

Located in capital cities

and key business and leisure destinations, these charmingly distinctive hotels help travelers connect with the authentic character

and culture of their location.

The principal competitor brands include Staybridge Suites, DoubleTree, and Residence Inn.

Cambria offers guests a distinct experience with simple, guilt-free indulgences and little luxuries allowing them to stay at their best while on the road.

The environment matches our guests' casual lifestyles and tailors to the needs of the modern traveler.

The properties feature a compelling design inspired by the location, spacious and comfortable rooms, spa inspired bathrooms, outdoor spaces featuring pools and rooftop bars (in select locations), flexible meeting space, enhanced beverage options, and small plates with flavors inspired by the destination.

The principal competitor brands include Courtyard by Marriott, Aloft, Hyatt Place, Hotel Indigo, AC Hotels, and Hilton Garden Inn.

Ascend Collection - Ascend Collection is a global collection brand offering resort, boutique, and historic properties that are deeply connected to the character of their destinations.

Ascend Collection empowers upscale hotels to retain their individual brand equity and identity while enjoying access to Choice Hotels' global distribution, technology, performance support services, training, and loyalty benefits.

For independent hotels, Ascend Collection offers a platform for customer acquisition, delivery and distribution, volume purchasing benefits, and operational efficiencies.

The properties can be found in suburban, small town, and resort locations.

The principal competitor brands include BW Signature Collection, BW Premier Collection, Trademark, Voco, Series by Marriott, and Outset Collection by Hilton.

Radisson RED - An upscale, select service hotel brand, Radisson RED is characterized by a love of bold design, social connectedness, and playful twists on the conventional.

These urban hotels inject new life into hospitality through informal services where anything goes.

The properties have vibrant designs, encourage social sharing, and easily switch from work to play and back.

Connected, trend-savvy travelers will love this unique opportunity to tailor their stay to their style.

The principal competitor brands include Moxy, Citizen M, and Aloft Hotels.

Radisson Individuals - Radisson Individuals is an upscale collection brand that brings together independent and boutique hotels, inspiring curious travelers to uncover the untold stories of each destination.

Blending a spirit of exploration with service

excellence, these hotels offer curated amenities like distinctive dining and wellness facilities.

Found in urban, suburban, and resort locations, the principal competitor brands include Autograph Collection, Curio, JdV, Tapestry, and Tribute.

Radisson - Radisson is a full-service hotel brand offering an upscale experience designed for today’s modern travelers.

Striking the perfect balance between dependability and discovery, Radisson meets the evolving needs of guests with functional guestrooms, upscale on-site services such as modern fitness facilities, restaurants and bars, and free Wi-Fi.

It provides a steady, dependable base from which guests can work, connect, discover, and rest.

Radisson hotels are found in key urban, suburban, resort, and airport locations.

The principal competitor brands include DoubleTree by Hilton, Delta Hotels, and Crowne Plaza.

Econo Lodge - Econo Lodge offers an “easy stop on the road” for value-oriented travelers.

Free high-speed internet, bedside recharge outlets, in-room refrigerators, and complimentary morning coffee position Econo Lodge as a smart choice for guests who appreciate convenience and affordability.

The principal competitor brands include SureStay by Best Western, Knights Inn, Days Inn, and Red Roof Inn.

Rodeway Inn - Rodeway Inn offers sensible lodging for travelers on a budget.

With free coffee to get guests started in the morning and free high-speed internet, Rodeway is a great option for practical travelers looking for a “Good night.

Rodeway Inn - Rodeway Inn offers sensible lodging for budget-conscious travelers who want to hit the road with confidence.

With free coffee to start the day and free high-speed internet to stay connected, Rodeway Inn delivers a reliable option for practical travelers looking for a “Good night.

Great Savings.” The principal competitor brands include Americas Best Value Inn and Motel 6.

The Company's brands also include the Radisson Collection and Radisson Inn & Suites, however there are no open properties under these brands as of December 31, 2025.

Domestic Franchise System

Our standard domestic franchise agreements grant franchisees the non-exclusive right to use certain of our trademarks and to receive the benefits from our franchise system in order to facilitate the operation of their franchised hotels in specified locations.

Our domestic franchise agreements generally have terms ranging from 10 to 30 years, with certain rights for each of the franchisor and franchisee to terminate the agreement.

Our franchisees operate domestically under one of 22 brands and brand extensions.

The following table presents the key statistics related to our domestic franchise system for the five years ended December 31, 2024:

Franchise System

Our standard U.S.

franchise agreements grant franchisees the non-exclusive right to use certain of our trademarks and to receive the benefits from our franchise system in order to facilitate the operation of their franchised hotels in specified locations.

franchise agreements generally have terms ranging from 10 to 30 years, with certain rights for each of the franchisor and franchisee to terminate the agreement.

franchisees operate under one of 22 brands and brand extensions.

The following table presents the key statistics related to our U.S.

franchise system for the five years ended December 31, 2025:

2021 2022 2023 2024 2025

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$ 391,336 $ 443,313 $ 458,077 $ 454,723 $ 439,840

Effective royalty rate (2)

Average royalty rate (2)

5.01 % 4.93 % 4.99 % 5.06 % 5.14 %

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$ 48.10 $ 55.16 $ 55.19 $ 54.54 $ 52.85

(1) Royalty fees exclude the impact of franchise agreement acquisition cost amortization.

(1) For the year ended December 31, 2022, the legacy Radisson brands are included for the period from the August 11, 2022 acquisition date through December 31, 2022.

Additionally, royalty fees include intersegment royalties assessed to the Company's owned hotels of $2.8 million for 2025, $2.4 million for 2024, $2.0 million for 2023, $2.2 million for 2022, and $1.6 million for 2021.

(2) To enhance the comparability for the year ended December 31, 2022, the effective royalty rate, average occupancy percentage, ADR, and RevPAR reflect the operating performance as if the legacy Radisson brands were acquired on January 1, 2022.

The operating statistics exclude the Everhome Suites brand since the operating statistics are not representative of a stabilized brand, which the Company defines as having at least 25 units open and operating for at least a twelve month period.

(2) To enhance the comparability for the year ended December 31, 2022, the average royalty rate, average occupancy percentage, ADR, and RevPAR reflect the operating performance as if the legacy Radisson brands were acquired on January 1, 2022.

(3) The Company calculates the RevPAR metrics based on information as reported by the franchisees.

To accurately reflect average occupancy percentage, ADR, and RevPAR, the company revises its prior years' operating statistics for the most current information provided.

As of December 31, 2024, no individual franchisee or ownership group accounts for more than 1.5% of the Company's total domestic royalty fees.

Owned and Managed Hotels

While the hotel franchising business represents the Company's primary operations, the Company also owns eight Cambria hotels, one Everhome Suites, one Radisson RED, one Radisson Blu, and one Country Inn & Suites and manages 13 hotels (inclusive of four owned hotels).

While the hotel franchising business represents the Company's primary operations, the Company also owns 10 Cambria hotels, four Everhome Suites, one Radisson RED, one Radisson Blu, and one Country Inn & Suites, and manages 13 hotels (inclusive of four owned hotels).

We generate revenue from the owned hotels primarily from guest stays.

We generate revenue from the managed hotels from base and incentive management fees and cost reimbursements, which is primarily for payroll costs at the managed hotels where the Company is the employer.

We intend to continue to strategically develop and manage hotels in order to increase the presence of our brands in the United States, drive greater guest satisfaction and brand preference, and increase the number of franchise agreements awarded.

We believe these avenues provide us the opportunity to support and accelerate the growth of our brands.

International Franchise Operations

The Company conducts its international franchise operations through a combination of direct franchising and master franchising relationships.

The Company conducts its international franchise operations primarily through a combination of direct franchising and master franchising relationships.

Our business strategy has been to conduct direct franchising in those international markets where both franchising is an accepted business model and our brands can achieve significant revenue growth through our proprietary distribution channels.

We typically enter into master franchise agreements in those international markets with complex business models and language and cultural differences.

Master franchising relationships are governed by agreements that generally provide the master franchisee with the right to use and sub-license the use of our brands in a specific geographic region.

We typically choose to enter into master franchise agreements in those international markets where direct franchising is not a prevalent or viable business model.

also enter into certain distribution arrangements which grant hotels access to certain of our proprietary distribution channels in order to broaden our offerings in a given market.

When entering into master franchising relationships, we strive to select partners that have both professional hotel and asset management capabilities along with the financial capacity to invest in building the Company's brands in their respective markets.

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Our master franchise and similar multi-unit licensing agreements have expiration dates, which we actively manage and potentially renew as we deem beneficial.

In certain circumstances, the Company has and may continue to make equity investments in our master franchisees.

In some territories outside the United States, hotel franchising has less prevalence in favor of independent operators.

We also enter into distribution agreements which grant hotels access to certain of our proprietary distribution channels in order to broaden our offerings in a given market.

In some territories outside the U.S., hotel franchising has less prevalence in favor of independent operators.

We believe chain and franchise affiliation will increase in certain international markets as local economies grow and hotel owners seek the economies of scale in centralized reservations systems and marketing programs.

We believe that international franchise operations will provide a long-term growth opportunity for the Company and as a result, we will continue to make investments into our international franchise operations, which are expected to enhance the value proposition for prospective international franchisees.

The following chart summarizes our franchise system and operating results outside of the United States (1) :

The following chart summarizes our franchise system and operating results outside of the U.S.

2021 2022 2023 2024 2025

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Royalty fees (in thousands) $ 14,958 $ 20,041 $ 28,859 $ 29,822 $ 41,323

$ 12,358 $ 14,958 $ 20,041 $ 28,859 $ 29,822

(1) Reporting of operating statistics (i.e., average occupancy percentage, average daily room rate) of international franchisees is not required by all master franchise contracts, thus RevPAR metrics are not presented for our international franchisees.

(2) Royalty fees include the impact of franchise agreement acquisition cost amortization.

(1) Reporting of operating statistics (i.e., average occupancy percentage, average daily room rate) of international franchisees is not required by all master franchise contracts.

As of December 31, 2025, the open hotels and rooms by region and franchising relationship are presented below:

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Europe & Middle East 150 15,443 323 54,455 473 69,898

Latin America, Caribbean & Canada 129 16,952 411 38,438 540 55,390

International Total 378 33,387 880 108,684 1,258 142,071

Americas (excluding U.S.) 459 43,817 78 11,790 537 55,607

Total International 760 66,492 628 93,354 1,388 159,846

The Company's international operations are primarily conducted in the following countries and territories, as organized by region:

Asia-Pacific - Australia, China, India, Japan, and New Zealand.

Europe & Middle East - Austria , Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Ireland, Italy, Kingdom of Saudi Arabia, Lithuania, Norway, Portugal, Slovakia, Spain, Sweden, Turkey, and the United Kingdom.

Latin America, Caribbean & Canada - Aruba, Bahamas, Barbados, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Honduras, Mexico, Panama, Peru, Puerto Rico, Sint Maarten, Trinidad and Tobago, and Uruguay.

Europe & Middle East - Andorra, Austria , Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Ireland, Italy, Kingdom of Saudi Arabia, Lithuania, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Turkey, and the United Kingdom.

Americas (excluding U.S.) - Argentina, Aruba, Bahamas, Barbados, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Honduras, Mexico, Panama, Peru, Puerto Rico, Sint Maarten, Suriname, Trinidad and Tobago, Uruguay, and U.S.

Virgin Islands.

As of December 31, 2025, the worldwide open hotels and rooms by region are presented below:

United States Asia-Pacific Europe &

Middle East Latin America, Caribbean & Canada Total

Asia-Pacific Europe &

Middle East Americas

(excluding U.S.) Total

Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms

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Country 402 32,333 — — — — 7 595 409 32,928

Ascend Hotel Collection 233 38,589 19 1,100 119 13,433 46 5,630 417 58,752

Ascend Collection 236 38,426 83 9,500 132 15,087 48 5,964 499 68,977

181 18,562 17 1,630 54 14,845 14 1,479 266 36,516

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Everhome Suites 25 2,870 — — — — — — 25 2,870

— — — — 57 6,466 — — 57 6,466

Total 6,187 496,979 378 34,341 473 69,898 537 55,607 7,575 656,825

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(2) Includes the Clarion family of brand extensions, including Clarion and Clarion Pointe.

(3) Includes the Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.

(3) Includes the Radisson, Radisson Blu, Radisson Individuals, Radisson RED, and Park Plaza brands.

(4) Includes other brands under Master Franchise Agreements.

Franchise Sales

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Our franchise sales organization is structured to support the continued growth of the Company through awarding franchise agreements with a focus on revenue-intense chain scales and markets.

The franchise sales organization employs both sales managers as well as franchise sales directors.

The franchise sales organization employs both sales managers as well as regional vice presidents.

This organization emphasizes the benefits of affiliating with the Choice system, our commitment to helping hotels improve profitability, our central reservation delivery services, our marketing and customer loyalty programs, our revenue management services, our training and support systems (including our proprietary property management systems), and our Company’s track record of delivering growth and profitability.

Franchise sales directors are assigned to specific brands to leverage their brand expertise to enhance product consistency and deal flow.

Regional vice presidents are assigned to specific brands to leverage their brand expertise to enhance product consistency and deal flow.

Our sales managers ensure each prospective hotel is placed in the appropriate brand, facilitate teamwork and information sharing amongst the sales directors, and provide better service to our potential franchisees.

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Our objective is to continue to strategically grow our portfolio by selling the Company's brands spanning the various chain scale categories.

Based on market conditions and other circumstances, we may offer certain incentives to developers to increase development of our brands, such as discounting various fees including the initial franchise fee, royalty fee, marketing and reservation system fee, and providing franchise agreement acquisition cost payments to support development, property improvements, and other hotel expenditures.

Based on market conditions and other circumstances, we may offer certain incentives to developers to increase development of our brands, such as discounting various fees including the initial franchise fee, royalty fee, marketing and reservation fee, and providing franchise agreement acquisition cost payments to support development, property improvements, and other hotel expenditures.

Because retention of our existing franchisees is important to our growth strategy, we have a formal impact policy.

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The amount and timing of the investment in this program will be dependent on market and other conditions and we generally expect to recycle these investments within a five year period.

For additional information, refer to the Investing Activities caption in the Liquidity and Capital Resources section in Item 7.

For additional information, refer to the Cash Flows from Investing Activities caption in the Liquidity and Capital Resources section in Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Franchise Agreements

Our domestic franchise agreements generally have terms ranging from 10 to 30 years.

Generally, either party to our standard domestic franchise agreement can terminate the agreement prior to the conclusion of the agreement’s term under certain circumstances, such as upon designated anniversaries of the agreement, subject to applicable law.

Our standard U.S.

franchise agreements generally have terms ranging from 10 to 30 years.

Generally, either party to our standard U.S.

franchise agreement can terminate the agreement prior to the conclusion of the agreement’s term under certain circumstances, such as upon designated anniversaries of the agreement, subject to applicable law.

Early termination options give us the flexibility to eliminate or re-brand our properties for reasons other than contractual failure by the franchisee.

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Franchise fees usually have three primary components:

an affiliation fee, a royalty fee, and a marketing and reservation system fee.

Royalty fees typically range from 5% to 6% of gross room revenues, and marketing and reservation system fees typically range from 3% to 4% of gross room revenues.

During the negotiation process with a prospective franchisee, the Company may discount the standard royalty fee and/or the marketing and reservation system fee during the initial years of the franchise agreement as a franchise acquisition strategy.

an affiliation fee, a royalty fee, and a marketing and reservation fee.

Royalty fees typically range from 5% to 6% of gross room revenues, and marketing and reservation fees typically range from 3% to 4% of gross room revenues.

During the negotiation process with a prospective franchisee, the Company may discount the standard royalty fee and/or the marketing and reservation fee during the initial years of the franchise agreement as a franchise acquisition strategy.

Typically, these discounts will expire over time when the contractual fees reach the standard franchise fees in effect at the time the franchise agreement was executed.

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We conduct numerous marketing and sales programs and deploy field-based sales agents which target corporate entities, travel agencies, groups, and small and medium size enterprises including business travelers, senior citizens, automobile club members, government and military employees, educational organizations, and meeting planners.

Other marketing efforts include domestic and international trade show programs, targeted marketing campaigns (including print, digital, and social media), direct-mail programs, marketing e-mail programs, and centralized commissions for travel agents.

Other marketing efforts include U.S.

and international trade show programs, targeted marketing campaigns (including print, digital, and social media), direct-mail programs, marketing e-mail programs, and centralized commissions for travel agents.

We operate a loyalty program, Choice Privileges, for all of our brands except WoodSpring Suites, in order to attract and retain travelers by rewarding stays with points towards free hotel nights at properties and through our partners that provide travel-related accommodations.

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These programs allow us to conduct lower cost, more targeted marketing campaigns to our consumers, help us to deliver business to our franchised hotels, and are an important selling point for our franchise sales personnel.

As of December 31, 2024, the Choice Privileges program had approximately 69 million worldwide members.

As of December 31, 2025, the Choice Privileges program had more than 74 million worldwide members.

Growing the membership of the Choice Privileges loyalty program, as well as increasing the number of room nights consumed by existing members, will continue to be a focus of the Company.

Marketing and advertising programs are directed by our marketing department, which utilizes the services of independent advertising agencies.

We also employ home-based sales personnel geographically located across the United States using personal sales calls, telemarketing, and other techniques to target specific customer groups, such as potential corporate clients in areas where our franchised hotels are located, the group travel market, and meeting planners.

We also employ home-based sales personnel geographically located across the U.S.

using personal sales calls, telemarketing, and other techniques to target specific customer groups, such as potential corporate clients in areas where our franchised hotels are located, the group travel market, and meeting planners.

Our field-based franchise services area directors work with our franchisees to profitably grow revenue, improve the efficiency of their hotel operations, and maintain and improve guest satisfaction.

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In addition, we have introduced programs such as our Lowest Price Guarantee program, which has significantly reduced the ability of the third-party travel intermediaries to undercut the published rates at our franchisees' hotels.

Further, we selectively distribute our franchisees' inventory to key

third-party travel intermediaries that we have established agreements with to help drive additional business to our franchisees' hotels.

Further, we selectively distribute our franchisees' inventory to key third-party travel intermediaries that we have established agreements with to help drive additional business to our franchisees' hotels.

These agreements typically offer our brands a preferred placement on these third-party booking sites at reduced transaction fees.

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We currently have agreements with many, but not all, of the major online third-party booking sites.

We also continue to upgrade our technology to ensure that our CRS can effectively handle the current and future volume on digital channels and support the industry's shift toward accelerated digital communications and guest experience personalization.

personalization.

In support of these initiatives, the Company developed choiceEDGE, which is a cloud-based software to manage all distribution for the Company by optimizing rate, inventory, availability, shopping, booking, and reservations for its website, mobile apps, and third-party distribution partners.

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The ability of a hotel to compete in the lodging industry may be affected by a number of factors, including the location and quality of the property, the abilities of the franchisee, the number and quality of competing lodging facilities nearby, its affiliation with a recognized name brand, and national and local economic conditions.

We generally believe the effect of local economic conditions on our results is substantially reduced by our range of products and room rates and the geographic diversity of our franchised properties, which are open and operating in 49 states, the District of Columbia, and 46 countries and territories outside the United States.

We generally believe the effect of local

economic conditions on our results is substantially reduced by our range of products and room rates and the geographic diversity of our franchised properties, which are open and operating in 49 states, the District of Columbia, and 50 countries and territories outside the U.S.

We believe that our focus on core business strategies, combined with our financial strength and size, geographic diversity, scale, and distribution, will enable us to remain competitive in the lodging industry.

Service Marks and Other Intellectual Property

The service marks Ascend Hotel Collection, Cambria, Choice Hotels, Choice Privileges, Clarion, Clarion Pointe, Comfort Inn, Comfort Suites, Country Inn & Suites by Radisson, Econo Lodge, Everhome Suites, MainStay Suites, Park Inn by Radisson, Park Plaza, Quality, Radisson, Radisson Blu, Radisson Collection, Radisson Individuals, Radisson Inn & Suites, Radisson Red, Rodeway Inn, Sleep Inn, Suburban Studios, WoodSpring Suites, and related marks and logos are material to our business.

We, directly and through our franchisees, actively use these marks.

All of the material marks are registered or have registrations pending with the United States Patent and Trademark Office.

The service marks Ascend Collection, Cambria, Choice Hotels, Choice Privileges, Clarion, Clarion Pointe, Comfort Inn, Comfort Suites, Country Inn & Suites by Radisson, Econo Lodge, Everhome Suites, MainStay Suites, Park Inn by Radisson, Park Plaza, Quality, Radisson, Radisson Blu, Radisson Collection, Radisson Individuals, Radisson Inn & Suites, Radisson Red, Rodeway Inn, Sleep Inn, Suburban Studios, WoodSpring Suites, and related marks and logos are material to our business.

All of the material marks are registered or have registrations pending with the U.S.

Patent and Trademark Office.

We seek to protect our brands and marks throughout the world, although the strength of legal protection available varies from country to country.

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Human Capital Management

As a franchisor and hotel management company, one of our greatest assets is the strength of our associates.

As a franchisor and hotel management company, one of our greatest assets is our associates.

We seek to attract and retain the best talent in the hospitality, franchising, and technology industries and to provide an open and welcoming environment for all of our associates.

The quality of our talent delivers a high performing organization that drives positive business outcomes for the Company, our shareholders, and our franchisees and hotel owners.

The quality of our talent delivers a high performing organization that drives positive business outcomes for the Company, our shareholders, our franchisees, and hotel owners.

Our Board of Directors provides oversight on certain human capital matters through two committees.

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(1) overall associate wellbeing, (2) succession planning for the top 60 leadership roles, (3) talent management and leadership development oversight for the top 150 leadership roles, (4) oversight of pay goals, and (5) overall organizational engagement.

• Diversity Committee - Overseeing our efforts to develop and sustain a welcoming culture for all associates and promoting these efforts in our business.

• Diversity Committee - Overseeing our efforts to develop and sustain a welcoming culture for all associates, foster belonging, and promote equal access and opportunity for everyone.

Career Development

We empower approximately 1,700 associates across the globe to advance their careers by providing a career framework that allows them to understand and proactively manage their career path potential.

Guided by a personalized development plan, each associate is empowered to identify and develop the skills and competencies necessary to prepare for their next, and future, desired roles.

As of December 31, 2024, the Company had 1,570 domestic and 125 international associates, excluding employees at our 13 managed hotels.

We empower over 1,700 associates across the globe to enhance their careers by providing a career framework that allows them to understand and proactively manage their career path potential.

Guided by a personalized development plan, each associate is empowered to identify and develop the skills and competencies necessary to expand the scope of their work or prepare for their next, and future, desired roles.

As of December 31, 2025, the Company had 1,562 U.S.

and 192 international associates, excluding employees at our 13 managed hotels.

Leadership development programs offer level specific career-building experiences, increasing the potential for broader levels of responsibility and leadership.

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Each CRG is open for all associates to join, and everyone is welcome at all CRG events.

Associates are invited to participate as CRG Members, Community Builders, and CRG Chairs.

The CRGs provide support, contribute to personal and career development, provide networking opportunities, and enhance wellbeing and engagement.

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Part of how we deliver on this promise is by weaving belonging-focused initiatives throughout all levels of the enterprise, focusing on three core commitments:

• Inclusion – Striving to build a workforce where associates from all backgrounds can thrive.

• Inclusion – Striving to build a workforce where all associates, regardless of background, have an opportunity to thrive.

• Fair and Competitive Pay – Committed to promoting equal opportunity in all aspects of the talent lifecycle, inclusive of fair and competitive pay regardless of background.

• Trust, Belonging, and Engagement – Fostering a culture where associates are inspired and engaged and feel like they belong.

We are committed to providing fair and competitive pay.

To ensure we are delivering on this commitment, we annually conduct fair pay analyses on all U.S.

based roles, which includes those in our Managed Hotels division.

We may make pay adjustments, as necessary, based on the results and report the results to the Board of Directors.

Our 2024 analysis was completed in partnership with Syndio Pay EQ analytics platform, using Fair Pay Workplace guidelines.

The Board of Directors periodically receives reporting focused on the Company's belonging-focused efforts in workplace practices, franchisee development, advertising, and marketing goals.

• Trust, Belonging, and Engagement – Fostering a culture where associates are inspired, engaged, and feel like they belong.

We remain committed to delivering fair and competitive pay across all roles, including those in our Managed Hotels division.

To uphold this commitment, we conduct fair pay analyses for U.S.-based positions and make adjustments in pay as needed, as well as report the findings to the Board of Directors for transparency and accountability.

Health, Wellbeing, and Engagement

One of our highest priorities has been to support the physical health and emotional well-being of our associates, all of whom show incredible dedication to the needs of our hotel owners, guests, and each other while caring for their own families.

The key features include mental health support, employee assistance and financial wellness programs, as well as creating opportunities for belonging and connections within the organization.

In addition, the Company offers a generous benefits package, including a 401(k) matching program, paid family leave, paid caregiver leave, wellbeing days, a cultural day, commuter benefits, a legal services plan, charitable gift matching, a LEED certified workspace, and paid volunteer leave.

We conduct a variety of confidential surveys throughout the year to seek input and better understand the associate life-cycle experience.

In 2024, these touchpoints included an engagement survey, diversity, equity and belonging survey, 30-60-90-180-day onboarding surveys, exit surveys, a recognition survey, a benefits survey, and a mental health survey.

Nearly 81% of our associates participated in the 2024 engagement survey and we achieved a very high engagement score, five points above the benchmark, which means that our associates have a positive commitment to our organization and goals.

Choice Hotels remains committed to advancing the health, well-being, and engagement of our associates, recognizing that a strong workforce drives superior performance for our hotel owners and shareholders.

In 2025, we enhanced programs that support mental health, financial resilience, and social connectedness.

These initiatives reinforce our culture of care and strengthen retention and productivity.

Choice Hotels differentiates itself through a holistic and culturally aligned approach to associate wellbeing.

Our strategy integrates physical, mental, and financial health into a single framework, offering innovative programs such as diabetes and obesity management, mental health panels, and financial coaching.

Beyond benefits, we embed wellbeing into our culture of belonging and psychological safety, ensuring every associate feels welcome, wanted, and respected through initiatives like Choice Resource Groups and social connectedness campaigns.

We measure impact through engagement and experience surveys.

In 2025, participation in our engagement survey reached 82%, and our engagement score exceeded industry benchmarks by six points demonstrating strong associate commitment to Choice’s mission and confidence in our inclusive culture.

These results underscore the link between associate well-being and sustained business performance.

Award Winning Culture

In 2024, the Company continued to receive accolades, including the Brandon Hall Group HCM Excellence Awards for Data Discovery, Newsweek’s “World’s Most Trustworthy Companies,” TIME’s “World’s Best Companies” and “America's Best Mid-Size Companies,” Disability Equality Index, Inaugural World Sustainable Travel & Hospitality Award, Chief Learning Officer’s “Editor's Choice as Best Midsized Company for Learning” for Choice University, Newsweek’s America's Greatest Workplaces for LGBTQ+, Newsweek’s America's Greatest Workplaces for People with Disabilities, Newsweek’s America's Greatest Workplaces for Diversity, and Newsweek’s America’s Greatest Workplaces for Parents and Families.

In 2025, Choice Hotels continued to earn recognition for excellence across multiple dimensions of our business and culture.

We maintained our standing on Newsweek’s “World’s Most Trustworthy Companies” and TIME’s “World’s Best Companies” lists, underscoring our reputation for integrity and performance.

Additional accolades included Newsweek America’s Most Responsible Companies, Time America’s Best Companies, Forbes' Best Employers for Tech Workers, Computerworld's 2026 Best Places to Work, Comparably Best Company:

Leadership, Happiness, Compensation, Perks and Benefits, Culture and CEO, and the Human Rights Campaign's Corporate 100 Equality Index.

These achievements reflect our strategic focus on creating an inclusive, high-performing culture, and delivering long-term value for stakeholders.

Information about our Executive Officers

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Simone Wu 60 Senior Vice President, General Counsel, Corporate Secretary & External Affairs

Robert McDowell (1)

58 Chief Commercial Officer

Cimerola 57 Chief Human Resources Officer

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Anna Scozzafava 45 Chief Strategy Officer and Senior Vice President, Technology

(1) Robert McDowell, our former Chief Commercial Officer, departed the Company, effective January 15, 2025, to pursue other opportunities.

- Director from 1977 to 1996 and since 1997, serving as Chairman of the Board from March 1987 to November 1996 and since October 1997;

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Wu serves on the Board of Alarm.com.

Robert McDowell - Chief Commercial Officer since February 2016.

He was Senior Vice President, Marketing and Distribution from May 2011 until January 2016.

Prior to joining the Company, he was employed by United Airlines from 1995 to 2006.

He joined C+H International as Chief Operating Officer from January to December 2007.

He rejoined United Airlines January 2008 to 2011 as Managing Director of Distribution and eCommerce.

Cimerola - Chief Human Resources Officer since 2015.

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as Chief Marketing Officer from November 2020 to August 2022.

Before that, she was employed by Hilton from July 2018 to November 2020 as the Global Vice President, Social Media, and Global Vice President, Digital and Content Marketing, and by Capital One from September 2011 to March 2018 in various roles, most recently as Vice President, Digital Brand Strategy and Social Media.

Before that, she was employed by Hilton from July 2018 to November 2020 as the Global Vice President, Social Media, and Global Vice President, Digital and Content Marketing, and by

Capital One from September 2011 to March 2018 in various roles, most recently as Vice President, Digital Brand Strategy and Social Media.

Anna Scozzafava - Chief Strategy Officer and Senior Vice President, Technology since September 2023.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business