Published on
November 6, 2025
The hotel industry is currently facing a unique challenge, with Choice Hotels leading a new strategic shift. In response to declining revenue in the U.S. market, the company has set its sights on international growth to keep its business booming. This shift marks a turning point for Choice Hotels, as it moves beyond traditional roadside properties in the U.S. to focus on global markets where demand is surging.
U.S. Hotel Market Struggles with Soft Demand
For Choice Hotels, the third quarter of 2025 highlighted a significant challenge in its U.S. market. The company reported a 3.2% decline in revenue per available room (RevPAR) in the U.S. The struggle was most apparent in its roadside hotels, which saw weaker demand during the period. As a result, Choice Hotels has downgraded its full-year projection for U.S. RevPAR, now predicting a decline of between -2% and -3%, worse than its initial forecast.
The U.S. economy hotel sector has been hit hard, with consumers increasingly turning toward upscale or international travel options, leaving budget hotels such as Econo Lodge and Rodeway Inn facing reduced occupancy rates.
International Growth Fuels the Future
Despite challenges at home, Choice Hotels has found a silver lining in its international business. Overseas, Choice Hotels has posted remarkable growth. In fact, international RevPAR climbed 9.5% during the period, with regions like Europe, the Middle East, and Africa showing an impressive 11% increase.
This growth has been particularly strong in Europe, where demand for upscale accommodations like Cambria Hotels and Radisson has been thriving. The Middle East and Africa have also played crucial roles in the brand’s international expansion, contributing to the overall positive performance abroad. With this momentum, Choice Hotels is on track to double its international footprint in the next few years, according to company executives.
A Shift Toward Upscale Brands
While budget brands have faced pressure in the U.S., Choice Hotels is strategically shifting its portfolio mix. The company is adding more properties to its upscale brands, such as Cambria Hotels and Radisson, rather than focusing on budget-friendly options. This shift allows Choice Hotels to tap into the growing demand for luxury and premium accommodations, which has been more resilient than the budget sector.
Cambria Hotels has become a significant player in this strategy, appealing to both leisure and business travelers with its modern amenities and stylish design. Radisson, one of the company’s iconic brands, has also been gaining traction globally, with travelers seeking higher-end options in key international destinations.
The Road Ahead: A Global Strategy for Success
Looking to the future, Choice Hotels is doubling down on its international strategy. With rising demand in markets across Europe, the Middle East, and Africa, the company plans to expand aggressively in these regions. This international push has proven essential in balancing the slower growth in the U.S., where demand has softened over the last few months.
As the company rebalances its focus, Choice Hotels continues to refine its portfolio, adapting to the changing needs of global travelers. Evolving trends in the hospitality industry show that consumers are increasingly opting for upscale, international options rather than budget accommodations.
Adapting to Global Hospitality Trends
The shift toward international growth also aligns with broader global hospitality trends. As travel rebounds, destinations in Europe and the Middle East have become hot spots for tourists, further driving demand for upscale accommodations. With a growing number of international visitors, Choice Hotels is poised to capitalize on this demand, offering diverse properties that cater to different markets and consumer preferences.
Conclusion: Embracing Global Expansion
In the face of domestic struggles, Choice Hotels has displayed resilience by embracing international growth. As the U.S. market faces challenges, its global counterparts are thriving. With a renewed focus on upscale offerings and an aggressive expansion strategy in international markets, Choice Hotels is setting itself up for a bright future. The next few years will see a dramatic shift in the brand’s landscape, with new hotels and an expanded presence in the most sought-after global destinations.
