Budget Brands Lift Choice Hotels Despite Slowdown Fears
Choice Hotels' budget travel business is booming, even as the company joins rivals in tempering expectations for 2025.
Choice Hotels dialed back revenue expectations for the year, while highlighting strength in its economy and extended-stay properties.
The hotel franchiser on Thursday projected that its revenue per available room (RevPAR) in the U.S. will range between a 1% decline and 1% growth, down from its previous forecast of 1-2% growth.
While its mid-market properties struggled in the first quarter, brands like Econo Lodge and extended-stay options boomed.
CEO Patrick Pacious chalked up the performance to strong employment, low gas prices, and infrastructure investments tied to artificial intelligence, even as the company joined competitors Wyndham, Marriott, and Hilton in modestly lowering its outlook for growth for the year.
What Was StrongestEconomy hotels. Choice's budget hotel brands in the U.S. saw a 7.1% jump in RevPAR, year-over-year.
"Employment remains high, gas prices are low, and consumers app
skift.
