CHOICE HOTELS INTERNATIONAL Business Summary

Choice Hotels International, Inc. (CHH) operates as a premier global lodging franchisor, generating the vast majority of its revenue through an asset-light model centered on royalty fees, initial franchise fees, and procurement-based partnership services. As of early 2026, the company manages a diverse portfolio of 22 brands encompassing over 7,500 hotels and 650,000 rooms across 50 countries. Its primary business segments are categorized by brand tier—including Upscale (Radisson Blu, Cambria), Midscale (Comfort, Quality Inn), Extended Stay (Everhome Suites, WoodSpring Suites), and Economy (Econo Lodge)—alongside a growing International Operations division. Choice Hotels maintains a dominant position in the midscale and economy sectors while aggressively pivoting toward higher-revenue upscale and extended-stay segments to drive RevPAR growth. It competes directly with Marriott International, Hilton Worldwide, Wyndham Hotels & Resorts, and Hyatt Hotels, positioning itself as a high-margin, technology-forward alternative for hotel owners seeking robust distribution and lower capital intensity compared to full-service peers. Leadership is spearheaded by President and CEO Patrick Pacious, who joined the company in 2005 and has served as CEO since 2017, leveraging a background in strategic consulting and military service to oversee the integration of Radisson Hotels Americas and the company's digital transformation. The executive team includes CFO Scott Oaksmith, a 20-year veteran of the firm, and Anna Scozzafava, who serves as SVP of Technology and Chief Strategy Officer, directing the company’s proprietary cloud-based reservation and property management systems. On March 5, 2026, the company announced the appointment of Jeff Lobb as SVP, General Counsel & Secretary, succeeding the retiring Simone Wu. Choice Hotels was originally founded in 1939 as Quality Courts United, the first hotel chain in the U.S., and remains heavily influenced by the Bainum family; Stewart Bainum Jr. continues to serve as Chairman of the Board, ensuring long-term continuity and a disciplined approach to capital allocation and shareholder returns.