Choice Hotels International, Inc. (CHH): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at the hotel landscape in late 2025 and seeing the domestic softness-the U.S. RevPAR declined 3.2% in Q3, which is a real headwind you can't ignore. Still, as an analyst who's mapped these plays for years, I see Choice Hotels International, Inc. executing a deliberate strategy that goes deeper than that single metric. They are balancing a stable base of 22 brands with aggressive international growth, seeing a 95% net pipeline increase outside the U.S. in H1 2025, and leaning into extended stay where their RevPAR actually outperformed the industry by 20 basis points. To truly gauge where the value is, you need to see how their 68 million-member loyalty program fuels their Promotion, and how their tiered pricing captures every segment across over 7,000 global locations. Dive in below; we're dissecting the Product, Place, Promotion, and Price to show you the real story.

Choice Hotels International, Inc. (CHH) - Marketing Mix: Product

The product element for Choice Hotels International, Inc. centers on its diverse, multi-segmented portfolio of lodging offerings, designed to capture demand across the economy to upscale travel spectrum.

Choice Hotels International, Inc. maintains a global portfolio comprised of 22 distinct hotel brands. This extensive range allows the company to serve a wide variety of traveler needs and occasions. The overall system size is reported at over 7,500 hotels worldwide, representing nearly 650,000 rooms across 46 countries and territories as of mid-2025.

The extended stay segment is a core focus, with the company leading the sector. As of mid-2025, Choice Hotels has over 550 extended stay locations open. This segment saw significant growth, with the domestic extended stay net rooms portfolio increasing by 10.8% compared to March 31, 2024, and its pipeline reaching over 40,000 rooms as of March 31, 2025. The four extended stay brands include WoodSpring Suites, Everhome Suites, MainStay Suites, and Suburban Studios.

Upscale growth is being strategically driven, with the global upscale net rooms portfolio growing by 16.2% from March 31, 2024. The company's upscale and above brand portfolio grew rooms by 44% last year. This includes the Cambria Hotels brand, which boasts over 70 open properties, with nearly 60 more in the pipeline as of August 2025. Furthermore, the Radisson Hotels Americas portfolio, acquired in 2022, contributes significantly to the upscale and upper upscale tiers, which collectively account for over 1,000 properties within the Choice Hotels system.

The midscale and economy brands continue to form a stable foundation for the overall product offering. For instance, the Comfort Inn brand alone has more than 2,000 locations worldwide. In 2024, the flagship Comfort brand opened 26 hotels, and Quality Inn opened 41 hotels. A major expansion in Europe involves onboarding an additional 50 new Quality Suites properties in France, which will add more than 4,800 rooms across 41 new locations, nearly doubling the portfolio in that market.

Product enhancement is evident in the recent strategic updates to the acquired upscale brands. In 2025, Choice Hotels International introduced new visual identities for the Radisson, Radisson Blu, and Radisson Individuals brands. These updates include new logos and are backed by planned experiential elements such as elevated food and beverage concepts and new amenities across the Radisson portfolio.

The product portfolio scale and segment focus can be summarized as follows:

Specific brand growth metrics include:

• Radisson Hotels Americas brands (Radisson, Radisson Blu, Radisson Individuals) received new visual identities in 2025.
• The Ascend Collection celebrated reaching a milestone of over 400 open properties worldwide as of May 2025.
• In 2024, the midscale Everhome Suites brand had 25 hotels projected to be open by the end of 2025.
• Choice Hotels Japan grew to nearly 100 hotels in 2024, including the addition of 22 Comfort properties.

Choice Hotels International, Inc. (CHH) - Marketing Mix: Place

Choice Hotels International, Inc. operates as a global franchisor, maintaining a presence with over 7,000 hotels across 40+ countries. The international pipeline growth has been significant, showing a 95% net pipeline increase outside the U.S. in H1 2025.

The domestic footprint within the United States is substantial, consisting of 6,101 locations as of the latest available data. The distribution of these U.S. properties is concentrated in key states, with Texas leading the count.

The global development pipeline exceeded 86,000 rooms as of September 30, 2025. International expansion is being accelerated through strategic agreements, such as the one in China with SSAW Hotels & Resorts, which is expected to add over 9,500 rooms, with nearly 80% of these rooms onboarded by the third quarter of 2025. Furthermore, the company is expanding its European presence, adding 50 new properties representing more than 4,800 rooms in France through Quality Suites brand agreements, nearly doubling the portfolio there.

Distribution channels for Choice Hotels International, Inc. are anchored by proprietary digital platforms. The company heavily relies on its direct-to-consumer channels for bookings and loyalty engagement.

• Distribution relies heavily on its proprietary ChoiceHotels.com platform.
• The mobile app is a primary tool for reservations and loyalty program management.
• The international business, representing $3 billion in gross rooms revenue as of Q3 2025, is viewed as the highest growth opportunity.
• The international net rooms system size grew 8.3% year-over-year as of September 30, 2025.

Choice Hotels International, Inc. (CHH) - Marketing Mix: Promotion

Choice Hotels International, Inc. (CHH) Promotion activities in late 2025 center on driving awareness and bookings across its 22 diverse hotel brands by emphasizing experience and value.

The 2025 global campaign is Check Into More, featuring actor and writer Keegan-Michael Key as the 'Vacation Maximization-er.' This initiative is built around the insight that 95% of U.S. travelers want to spend part of their trips on new and unique experiences. The campaign includes six 30 and 15-second spots set to run across TV and digital channels through the end of 2025.

The Choice Privileges rewards program remains a key retention tool, boasting 68 million members globally as of the 2025 campaign focus. The program supports the promotion by offering redemption opportunities across more than 7,000 hotels.

The media execution employs a video-first approach across connected TV, online video, and social channels. Partnerships with leading platforms such as Hulu, Disney, Peacock, and Amazon are leveraged for advanced targeting and personalized messaging.

Choice Hotels International, Inc. launched two new campaigns in July 2025 specifically for its extended stay segment, which is a major growth area. The campaigns are 'Stay in Your Rhythm,' covering all four extended stay brands, and 'The WoodSpring Way,' highlighting WoodSpring Suites.

The scale of the extended stay portfolio being promoted is significant:

• Over 550 extended-stay locations open.
• 51 extended-stay locations under construction.
• More than 350 extended-stay locations in the pipeline.

The promotional efforts also include tools to drive engagement around taking time off. Choice Hotels introduced the Time Off Toolbox, which offers travelers customizable video and email templates for time-off requests, featuring Key's voice.

The core promotional elements and scope can be summarized as follows:

The promotional mix also incorporates specific brand call-outs within the main campaign spots:

• Spotlight on 22 diverse hotel brands.
• Highlighting upscale brands like Radisson and Cambria Hotels.
• Featuring midscale brands such as Quality Inn and Comfort.

Furthermore, WoodSpring Suites received external validation that supports promotional claims, being named the J.D. Power 2025 North America Hotel Guest Satisfaction Index Study #1 Economy Extended Stay Brand for the fourth consecutive year.

Choice Hotels International, Inc. (CHH) - Marketing Mix: Price

You're looking at how Choice Hotels International, Inc. prices its offerings across its portfolio, which spans 22 brands designed to capture nearly every traveler segment. The pricing power, or the ability to charge more, is reflected in their royalty structure and performance metrics.

For the third quarter of 2025, the U.S. average royalty rate expanded 10 basis points to 5.15 percent compared to the same period in 2024. This expansion signals a successful push toward higher-margin revenue streams, even as the U.S. market faced headwinds. Franchise and management fees for the quarter were $193.8 million, a 3 percent increase year-over-year.

The performance across the portfolio shows a clear divergence between domestic and international markets for Q3 2025. Globally, RevPAR (Revenue Per Available Room) increased 0.2 percent year-over-year. However, this was entirely driven by international strength, as the U.S. RevPAR declined 3.2 percent, primarily due to softer government and international inbound demand.

Still, certain segments within the U.S. showed pricing resilience. The extended stay portfolio RevPAR outperformed the U.S. industry by 20 basis points in Q3 2025. Also, the U.S. economy transient portfolio outperformed its specific chain scale by 180 basis points for the same period. This suggests that for specific product types, the perceived value supports stronger pricing relative to competitors.

Here's a quick look at the key financial and operational numbers from the third quarter of 2025:

You can see the strategic pricing is working in the fee structure, with partnership services and fees climbing 19 percent to $28.9 million. The company's focus on higher-revenue segments, like upscale and extended stay, which saw 3.3 percent global net room growth, is key to maintaining pricing integrity where possible. The global pipeline, exceeding 86,000 rooms, is 98 percent concentrated in these higher-value segments, which should support future royalty rate expansion.

• Global net system rooms grew 2.3% year-over-year.
• International net rooms grew 8.3% year-over-year.
• U.S. net rooms increased by 0.6% to 498,307.
• Global franchise agreements awarded rose 54% in Q3.