Choice Hotels is a hotel franchisor that licenses its brands to hotel owners in exchange for ongoing fees. Choice operates 22 brands spanning economy through upper upscale, with its portfolio heavily weighted toward midscale and economy segments. Its largest brands by room count are Comfort, Quality Inn, and Econo Lodge. As of year-end 2025, Choice's global system includes roughly 7,575 hotels and approximately 657,000 rooms across the U.S. and international markets. Choice earns royalty fees typically equal to 5%–6% of gross room revenues at franchised hotels, plus marketing and reservation fees of 3%–4% that are spent on behalf of franchisees. Revenue grows through three levers: adding rooms to the system, higher RevPAR (revenue per available room) at franchised hotels, and increasing average royalty rates. The franchisor model carries significant operating leverage, as incremental hotels generate royalties with minimal incremental cost. Choice's growth strategy focuses on shifting the portfolio mix toward higher-revenue brands — particularly extended stay, upscale, and upper midscale — while pruning lower-performing economy properties. Extended stay is Choice's fastest-growing domestic segment, led by WoodSpring Suites, MainStay Suites, and Everhome Suites. Choice is also expanding internationally, shifting from master franchising to direct franchising to capture higher royalty rates. A growing ancillary revenue stream from a co-branded credit card, vendor relationships, and franchisee technology services complements core royalty fees.