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Acquisitions (Tables) | 9 Months Ended
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Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Schedule of Purchase Consideration Transferred | The following is a summary of the purchase consideration transferred:
| Purchase Consideration
| (in thousands)
Cash consideration transferred for the newly acquired interest | $ | 114,470 |
Fair value of the previously held interest | 114,470 |
Effective settlement of intercompany payables | 3,280 |
Total consideration, including previously held interest | $ | 232,220 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price is as follows:
(in thousands) | July 2, 2025
Assets acquired |
Cash and cash equivalents | $ | 44,356 |
Accounts receivable | 10,706 |
Income taxes receivable | 149 |
Prepaid expenses and other current assets | 335 |
Operating lease right-of-use assets | 358 |
Intangible assets | 150,665 |
Total assets acquired | $ | 206,569 |
Liabilities assumed |
Accounts payable | $ | 5,235 |
Accrued expenses and other current liabilities | 1,926 |
Deferred revenue - current | 333 |
Liability for guest loyalty program - current | 7,194 |
Deferred income taxes | 38,045 |
Long-term deferred revenue | 1,845 |
Operating lease liabilities | 358 |
Liability for guest loyalty program - noncurrent | 5,607 |
Total liabilities assumed | $ | 60,543 |
Fair value of net assets acquired | $ | 146,026 |
Goodwill | 86,194 |
Total consideration, including previously held interest | $ | 232,220 |
The following table presents the estimated fair values of the acquired identified intangible assets and their estimated useful lives:
| Estimated Useful Life |  | Estimated Fair Value
| (in years) |  | (in thousands)
Reacquired territory rights | 38 |  | $ | 76,523 |
Franchise agreements | 12 |  | 74,142 |
Total intangible assets |  |  | $ | 150,665 |
Schedule of Pro Forma Information | The following unaudited pro forma information presents the combined results of operations of Choice and Choice Hotels Canada as if the Company had completed the Transaction on January 1, 2024, but using the preliminary fair values of the assets acquired and the liabilities assumed as of the acquisition date. The unaudited pro forma information reflects adjustments relating to (i) the allocation of the purchase price and related adjustments, including the incremental amortization expense based on the preliminary fair values of the intangible assets acquired, (ii) the incremental impact of the senior unsecured revolving credit facility draw on interest expense, (iii) nonrecurring transaction costs, and (iv) the income tax impact of the aforementioned pro forma adjustments. As required by GAAP, these unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Transaction had occurred at the beginning of the period presented, nor are they indicative of the future results of operations.
| Nine Months Ended
(in thousands) | September 30, 2025 |  | September 30, 2024
Revenues | $ | 1,222,972 |  |  | $ | 1,225,458 |
Net income (1) | $ | 204,397 |  |  | $ | 222,300 |
(1) The gain on the previously held 50% equity interest in Choice Hotels Canada is excluded from the pro forma results of operations.
Schedule of Goodwill | The following table summarizes the carrying amount of the Company's goodwill, including the goodwill arising from the acquisition of Choice Hotels Canada, as of September 30, 2025.
(in thousands) |
Goodwill, excluding goodwill arising from the Choice Hotels Canada acquisition | $ | 227,765 |
Goodwill arising from the Choice Hotels Canada acquisition | 86,194 |
Effect of foreign currency translation | (1,870) |
Total goodwill, gross carrying amount | 312,089 |
Accumulated impairment losses | (7,578) |
Goodwill, net carrying amount | $ | 304,511 |

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