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Acquisitions (Tables)
 9 Months Ended
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 interest114,470 
Effective settlement of intercompany payables3,280 
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 receivable10,706 
Income taxes receivable149 
Prepaid expenses and other current assets335 
Operating lease right-of-use assets358 
Intangible assets150,665 
Total assets acquired$206,569 
Liabilities assumed
Accounts payable$5,235 
Accrued expenses and other current liabilities1,926 
Deferred revenue - current333 
Liability for guest loyalty program - current7,194 
Deferred income taxes38,045 
Long-term deferred revenue1,845 
Operating lease liabilities358 
Liability for guest loyalty program - noncurrent5,607 
Total liabilities assumed$60,543 
Fair value of net assets acquired$146,026 
Goodwill86,194 
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 LifeEstimated Fair Value
(in years)(in thousands)
Reacquired territory rights38$76,523 
Franchise agreements1274,142 
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, 2025September 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 acquisition86,194 
Effect of foreign currency translation(1,870)
Total goodwill, gross carrying amount312,089 
Accumulated impairment losses(7,578)
Goodwill, net carrying amount$304,511