How Choice Hotels International makes money

Period

FY2025

How does Choice Hotels International make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Choice Hotels International Inc. · FY2025 · year ended 2025-12-31

Revenue$1.6BGross profit$1.6B · 100%Cost of revenue$0 · 0%Operating income$448M · 28%Operating expenses$1.1B · 72%SG&A$329M · 21%Other opex$819M · 51%Pre-tax income$457M · 29%Other income$8M · 1%Net income$370M · 23%Income tax$87M · 5%Franchise & Management Fees$673M · 42%Revenue For Reimbursable Costs From Franchised & Managed Properties$616M · 39%Owned Hotels$121M · 8%Partnership Services & Fees$114M · 7%Other Revenue Topic 606 & Not Topic 606$72M · 5%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.