Choice Hotels International entered into a $500 million senior unsecured credit agreement on August 28, 2026. The facility consists of a term loan maturing on August 28, 2029, with an optional one-year extension subject to lender consent. Interest rates are set at SOFR plus 1.25% or a base rate plus 0.25%. The agreement imposes financial maintenance covenants requiring a consolidated fixed charge coverage ratio of at least 2.5 to 1.0 and a leverage ratio not exceeding 4.5 to 1.0, which may increase to 5.5 to 1.0 for specific acquisitions. Proceeds are intended for general corporate purposes, including working capital and debt repayment. Choice Hotels International operates in the hospitality industry, providing franchising and management services for lodging properties.
