Choice Hotels International, Inc.
- Open
- 99.87
- Day high
- 101.27
- Day low
- 98.28
- Prev close
- 98.12
- Volume
- 417K
- Mkt cap
- $4.5B
- P/E (TTM)
- 14.1
- EPS (TTM)
- $7.13
- P/B
- 31.8
- P/S
- 2.8
- Yield
- 1.15%
- Per share
- $1.15
- ▼Insiders net selling -$991K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
Choice Hotels International, Inc. (CHH) is a Consumer Cyclical company listed on NYSE. The stock is down 14% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4). Drillr has 1 published research article covering CHH.
Choice Hotels International, Inc. (CHH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CHH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $1.98 | $2.02 | +2.0% | $441M | +1.0% |
| Apr 30, 2026 | $1.35 | $1.07 | -21.0% | $341M | +1.9% |
| Feb 19, 2026 | $1.56 | $1.60 | +2.6% | $390M | +20.4% |
| Nov 5, 2025 | $2.18 | $2.10 | -3.7% | $447M | +21.2% |
| Aug 6, 2025 | $1.90 | $1.92 | +1.1% | $426M | -0.9% |
| May 8, 2025 | $1.38 | $1.34 | -2.9% | $333M | -26.0% |
| Feb 20, 2025 | $1.45 | $1.55 | +6.9% | $390M | +14.8% |
| Aug 8, 2024 | $1.86 | $1.84 | -1.1% | $435M | -0.7% |
| May 8, 2024 | $1.15 | $1.28 | +11.3% | $332M | -3.3% |
| Feb 20, 2024 | $1.35 | $1.44 | +6.7% | $358M | -3.2% |
| Feb 15, 2023 | $1.05 | $1.26 | +20.0% | $362M | +1.5% |
| Aug 4, 2022 | $1.45 | $1.43 | -1.4% | $368M | +14.2% |
CHH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Sep 1, 2026 | Dragisich Dominicdirector, officer: President & CEO | Grant | 9,675 | — |
| Sep 1, 2026 | Pacious Patrickdirector | Tax | 46,122 | $103.36 |
| Aug 19, 2026 | JEWS WILLIAM Ldirector | Sell | 5,057 | $106.98 |
| Aug 18, 2026 | Abdalla Nohaofficer: Chief Marketing Officer | Tax | 503 | $104.73 |
| Jul 17, 2026 | VIEIRA DONNA Fdirector | Grant | 3 | $106.26 |
| Jul 17, 2026 | Ramirez Sanchez Raulofficer: Chief Seg & Intl Op Officer | Grant | 9 | $106.26 |
| Jul 17, 2026 | Koch Monte JMdirector | Grant | 35 | $106.26 |
| Jul 17, 2026 | JEWS WILLIAM Ldirector | Grant | 17 | $106.26 |
| Jul 17, 2026 | TAGUE JOHN Pdirector | Grant | 69 | $106.26 |
| Jul 17, 2026 | Landsman Lizadirector | Grant | 21 | $106.26 |
| Jul 17, 2026 | Maureen Sullivandirector | Grant | 29 | $106.26 |
| Jul 17, 2026 | SHAMES ERVIN Rdirector | Grant | 110 | $106.26 |
| Jul 17, 2026 | Smith Gordondirector | Grant | 23 | $106.26 |
| Jul 17, 2026 | Cimerola Patrickofficer: Chief Human Resources Officer | Grant | 75 | $106.26 |
| Jun 18, 2026 | Oaksmith Scott Eofficer: SVP, Chief Financial Officer | Sell | 2,000 | $115.00 |
Source: CHH SEC Form 4 filings, latest Sep 1, 2026. For informational purposes only — not investment advice.
See the full CHH insider & 13F page →Choice Hotels International, Inc. company profile
Overview
Choice Hotels International, Inc. (NYSE:CHH) is one of the largest hotel franchisors in the world, operating a portfolio of hotel brands across multiple market segments. Founded in 1939 and headquartered in Rockville, Maryland, the company has grown from a small regional operator to a global hospitality franchise company with approximately 7,000 hotels and 600,000 rooms across 35 countries and territories. Choice Hotels went public in 1996 and has since established itself as a major player in the hotel franchising industry through strategic acquisitions, brand development, and international expansion.
Business
Choice Hotels operates as a hotel franchisor, which means it licenses its brand names and operating systems to independent hotel owners rather than owning and operating hotels directly. The hotel franchising industry serves as an intermediary between hotel brand recognition and local property ownership, allowing individual entrepreneurs to operate hotels under established brand names while benefiting from centralized reservation systems, marketing, and operational support. The company's business is organized into two primary segments. The **Hotel Franchising segment** represents the vast majority of revenue and includes licensing hotel brands to franchisees, providing reservation services, marketing support, and operational guidance. The **Corporate & Other segment** encompasses the development and marketing of cloud-based property management software to non-franchised hotels, as well as other ancillary services. Choice Hotels operates a diverse portfolio of hotel brands targeting different market segments and price points: 1. **Economy Segment** includes brands like Econo Lodge and Rodeway Inn, targeting budget-conscious travelers seeking basic accommodations at affordable rates. 2. **Midscale Segment** features Comfort Inn, Comfort Suites, Quality, Sleep Inn, and Clarion brands, offering enhanced amenities and services at moderate price points for both business and leisure travelers. 3. **Extended Stay Segment** includes MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, and Everhome Suites, designed for guests requiring longer-term accommodations with kitchen facilities and residential-style amenities. 4. **Upscale Segment** encompasses Cambria Hotels and Ascend Hotel Collection, targeting premium travelers seeking higher-end accommodations with distinctive design and enhanced services. The company has strategically focused on expanding its presence in what it calls "revenue-intense" segments (upscale, extended stay, and midscale), which generate higher franchise fees per room compared to economy properties. These segments now represent approximately 98% of the company's global development pipeline, reflecting the strategic shift toward higher-margin business.
Revenue model
Choice Hotels generates revenue primarily through franchise fees collected from independent hotel owners who operate properties under the company's brand names. The business model centers on **asset-light operations**, where Choice Hotels provides the brand, reservation system, marketing, and operational support while franchisees own and operate the physical properties. The company's revenue streams include several components. **Franchise fees** represent the largest portion, typically calculated as a percentage of room revenue generated by franchised properties. **Initial franchise fees** are collected when new hotels join the system. **Marketing and reservation fees** are charged to support national advertising campaigns and maintain the central reservation system. The company also generates revenue from its **Choice Privileges loyalty program**, **partnerships business**, and **ancillary services** including property management software. The primary customers are independent hotel owners and operators who pay these fees in exchange for brand recognition, access to the reservation system, marketing support, and operational guidance. These franchisees range from individual entrepreneurs operating single properties to larger hospitality companies managing multiple locations. Several factors influence the company's profit margins. **Positive margin drivers** include the shift toward revenue-intense segments that command higher franchise fees, growth in the loyalty program which increases direct bookings and reduces distribution costs, expansion of ancillary services, and international growth in markets with higher effective royalty rates. **Negative margin pressures** come from increased competition in the franchising space, economic downturns that reduce travel demand and hotel occupancy rates, rising technology and marketing costs required to maintain competitive reservation and loyalty systems, and the need for ongoing investment in brand refreshes and property improvement programs to maintain brand standards. The business model benefits from **recurring revenue characteristics** since franchise fees are collected continuously as long as properties remain in the system, and the **scalable nature** of the franchise model allows for growth without proportional increases in capital expenditure.
Competitive moat
Choice Hotels possesses a **moderate competitive moat** built primarily around brand recognition, distribution scale, and network effects, though the moat faces ongoing challenges from industry competition and changing consumer preferences. The company's primary competitive advantages stem from its **established brand portfolio** spanning multiple market segments, which provides franchisees with recognized names that drive customer bookings. The **Choice Privileges loyalty program** with 70 million members creates switching costs for both customers and franchisees, as hotels benefit from direct bookings that avoid third-party commission fees. The company's **scale in reservation and marketing systems** allows it to spread fixed costs across a large hotel base, providing cost advantages over smaller competitors. **Network effects** strengthen the moat as more hotels in the system increase the value proposition for loyalty program members, while a larger member base attracts more franchisees. The company's **relationships with franchisees** built over decades create some switching costs, as changing brands requires retraining staff, updating systems, and potentially renovating properties to meet new brand standards. However, the moat faces significant challenges. **Intense competition** from other major franchisors like Marriott, Hilton, and Wyndham limits pricing power and requires continuous investment in technology and marketing. **Online travel agencies** and direct booking platforms have reduced the importance of traditional brand loyalty, while **alternative accommodations** like Airbnb have disrupted traditional hotel demand patterns. The **commoditized nature** of many hotel services means that operational excellence and cost management are often as important as brand recognition. Additionally, the **franchise model** creates inherent tensions between franchisor and franchisee interests, and the company has limited control over individual property quality and customer experience. Overall, Choice Hotels maintains a **defensible but not dominant position** in the hotel franchising industry, with competitive advantages that provide some protection but require continuous investment and strategic adaptation to maintain effectiveness.
Risks & safety
Choice Hotels presents a **moderate margin of safety** with manageable financial risks but some valuation concerns at current levels. **Liquidity and Solvency:** - Current ratio of 0.84 indicates tight short-term liquidity, though this is partially offset by strong operating cash flow generation - Total debt-to-equity structure shows negative book equity due to share repurchases and dividends, but strong cash flow supports debt service - Operating cash flow of $319 million in 2024 provides adequate coverage for capital expenditures and dividend payments - Free cash flow of $174 million demonstrates the business generates substantial cash after necessary investments **Valuation Metrics:** - P/E ratio of 22.6x appears reasonable for a franchise business model with recurring revenue characteristics - EV/EBITDA of 15.6x is moderate but reflects the premium valuation typical of asset-light franchise models - Price-to-book ratio is elevated due to negative book equity from capital returns, making this metric less meaningful **Other Considerations:** - Strong recurring revenue model provides earnings stability and predictability - Asset-light franchise model reduces capital intensity and business risk compared to hotel ownership - Exposure to economic cycles through travel demand creates some earnings volatility risk - Competitive industry dynamics require ongoing investment in technology and marketing to maintain market position
Recent development
Over the past few years, Choice Hotels has executed a strategic transformation focused on shifting toward higher-revenue hotel segments and expanding its global footprint. The most significant development was the **acquisition of Radisson Americas** in 2022, which added upscale and premium brands to the portfolio and accelerated the company's growth in revenue-intense segments. This acquisition contributed over $60 million in adjusted EBITDA in 2023 and achieved $80 million in annual recurring synergies ahead of schedule. The company has prioritized growth in **extended stay and upscale segments**, with extended stay room system size growing 10-14% annually and upscale segment rooms increasing 44% year-over-year in 2024. This strategic focus is reflected in the development pipeline, where 98% of global pipeline rooms are now in revenue-intensive brands compared to lower-margin economy properties. **Technology and loyalty program investments** have been central to recent initiatives. The Choice Privileges rewards program expanded to 70 million members with enhanced features including extended booking windows and strategic partnerships like the Westgate Resorts agreement that added 14,000 rooms. The company has also invested in cloud-based property management software and digital tools to improve franchisee profitability and operational efficiency. **International expansion** has accelerated with direct franchising agreements in Spain and France, targeting the EMEA region for growth. The company opened its first direct franchising agreement in Spain and is pursuing master franchise agreements in key international markets. Recent quarters have shown strong operational execution with **domestic rooms growth of 4.3%** in 2024, driven primarily by the revenue-intense segments. The company has also expanded its **partnerships business** and **ancillary revenue streams**, including group travel services that saw 45% revenue growth from managed accounts in Q4 2024.
CHH company profile · for informational purposes only — not investment advice.
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