A Business at a Glance
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CHOICE HOTELS INTERNATIONAL INC /DE
CHH
$5.2B
Mkt Cap
$110.52
+2.33%
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a current P/E ratio of 14.0, compared to its historical median P/E of 22.1. The stock is currently considered Fair based on its historical valuation range.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a 5-year average return on invested capital (ROIC) of 26.2%. This indicates strong capital allocation and a potential competitive advantage.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a market capitalization of $5.0B. It is classified as a mid-cap stock.
Yes, CHOICE HOTELS INTERNATIONAL INC /DE (CHH) pays a dividend with a trailing twelve-month yield of 1.05%. The company also returns capital through share buybacks, with a buyback yield of 2.58%.
Based on historical P/E analysis, CHOICE HOTELS INTERNATIONAL INC /DE (CHH) appears fair. The current P/E of 14.0 is 37% below its historical median of 22.1. The estimated fair value CAGR (P/E method) is 14.7%.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) operates in the Hotels & Motels industry, within the Consumer Cyclical sector.
Choice Hotels International is a hotel franchisor operating 7,575 open hotels with 656,825 rooms across 49 U.S. states, the District of Columbia, and 50 countries and territories, with an additional 825 hotels and 77,862 rooms in its development pipeline. The company operates through a diversified portfolio of 21 brands spanning economy, midscale, and upscale segments, including Comfort Inn, Quality, Country Inn & Suites by Radisson, Cambria Hotels, Radisson Blu, and others, generating revenues primarily from franchise fees based on gross room revenues or room counts at franchised properties, supplemented by management fees, owned hotel revenues, and partnership arrangements with travel and vendor partners. The business model is asset-light and fee-based, with the company benefiting from operating leverage as incremental royalty fees from new franchises typically exceed variable overhead costs, while the company maintains selective ownership of approximately 17 company-operated hotels and manages 13 properties. The company's competitive advantages include a structurally advantaged portfolio with 97% of its global pipeline concentrated in higher-revenue brands expected to be approximately 1.7 times more accretive than the current portfolio, a conversion-driven development model that accounts for over 80% of U.S. openings and enables rapid, capital-efficient expansion, and a diversified revenue base spanning franchise fees, royalty rates, partnership services, and international operations conducted through both direct franchising and master franchising relationships. The company's primary customer base comprises hotel owners and developers seeking franchises with strong return on investment, supported by a loyalty program (Choice Privileges) serving guests and targeted investments in business travel, extended-stay accommodations, and demographic segments including retirees, road trippers, and blue- and gray-collar workers.
【Rooms growth inflection ahead】 Management expects U.S. net rooms growth to return to positive territory in 2026, with conversion activity accounting for over 80% of openings and approximately 60% of franchise agreements executed in the first quarter expected to open within the year, providing strong near-term visibility into growth. The company anticipates continued demand support from tax refunds, event-driven travel including the FIFA World Cup and U.S. 250th anniversary, and a structural shift in guest preferences toward extended-stay accommodations that feel more like home. International operations are positioned for sustained momentum, with management targeting over $50 million in international adjusted EBITDA by 2027, doubling from 2024 baseline levels, supported by expansion in direct franchising markets including France and China. Capital deployment is expected to decline materially as strategic hotel development investments wind down, with net hotel development outlays projected at $20–$45 million in 2026 (approximately 70% lower than 2025), enabling increased capital recycling and shareholder returns through share repurchases expected to range from $175–$225 million in 2026.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA | $632 million–$647 million | FY2026 |
| Adjusted diluted earnings per share | $6.92–$7.14 | FY2026 |
| Net global rooms growth | approximately 1% year-over-year | FY2026 |
| Global RevPAR | -2% to +1% year-over-year in constant currency | FY2026 |
| Key money spending | $105 million–$110 million | FY2026 |
| Share repurchases | $175 million–$225 million | FY2026 |
| International adjusted EBITDA | more than $50 million | by 2027 |
Adjusted EBITDA (FY2026): “For full year 2026, we expect adjusted EBITDA in the range of $632 million-$647 million”
Adjusted diluted earnings per share (FY2026): “We expect our adjusted diluted earnings per share for full year 2026 to be in the range of $6.92-$7.14 per share.”
Net global rooms growth (FY2026): “Net global rooms growth of approximately 1% year-over-year, reflecting our expectation for US net rooms growth to return to positive territory alongside continued international expansion.”
“Global RevPAR in the range of -2% to +1% year-over-year in constant currency”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.6B | 1.6B | 1.6B | 1.5B | 1.4B | 1.1B |
| Net Income | 344M | 368M | 298M | 257M | 330M | 288M |
| EPS | $7.45 | $7.90 | $6.20 | $5.07 | $5.99 | $5.15 |
| Free Cash Flow | 139M | 164M | 213M | 228M | 301M | 309M |
| ROIC | 16.5% | 18.9% | 20.8% | 19.2% | 32.9% | 39.3% |
| Gross Margin | - | 58.1% | 57.8% | 51.8% | 50.2% | 60.4% |
| Debt/Equity | 14.58 | 11.16 | -41.69 | 47.24 | 8.31 | 4.17 |
| Dividends/Share | $1.16 | $1.15 | $1.15 | $1.15 | $0.95 | $0.45 |
| Operating Income | 429M | 448M | 464M | 375M | 479M | 429M |
| Operating Margin | 26.7% | 28.1% | 29.3% | 24.3% | 34.1% | 40.1% |
| ROE | 250.4% | 203.1% | - | 270.3% | 157.1% | 221.3% |
| Shares Outstanding | 46M | 47M | 48M | 51M | 55M | 56M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 758M | 860M | 808M | 941M | 1.0B | 1.1B | 774M | 1.1B | 1.4B | 1.5B | 1.6B | 1.6B | 1.6B |
| Gross Margin | N/A | 0.1% | 1.2% | 0.9% | 1.1% | 1.1% | 46.5% | 60.4% | 50.2% | 51.8% | 57.8% | 58.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 121M | 134M | 155M | 166M | 170M | 169M | 149M | 146M | 168M | 313M | 312M | 329M | 333M |
| EBIT | 215M | 225M | 187M | 290M | 318M | 319M | 122M | 429M | 479M | 375M | 464M | 448M | 429M |
| Op. Margin | 28.3% | 26.2% | 23.2% | 30.8% | 30.6% | 28.6% | 15.7% | 40.1% | 34.1% | 24.3% | 29.3% | 28.1% | 26.7% |
| Net Income | 122M | 127M | 106M | 121M | 215M | 222M | 75M | 288M | 330M | 257M | 298M | 368M | 344M |
| Net Margin | 16.1% | 14.8% | 13.1% | 12.9% | 20.7% | 19.9% | 9.7% | 26.9% | 23.6% | 16.7% | 18.8% | 23.1% | 21.4% |
| Non-Recurring | 2.8M | 1.5M | 571K | 237K | 4.3M | 5.2M | 0 | -530K | 16M | 3.7M | 0 | 713K | 713K |
| Returns on Capital | |||||||||||||
| ROIC | 95.6% | 85.7% | 54.4% | 69.3% | 65.2% | 38.5% | 14.9% | 39.3% | 32.9% | 19.2% | 20.8% | 18.9% | 16.5% |
| ROE | -27.7% | -30.8% | -27.8% | -38.9% | -97.3% | -213.7% | N/A | 221.3% | 157.1% | 270.3% | N/A | 203.1% | 250.4% |
| ROA | 20.7% | 18.8% | 13.0% | 12.8% | 20.2% | 17.5% | 5.0% | 16.4% | 16.4% | 11.4% | 12.1% | 13.5% | 11.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 188M | 165M | 152M | 257M | 243M | 271M | 110M | 384M | 367M | 297M | 319M | 270M | 227M |
| Free Cash Flow | 167M | 137M | 127M | 234M | 195M | 213M | 76M | 309M | 301M | 228M | 213M | 164M | 139M |
| Owner Earnings | 174M | 147M | 139M | 241M | 221M | 245M | 72M | 336M | 296M | 211M | 229M | 172M | 128M |
| CapEx | 21M | 28M | 25M | 23M | 48M | 57M | 34M | 74M | 66M | 69M | 107M | 107M | 88M |
| Maint. CapEx | 9.4M | 12M | 7.0M | 6.7M | 14M | 19M | 26M | 25M | 30M | 45M | 52M | 60M | 63M |
| Growth CapEx | 12M | 16M | 18M | 17M | 33M | 39M | 7.8M | 50M | 35M | 24M | 55M | 47M | 25M |
| D&A | 9.4M | 12M | 7.0M | 6.7M | 14M | 19M | 26M | 25M | 30M | 45M | 52M | 60M | 63M |
| CapEx/OCF | 11.4% | 16.8% | 16.6% | 9.1% | 19.6% | 21.2% | 30.5% | 19.4% | 24.5% | 23.1% | 33.4% | 39.5% | 38.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 44M | 45M | 46M | 49M | 49M | 48M | 25M | 25M | 53M | 56M | 55M | 53M | 53M |
| Dividend Yield | 1.7% | 1.6% | 2.4% | 1.4% | 1.2% | 1.1% | 0.5% | 0.4% | 0.8% | 1.0% | 0.9% | 0.9% | 1.1% |
| Share Buybacks | 78M | 73M | 36M | 9.8M | 149M | 51M | 55M | 13M | 435M | 363M | 381M | 138M | 130M |
| Buyback Yield | 2.6% | 2.7% | 1.2% | 0.2% | 3.9% | 0.9% | 1.0% | 0.2% | 7.4% | 6.4% | 5.7% | 3.1% | 2.6% |
| Stock-Based Comp | 3.8M | 6.4M | 5.8M | 9.6M | 7.4M | 6.5M | 12M | 23M | 40M | 41M | 38M | 38M | 36M |
| Debt Repayment | 10M | 131M | 988K | 660K | 603K | 250M | 474M | 0 | 0 | 1.6M | 8.1M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 570M | 620M | 636M | 489M | 726M | 847M | 845M | 594M | 1.2B | 1.7B | 1.8B | 2.0B | 2.0B |
| Cash & Equiv. | 215M | 193M | 202M | 235M | 27M | 34M | 235M | 512M | 42M | 27M | 40M | 45M | 44M |
| Long-Term Debt | 773M | 813M | 839M | 725M | 754M | 844M | 1.1B | 844M | 1.2B | 1.1B | 1.8B | 1.9B | 2.0B |
| Debt/Equity | -1.83 | -2.06 | -2.30 | -2.81 | -4.11 | -37.56 | -188.12 | 4.17 | 8.31 | 47.24 | -41.69 | 11.16 | 14.58 |
| Interest Coverage | 5.2 | 5.3 | 4.2 | 6.4 | 6.9 | 6.8 | 2.5 | 9.2 | 10.9 | 5.9 | 5.3 | 4.9 | 4.6 |
| Equity | -429M | -396M | -365M | -259M | -184M | -24M | -5.8M | 266M | 155M | 36M | -45M | 181M | 137M |
| Total Assets | 638M | 717M | 908M | 995M | 1.1B | 1.4B | 1.6B | 1.9B | 2.1B | 2.4B | 2.5B | 2.9B | 2.9B |
| Total Liabilities | 1.1B | 1.1B | 1.3B | 1.3B | 1.3B | 1.4B | 1.6B | 1.7B | 1.9B | 2.4B | 2.6B | 2.7B | 2.8B |
| Intangibles | 8.9M | 12M | 16M | 100M | 271M | 290M | 304M | 312M | 742M | 811M | 884M | 1.1B | 1.1B |
| Retained Earnings | 432M | 515M | 608M | 627M | 795M | 969M | 1.0B | 1.3B | 1.6B | 1.8B | 2.0B | 2.3B | 2.3B |
| Working Capital | 125M | 103M | 81M | 116M | -75M | -89M | 177M | 191M | -88M | -646M | -124M | -61M | -23M |
| Current Assets | 325M | 311M | 345M | 400M | 244M | 237M | 433M | 762M | 348M | 297M | 339M | 406M | 411M |
| Current Liabilities | 200M | 208M | 264M | 285M | 318M | 326M | 256M | 570M | 436M | 943M | 463M | 467M | 434M |
| Per Share Data | |||||||||||||
| EPS | 2.10 | 2.22 | 2.46 | 2.15 | 3.80 | 3.98 | 1.35 | 5.15 | 5.99 | 5.07 | 6.20 | 7.90 | 7.45 |
| Owner EPS | 3.00 | 2.57 | 3.23 | 4.27 | 3.91 | 4.41 | 1.30 | 6.00 | 5.37 | 4.16 | 4.76 | 3.70 | 2.80 |
| Book Value | -7.38 | -6.91 | -8.48 | -4.58 | -3.25 | -0.42 | -0.10 | 4.76 | 2.81 | 0.70 | -0.94 | 3.89 | 3.01 |
| Cash Flow/Share | 3.23 | 2.88 | 3.53 | 4.56 | 4.29 | 4.86 | 1.98 | 6.87 | 6.66 | 5.85 | 6.64 | 5.80 | 8.92 |
| Dividends/Share | 0.75 | 0.79 | 1.07 | 0.86 | 0.86 | 0.86 | 0.46 | 0.45 | 0.95 | 1.15 | 1.15 | 1.15 | 1.16 |
| Shares Out. | 58.1M | 57.3M | 43.1M | 56.5M | 56.6M | 55.7M | 55.5M | 55.9M | 55.1M | 50.7M | 48.1M | 46.6M | 45.6M |
| Valuation | |||||||||||||
| P/E Ratio | 24.2 | 20.8 | 21.0 | 33.9 | 17.8 | 25.1 | 74.2 | 28.8 | 17.7 | 21.8 | 22.4 | 12.1 | 14.8 |
| P/FCF | 17.7 | 19.3 | 17.5 | 17.6 | 19.6 | 26.1 | 72.7 | 26.8 | 19.4 | 24.6 | 31.5 | 27.3 | 36.4 |
| EV/EBIT | 15.6 | 13.7 | 14.1 | 15.2 | 14.4 | 20.2 | 50.8 | 20.0 | 14.6 | 20.4 | 18.1 | 14.0 | 16.3 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 31.3 | 38.1 | 158.3 | N/A | 24.7 | 36.7 |
| Price/Sales | 3.4 | 3.3 | 2.7 | 3.6 | N/A | 4.1 | 6.1 | 6.1 | 4.9 | 3.9 | 3.8 | 3.5 | 3.1 |
| FCF Yield | 5.6% | 5.1% | 4.3% | 5.6% | 5.1% | 3.8% | 1.4% | 3.7% | 5.1% | 4.0% | 3.2% | 3.7% | 2.7% |
| Market Cap | 3.0B | 2.7B | 2.9B | 4.1B | 3.8B | 5.6B | 5.6B | 8.3B | 5.9B | 5.6B | 6.7B | 4.5B | 5.0B |
| Avg. Price | 43.74 | 49.84 | 44.43 | 59.87 | 73.79 | 81.46 | 84.80 | 116.21 | 123.11 | 116.93 | 124.06 | 120.79 | 110.52 |
| Year-End Price | 50.84 | 46.27 | 51.61 | 72.90 | 67.58 | 99.93 | 100.16 | 148.51 | 106.17 | 110.53 | 139.11 | 95.66 | 110.52 |
CHOICE HOTELS INTERNATIONAL INC /DE passes 6 of 9 quality checks, suggesting mixed fundamentals.
CHOICE HOTELS INTERNATIONAL INC /DE trades at 14.0x trailing earnings, compared to its 15-year median P/E of 22.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 31.1x vs a median of 25.3x. The company's 5-year average ROIC is 26.2% with a gross margin of 55.7%. Total shareholder yield (dividends + buybacks) is 3.6%. At current prices, the estimated annualized return to fair value is +6.2%.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) reported annual revenue of $1.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a net profit margin of 23.1%. This is a strong margin indicating high profitability.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) generated $164 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a debt-to-equity ratio of 11.16. This indicates higher leverage, which may increase financial risk.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) reported earnings per share (EPS) of $7.90 in its most recent fiscal year.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a return on equity (ROE) of 203.1%. This indicates the company generates strong returns for shareholders.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a 5-year average gross margin of 55.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for CHOICE HOTELS INTERNATIONAL INC /DE (CHH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a book value per share of $3.89, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects U.S. net rooms growth to return to positive territory in 2026, with conversion activity accounting for over 80% of openings and approximately 60% of franchise agreements executed in the first quarter expected to open within the year, providing strong near-term visibility into growth. The company anticipates continued demand support from tax refunds, event-driven travel including the FIFA World Cup and U.S. 250th anniversary, and a structural shift in guest preferences toward extended-stay accommodations that feel more like home. International operations are positioned for sustained momentum, with management targeting over $50 million in international adjusted EBITDA by 2027, doubling from 2024 baseline levels, supported by expansion in direct franchising markets including France and China. Capital deployment is expected to decline materially as strategic hotel development investments wind down, with net hotel development outlays projected at $20–$45 million in 2026 (approximately 70% lower than 2025), enabling increased capital recycling and shareholder returns through share repurchases expected to range from $175–$225 million in 2026.
Based on recent SEC filings and earnings calls, CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has provided the following forward guidance: Adjusted EBITDA: $632 million–$647 million (FY2026); Adjusted diluted earnings per share: $6.92–$7.14 (FY2026); Net global rooms growth: approximately 1% year-over-year (FY2026); Global RevPAR: -2% to +1% year-over-year in constant currency (FY2026); Key money spending: $105 million–$110 million (FY2026), plus 2 additional metrics.
Key money spending (FY2026): “We would expect for 2026 for that number to be somewhere between $105 million and $110 million for, for 2026 in terms of key money.”
Share repurchases (FY2026): “We expect to repurchase between $175 million-$225 million of shares in 2026”
International adjusted EBITDA (by 2027): “we expect to generate more than $50 million in international adjusted EBITDA by 2027, doubling from our 2024 baseline”
No recent press releases.