Choice Hotels International, Inc. CHH

Consumer DiscretionaryHotels & Entertainment ServicesUnited States of America

Last close 118.61 USD on Nov 2, 2026, +25.9% year to date

Quant rating

Quant rating B Rank 99 of 344 in Consumer Discretionary

Growth C 150 of 344
Valuation D 260 of 344
Quality B 83 of 344
Revisions B 85 of 344
Momentum B 114 of 344

Wall Street consensus Hold (3.06)Average target 114.50 USD −3.5%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 5.3B
Enterprise value: 7.3B
52-week range: 84.17 – 123.82
3-year range: 84.17 – 155.97
Dividend yield: 1.03%
Beta (5 years): 0.67
Shares outstanding: 45.0M
Next earnings: Nov 2, 2026

About the company

Choice Hotels International, Inc. is a lodging franchisor in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 49 countries and territories. The Company's segments include Hotel Franchising & Management and Corporate & Other. The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations, which consists of its 22 brands and brand extensions and the hotel management operations of 13 hotels (including four owned hotels). Its brand names include Clarion, Clarion Pointe, Comfort, Country Inn & Suites by Radisson, Sleep Inn, Quality, Park Inn by Radisson, Everhome Suites, WoodSpring Suites, MainStay Suites, Suburban Studios, Radisson Blu, Park Plaza, Cambria Hotels, Ascend Collection, Radisson RED, Radisson Individuals, Radisson, Radisson Collection, Radisson Inn & Suites, Econo Lodge, and Rodeway Inn. Ascend Collection is a global collection brand offering resort, boutique, and historic properties.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	1,597	1,585	1,544	1,379	1,069	–
Revenue growth	0.8%	2.6%	12.0%	29.0%	38.1%	15.6%
EPS (basic, normalized)	6.94	6.88	6.11	5.27	4.29	–
EPS growth	0.9%	12.6%	15.9%	22.8%	–	–
Gross margin	58.5%	52.2%	49.3%	52.7%	58.4%	54.2%
Net margin	23.1%	18.8%	16.7%	23.9%	26.9%	21.9%
ROE	544.2%	–	271.7%	158.0%	222.2%	299.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	171
Current ratio	1.26x
Long-term debt (mil)	2,177
Net debt (mil)	2,007
Total equity (mil)	132
Net debt / equity	15.23x
Net debt / EBITDA	3.21x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	1,597	+0.8%	4.6x	626	+6.3%	11.7x	6.94	+0.9%	17.1x
2026	1,633	+2.3%	4.5x	642	+2.7%	11.4x	7.03	+1.3%	16.9x
2027	1,691	+3.5%	4.3x	663	+3.2%	11.0x	7.51	+6.9%	15.8x
2028	1,749	+3.4%	4.2x	681	+2.7%	10.7x	8.13	+8.2%	14.6x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	1,633	0.0%	+0.1%	+0.4%	7.03	+0.2%	−1.3%	−1.0%
2027	1,691	+0.2%	+0.6%	+0.7%	7.51	−0.5%	−0.9%	−3.6%
2028	1,749	+0.7%	+0.9%	+0.8%	8.13	−0.3%	−0.5%	+0.2%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	332	435	428	189	333	426	447	390	341	441
Sales mean (mil)	343	438	434	374	332	432	426	374	332	430
Surprise	−3.3%	−0.7%	−1.4%	−49.4%	+0.4%	−1.3%	+4.9%	+4.2%	+2.5%	+2.4%
EPS reported	1.28	1.84	2.23	1.55	1.34	1.92	2.10	1.60	1.07	2.02
EPS mean	1.14	1.86	1.92	1.49	1.37	1.90	2.18	1.54	1.32	1.96
Surprise	+12.3%	−1.2%	+16.4%	+4.4%	−2.0%	+1.0%	−3.8%	+4.0%	−18.9%	+3.1%

Peer comparison Hotels & Entertainment Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
CHH Choice Hotels International, Inc.	5.3B	3.21x	23.1%	37.69x	16.9x	15.8x	11.4x	11.0x
MCD McDonald's Corp	188.0B	2.63x	31.9%	−183.74x	20.6x	19.3x	14.6x	13.9x
BKNG Booking Holdings Inc.	115.5B	0.30x	20.1%	−10.81x	14.7x	12.4x	10.9x	9.7x
MAR Marriott International, Inc.	108.6B	3.06x	9.9%	−24.09x	35.1x	31.4x	20.7x	19.3x
HLT Hilton Worldwide Holdings Inc.	81.1B	3.39x	12.1%	−12.34x	40.0x	34.9x	23.1x	21.0x
RCL Royal Caribbean Cruises Ltd.	85.9B	3.09x	23.8%	7.33x	17.9x	15.8x	13.9x	12.6x
Mean		2.61x	20.1%	−30.99x	24.2x	21.6x	15.8x	14.6x
Median		3.07x	21.6%	−11.57x	19.3x	17.6x	14.3x	13.3x

Technical analysis

1M+15.7%
3M+6.7%
1Y+29.0%
3Y+8.7%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Choice Hotels International, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	1,597	1,585	1,544	1,379	1,069	774
Cost of revenue	663	758	782	653	445	447
Gross profit	933	827	762	726	624	327
Selling, general & administrative expenses	421	303	247	217	170	165
Research & development	–	–	–	–	–	–
Depreciation/amortization	59.7	43.3	39.7	30.4	24.8	25.8
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	4.7	17.6	96.0	0.7	0.3	31.3
Other operating expenses	0	0	0	0	0	0
Operating income	448	463	379	479	429	105
Net interest income (expense)	−99.2	−66.2	−53.1	−34.8	−57.6	−56.6
Gain (loss) on sale of assets	0.7	–	–	–	–	–
Other non-operating income (expense)	107	−1.6	10.6	−7.0	5.1	4.1
Net income before taxes	457	396	337	437	376	53.0
Provision for taxes	86.9	96.0	78.4	105	87.5	−22.4
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	370	300	259	332	289	75.4
Extraordinary items	–	–	–	–	–	–
Net income	370	300	259	332	289	75.4
EBIT, normalized	453	481	475	479	429	137
EBITDA, normalized	566	582	575	529	471	177
Basic EPS, normalized	6.94	6.88	6.11	5.27	4.29	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Choice Hotels International, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	45.0	40.2	26.8	41.6	512	235
Receivables	316	258	231	274	220	178
Total inventory	–	–	–	–	–	–
Prepaid expenses	–	36.6	34.7	29.6	15.6	16.2
Other current assets	45.4	4.7	4.2	2.9	14.3	3.8
Total current assets	406	339	297	348	762	433
Property, plant & equipment	727	688	579	496	412	353
Goodwill	306	220	220	219	159	159
Intangibles	1,082	884	811	742	312	304
Long-term investments	185	165	227	62.3	61.9	87.0
Note receivable	12.5	32.7	78.9	55.6	66.5	95.8
Other long-term assets	199	202	183	179	159	156
Total assets	2,918	2,531	2,395	2,102	1,932	1,587
Liabilities
Accounts payable	156	135	131	119	81.2	83.3
Payable/accrued	–	–	–	–	–	–
Accrued expenses	80.6	94.5	71.5	97.0	82.6	65.6
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	–	0	499	3.0	216	0
Other current liabilities	230	233	241	217	190	107
Total current liabilities	467	463	943	436	570	256
Long-term debt	1,906	1,769	1,069	1,201	844	1,059
Minority interest	–	–	–	–	–	–
Other liabilities	364	345	348	311	252	278
Total liabilities	2,737	2,576	2,359	1,948	1,666	1,593
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	1.0	1.0	1.0	1.0	1.0	1.0
Additional paid-in capital	404	370	331	298	259	234
Retained earnings (accumulated deficit)	2,318	2,001	1,756	1,556	1,275	1,024
Treasury stock	−2,536	−2,412	−2,047	−1,695	−1,265	−1,260
Other equity	−5.3	−6.2	−5.7	−5.2	−4.6	−4.6
Total equity	181	−45.3	35.6	155	266	−5.8
Total liabilities & shareholders' equity	2,918	2,531	2,395	2,102	1,932	1,587

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Choice Hotels International, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	370	300	259	332	289	75.4
Depreciation, depletion & amortization	79.3	70.9	75.7	30.4	24.8	25.8
Deferred taxes	19.8	−19.0	−1.3	−19.6	−1.0	−44.8
Non-cash items	−101	−49.5	−42.5	29.2	47.7	47.2
Changes in working capital	−98.0	17.4	6.1	−5.1	23.2	6.5
Cash from operations	270	319	297	367	384	110
Investing activities
Capital expenditures	−146	−146	−118	−94.4	−77.9	−35.0
Other investing cash flows	−72.5	61.3	−147	−348	−1.1	10.5
Cash from investing	−218	−84.6	−266	−442	−78.9	−24.5
Financing activities
Financing cash flow items	0	−8.1	−1.6	1.9	−0.4	−4.6
Cash dividends paid	−53.5	−55.5	−56.5	−52.5	−25.0	−25.3
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	3.4	−158	12.1	−344	−2.3	145
Cash from financing	−50.1	−222	−45.9	−394	−27.7	115
Foreign exchange effects	2.7	0.3	0.2	−0.5	−0.2	0
Net change in cash	4.8	13.4	−14.8	−470	277	201
Free cash flow	125	174	178	273	306	75.1

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.