Choice Hotels stock analysis
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Choice Hotels (CHH) Stock Price & Analysis
CHH Stock Chart & Stats
- Day’s Range
- $118.09 - $121.56
- 52-Week Range
- $84.04 - $123.82
- Previous Close
- $120.01
- Volume
- N/A
- Average Volume (3M)
- 573.12K
- Market Cap
- $5.34B
- Enterprise Value
- $6.73B
- Total Cash (Recent Filing)
- $170.59M
- Total Debt (Recent Filing)
- $2.28B
- Price to Earnings (P/E)
- 26.2
- Beta
- 0.50
- Next Earnings
- Feb 25, 2027 (Est.)
- EPS Estimate
- 1.63
- Last Dividend Ex-Date
- Oct 01, 2026
- Dividend Yield
- 0.97%
Bulls Say, Bears Say
Bulls Say
Asset-light Franchising Model
The asset-light model reduces direct exposure to hotel real-estate ownership while allowing Choice to monetize brands, distribution, technology, and loyalty services. A predominantly fee-based structure can support scalable revenue and lower capital intensity as the franchised network expands.
Franchise Network Growth
Improving agreements, development activity, and conversion demand strengthen the future royalty base. Conversion-led openings can add rooms relatively quickly, while better retention and continued extended-stay expansion support network scale and recurring fee growth over coming quarters.
Improving Operating Outlook
Raised EBITDA and RevPAR expectations indicate that management sees enough demand and operating progress to improve near-term earnings power. RevPAR growth, royalty-rate expansion, and expected rooms growth provide several recurring drivers for franchise revenue over the next several quarters.
Bears Say
High Financial Leverage
The aggressive capital structure leaves Choice more exposed if hotel demand, franchisee health, or cash flow weakens. High leverage can increase interest burden and reduce flexibility for investment, acquisitions, shareholder returns, or managing an extended operating downturn.
Margin Compression
Sharp profitability deterioration suggests that strong revenue growth is not fully reaching earnings. If elevated expenses, investments, or business mix pressures persist, weaker margins could constrain internal capital generation and make future earnings growth less durable.
Weaker Cash Conversion
Lower operating cash flow and incomplete EBITDA conversion indicate that accounting earnings are not translating consistently into usable liquidity. Persistent working-capital or reimbursable-cost pressure could limit debt reduction and make funding growth or shareholder returns more dependent on financing.
Choice Hotels News
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Choice Hotels Stock Smart Score
Company Description
Choice Hotels
Choice Hotels International, Inc., also known as Choice Hotels, operates as a prominent global hotel franchisor, conducting its extensive business through its various subsidiary entities. The company's activities are primarily divided into two main segments: Hotel Franchising and Corporate & Other. It authorizes the use of its brand names for a diverse portfolio of lodging establishments, including well-known brands such as Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Everhome Suites, Cambria Hotels, and the Ascend Hotel Collection. Beyond its core franchising operations, Choice Hotels also develops and offers cloud-based property management software solutions specifically designed for independent hoteliers not affiliated with its franchise system. As of March 31, 2022, its widespread network consisted of approximately 7,000 hotels, encompassing roughly 600,000 rooms, distributed across 35 countries and territories worldwide. Established in 1939, Choice Hotels International, Inc. maintains its corporate headquarters in Rockville, Maryland.
- Sector
- Consumercyclical
- Industry
- Travel Lodging
- CEO
- Dominic Dragisich
- Employees
- 1,754
- Website
- www.choicehotels.com
- Address
- 915 Meeting Street, North Bethesda, MD, 20852, US
Choice Hotels (CHH) Earnings & Revenues
CHH Company Deck
CHH Earnings Call
Earnings Call SentimentPositive
The call was broadly positive. Management reported improving U.S. RevPAR and rooms-growth trends, stronger commercial performance, higher loyalty and group revenue, progress toward an asset-light model, and raised full-year RevPAR and adjusted EBITDA guidance. These positives outweighed several challenges, including higher SG&A, lower operating cash flow, the marketing and reservation-system deficit, a one-time termination charge, and narrowed EPS guidance.
View all CHH earnings summariesCHH Net sales Breakdown
- 93.54% Hotel Franchising & Management
CHH Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 12 | 5 | 5 |
| Technical Analysis | 3 | 5 | 2 |
| Moving Averages | 9 | 0 | 3 |
