(CHH) Choice Hotels International - Overview

Sector: Consumer Cyclical | Industry: Lodging | Exchange: NYSE (USA) | Market Cap: 5.173m USD | Total Return: -12.1% in 12m

Hotel Franchising, Lodging, Hospitality Management
Total Rating 40
Safety 69
Buy Signal -0.45
Lodging
Industry Rotation: +0.7
Market Cap: 5.17B
Avg Turnover: 64.8M
Risk 3d forecast
Volatility43.2%
VaR 5th Pctl7.47%
VaR vs Median4.92%
Reward TTM
Sharpe Ratio-0.32
Rel. Str. IBD41.1
Rel. Str. Peer Group46.3
Character TTM
Beta0.502
Beta Downside0.831
Hurst Exponent0.561
Drawdowns 3y
Max DD45.50%
CAGR/Max DD0.02
CAGR/Mean DD0.07
EPS (Earnings per Share) EPS (Earnings per Share) of CHH over the last years for every Quarter: "2021-03": 0.57, "2021-06": 1.22, "2021-09": 1.51, "2021-12": 0.99, "2022-03": 1.03, "2022-06": 1.43, "2022-09": 1.56, "2022-12": 1.26, "2023-03": 1.12, "2023-06": 1.75, "2023-09": 1.82, "2023-12": 1.44, "2024-03": 1.28, "2024-06": 1.84, "2024-09": 2.23, "2024-12": 1.55, "2025-03": 1.34, "2025-06": 1.92, "2025-09": 2.1, "2025-12": 1.6, "2026-03": 0.44,
EPS CAGR: 5.43%
EPS Trend: 64.5%
Last SUE: -4.00
Qual. Beats: -1
Revenue Revenue of CHH over the last years for every Quarter: 2021-03: 182.947, 2021-06: 278.344, 2021-09: 323.369, 2021-12: 284.638, 2022-03: 257.727, 2022-06: 367.974, 2022-09: 414.266, 2022-12: 361.982, 2023-03: 332.792, 2023-06: 427.42, 2023-09: 425.557, 2023-12: 358.396, 2024-03: 331.949, 2024-06: 435.156, 2024-09: 427.964, 2024-12: 389.77, 2025-03: 332.86, 2025-06: 426.443, 2025-09: 447.34, 2025-12: 390.15, 2026-03: 340.575,
Rev. CAGR: 1.67%
Rev. Trend: 94.8%
Last SUE: 0.44
Qual. Beats: 0

Warnings

Choppy

Tailwinds

Confidence

Description: CHH Choice Hotels International

Choice Hotels International, Inc. (NYSE: CHH) functions primarily as a global hotel franchisor, managing a diverse portfolio of brands ranging from economy to upscale segments. The company operates through two main segments: Hotel Franchising & Management and Corporate & Other, supporting a network that includes well-known brands such as Comfort, Quality, and the Radisson family of hotels.

The franchisor business model allows Choice Hotels to generate recurring revenue through royalty fees and initial franchise fees while maintaining a capital-light structure, as the company generally does not own the underlying real estate. Within the broader hospitality sector, this model provides higher operating margins and lower capital expenditure requirements compared to traditional hotel owners or operators.

Investors should evaluate ValueRay for deeper insights into the companys historical valuation trends.

Founded in 1939 and headquartered in North Bethesda, Maryland, the company has expanded its footprint through organic brand development and strategic acquisitions, such as the 2022 purchase of Radisson Hotels Americas. This expansion targets a wide demographic of travelers, balancing extended-stay options with traditional transient lodging.

Headlines to Watch Out For
  • Asset-light franchising model generates high-margin royalty fees and recurring revenue streams
  • Radisson Americas integration drives scale and upscale segment revenue growth
  • Expansion of extended-stay brands targets high-demand workforce and relocation markets
  • Domestic leisure travel demand sensitivity impacts RevPAR and systemwide occupancy rates
  • Higher interest rates constrain franchisee property development and conversion pipelines
Piotroski VR-10 (Strict) 5.0
Net Income: 345.7m TTM > 0 and > 6% of Revenue
FCF/TA: 0.09 > 0.02 and ΔFCF/TA 1.98 > 1.0
NWC/Revenue: -1.45% < 20% (prev -4.36%; Δ 2.92% < -1%)
CFO/TA 0.08 > 3% & CFO 226.8m > Net Income 345.7m
Net Debt (2.17b) to EBITDA (621.3m): 3.50 < 3
Current Ratio: 0.95 > 1.5 & < 3
Outstanding Shares: last quarter (46.1m) vs 12m ago -2.08% < -2%
Gross Margin: 44.52% > 18% (prev 0.49%; Δ 4.40k% > 0.5%)
Asset Turnover: 58.11% > 50% (prev 61.52%; Δ -3.41% > 0%)
Interest Coverage Ratio: 5.55 > 6 (EBITDA TTM 621.3m / Interest Expense TTM 93.9m)
Altman Z'' 4.66
A: -0.01 (Total Current Assets 410.8m - Total Current Liabilities 434.0m) / Total Assets 2.94b
B: 0.79 (Retained Earnings 2.33b / Total Assets 2.94b)
C: 0.19 (EBIT TTM 521.3m / Avg Total Assets 2.76b)
D: 0.83 (Book Value of Equity 2.32b / Total Liabilities 2.81b)
Altman-Z'' = 4.66 = AA
Beneish M -2.95
DSRI: 0.88 (Receivables 243.5m/274.0m, Revenue 1.60b/1.59b)
GMI: 1.10 (GM 44.52% / 49.12%)
AQI: 1.05 (AQ_t 0.61 / AQ_t-1 0.58)
SGI: 1.01 (Revenue 1.60b / 1.59b)
TATA: 0.04 (NI 345.7m - CFO 226.8m) / TA 2.94b)
Beneish M = -2.95 (Cap -4..+1) = A
What is the price of CHH shares?

As of May 29, 2026, the stock is trading at USD 113.36 with a total of 596,125 shares traded.
Over the past week, the price has changed by +0.98%, over one month by -5.49%, over three months by +7.90% and over the past year by -12.13%.

Is CHH a buy, sell or hold?

Choice Hotels International has received a consensus analysts rating of 3.27. Therefore, it is recommended to hold CHH.

  • StrongBuy: 3
  • Buy: 1
  • Hold: 9
  • Sell: 1
  • StrongSell: 1

What are the forecasts/targets for the CHH price?
Analysts Target Price 112.5 -0.7%
Choice Hotels International (CHH) - Fundamental Data Overview as of 28 May 2026
Market Cap USD = 5.17b (5.17b USD * 1.0 USD.USD)
P/E Trailing = 15.3662
P/E Forward = 15.748
P/S = 5.2371
P/B = 37.4486
P/EG = 2.5008
Revenue TTM = 1.60b USD
EBIT TTM = 521.3m USD
EBITDA TTM = 621.3m USD
Long Term Debt = 2.00b USD (from longTermDebt, last quarter)
Short Term Debt = 8.36m USD (from shortTermDebt, last fiscal year)
Debt = 2.22b USD (from shortLongTermDebtTotal, last quarter) + Leases 106.4m
Net Debt = 2.17b USD (calculated: Debt 2.22b - CCE 43.9m)
Enterprise Value = 7.35b USD (5.17b + Debt 2.22b - CCE 43.9m)
Interest Coverage Ratio = 5.55 (Ebit TTM 521.3m / Interest Expense TTM 93.9m)
EV/FCF = 27.96x (Enterprise Value 7.35b / FCF TTM 262.7m)
FCF Yield = 3.58% (FCF TTM 262.7m / Enterprise Value 7.35b)
FCF Margin = 16.38% (FCF TTM 262.7m / Revenue TTM 1.60b)
Net Margin = 21.55% (Net Income TTM 345.7m / Revenue TTM 1.60b)
Gross Margin = 44.52% ((Revenue TTM 1.60b - Cost of Revenue TTM 890.2m) / Revenue TTM)
Gross Margin QoQ = 35.67% (prev 46.03%)
Tobins Q-Ratio = 2.49 (Enterprise Value 7.35b / Total Assets 2.94b)
Interest Expense / Debt = 4.24% (Interest Expense 93.9m / Debt 2.22b)
Taxrate = 33.01% (10.0m / 30.3m)
NOPAT = 349.2m (EBIT 521.3m * (1 - 33.01%))
Current Ratio = 0.95 (Total Current Assets 410.8m / Total Current Liabilities 434.0m)
Debt / Equity = 16.12 (Debt 2.22b / totalStockholderEquity, last quarter 137.4m)
Debt / EBITDA = 3.50 (Net Debt 2.17b / EBITDA 621.3m)
Debt / FCF = 8.27 (Net Debt 2.17b / FCF TTM 262.7m)
Total Stockholder Equity = 110.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 12.52% (Net Income 345.7m / Total Assets 2.94b)
RoE = 312.7% (Net Income TTM 345.7m / Total Stockholder Equity 110.5m)
RoCE = 24.66% (EBIT 521.3m / Capital Employed (Equity 110.5m + L.T.Debt 2.00b))
RoIC = 14.11% (NOPAT 349.2m / Invested Capital 2.48b)
WACC = 6.28% (E(5.17b)/V(7.39b) * Re(7.75%) + D(2.22b)/V(7.39b) * Rd(4.24%) * (1-Tc(0.33)))
Discount Rate = 7.75% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -3.09%
[DCF] Terminal Value 77.97% ; FCFF base≈229.3m ; Y1≈262.8m ; Y5≈386.8m
[DCF] Fair Price = 80.20 (EV 5.82b - Net Debt 2.17b = Equity 3.65b / Shares 45.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 64.46 | EPS CAGR: 5.43% | SUE: -4.0 | # QB: -1
Revenue Correlation: 94.82 | Revenue CAGR: 1.67% | SUE: 0.44 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.99 | Chg30d=+4.97% | Revisions=+57% | Analysts=12
EPS next Quarter (2026-09-30): EPS=2.38 | Chg30d=+4.42% | Revisions=+57% | Analysts=12
EPS current Year (2026-12-31): EPS=7.20 | Chg30d=+0.55% | Revisions=-29% | GrowthEPS=+3.7% | GrowthRev=+1.5%
EPS next Year (2027-12-31): EPS=7.79 | Chg30d=+0.70% | Revisions=+18% | GrowthEPS=+8.2% | GrowthRev=+3.0%
[Analyst] Revisions Ratio: +57%