CHH Stock Analysis: Choice Hotels International | NYSE
Lodging | NYSE, USA | Market Cap: 4.757m USD | 12M Return: -11.1% | US1699051066 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 55.7M
EPS Trend: 77.5%
Qual. Beats: 0
Rev. Trend: 95.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Choice Hotels International (NYSE: CHH) is one of the largest hotel franchisors in the world, operating an asset-light business model that licenses its brand portfolio to property owners rather than owning the underlying real estate. This franchise-driven approach is a defining feature of the lodging sector, generating revenue primarily through royalty fees, marketing contributions, and reservation system fees paid by franchisees.
The company operates two reportable segments-Hotel Franchising & Management and Corporate & Other-and franchises lodging properties across a wide range of brand tiers, from economy brands such as Econo Lodge, Rodeway Inn, and MainStay Suites, to midscale names like Comfort Inn, Quality Inn, and Sleep Inn, as well as upscale and premium brands including Cambria Hotels and the Radisson family of brands (Radisson Blu, Radisson RED, Park Plaza, Country Inn & Suites by Radisson, and Radisson Collection). The portfolio also includes extended-stay concepts like WoodSpring Suites and Everhome Suites, and soft-branded options such as Ascend Collection and Radisson Individuals.
Choice Hotels was founded in 1939 and is headquartered in North Bethesda, Maryland. It has been listed on the NYSE since 1997 and is classified within the Consumer Discretionary sector under the Hotels, Resorts & Cruise Lines sub-industry, a segment generally characterized by cyclical demand tied to travel, business activity, and discretionary consumer spending.
- Radisson Americas integration expands royalty base and system size
- RevPAR softness pressures franchise fees and unit development pipeline
- Extended stay brands WoodSpring and Everhome accelerate net unit growth
| Net Income: 328.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -1.95 > 1.0 |
| NWC/Revenue: -2.13% < 20% (prev -3.25%; Δ 1.12% < -1%) |
| CFO/TA 0.07 > 3% & CFO 221.7m > Net Income 328.1m |
| Net Debt (2.17b) to EBITDA (604.4m): 3.59 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (45.4m) vs 12m ago -2.57% < -2% |
| Gross Margin: 44.99% > 18% (prev 47.40%; Δ -2.41% > 0.5%) |
| Asset Turnover: 57.27% > 50% (prev 59.18%; Δ -1.91% > 0%) |
| Interest Coverage Ratio: 5.13 > 6 (EBIT TTM 489.2m / Interest Expense TTM 95.4m) |
| A: -0.01 (Total Current Assets 431.9m - Total Current Liabilities 466.5m) / Total Assets 2.99b |
| B: 0.80 (Retained Earnings 2.38b / Total Assets 2.99b) |
| C: 0.17 (EBIT TTM 489.2m / Avg Total Assets 2.83b) |
| D: 0.05 (Book Value of Equity 142.2m / Total Liabilities 2.85b) |
| Altman-Z'' = 3.73 = AA |
| DSRI: 1.11 (Receivables 344.3m/301.3m, Revenue 1.62b/1.58b) |
| GMI: 1.05 (GM 47.40% / 44.99%) |
| AQI: 1.07 (AQ_t 0.61 / AQ_t-1 0.57) |
| SGI: 1.03 (Revenue 1.62b / 1.58b) |
| TATA: 0.04 (NI 328.1m - CFO 221.7m) / TA 2.99b) |
| Beneish M = -2.82 (Cap -4..+1) = A |
As of August 19, 2026, the stock is trading at USD 107.18 with a total of 344,374 shares traded. Over the past week, the price has changed by +4.43%, over one month by -2.53%, over three months by +0.76% and over the past year by -11.14%.
Current recommended Stop Loss: 102.00 (which is 4.8% or 1.4 ATR below the current price).
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
| Analysts Target Price | 114.9 | 7.2% |
P/E Trailing = 14.9386
P/E Forward = 14.3062
P/S = 4.7283
P/B = 32.5271
P/EG = 2.2715
Revenue TTM = 1.62b USD
EBIT TTM = 489.2m USD
EBITDA TTM = 604.4m USD
Long Term Debt = 2.00b USD (from longTermDebt, last quarter)
Short Term Debt = 8.36m USD (from shortTermDebt, last fiscal year)
Debt = 2.21b USD (from shortLongTermDebtTotal, last quarter) + Leases 104.3m
Net Debt = 2.17b USD (calculated: Debt 2.21b - CCE 42.8m)
Enterprise Value = 6.93b USD (4.76b + Debt 2.21b - CCE 42.8m)
Interest Coverage Ratio = 5.13 (Ebit TTM 489.2m / Interest Expense TTM 95.4m)
EV/FCF = 31.23x (Enterprise Value 6.93b / FCF TTM 221.7m)
FCF Yield = 3.20% (FCF TTM 221.7m / Enterprise Value 6.93b)
FCF Margin = 13.70% (FCF TTM 221.7m / Revenue TTM 1.62b)
Net Margin = 20.27% (Net Income TTM 328.1m / Revenue TTM 1.62b)
Gross Margin = 44.99% ((Revenue TTM 1.62b - Cost of Revenue TTM 890.6m) / Revenue TTM)
Gross Margin QoQ = 49.38% (prev 35.67%)
Tobins Q-Ratio = 2.32 (Enterprise Value 6.93b / Total Assets 2.99b)
Interest Expense / Debt = 4.31% (Interest Expense 95.4m / Debt 2.21b)
Taxrate = 18.88% (76.4m / 404.7m)
NOPAT = 396.9m (EBIT 489.2m * (1 - 18.88%))
Current Ratio = 0.93 (Total Current Assets 431.9m / Total Current Liabilities 466.5m)
Debt / Equity = 15.55 (Debt 2.21b / totalStockholderEquity, last quarter 142.2m)
Debt / EBITDA = 3.59 (Net Debt 2.17b / EBITDA 604.4m)
Debt / FCF = 9.78 (Net Debt 2.17b / FCF TTM 221.7m)
Total Stockholder Equity = 152.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 11.61% (Net Income 328.1m / Total Assets 2.99b)
RoE = 214.9% (Net Income TTM 328.1m / Total Stockholder Equity 152.7m)
RoCE = 22.70% (EBIT 489.2m / Capital Employed (Equity 152.7m + L.T.Debt 2.00b))
RoIC = 15.95% (NOPAT 396.9m / Invested Capital 2.49b)
WACC = 6.10% (E(4.76b)/V(6.97b) * Re(7.31%) + D(2.21b)/V(6.97b) * Rd(4.31%) * (1-Tc(0.19)))
Discount Rate = 7.31% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.11 | Cagr: -3.90%
[DCF] Terminal Value 73.77% ; FCFF base≈232.9m ; Y1≈211.9m ; Y5≈184.3m
[DCF] Fair Price = 16.78 (EV 2.93b - Net Debt 2.17b = Equity 763.4m / Shares 45.5m; r=8.35% [WACC [floored]]; 5y FCF grow -11.15% → 2.50% )
EPS Correlation: 77.51 | EPS CAGR: 4.96% | SUE: 0.31 | # QB: 0
Revenue Correlation: 95.34 | Revenue CAGR: 1.79% | SUE: 0.68 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.29 | Chg30d=-3.53% | Revisions=-22% | Analysts=12
EPS current Year (2026-12-31): EPS=7.03 | Chg30d=-0.97% | Revisions=-31% | GrowthEPS=+1.3% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=7.49 | Chg30d=-2.27% | Revisions=-7% | GrowthEPS=+6.6% | GrowthRev=+3.0%
[Analyst] Revisions Ratio: -23% (up=10, down=17)