Choice Hotels International Inc. (CHH)
Summary
Choice Hotels: Shares Still Cheap As U.S. Operations Turn A Corner
Choice Hotels International (CHH) has struggled over the past year, with the market seemingly focused on the transient headwinds affecting its U.S. business. CHH's business model is attractive. Its largely franchised system drives recurring royalty revenue, with key metrics being the royalty rate, system room count, and RevPAR. CHH's recent results show signs of improvement, with U.S. RevPAR and system growth both at their strongest levels in several quarters.
Choice Hotels: Solid Performance And Improved Prospects
Choice Hotels International remains a Buy based on my assessment of its quarterly results and updated full-year outlook. CHH's Q2 2026 EBITDA rose 6.3% YoY to $175.4M, with EPS up 5.2%, reflecting superior domestic royalty pricing, international portfolio expansion, and non-room platform monetization. Management raised FY2026 EBITDA guidance midpoint to $642.5M, and also increased its U.S. royalty rate and global net unit growth targets for the current year.
Choice Hotels International Q2 Earnings Call Highlights
Choice Hotels International NYSE: CHH reported second-quarter results marked by higher adjusted EBITDA, improving U.S. room-growth trends and an increase in full-year guidance for several operating measures.
Choice Hotels International Inc. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 14,122 | $1.56M | $1.4M | -$153,487.2 | -9.86% |
| JM John Malone Amundi | 4,528 | $462,847.04 | $465,252 | $2,404.96 | 0.52% |
 Point72 Asset Management LP Point72 Asset Management LP | 453,029 | $49.96M | $47.31M | -$2.64M | -5.29% |
| YA Yinka Akinsola Blue Trust Inc. | 60 | $7,013.7 | $5,965.2 | -$1,048.5 | -14.95% |
 Michelle Dubey Yousif Capital Management LLC | 6,116 | $905,725.72 | $607,563.44 | -$298,162.28 | -32.92% |
Choice Hotels International Inc. Analysts
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
 Stephen Grambling Morgan Stanley | -97.6 | $10,460.98 | $9,675.29 | $785.69 | 7.51% |
 Anthony Powell Barclays | -1,558.94 | $168,568.63 | $154,156.19 | $14,412.44 | 8.55% |
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Choice Hotels International Inc. Profile
| Hotels, Restaurants & Leisure Industry | Consumer Discretionary Sector | Dominic Dragisich CEO | NYSE Exchange | 169905106 CUSIP |
| US Country | 1,754 Employees | 1 Jul 2026 Last Dividend | 24 Oct 2005 Last Split | 16 Sep 1997 IPO Date |
Overview
Choice Hotels International, Inc., with its broad network of subsidiaries, stands as a prominent hotel franchising entity, both in the U.S. and on an international platform. The company's operations are divided into two primary segments: Hotel Franchising & Management and Corporate & Other. Since its establishment in 1939, Choice Hotels has laid down its roots in North Bethesda, Maryland, from where it oversees a portfolio of lodging properties franchised under a variety of respected brand names.
Products and Services
Choice Hotels offers a diverse spectrum of lodging options through its franchising model, catering to a variety of customer needs and preferences:
- Comfort Inn & Comfort Suites: These brands cater to travelers seeking comfortable and affordable accommodations with all the necessary amenities for a pleasant stay.
- Quality: Known for offering value for money, Quality Hotels focus on providing reliable and friendly services at competitive prices.
- Clarion & Clarion Pointe: Aimed at the business and social events market, Clarion brands offer a mix of full-service and focused-facility options for meetings and gatherings.
- Sleep Inn: Designed with a modern flair, Sleep Inn offers a simple, pleasant stay experience at a sensible price.
- Ascend Hotel Collection: This network of boutique and historic hotels and resorts offers unique, local experiences with a touch of luxury.
- Econo Lodge & Rodeway Inn: These brands are focused on budget-conscious travelers, providing essential lodging amenities at a very economical price.
- MainStay Suites & Suburban Studios: Catering to extended stay travelers, these suites offer the conveniences of home for those needing accommodations for longer periods.
- WoodSpring Suites & Everhome Suites: These brands extend the Choice Hotels offering in the extended stay market, focusing on essential comforts and value.
- Cambria Hotels: Targeted at the upscale segment, Cambria Hotels provide modern, sophisticated accommodations with local flair.
- Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection: A series of brands under the Radisson umbrella that cater to a wide array of preferences, ranging from luxury to budget-friendly options, each with distinct characteristics tailored to different traveler needs.
