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 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 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.
| Hotels, Restaurants & Leisure Industry | Consumer Discretionary Sector | Dominic Dragisich CEO | XFRA Exchange | 169905106 CUSIP |
| US Country | 1,754 Employees | 1 Jul 2026 Last Dividend | 24 Oct 2005 Last Split | 16 Sep 1997 IPO Date |
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.
Choice Hotels offers a diverse spectrum of lodging options through its franchising model, catering to a variety of customer needs and preferences: