Choice Hotels International, Inc. (CHH) AI Stock Analysis

Choice Hotels International, Inc., founded in 1939 and headquartered in Rockville, Maryland, operates as a global hotel franchisor across two segments: Hotel Franchising and Corporate & Other. Its lodging portfolio spans 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 Ascend Hotel Collection. In addition to hotel franchising, the company develops and markets cloud-based property management software for non-franchised, independent hoteliers to help streamline operations and improve guest experiences.

Revenue increased from $1.07B in FY2021 to $1.60B in FY2025, representing a 5-year revenue CAGR of 15.6% from FY2020 to FY2025, though annual revenue growth slowed to 0.8% in FY2025. Net income reached $369.9M in FY2025 with an EPS of $6.96, while operating margin was 28.4%. Over the trailing twelve months ended June 30, 2026, revenue stood at $1.01B with an operating margin of 37.7% and EPS of $7.08. In the quarter ended June 30, 2026, revenue increased 7.1% year-over-year, while quarterly earnings declined 19.4%.

As of June 30, 2026, Choice Hotels held $42.8M in cash and short-term investments against $2.11B in total debt, resulting in net debt of $2.06B and a debt-to-equity ratio of 14.82. Shareholders' equity was $142.2M, with a current ratio of 0.93. During FY2025, the company generated $270.4M in operating cash flow and $124.7M in free cash flow. Cash deployment included $145.8M in capital expenditures, $138.3M in share buybacks, and $53.5M in dividends paid, contributing to a 19.2% share count reduction over 5 years.

At $108.41 per share, Choice Hotels trades at a trailing P/E of 15.3x and a forward P/E of 12.7x, both below the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. The stock's price-to-sales ratio of 4.8x is above the peer median of 0.7x, while its EV/EBITDA of 11.3x is near the peer median of 11.1x. Over the past year, the stock returned 11.3% compared to 16.8% for the S&P 500, and its 5-year return was -17.3% versus 83.0% for the index.

Choice Hotels pays a quarterly dividend with an annualized forward payout of $1.15 per share, yielding 1.06%. The payout ratio stands at 16.9%, backed by 23 consecutive years of dividend payments. Over the past 5 years, the annualized dividend growth rate was 38.6%, and the most recent ex-dividend date was October 1, 2026.

Wall Street coverage includes 2 Strong Buy, 1 Buy, 11 Hold, 2 Sell, and 2 Strong Sell ratings. The mean price target of $114.71 implies an upside of 5.8% over the last close of $108.41. For FY2026, consensus estimates project EPS of $7.00 on revenue of $1.63B, followed by FY2027 estimates of $7.53 EPS on $1.68B in revenue. Choice Hotels has beaten EPS estimates in 2 of the last 4 quarters, with its next earnings report scheduled for November 2, 2026.

This page is an AI-written research summary of Choice Hotels International, Inc. (CHH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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