CHH Stock Analysis: Choice Hotels International | NYSE
Lodging | NYSE, USA | Market Cap: 5.028m USD | 12M Return: -13.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 67.4M
EPS Trend: 86.3%
Qual. Beats: -1
Rev. Trend: 94.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 345.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 1.41 > 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 49.12%; Δ -4.59% > 0.5%) |
| Asset Turnover: 58.11% > 50% (prev 61.52%; Δ -3.41% > 0%) |
| Interest Coverage Ratio: 5.55 > 6 (EBIT TTM 521.3m / Interest Expense TTM 93.9m) |
| 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: 0.05 (Book Value of Equity 137.4m / Total Liabilities 2.81b) |
| Altman-Z'' = 3.84 = AA |
| DSRI: 0.88 (Receivables 243.5m/274.0m, Revenue 1.60b/1.59b) |
| GMI: 1.10 (GM 49.12% / 44.52%) |
| 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 = -2.99 (Cap -4..+1) = A |
As of July 29, 2026, the stock is trading at USD 113.12 with a total of 515,268 shares traded. Over the past week, the price has changed by +2.87%, over one month by +1.29%, over three months by -4.66% and over the past year by -13.73%.
Current recommended Stop Loss: 104.10 (which is 8% or 2.3 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 | 113.3 | 0.2% |
P/E Trailing = 14.9351
P/E Forward = 15.3846
P/S = 5.0901
P/B = 36.5879
P/EG = 2.4433
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 = 7.20b USD (5.03b + Debt 2.22b - CCE 43.9m)
Interest Coverage Ratio = 5.55 (Ebit TTM 521.3m / Interest Expense TTM 93.9m)
EV/FCF = 29.28x (Enterprise Value 7.20b / FCF TTM 245.9m)
FCF Yield = 3.42% (FCF TTM 245.9m / Enterprise Value 7.20b)
FCF Margin = 15.33% (FCF TTM 245.9m / 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 = 2.45 (Enterprise Value 7.20b / Total Assets 2.94b)
Interest Expense / Debt = 4.24% (Interest Expense 93.9m / Debt 2.22b)
Taxrate = 19.12% (81.7m / 427.4m)
NOPAT = 421.6m (EBIT 521.3m * (1 - 19.12%))
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 = 8.83 (Net Debt 2.17b / FCF TTM 245.9m)
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 = 17.04% (NOPAT 421.6m / Invested Capital 2.48b)
WACC = 6.35% (E(5.03b)/V(7.24b) * Re(7.64%) + D(2.22b)/V(7.24b) * Rd(4.24%) * (1-Tc(0.19)))
Discount Rate = 7.64% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.39 | Cagr: -3.09%
[DCF] Terminal Value 77.97% ; FCFF base≈219.2m ; Y1≈251.2m ; Y5≈369.8m
[DCF] Fair Price = 74.56 (EV 5.56b - Net Debt 2.17b = Equity 3.39b / Shares 45.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 86.34 | EPS CAGR: 7.05% | SUE: -2.01 | # QB: -1
Revenue Correlation: 94.82 | Revenue CAGR: 1.67% | SUE: 0.44 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.97 | Chg30d=+0.71% | Revisions=+22% | Analysts=12
EPS next Quarter (2026-09-30): EPS=2.38 | Chg30d=+0.49% | Revisions=+44% | Analysts=12
EPS current Year (2026-12-31): EPS=7.13 | Chg30d=+0.38% | Revisions=-12% | GrowthEPS=+2.7% | GrowthRev=+1.8%
EPS next Year (2027-12-31): EPS=7.61 | Chg30d=-0.72% | Revisions=+0% | GrowthEPS=+6.8% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: +19% (up=14, down=9)