Choice Hotels International (NYSE:CHH) Announces Earnings Results, Beats Estimates By $0.04 EPS

Choice Hotels International (NYSE:CHH) announced its earnings results on Monday. The company reported $2.33 EPS for the quarter, topping the consensus estimate of $2.29 by $0.04, Zacks reports. The firm had revenue of $458.33 million for the quarter, compared to the consensus estimate of $447.56 million. Choice Hotels International had a net margin of 12.65% and a return on equity of 216.71%. The business’s quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter last year, the firm posted $2.10 EPS.

Here are the key takeaways from Choice Hotels International’s conference call:

• Outlook raised: Stronger October momentum, with U.S. RevPAR up approximately 7%, led Choice to raise its full-year U.S. and global RevPAR outlooks and adjusted EBITDA guidance to $641 million–$651 million.
• U.S. rooms growth is improving: U.S. net rooms reached flat year-over-year growth, while openings increased 17% year to date, exits declined, and the conversion pipeline grew 29%. Management expects U.S. net rooms growth of approximately 1% by year-end and sees further acceleration in 2027.
• Commercial initiatives are gaining traction, including the relaunched Choice Privileges program, Choice Business Direct, and the AI-enabled EasyBid platform. Loyalty revenue share increased more than 140 basis points, small-business revenue rose 18%, and group revenue grew 27% year-over-year.
• Shift back to an asset-light model: Hotel development capital outlays are expected to fall to approximately $20 million in 2026 from $103 million in 2025, while two owned hotels were sold for about $34 million in net proceeds with franchise agreements retained. Management expects capital recycling and lower investment needs to materially improve free cash flow in 2027.
• Higher spending is limiting near-term earnings conversion: full-year adjusted SG&A growth is now expected to be approximately 9%, while operating cash flow fell to $122 million from $185 million in the prior-year period. The company also narrowed adjusted EPS guidance to $6.92–$7.07 and recorded a $24 million charge for terminating a European hospitality acquisition agreement.

Choice Hotels International Stock Performance

CHH stock traded up $0.52 during trading on Wednesday, reaching $119.46. 142,542 shares of the stock were exchanged, compared to its average volume of 625,447. Choice Hotels International has a twelve month low of $84.04 and a twelve month high of $123.82. The company has a current ratio of 1.26, a quick ratio of 0.93 and a debt-to-equity ratio of 16.52. The company has a market capitalization of $5.38 billion, a P/E ratio of 26.52, a price-to-earnings-growth ratio of 2.72 and a beta of 0.65. The stock has a 50 day simple moving average of $104.60 and a 200-day simple moving average of $107.22.

Choice Hotels International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Thursday, October 1st were given a dividend of $0.2875 per share. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. Choice Hotels International’s dividend payout ratio (DPR) is 16.24%.

Insider Activity at Choice Hotels International

In other news, Director William L. Jews sold 5,057 shares of Choice Hotels International stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $106.98, for a total transaction of $540,997.86. Following the sale, the director directly owned 23,987 shares in the company, valued at approximately $2,566,129.26. The trade was a 17.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Dominic Dragisich sold 1,227 shares of Choice Hotels International stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $112.00, for a total value of $137,424.00. Following the sale, the chief executive officer directly owned 90,055 shares in the company, valued at $10,086,160. The trade was a 1.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 23.87% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on CHH shares. Mizuho started coverage on Choice Hotels International in a research note on Thursday, August 27th. They issued a “neutral” rating and a $106.00 price objective on the stock. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $124.00 target price on shares of Choice Hotels International in a research note on Thursday, August 6th. Barclays raised their target price on Choice Hotels International from $103.00 to $107.00 and gave the company an “underweight” rating in a report on Tuesday. Weiss Ratings downgraded Choice Hotels International from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday. Finally, Freedom Broker initiated coverage on Choice Hotels International in a report on Wednesday, October 14th. They set a “buy” rating and a $117.00 price target for the company. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $113.69.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a global lodging franchisor that licenses its hotel brands to independent owners and operators. The company supports its franchisees through brand standards, reservation and distribution systems, marketing, loyalty programs, technology, and operational services rather than primarily owning and operating hotels itself.

Its portfolio includes brands serving a range of price points and travel needs, including Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, MainStay Suites, Suburban Studios, WoodSpring Suites, Cambria Hotels, and the Ascend Hotel Collection.