Choice Hotels International (NYSE:CHH) Announces Earnings Results

Choice Hotels International (NYSE:CHH) released its earnings results on Thursday. The company reported $1.60 earnings per share for the quarter, topping analysts’ consensus estimates of $1.56 by $0.04, Zacks reports. Choice Hotels International had a net margin of 23.17% and a return on equity of 541.07%. The business had revenue of $390.15 million for the quarter, compared to analyst estimates of $369.26 million. During the same period last year, the company posted $1.55 EPS. The business’s revenue was up .0% on a year-over-year basis. Choice Hotels International updated its FY 2026 guidance to 6.920-7.140 EPS.

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

• Choice reported full-year 2025 adjusted EBITDA of $626 million (up 4%) and adjusted EPS of $6.94, both in line with guidance, and provided 2026 targets of adjusted EBITDA $632M–$647M and EPS $6.92–$7.14.
• Development momentum is a core growth driver: global openings rose 14% YoY, franchise agreements awarded were up ~22%, and 97% of pipeline rooms are in higher‑revenue brands expected to be about 1.7x more accretive than the current portfolio, with a conversion-led model that accelerates openings.
• International expansion accelerated—management cites 37% international revenue growth in 2025, a 13% increase in international rooms to ~160,000, and a shift to direct franchising (directly franchised rooms now >40% of the international portfolio) that improved unit economics.
• Management accelerated selective exits (about 20 underperforming U.S. hotels that ran >20% below company RevPAR) to improve portfolio quality; U.S. average royalty rate rose 8 basis points for the year (10 bps in Q4), supporting franchise economics.
• Near-term demand headwinds remain: global RevPAR fell 4.6% in Q4 (currency‑neutral) and U.S. RevPAR ex‑hurricane was down ~2.2%; management expects Q1 softness and guides 2026 global RevPAR range of -2% to +1%, signaling potential short‑term pressure on top‑line growth.

Choice Hotels International Stock Performance

Shares of Choice Hotels International stock opened at $109.96 on Friday. The company has a quick ratio of 0.96, a current ratio of 0.87 and a debt-to-equity ratio of 10.52. Choice Hotels International has a 52 week low of $84.04 and a 52 week high of $155.07. The firm’s 50 day moving average is $103.14 and its two-hundred day moving average is $104.00. The firm has a market capitalization of $5.09 billion, a P/E ratio of 13.88, a P/E/G ratio of 5.85 and a beta of 0.76.

Choice Hotels International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Friday, January 2nd were paid a $0.2875 dividend. This represents a $1.15 annualized dividend and a yield of 1.0%. The ex-dividend date was Friday, January 2nd. Choice Hotels International’s dividend payout ratio is currently 14.13%.

Wall Street Analyst Weigh In

A number of brokerages have commented on CHH. Robert W. Baird reduced their target price on shares of Choice Hotels International from $122.00 to $110.00 and set an “outperform” rating on the stock in a research note on Tuesday, November 18th. Jefferies Financial Group lowered shares of Choice Hotels International from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Truist Financial set a $126.00 price target on shares of Choice Hotels International and gave the company a “buy” rating in a research note on Friday, January 9th. UBS Group decreased their price objective on shares of Choice Hotels International from $120.00 to $118.00 and set a “neutral” rating on the stock in a report on Wednesday, January 7th. Finally, JPMorgan Chase & Co. raised their price target on Choice Hotels International from $95.00 to $102.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 3rd. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $111.93.

Insider Activity

In related news, SVP Simone Wu sold 8,080 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $101.56, for a total value of $820,604.80. Following the transaction, the senior vice president directly owned 48,803 shares of the company’s stock, valued at $4,956,432.68. This trade represents a 14.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 23.78% of the company’s stock.

Hedge Funds Weigh In On Choice Hotels International

A number of institutional investors have recently modified their holdings of CHH. Teza Capital Management LLC increased its stake in shares of Choice Hotels International by 5.0% during the second quarter. Teza Capital Management LLC now owns 2,051 shares of the company’s stock worth $260,000 after acquiring an additional 98 shares during the period. Treasurer of the State of North Carolina lifted its holdings in shares of Choice Hotels International by 0.9% in the second quarter. Treasurer of the State of North Carolina now owns 12,626 shares of the company’s stock valued at $1,602,000 after purchasing an additional 112 shares in the last quarter. CANADA LIFE ASSURANCE Co lifted its stake in Choice Hotels International by 1.0% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 22,345 shares of the company’s stock valued at $2,421,000 after buying an additional 225 shares in the last quarter. Wealthspire Advisors LLC boosted its stake in shares of Choice Hotels International by 1.9% during the fourth quarter. Wealthspire Advisors LLC now owns 15,348 shares of the company’s stock valued at $1,462,000 after acquiring an additional 284 shares during the last quarter. Finally, Brown Brothers Harriman & Co. grew its holdings in shares of Choice Hotels International by 37.5% during the third quarter. Brown Brothers Harriman & Co. now owns 1,086 shares of the company’s stock worth $116,000 after buying an additional 296 shares in the last quarter. 65.57% of the stock is owned by institutional investors and hedge funds.

Choice Hotels International News Summary

Here are the key news stories impacting Choice Hotels International this week:

• Positive Sentiment: Q4 results beat expectations: Choice reported $1.60 EPS vs. ~$1.55 consensus and revenue of $390.2M vs. ~$369.3M, driven by margin strength. Management released its Q4 press materials and slide deck. Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Clear progress on expansion: company highlighted international expansion and ~13% net room growth and increased franchise agreements (conversion pipeline momentum), supporting longer‑term fee growth. Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Additional color available — earnings call transcript and deep‑dive coverage provide detail on mix, pipeline and margin initiatives that investors can review to judge sustainability of results. CHH Q4 deep dive: Portfolio upgrades, pipeline momentum, and margin focus shape 2026 outlook
• Negative Sentiment: FY‑2026 EPS guidance came in at $6.92–$7.14 versus the ~7.04 consensus midpoint — a modest shortfall that reduces near‑term upside expectations. Choice Hotels Q4 2025 Press Materials (guidance)
• Negative Sentiment: Multiple law firms (Edelson Lechtzin LLP and Murphy Law Firm) have announced investigations into a January data breach affecting franchisees/customers — potential for litigation, remediation costs and reputational damage. DATA BREACH INVESTIGATION: Choice Hotels International, Inc. … Choice Hotels International Data Breach Exposes Personal Information: Murphy Law Firm Investigates
• Negative Sentiment: Analyst reaction mixed to cautious: at least one firm issued a downgrade/neutral stance (Seeking Alpha coverage) and Wells Fargo kept an underweight rating despite raising its price target to $110 — signaling limited near‑term upside. Choice Hotels: Turning ‘Neutral’ On In-Line Results, Tepid Outlook (Downgrade)

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company’s core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.