Choice Hotels International (NYSE:CHH) Issues Quarterly Earnings Results

Choice Hotels International (NYSE:CHH) released its earnings results on Thursday. The company reported $1.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.55 by $0.05, Zacks reports. Choice Hotels International had a net margin of 23.93% and a return on equity of 9,081.29%. The company’s quarterly revenue was up .0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.55 EPS. 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 Up 2.5%

NYSE CHH traded up $2.74 during trading hours on Thursday, reaching $112.14. 248,020 shares of the company’s stock were exchanged, compared to its average volume of 751,920. The company has a debt-to-equity ratio of 12.81, a quick ratio of 0.96 and a current ratio of 0.96. The company has a market capitalization of $5.19 billion, a price-to-earnings ratio of 13.78, a price-to-earnings-growth ratio of 5.62 and a beta of 0.76. The company’s 50-day moving average is $102.33 and its two-hundred day moving average is $104.08. Choice Hotels International has a one year low of $84.04 and a one year high of $157.86.

Choice Hotels International Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Friday, January 2nd were paid a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Friday, January 2nd. Choice Hotels International’s dividend payout ratio is presently 14.13%.

Insider Activity

In related news, SVP Simone Wu sold 8,080 shares of the business’s 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 sale, the senior vice president directly owned 48,803 shares of the company’s stock, valued at approximately $4,956,432.68. The trade was a 14.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 23.78% of the stock is owned by corporate insiders.

Institutional Trading of Choice Hotels International

A number of institutional investors have recently modified their holdings of the company. Jacobs Levy Equity Management Inc. acquired a new stake in Choice Hotels International in the 1st quarter valued at approximately $324,000. Goldman Sachs Group Inc. grew its stake in shares of Choice Hotels International by 13.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 110,031 shares of the company’s stock worth $14,610,000 after acquiring an additional 12,904 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Choice Hotels International by 8.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 108,512 shares of the company’s stock valued at $14,408,000 after purchasing an additional 8,887 shares during the last quarter. Jane Street Group LLC lifted its position in shares of Choice Hotels International by 89.8% in the first quarter. Jane Street Group LLC now owns 50,138 shares of the company’s stock worth $6,657,000 after purchasing an additional 23,726 shares in the last quarter. Finally, Prudential Financial Inc. boosted its holdings in Choice Hotels International by 35.2% during the second quarter. Prudential Financial Inc. now owns 2,139 shares of the company’s stock worth $299,000 after purchasing an additional 557 shares during the last quarter. 65.57% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. The Goldman Sachs Group increased their price objective on shares of Choice Hotels International from $90.00 to $100.00 and gave the company a “neutral” rating in a report on Tuesday, February 3rd. Morgan Stanley set a $91.00 price target on Choice Hotels International in a research note on Friday, January 16th. Barclays reduced their price target on Choice Hotels International from $99.00 to $98.00 and set an “underweight” rating on the stock in a research report on Friday, January 16th. Argus reiterated a “hold” rating on shares of Choice Hotels International in a report on Tuesday, December 16th. Finally, JPMorgan Chase & Co. increased their target price on Choice Hotels International from $95.00 to $102.00 and gave the company a “neutral” rating in a research note on Tuesday, February 3rd. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $109.15.

About Choice Hotels International

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.