Choice Hotels International (NYSE:CHH – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $1.07 earnings per share for the quarter, missing the consensus estimate of $1.35 by ($0.28), Zacks reports. The firm had revenue of $340.58 million for the quarter, compared to analysts’ expectations of $333.48 million. Choice Hotels International had a net margin of 23.17% and a return on equity of 541.07%. The firm’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.34 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:
- U.S. room growth is inflecting — gross openings were up ~32% YoY, conversions accelerated (?60% of franchise agreements this quarter expected to open this year) and Extended Stay now represents >40% of the U.S. pipeline.
- Franchisee unit economics are improving — U.S. average royalty rate expanded 11 bps, Choice Privileges tops 75M members with loyalty contribution +300 bps in March, and small/mid?business and group revenues rose materially.
- Capital intensity is declining — Q1 development outlays fell 51% YoY, full?year net capital outlays are guided to ~$20–45M (about 70% lower at the midpoint vs. 2025), and management plans $175–225M of share repurchases in 2026.
- Near?term earnings were pressured — Q1 adjusted EPS fell to $1.07 from $1.34 and adjusted EBITDA was $126M (vs. $130M) due to SG&A timing and a temporary tax adjustment, contributing to a weaker short?term print despite maintained full?year guidance.
- Technology/AI is a differentiator — a cloud?native platform (AWS/Salesforce partnerships) and tools like EasyBid have cut group RFP response ~30% and boosted conversion ~250 bps, supporting higher franchisee returns and royalty expansion.
Choice Hotels International Price Performance
CHH stock traded up $1.61 during mid-day trading on Friday, reaching $100.69. 820,159 shares of the company’s stock were exchanged, compared to its average volume of 680,165. The company has a market cap of $4.61 billion, a price-to-earnings ratio of 12.71, a price-to-earnings-growth ratio of 4.77 and a beta of 0.74. The stock’s 50 day moving average is $106.84 and its 200 day moving average is $101.46. The company has a debt-to-equity ratio of 10.52, a current ratio of 0.87 and a quick ratio of 0.87. Choice Hotels International has a 12-month low of $84.04 and a 12-month high of $136.45.
Choice Hotels International Announces Dividend
Trending Headlines about Choice Hotels International
Here are the key news stories impacting Choice Hotels International this week:
- Positive Sentiment: Revenue beat and described as record — Q1 revenue of ~$340.6M topped estimates and rose 2.3% year?over?year, showing demand resilience. Choice Hotels misses earnings estimates despite record revenue
- Positive Sentiment: Franchise and development momentum: global net rooms +1.7%, U.S. openings at a five?year high, and franchise agreements awarded jumped ~72% — supports the company’s capital?light, fee?driven model and future fee revenue. Choice Hotels International Reports First Quarter 2026 Results
- Neutral Sentiment: Company provided a full earnings release and conference call materials (transcript and PR) for investors to dig into segment trends, unit economics and pipeline. Listen to Conference Call / Press Release
- Negative Sentiment: Earnings miss — Q1 EPS $1.07 vs. consensus ~$1.35 and down from $1.34 a year ago; margins and ROE remain strong but the EPS shortfall pressured near?term sentiment. Choice Hotels (CHH) Q1 Earnings Miss Estimates
- Negative Sentiment: FY?2026 EPS guidance (6.92–7.14) came in slightly below consensus (~7.19), prompting headlines about a disappointing outlook and weighing on near?term profit expectations. Choice Hotels’ shares sink on profit miss, disappointing FY26 outlook
Wall Street Analysts Forecast Growth
CHH has been the topic of several research analyst reports. Weiss Ratings upgraded Choice Hotels International from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, February 9th. UBS Group dropped their price target on Choice Hotels International from $120.00 to $118.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 7th. The Goldman Sachs Group boosted their price target on Choice Hotels International from $90.00 to $100.00 and gave the company a “neutral” rating in a research note on Tuesday, February 3rd. Morgan Stanley boosted their price target on Choice Hotels International from $83.00 to $87.00 and gave the company an “underweight” rating in a research note on Friday, April 10th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $119.00 price target on shares of Choice Hotels International in a research note on Friday, February 20th. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $111.25.
Read Our Latest Stock Analysis on CHH
Insider Buying and Selling
In other Choice Hotels International news, SVP Simone Wu sold 8,080 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $101.56, for a total transaction of $820,604.80. Following the transaction, the senior vice president owned 48,803 shares in the company, valued at approximately $4,956,432.68. This represents a 14.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Scott E. Oaksmith sold 1,603 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $100.00, for a total value of $160,300.00. Following the transaction, the chief financial officer owned 37,172 shares in the company, valued at $3,717,200. This represents a 4.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 10,283 shares of company stock worth $1,040,947 in the last quarter. 23.78% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Choice Hotels International
A number of hedge funds have recently bought and sold shares of CHH. Jacobs Levy Equity Management Inc. purchased a new position in Choice Hotels International during the first quarter worth approximately $324,000. Goldman Sachs Group Inc. boosted its position in Choice Hotels International by 13.3% during the first quarter. Goldman Sachs Group Inc. now owns 110,031 shares of the company’s stock worth $14,610,000 after purchasing an additional 12,904 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Choice Hotels International by 8.9% during 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 worth $14,408,000 after purchasing an additional 8,887 shares in the last quarter. Jane Street Group LLC boosted its position in Choice Hotels International by 89.8% during 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 position 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 in the last quarter. Hedge funds and other institutional investors own 65.57% of the company’s stock.
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.
See Also
Receive News & Ratings for Choice Hotels International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Choice Hotels International and related companies with MarketBeat.com's FREE daily email newsletter.
