Choice Hotels International (NYSE:CHH) Posts Earnings Results

Choice Hotels International (NYSE:CHH) issued its quarterly earnings data on Wednesday. The company reported $2.02 EPS for the quarter, topping analysts’ consensus estimates of $1.97 by $0.05, Briefing.com reports. The business had revenue of $440.76 million during the quarter, compared to analysts’ expectations of $431.52 million. Choice Hotels International had a net margin of 21.55% and a return on equity of 281.98%. The business’s revenue was up 3.4% on a year-over-year basis. During the same period last year, the company posted $1.92 EPS. Choice Hotels International updated its FY 2026 guidance to 6.860-7.100 EPS.

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

• Raised full-year guidance for adjusted EBITDA to $635–$650 million, U.S. RevPAR growth to 0%–1.25%, global RevPAR growth to 0%–1%, and global net rooms growth to approximately 1.5%.
• U.S. rooms growth trends improved, with openings up 27% year over year, exits down 50%, and U.S. franchise agreements up 30%; management expects positive U.S. net rooms growth for 2026.
• Second-quarter adjusted EBITDA rose 6% to $175 million and adjusted EPS increased 5% to $2.02, supported by higher U.S. royalties, royalty-rate expansion, franchise services revenue, and international growth.
• Choice is accelerating its transition to an asset-light franchising model, with hotel-development outlays down 80% in the first half and initial asset dispositions expected in the first half of 2027, potentially improving future cash flow.
• Despite the stronger operating outlook, adjusted EPS guidance was set at $6.86–$7.10 because of higher expected interest expense and a higher effective tax rate; second-half comparisons also include a roughly $9.5 million unfavorable impact from nonrecurring prior-year liquidated damages.

Choice Hotels International Trading Up 3.4%

Shares of NYSE:CHH traded up $3.73 on Wednesday, hitting $112.34. 515,948 shares of the company’s stock were exchanged, compared to its average volume of 660,868. The stock has a market capitalization of $5.11 billion, a price-to-earnings ratio of 15.22, a price-to-earnings-growth ratio of 4.31 and a beta of 0.67. Choice Hotels International has a 12 month low of $84.04 and a 12 month high of $126.60. The company has a debt-to-equity ratio of 14.58, a current ratio of 0.95 and a quick ratio of 0.95. The business’s 50 day simple moving average is $110.66 and its two-hundred day simple moving average is $108.30.

Choice Hotels International Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were given a dividend of $0.2875 per share. This represents a $1.15 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Wednesday, July 1st. Choice Hotels International’s dividend payout ratio (DPR) is 15.50%.

Insider Activity at Choice Hotels International

In related news, CFO Scott E. Oaksmith sold 2,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $110.00, for a total value of $220,000.00. Following the transaction, the chief financial officer owned 35,172 shares of the company’s stock, valued at $3,868,920. This trade represents a 5.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 23.87% of the company’s stock.

Institutional Trading of Choice Hotels International

Several institutional investors and hedge funds have recently modified their holdings of CHH. Goldman Sachs Group Inc. boosted its holdings in shares of Choice Hotels International by 151.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company’s stock valued at $48,833,000 after purchasing an additional 308,771 shares during the period. Wellington Management Group LLP increased its holdings in Choice Hotels International by 55.1% during the 4th quarter. Wellington Management Group LLP now owns 574,630 shares of the company’s stock worth $54,739,000 after purchasing an additional 204,146 shares during the period. Tudor Investment Corp ET AL raised its position in Choice Hotels International by 208.1% during the 4th quarter. Tudor Investment Corp ET AL now owns 280,513 shares of the company’s stock valued at $26,722,000 after purchasing an additional 189,464 shares in the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Choice Hotels International by 194.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 237,097 shares of the company’s stock worth $30,083,000 after buying an additional 156,666 shares during the period. Finally, Susquehanna Portfolio Strategies LLC purchased a new stake in shares of Choice Hotels International in the 4th quarter worth $11,662,000. Institutional investors own 65.57% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on CHH shares. Robert W. Baird set a $128.00 price target on Choice Hotels International in a research report on Monday, May 11th. Deutsche Bank Aktiengesellschaft set a $114.00 price objective on Choice Hotels International in a research note on Monday, May 4th. Morgan Stanley cut their target price on Choice Hotels International from $87.00 to $86.00 and set an “underweight” rating on the stock in a research report on Tuesday, May 12th. Susquehanna decreased their price target on Choice Hotels International from $115.00 to $110.00 and set a “neutral” rating on the stock in a report on Monday, May 4th. Finally, JPMorgan Chase & Co. raised their price target on Choice Hotels International from $116.00 to $118.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 21st. Two analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, Choice Hotels International presently has an average rating of “Reduce” and a consensus target price of $111.00.

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.