Choice Hotels International, In

Valuation Analysis

About the Company

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection brand names. The company was founded in 1939 and is headquartered in North Bethesda, Maryland.

Choice Hotels International, In Stock at a Glance

Choice Hotels International, In (CHH) is currently trading at $109.56 with a market capitalization of $5B. The trailing P/E ratio stands at 14.81x, with a forward P/E of 14.29x. The 52-week range spans from $84.04 to $136.45; the current price is 19.7% below the yearly high. Year-over-year revenue growth stands at +3.5%. The net profit margin stands at 35%.

💰 Dividend

Choice Hotels International, In pays an annual dividend of $1.15 per share, representing a yield of 1.05%. The payout ratio stands at 15.54%.

📊 Analyst Rating

15 analysts rate Choice Hotels International, In (CHH) on consensus: Hold. The average price target is $112.53, implying +2.71% from the current price. Analyst price targets range from $86.00 to $128.00.

Choice Hotels International, In: The Investment Case in Detail

Choice Hotels International, In (CHH) operates in the Consumer Cyclical — specifically Lodging — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 90.46%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 940.81% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 35%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Revenue growth has slowed to just 3.5%, which is below nominal GDP — the business is no longer outgrowing the broader economy. The debt-to-equity ratio of 1535.08% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Short interest sits at 35.42% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (35.42%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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