Choice Hotels International (NYSE:CHH – Get Free Report) issued its earnings results on Wednesday. The company reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.97 by $0.05, Briefing.com reports. The company had revenue of $440.76 million for 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 firm’s quarterly revenue was up 3.4% on a year-over-year basis. During the same quarter last year, the company posted $1.92 earnings per share. 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 Price Performance
NYSE CHH traded up $3.73 during trading hours on Wednesday, reaching $112.34. The company’s stock had a trading volume of 515,948 shares, compared to its average volume of 660,868. Choice Hotels International has a 1 year low of $84.04 and a 1 year high of $126.60. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 14.58. The company has a market capitalization of $5.11 billion, a price-to-earnings ratio of 15.22, a PEG ratio of 4.31 and a beta of 0.67. The firm’s 50-day moving average price is $110.66 and its 200-day moving average price is $108.30.
Choice Hotels International Announces Dividend
Insider Activity
In other news, CFO Scott E. Oaksmith sold 2,000 shares of Choice Hotels International stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $110.00, for a total transaction of $220,000.00. Following the sale, the chief financial officer owned 35,172 shares in the company, valued at $3,868,920. This trade represents a 5.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 23.87% of the stock is currently owned by insiders.
Institutional Trading of Choice Hotels International
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. UMB Bank n.a. boosted its holdings in shares of Choice Hotels International by 6,416.7% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $37,000 after purchasing an additional 385 shares during the last quarter. Quarry LP bought a new position in Choice Hotels International during the third quarter valued at approximately $38,000. Arax Advisory Partners bought a new position in Choice Hotels International during the fourth quarter valued at approximately $43,000. Advisory Services Network LLC purchased a new position in Choice Hotels International during the 3rd quarter valued at approximately $57,000. Finally, Parallel Advisors LLC increased its stake in Choice Hotels International by 627.0% in the 4th quarter. Parallel Advisors LLC now owns 836 shares of the company’s stock worth $80,000 after acquiring an additional 721 shares during the last quarter. 65.57% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In
A number of research firms recently issued reports on CHH. JPMorgan Chase & Co. raised their price objective on shares of Choice Hotels International from $116.00 to $118.00 and gave the stock a “neutral” rating in a report on Tuesday, July 21st. Barclays increased their price target on shares of Choice Hotels International from $100.00 to $101.00 and gave the stock an “underweight” rating in a research report on Monday, July 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Choice Hotels International in a research report on Tuesday, July 7th. Robert W. Baird set a $128.00 price objective on Choice Hotels International in a research note on Monday, May 11th. Finally, Morgan Stanley lowered 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. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $111.00.
Check Out Our Latest Analysis on CHH
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.
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