Choice Hotels International (NYSE:CHH) Issues Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Posted by Geri Gentry on Nov 3rd, 2026

Choice Hotels International (NYSE:CHH – Get Free Report) released its quarterly earnings results on Monday. The company reported $2.33 earnings per share for the quarter, topping the consensus estimate of $2.29 by $0.04, Zacks reports. Choice Hotels International had a net margin of 20.28% and a return on equity of 205.69%. The business had revenue of $458.33 million for the quarter, compared to analysts’ expectations of $447.56 million. During the same period in the previous year, the company earned $2.10 earnings per share. The firm’s revenue for the quarter was up 2.5% compared to the same quarter last year.

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

Outlook raised: Stronger October momentum, with U.S. RevPAR up approximately 7%, led Choice to raise its full-year U.S. and global RevPAR outlooks and adjusted EBITDA guidance to $641 million–$651 million.
U.S. rooms growth is improving: U.S. net rooms reached flat year-over-year growth, while openings increased 17% year to date, exits declined, and the conversion pipeline grew 29%. Management expects U.S. net rooms growth of approximately 1% by year-end and sees further acceleration in 2027.
Commercial initiatives are gaining traction, including the relaunched Choice Privileges program, Choice Business Direct, and the AI-enabled EasyBid platform. Loyalty revenue share increased more than 140 basis points, small-business revenue rose 18%, and group revenue grew 27% year-over-year.
Shift back to an asset-light model: Hotel development capital outlays are expected to fall to approximately $20 million in 2026 from $103 million in 2025, while two owned hotels were sold for about $34 million in net proceeds with franchise agreements retained. Management expects capital recycling and lower investment needs to materially improve free cash flow in 2027.
Higher spending is limiting near-term earnings conversion: full-year adjusted SG&A growth is now expected to be approximately 9%, while operating cash flow fell to $122 million from $185 million in the prior-year period. The company also narrowed adjusted EPS guidance to $6.92–$7.07 and recorded a $24 million charge for terminating a European hospitality acquisition agreement.

Choice Hotels International Price Performance

Choice Hotels International stock opened at $118.36 on Tuesday. Choice Hotels International has a 12 month low of $84.04 and a 12 month high of $123.82. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 14.08. The business’s 50 day simple moving average is $104.45 and its 200 day simple moving average is $107.16. The company has a market cap of $5.33 billion, a price-to-earnings ratio of 16.72, a PEG ratio of 2.51 and a beta of 0.71.

Choice Hotels International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Thursday, October 1st were issued a $0.2875 dividend. This represents a $1.15 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Thursday, October 1st. Choice Hotels International’s payout ratio is 16.24%.

Insider Buying and Selling at Choice Hotels International

In other Choice Hotels International news, CEO Dominic Dragisich sold 1,227 shares of the business’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $112.00, for a total value of $137,424.00. Following the sale, the chief executive officer directly owned 90,055 shares in the company, valued at $10,086,160. The trade was a 1.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director William L. Jews sold 5,057 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $106.98, for a total value of $540,997.86. Following the transaction, the director directly owned 23,987 shares in the company, valued at $2,566,129.26. This represents a 17.41% decrease in their position. The disclosure for this sale is available in the SEC filing. 23.87% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. UBS Group upped their target price on Choice Hotels International from $119.00 to $120.00 and gave the company a “neutral” rating in a report on Friday, August 28th. JPMorgan Chase & Co. upped their price objective on Choice Hotels International from $119.00 to $121.00 and gave the company a “neutral” rating in a research note on Wednesday, October 21st. Mizuho assumed coverage on Choice Hotels International in a research note on Thursday, August 27th. They issued a “neutral” rating and a $106.00 price objective for the company. Freedom Broker started coverage on Choice Hotels International in a research note on Wednesday, October 14th. They set a “buy” rating and a $117.00 target price on the stock. Finally, Susquehanna lifted their target price on Choice Hotels International from $110.00 to $115.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Choice Hotels International has a consensus rating of “Hold” and an average target price of $113.38.

View Our Latest Analysis on CHH

Key Choice Hotels International News

Here are the key news stories impacting Choice Hotels International this week:

Positive Sentiment: Q3 results exceeded expectations. Choice reported adjusted earnings of $2.33 per share, above the $2.29 consensus estimate, while revenue of $458.33 million topped expectations of $447.56 million. EPS increased from $2.10 a year earlier, and revenue rose 2.5% year over year. Choice Hotels earnings report
Positive Sentiment: Management raised its full-year RevPAR outlook. The upgraded forecast signals improved expectations for revenue per available room, an important lodging-industry performance measure, and supported investor confidence in the company’s operating outlook. Choice Hotels reports third-quarter 2026 results
Positive Sentiment: Strategic execution improved. U.S. net rooms growth improved for the third consecutive quarter, while owned-hotel sales continued Choice’s shift toward a more asset-light franchising model. That strategy can reduce capital intensity and support cash generation over time. Choice Hotels strategic update
Neutral Sentiment: Valuation remains a consideration. An analysis following the guidance increase estimated CHH could be about 3% above fair value, suggesting the improved outlook may be largely reflected in the stock.
Negative Sentiment: Reported profit declined substantially. Although adjusted EPS beat estimates, articles reported a 68% year-over-year fall in quarterly profit, creating a potential concern about earnings quality and near-term profitability. Choice Hotels profit and RevPAR outlook

Choice Hotels International Company Profile

(Get Free Report)

Choice Hotels International, Inc is a global lodging franchisor that licenses its hotel brands to independent owners and operators. The company supports its franchisees through brand standards, reservation and distribution systems, marketing, loyalty programs, technology, and operational services rather than primarily owning and operating hotels itself.

Its portfolio includes brands serving a range of price points and travel needs, including Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, MainStay Suites, Suburban Studios, WoodSpring Suites, Cambria Hotels, and the Ascend Hotel Collection.