Choice Hotels (CHH)
Consumer Discretionary · Hotel Franchising
Choice Hotels is a diversified hotel franchisor with 22 brands and 7,575 properties worldwide, earning revenue from franchise fees, management services, and ancillary partnerships.
What Choice Hotels does
Choice Hotels International is a hotel franchisor operating 7,575 franchised and managed hotels globally with 656,825 rooms in open and operating properties. The company generates revenue primarily through franchise and management fees based on gross room revenues or number of rooms at franchised properties, supplemented by partnership services, owned hotel operations, and other ancillary sources. Choice operates 22 distinct hotel brands ranging from economy to upscale properties and derives most revenue from U.S. operations conducted through direct franchising and master franchising relationships internationally.
Themes: ["hotel franchising","brand portfolio management","revenue per available room (RevPAR) optimization","franchisee profitability","loyalty program management","vendor partnerships and ancillary services","master franchise relationships (international expansion)"]
Fundamentals
- Price$109.61 as of 2026-07-09 close
- Market cap$5.0B as of 2026-07-10
- 1-year return-19.3% as of 2026-07-09 close
- P/E14.44 as of 2026-07-10
- Net margin+21.6% as of 2026-07-10
- Gross margin+57.5% as of 2026-07-10
- ROE+169.1% as of 2026-07-10
- Debt / equity14.58 as of 2026-07-10
- Revenue growth (YoY)+1.2% as of 2026-07-10
- Revenue CAGR (3y)+4.4% SEC XBRL
- Beta0.69 as of 2026-07-10
Dividend: yield +1.1%; 4-year non-decreasing per-share dividend streak (SEC XBRL).
Key risks (from latest filing)
["Seasonal demand fluctuations in the hotel industry with lower occupancy typically in November through February","Dependence on franchisees' hotel operating performance and room revenue levels, which drive franchise fee income and are sensitive to economic cycles and travel demand","High debt levels ($2.0 billion long-term debt) relative to equity, exposing the company to interest rate increases and refinancing risk"]
Competitors & peers
- Marriott International (MAR)
- Hilton Worldwide Holdings (HLT)
- Hyatt Hotels Corporation (H)
- IHG Hotels & Resorts (IHG)
- Wyndham Hotels & Resorts (WH)
Fundamentals: Finnhub, as of 2026-07-10. Filings: SEC EDGAR. Prices are delayed daily-close data.
Last updated 2026-07-09.
Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & Finnhub, shown with their as-of date.