Choice Hotels
CHH NYSE Hotels, Resorts & Cruise Lines Financials FY2016–FY2025
Choice Hotels' revenue rose 0.8% to $1.6 billion in fiscal 2025. Its operating margin was 28.1%, down from 29.3% a year earlier. Free cash flow was $164 million, down 23.1%. It paid out $192 million in dividends and buybacks, 117% of free cash flow. The diluted share count fell 3.1%.
What Choice Hotels does
Choice Hotels is mainly a hotel franchisor. It does not run most of the hotels that carry its names. Instead, independent hotel owners pay it for the right to use its brands, which include Comfort Inn, Quality Inn, Sleep Inn, Econo Lodge, Clarion, Radisson, WoodSpring Suites, Cambria Hotels and Everhome Suites. At the end of 2025 its system had 7,575 open hotels with 656,825 rooms in 49 states, the District of Columbia, and 50 countries and territories.
Its main source of revenue is franchise fees. These include an initial fee and ongoing royalty, marketing and reservation fees, usually set as a percentage of a hotel's room revenue. It also earns money from deals with vendors and travel partners, and from a small number of hotels it owns (such as Cambria and Everhome Suites hotels) and manages. Most of its revenue comes from the United States, even though it also franchises abroad, often through master franchisees who sub-license its brands in a region.
It had another 825 hotels in its pipeline: under construction, awaiting conversion or approved for development. The company says it does not plan to keep owned hotels for the long term and expects to sell them to franchisees who sign long-term Choice franchise agreements.
- Legal name
- CHOICE HOTELS INTERNATIONAL INC /DE
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Feb 19, 2026
- Accession · CIK
- 0001046311-26-000008
0001046311
Revenue and margins
Choice Hotels had $1.6B of revenue in fiscal 2025, up 0.8% on the year before.
Net income and earnings per share
From fiscal 2016 to 2025, diluted EPS grew 13.8% a year. Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was $164M in fiscal 2025, 10.2% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
Choice Hotels returned $192M to shareholders in fiscal 2025, 117% of free cash flow. The diluted share count fell 3.1%.
Value Choice Hotels yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of −$1.9B and divides by 46.6M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today 15.3x · peers 26.5x · sector 17.9x.
Balance sheet
Cash, debt and the ratios that show how comfortably Choice Hotels can carry it.
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | $512M | $41.6M | $26.8M | $40.2M | $45.0M |
| Debt incl. finance leases | $1.1B | $1.2B | $1.6B | $1.8B | $1.9B |
| Net debt / EBITDA | 1.2x | 2.3x | 3.7x | 3.4x | 3.7x |
| Debt / equity | 4.0x | 7.8x | — | — | 10.5x |
| Interest coverage | 9.2x | 10.9x | 5.9x | 5.3x | 4.9x |
| Current ratio | 1.3x | 0.8x | 0.3x | 0.7x | 0.9x |
| Quick ratio | 1.3x | 0.8x | 0.3x | 0.7x | 0.9x |
| Total assets | $1.9B | $2.1B | $2.4B | $2.5B | $2.9B |
| Total liabilities | $1.7B | $1.9B | $2.4B | $2.6B | $2.7B |
| Shareholders' equity | $266M | $155M | $35.6M | −$45.3M | $181M |
| Net debt (− = net cash) | $549M | $1.2B | $1.5B | $1.7B | $1.9B |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.0M
0 insiders
Sold, 12 months
$4.8M
4 insiders
Of sales under plans
89%
$4.2M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 20, 2026 | Dominic DragisichPresident & CEO, Director | Sold plan | 1,227 | $112.00 | $0.1M | Form 4 |
| Aug 18, 2026 | William L JewsDirector | Sold | 5,057 | $106.98 | $0.5M | Form 4 |
| Jun 16, 2026 | Scott E OaksmithSVP, Chief Financial Officer | Sold plan | 2,000 | $115.00 | $0.2M | Form 4 |
| Jun 12, 2026 | Scott E OaksmithSVP, Chief Financial Officer | Sold plan | 2,000 | $110.00 | $0.2M | Form 4 |
| May 26, 2026 | Dominic DragisichInterim CEO | Sold plan | 22,621 | $114.25 | $2.6M | Form 4 |
| Mar 18, 2026 | Scott E OaksmithSVP, Chief Financial Officer | Sold plan | 1,603 | $100.00 | $0.2M | Form 4 |
| Mar 17, 2026 | Scott E OaksmithSVP, Chief Financial Officer | Sold plan | 600 | $100.07 | $0.1M | Form 4 |
| Feb 2, 2026 | Simone WUSenior Vice President | Sold plan | 8,080 | $101.56 | $0.8M | Form 4 |
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✕ | ✓ | ✓ |
| Cash from operations exceeds net income | ✓ | ✓ | ✕ |
| Debt fell relative to assets | ✕ | ✕ | ✓ |
| Current ratio rose | ✕ | ✓ | ✓ |
| Share count didn't rise | ✓ | ✓ | ✓ |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | ✓ | ✕ | ✕ |
| F-score | 5 / 8 | 6 / 8 | 6 / 8 |
| Accruals ratio | −1.7% | −0.8% | 3.7% |
| Altman Z'' | 1.69 | 3.47 | 3.55 |
Similar companies
Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Choice Hotels CHH | $4.9B | 0.8% | 28.1% | 10.2% | 19.5% | 15.3x | 6 | |
| Wyndham Hotels & Resorts WH | $5.4B | 1.5% | 28.1% | 22.5% | 9.9% | 26.5x | 4 | Compare → |
| Sabre SABR | $607M | 1.0% | 10.7% | −6.9% | 8.9% | — | 5 | Compare → |
| Vail Resorts MTN | $5.2B | −4.3% | 14.8% | 8.7% | 8.1% | 35.6x | 5 | Compare → |
| Travel + Leisure TNL | $4.1B | 4.1% | 13.8% | 13.0% | 8.5% | 17.6x | — | Compare → |
10 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $808M | $941M | $1.0B | $1.1B | $774M | $1.1B | $1.4B | $1.5B | $1.6B | $1.6B |
| Operating income | $187M | $290M | $319M | $319M | $122M | $429M | $479M | $375M | $464M | $448M |
| Interest expense | $44.4M | $45.0M | $45.9M | $46.8M | $49.0M | $46.7M | $43.8M | $63.8M | $87.1M | $91.1M |
| Pretax income | $148M | $249M | $273M | $270M | $53.0M | $377M | $437M | $337M | $396M | $457M |
| Income tax | $41.4M | $127M | $56.9M | $47.1M | −$22.4M | $87.5M | $105M | $78.4M | $96.0M | $86.9M |
| Net income | $107M | $122M | $216M | $223M | $75.4M | $289M | $332M | $259M | $300M | $370M |
| Diluted EPS | $2.46 | $2.15 | $3.80 | $3.98 | $1.35 | $5.15 | $5.99 | $5.07 | $6.20 | $7.90 |
| Diluted shares | 0.06B | 0.06B | 0.06B | 0.06B | 0.06B | 0.06B | 0.06B | 0.05B | 0.05B | 0.05B |
| Cash flow | ||||||||||
| Cash from operations | $152M | $257M | $243M | $271M | $110M | $384M | $367M | $297M | $319M | $270M |
| Capital expenditure | $25.2M | $23.4M | $47.7M | $57.3M | $33.6M | $74.3M | $65.8M | $68.6M | $107M | $107M |
| Free cash flow | $127M | $234M | $195M | $213M | $76.5M | $309M | $301M | $228M | $213M | $164M |
| Depreciation and amortization | $7.0M | $6.7M | $14.3M | $18.8M | $25.8M | $24.8M | $30.4M | $45.0M | $52.0M | $59.7M |
| Stock-based compensation | $14.6M | $24.9M | $15.0M | $16.6M | $7.2M | $23.4M | $40.5M | $40.5M | $38.4M | $38.3M |
| Acquisitions | $1.3M | $0.0M | $231M | $0.0M | $0.0M | $0.0M | $550M | $0.0M | $0.0M | $73.4M |
| Share buybacks | $35.9M | $9.8M | $149M | $50.6M | $55.4M | $13.4M | $435M | $363M | $381M | $138M |
| Dividends paid | $46.2M | $48.7M | $48.7M | $48.1M | $25.3M | $25.0M | $52.5M | $56.5M | $55.5M | $53.5M |
| Dividends and buybacks | $82.1M | $58.5M | $197M | $98.7M | $80.7M | $38.4M | $487M | $419M | $436M | $192M |
| Balance sheet | ||||||||||
| Cash and short-term investments | $203M | $235M | $26.6M | $33.8M | $235M | $512M | $41.6M | $26.8M | $40.2M | $45.0M |
| Total debt | $841M | $727M | $755M | $852M | $1.1B | $1.1B | $1.2B | $1.6B | $1.8B | $1.9B |
| Finance lease liabilities | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Current assets | $345M | $400M | $244M | $237M | $433M | $762M | $348M | $297M | $339M | $406M |
| Current liabilities | $264M | $285M | $318M | $326M | $256M | $570M | $436M | $943M | $463M | $467M |
| Inventory | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Property and equipment, net | $84.1M | $83.4M | $128M | $352M | $335M | $377M | $427M | $494M | $604M | $649M |
| Total assets | $909M | $995M | $1.1B | $1.4B | $1.6B | $1.9B | $2.1B | $2.4B | $2.5B | $2.9B |
| Total liabilities | $1.2B | $1.3B | $1.3B | $1.4B | $1.6B | $1.7B | $1.9B | $2.4B | $2.6B | $2.7B |
| Shareholders' equity | −$365M | −$259M | −$184M | −$23.5M | −$5.8M | $266M | $155M | $35.6M | −$45.3M | $181M |
| Margins | ||||||||||
| Operating margin | 23.2% | 30.8% | 30.6% | 28.6% | 15.7% | 40.1% | 34.1% | 24.3% | 29.3% | 28.1% |
| EBITDA margin | 24.0% | 31.5% | 32.0% | 30.3% | 19.1% | 42.4% | 36.3% | 27.2% | 32.5% | 31.8% |
| Net margin | 13.2% | 13.0% | 20.8% | 20.0% | 9.7% | 27.0% | 23.7% | 16.7% | 18.9% | 23.2% |
| FCF margin | 15.7% | 24.9% | 18.8% | 19.1% | 9.9% | 28.9% | 21.5% | 14.8% | 13.4% | 10.2% |
| Returns | ||||||||||
| Return on capital | 54.2% | 57.3% | 64.9% | 39.3% | 15.1% | 40.3% | 34.2% | 19.9% | 21.6% | 19.5% |
| Return on capital employed | 32.4% | 42.7% | 41.6% | 33.9% | 10.2% | 31.9% | 31.6% | 24.1% | 26.4% | 19.9% |
| Return on equity | — | — | — | — | — | 222.2% | 158.0% | — | — | — |
| Return on assets | 13.1% | 12.9% | 20.3% | 17.7% | 5.1% | 16.4% | 16.5% | 11.5% | 12.2% | 13.6% |
| Growth | ||||||||||
| Revenue growth | −6.0% | 16.5% | 10.6% | 7.1% | −30.6% | 38.1% | 31.1% | 10.1% | 2.6% | 0.8% |
| Net income growth | −16.7% | 14.6% | 76.9% | 3.0% | −66.2% | 283.3% | 15.0% | −22.2% | 15.9% | 23.5% |
| EPS growth | 10.8% | −12.6% | 76.7% | 4.7% | −66.1% | 281.5% | 16.3% | −15.4% | 22.3% | 27.4% |
| FCF growth | −7.6% | 84.4% | −16.6% | 9.2% | −64.1% | 304.7% | −2.6% | −24.3% | −6.7% | −23.1% |
| Share count change | −2.0% | 0.7% | 0.1% | −1.7% | −0.3% | 0.6% | −1.4% | −8.0% | −5.2% | −3.1% |
| Financial health | ||||||||||
| Net debt / EBITDA | 3.3x | 1.7x | 2.2x | 2.4x | 5.6x | 1.2x | 2.3x | 3.7x | 3.4x | 3.7x |
| Debt / equity | — | — | — | — | — | 4.0x | 7.8x | — | — | 10.5x |
| Interest coverage | 4.2x | 6.4x | 6.9x | 6.8x | 2.5x | 9.2x | 10.9x | 5.9x | 5.3x | 4.9x |
| Current ratio | 1.3x | 1.4x | 0.8x | 0.7x | 1.7x | 1.3x | 0.8x | 0.3x | 0.7x | 0.9x |
| Quick ratio | 1.3x | 1.4x | 0.8x | 0.7x | 1.7x | 1.3x | 0.8x | 0.3x | 0.7x | 0.9x |
| Capital allocation | ||||||||||
| Capex / revenue | 3.1% | 2.5% | 4.6% | 5.1% | 4.3% | 7.0% | 4.7% | 4.4% | 6.7% | 6.7% |
| Stock comp / revenue | 1.8% | 2.7% | 1.4% | 1.5% | 0.9% | 2.2% | 2.9% | 2.6% | 2.4% | 2.4% |
| Payouts / FCF | 64.7% | 25.0% | 101.1% | 46.3% | 105.6% | 12.4% | 161.8% | 183.9% | 205.1% | 117.2% |
| Quality scores | ||||||||||
| Piotroski F-score | 5.0 | 5.0 | 6.0 | 5.0 | 5.0 | 6.0 | 6.0 | 5.0 | 6.0 | 6.0 |
| Altman Z'' | 3.8 | 4.6 | 3.6 | 3.4 | 3.4 | 4.5 | 3.8 | 1.7 | 3.5 | 3.6 |
| Accruals ratio | −5.6% | −14.2% | −2.5% | −3.8% | −2.3% | −5.4% | −1.7% | −1.7% | −0.8% | 3.7% |
Source: SEC EDGAR XBRL filings (CIK 0001046311). Data updated October 9, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.