Choice Hotels
CHH NYSE· Hotels, Resorts & Cruise Lines
Last close · Oct 27, 2026
$109.19
KIRA · Stoqly’s AI analyst, in plain words
- Choice Hotels had $1.6B of revenue in fiscal 2025, up 0.8% on the year before. Over five years, revenue changed +15.6% a year on average.
- Its operating margin was 28.1%, down 1.2 pts: of every 100 in sales, about 28 is left after running the business.
- Choice Hotels made $370M of net profit in fiscal 2025. From fiscal 2016 to 2025, diluted EPS grew 13.8% a year.
- Free cash flow was $164M in fiscal 2025, 10.2% of revenue.
- Choice Hotels returned $192M to shareholders in fiscal 2025, 117% of free cash flow. The diluted share count fell 3.1%.
- Choice Hotels owes $1.9B more than it holds in cash, about 3.7 years of operating profit.
Market cap
$5.0B
P/E
15.4x
Revenue
$1.6B
Net income
$370M
Free cash flow
$164M
Operating margin
28.1%
Choice Hotels in 30 seconds · fiscal 2025
Are sales growing?
+0.8%
Only a little. Sales grew 0.8% last year.
Does it make a profit?
23.2%
Yes. It keeps 23.2% of every sale as profit.
Does profit turn into cash?
10.2%
Yes. 10.2% of sales ends up as free cash.
Is debt under control?
3.7x
Heavy. Repaying its debt would take 3.7 years of operating profit.
How healthy are the accounts?
6 / 8
Mixed. It passes 6 of 8 health tests.
How is the share priced?
15.4x
One share costs 15.4 times its yearly profit per share. Typical for its sector: 17.9x.
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.
Biggest risks, in its own words
- Lodging industry risks, since its fees rise and fall with hotel room revenue.
- Its reliance on the skill and decisions of third-party hotel operators.
- Failing to grow its franchise system, or franchisees ending their contracts.
- Owners who do not invest enough to keep their hotels up to brand standards.
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Feb 19, 2026
- Legal name
- CHOICE HOTELS INTERNATIONAL INC /DE
- CIK
- 0001046311
Choice Hotels · CHH
Results and finances
The last 5 fiscal years. Amounts in USD.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales and profit | |||||
| Revenue | $1.1B | $1.4B | $1.5B | $1.6B | $1.6B |
| Revenue growth | 38.1% | 31.1% | 10.1% | 2.6% | 0.8% |
| Operating margin | 40.1% | 34.1% | 24.3% | 29.3% | 28.1% |
| Net income | $289M | $332M | $259M | $300M | $370M |
| Net margin | 27.0% | 23.7% | 16.7% | 18.9% | 23.2% |
| Diluted EPS | $5.15 | $5.99 | $5.07 | $6.20 | $7.90 |
| Cash | |||||
| Cash from operations | $384M | $367M | $297M | $319M | $270M |
| Capital expenditure | $74.3M | $65.8M | $68.6M | $107M | $107M |
| Free cash flow | $309M | $301M | $228M | $213M | $164M |
| FCF margin | 28.9% | 21.5% | 14.8% | 13.4% | 10.2% |
| Dividends paid | $25.0M | $52.5M | $56.5M | $55.5M | $53.5M |
| Share buybacks | $13.4M | $435M | $363M | $381M | $138M |
| Share count change | 0.6% | −1.4% | −8.0% | −5.2% | −3.1% |
| Debt and strength | |||||
| 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 |
| Shareholders' equity | $266M | $155M | $35.6M | −$45.3M | $181M |
| Net debt / EBITDA | 1.2x | 2.3x | 3.7x | 3.4x | 3.7x |
| Current ratio | 1.3x | 0.8x | 0.3x | 0.7x | 0.9x |
| Interest coverage | 9.2x | 10.9x | 5.9x | 5.3x | 4.9x |
| Returns and quality | |||||
| Return on capital | 40.3% | 34.2% | 19.9% | 21.6% | 19.5% |
| Return on equity | 222.2% | 158.0% | — | — | — |
| Piotroski F-score | 6 | 6 | 5 | 6 | 6 |
| Altman Z'' | 4.5 | 3.8 | 1.7 | 3.5 | 3.6 |
Insiders bought, 12 months
$0.0M
0 insiders
Insiders sold, 12 months
$4.8M
4 insiders
Of sales under plans
89%
$4.2M
How to read these numbers
- Revenue:
- Total sales reported in the income statement.
- Operating margin:
- Operating income as a share of revenue.
- Net income:
- Profit after all expenses, interest and tax.
- Free cash flow:
- Cash from operations minus capital spending.
- Net debt / EBITDA:
- Years of EBITDA needed to pay off net debt. Below zero means more cash than debt.
- Return on capital:
- After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Choice Hotels · CHH
Charts and comparison
Ten years at a glance, and how it stacks up against similar companies.
Revenue
Net income
Margins, % of revenue
Cash vs debt (incl. leases)
Free cash flow
Dividends and buybacks
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 | $5.0B | 0.8% | 28.1% | 10.2% | 19.5% | 15.4x | 6 |
| Wyndham Hotels & Resorts WH | $5.4B | 1.5% | 28.1% | 22.5% | 9.9% | 26.7x | 4 |
| Sabre SABR | $623M | 1.0% | 10.7% | −6.9% | 8.9% | 1.0x | 5 |
| Vail Resorts MTN | $5.4B | −4.3% | 14.8% | 8.7% | 8.1% | — | 5 |
| Travel + Leisure TNL | $4.3B | 4.1% | 13.8% | 13.0% | 8.5% | 18.2x | — |
Price compared with profit (P/E)
How many times its yearly profit per share one share costs. Higher means investors pay more for each unit of profit.
KIRA
At $109.19 a share, the company is worth $5.0B: 15.4 times its earnings of the last four quarters.
Choice Hotels grew sales faster than 1 of its 4 similar companies. Its P/E is higher than 1 of 3.
Source: SEC EDGAR XBRL filings (CIK 0001046311). Data updated October 9, 2026. For information only — not investment advice. Check the original filings before relying on any figure.