Choice Hotels vs Travel + Leisure
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The short version
- Travel + Leisure is the larger business, with $4.0B of revenue in fiscal 2025 against $1.6B for Choice Hotels, about 2.5 times as much.
- Travel + Leisure grew revenue faster (4.1%, against 0.8%).
- Choice Hotels kept more of each dollar of sales as operating profit (28.1% operating margin, against 13.8%).
- Travel + Leisure turned more of its sales into free cash flow (13.0% FCF margin, against 10.2%).
- Choice Hotels earned a higher return on the capital invested in it (19.5%, against 8.5%).
- Investors pay more for each dollar of Travel + Leisure’s earnings: a P/E of 17.5x against 15.3x for Choice Hotels.
| Latest fiscal year | CHH · FY25 | TNL · FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.9B | $4.1B |
| Revenue | $1.6B | $4.0B |
| Free cash flow | $164M | $523M |
| Net income | $370M | $230M |
| Growth | ||
| Revenue growth | 0.8% | 4.1% |
| 5-year growth | 15.6% | 13.2% |
| Share count change | −3.1% | −5.4% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 28.1% | 13.8% |
| Net margin | 23.2% | 5.7% |
| FCF margin | 10.2% | 13.0% |
| Return on capital | 19.5% | 8.5% |
| Return on equity | — | — |
| Balance sheet | ||
| Net debt | $1.9B | $5.3B |
| Net debt / EBITDA | 3.7x | 7.9x |
| Dividends and buybacks | $192M | $450M |
| Valuation & quality | ||
| P/E | 15.3x | 17.5x |
| Piotroski F-score | 6 | — |
Revenue
FY16
CHH $808M
TNL $3.7B
FY17
CHH $941M
TNL $3.8B
FY18
CHH $1.0B
TNL $3.9B
FY19
CHH $1.1B
TNL $4.0B
FY20
CHH $774M
TNL $2.2B
FY21
CHH $1.1B
TNL $3.1B
FY22
CHH $1.4B
TNL $3.6B
FY23
CHH $1.5B
TNL $3.8B
FY24
CHH $1.6B
TNL $3.9B
FY25
CHH $1.6B
TNL $4.0B
CHH
TNL
Operating margin
FY16
CHH 23.2%
TNL 17.8%
FY17
CHH 30.8%
TNL 11.5%
FY18
CHH 30.6%
TNL 13.3%
FY19
CHH 28.6%
TNL 20.1%
FY20
CHH 15.7%
TNL −4.9%
FY21
CHH 40.1%
TNL 19.7%
FY22
CHH 34.1%
TNL 18.3%
FY23
CHH 24.3%
TNL 19.2%
FY24
CHH 29.3%
TNL 19.0%
FY25
CHH 28.1%
TNL 13.8%
CHH
TNL
Free cash flow
FY16
CHH $127M
TNL $846M
FY17
CHH $234M
TNL $879M
FY18
CHH $195M
TNL $343M
FY19
CHH $213M
TNL $344M
FY20
CHH $76.5M
TNL $305M
FY21
CHH $309M
TNL $511M
FY22
CHH $301M
TNL $390M
FY23
CHH $228M
TNL $276M
FY24
CHH $213M
TNL $383M
FY25
CHH $164M
TNL $523M
CHH
TNL
Return on capital
FY16
CHH 54.2%
TNL —
FY17
CHH 57.3%
TNL —
FY18
CHH 64.9%
TNL —
FY19
CHH 39.3%
TNL —
FY20
CHH 15.1%
TNL −1.9%
FY21
CHH 40.3%
TNL 10.8%
FY22
CHH 34.2%
TNL 11.5%
FY23
CHH 19.9%
TNL 13.5%
FY24
CHH 21.6%
TNL 12.0%
FY25
CHH 19.5%
TNL 8.5%
CHH
TNL
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.