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Choice Hotels International, Inc. (CHH)

NEUTRAL
Consumer CyclicalLodgingUnited States

Fondamental

64

Prix

$110.15

Capitalisation boursière

$5.04B

Partie 1 · Ce que vaut l'entreprise

Vue d'ensemble

Choice Hotels does not own or run hotels: it licenses brand names such as Comfort Inn, Quality Inn and Radisson to independent owners, who pay to use the brand, reservation system and marketing in exchange for following its operating standards. The company owns a small number of hotels directly, but its business is franchising — collecting fees from thousands of properties it does not operate rather than running rooms itself.

Comment l'entreprise gagne de l'argent

Most revenue is franchise and management fees, charged as a percentage of each hotel's room revenue plus flat platform fees, so it rises and falls with how full and how expensive franchisees' rooms are, not with Choice's own costs. A large additional revenue line is money collected from franchisees for marketing and reservation systems and then spent on their behalf — this passes through the income statement without adding profit. A small owned-hotel portfolio and other services round out the total.

Chiffre d'affaires par segment

Franchise and management fees42.2%

Royalty and initial franchise fees, plus fees from managed properties — the core, high-margin business of licensing the brand.

Revenue for reimbursable costs38.6%

Money collected from franchisees to fund shared marketing and the central reservation system, then spent on those same services — a pass-through, not a profit source.

Owned hotels7.6%

Room and other revenue from the small number of hotels Choice owns and operates directly, unlike the rest of its franchised system.

Partnership services and fees7.1%

Fees from co-branded credit cards, procurement programs and other services sold to the franchise network beyond the core royalty.

Other4.5%

Residual revenue lines not captured in the categories above.

Avantage concurrentiel

Coûts de changement · Étroit

A hotel owner who signs a franchise agreement commits for years and invests in brand-standard renovations, so switching brands means losing that investment and the reservations that come through Choice's system and loyalty program. The moat is real but narrow: at renewal, owners can and do move to a rival chain if the economics no longer work.

Ce qui stimule la demande

Cyclique

Franchise fees are a percentage of room revenue, so they track how much people travel and how much hotels can charge — both of which fall in a weak economy. Growth in the number of franchised hotels also depends on owners being able to get construction financing, which tightens in the same downturns that reduce travel.

Principaux risques

  • Dependence on franchisee performance — Because fees are based on franchisees' room revenue, Choice's results depend on the ability of thousands of independent owners to compete for guests and to obtain financing to build or renovate — factors the company does not directly control.
  • Economic weakness reduces travel — The company states that a weak U.S. or international economy reduces demand for hotel rooms and for new hotel development, which lowers both existing royalty fees and the pipeline of new franchised properties.
  • Competition for franchisees — Growing the franchise system means competing against other chains for the same hotel owners, which can force Choice to lower fees or offer loans and guarantees as incentives, eating into the margin on new growth.

Les arguments en faveur

Buyers argue that a franchise model needs almost no capital of its own, converts room-revenue growth across thousands of hotels into high-margin fees, and that the brand and reservation system create enough switching cost to keep the franchise base growing net of defections.

Les arguments contre

Sellers fear that a travel downturn hits royalty fees directly, that competition among hotel chains for the same owners compresses fee rates over time, and that the large reimbursable-cost revenue line flatters the top line without adding real profit.

Written by the editors, published on 18 août 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Bilan & Liquidités

Chiffre d'affaires

$1.62B

12 derniers mois (au 30/06/2026)

Résultat net

$328M

12 derniers mois (au 30/06/2026)

Flux de trésorerie libre

-

Capitaux propres totaux

$181M

Passif total

$2.74B

Ratio de liquidité général

0.93

Couverture des intérêts

4.28

Dette/EBITDA

4.15

Bénéfice par action

Chiffre d'affaires & Résultat net

Flux de trésorerie libre

Décomposition du résultat

État historique

Marges dans le temps

La dette dans le temps

Le poids de la dette

Grille de la croissance

Croissance — Chiffre d'affaires

Estimation de la juste valeur

Sous-évalué

Juste valeur

$179.06

Prix actuel

$110.15

Marge de sécurité

+38.5%

Fourchette de juste valeur

$116.39 - $241.73

Méthodes d'estimation

Analyst Target:$115.27
DCF:$307.04
PE-based:$106.51
Graham Growth:$363.45
EPV:$83.53
Consensus des analystes:Conserver (3B / 11H / 9S)
Dernière surprise sur les résultats:+2.10%

Indicateurs de valorisation

Ratio P/E

15.74

ROE

204.1%

Ratio P/B

35.18

P/FCF

-

Marge brute

-

ROIC

12.8%

Radar de rentabilité

Value Creation (Economic Moat)

ROIC

12.8%

WACC

6.9%

ROIC − WACC

+5.9 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Critères d'analyse fondamentale

Réussi (15)

  • EPS shows upward trend
  • EPS CAGR 9.89%
  • Price CAGR 6.94%
  • ROIC 12.8%
  • Operating Margin 25.2%
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 215.1%
  • Revenue Growth 5Y 15.6%
  • PEG Ratio 0.34
  • Share Dilution -3.1%
  • Net Margin Trend 20.3% vs 19.5%
  • Piotroski F-Score 6/9

Échoué (8)

  • P/B Ratio 35.18
  • Debt/Equity ratio
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Analyst Consensus 13% Buy
  • Earnings Surprise avg -4.8%
  • Earnings Quality (OCF/NI) 0.68

Indisponible (5)

  • Gross Margin NaN%
  • P/FCF NaN
  • Dividend Payout NaN%
  • Positive Free Cash Flow
  • CapEx intensity

Score F de Piotroski

6/9

Signaux mixtes : certains domaines nécessitent attention

score
criteria

Qualité des bénéfices

0.68

Modérée : certain écart entre profits et trésorerie

Dilution du capital

-3.1%

Rachat d'actions. Favorable aux actionnaires

Gouvernance

Équipe dirigeante

NomTitreÂge
Mr. Dominic E. DragisichInterim Chief Executive Officer43
Mr. Scott E. OaksmithChief Financial Officer53
Mr. Patrick J. CimerolaChief Human Resources Officer56
Mr. Tony PallasChief Technology Officer-
Mr. Jeffrey W. LobbSenior VP, General Counsel & Secretary-
Ms. Noha AbdallaChief Marketing Officer47
Mr. David A. PepperChief Development Officer58
Mr. Raul Ramirez SanchezChief Segment & International Operations Officer41
Ms. Megan BrumagimVP of Upscale Brands & Chief Sustainability Officer-
Ms. Sally BartasChief Talent & Culture Officer-

Risque d'audit

3

Risque du conseil

7

Risque de rémunération

5

Risque droits des actionnaires

5

Partie 2 · Le prix et le moment d'entrer

Cette partie ne dit pas si l'entreprise vaut la peine : elle aide à choisir quand l'acheter, une fois que les fondamentaux vous ont convaincu. À l'intérieur : analyse technique, potentiel, baisses historiques, exposition gamma.

Latest News

Recent headlines for CHH, sourced from Markets Gazette.

  • 3/2/2026NEUTRAL
    Choice Hotels Senior VP Empties Out Stock Options Amid Retirement

    Choice Hotels International saw a senior executive exercise all her remaining stock options in early February, ahead of her planned retirement in 2026. While this move is a common practice for executives nearing retirement, it does not provide a clear directional signal for the stock. Investors should interpret the event as part of the executive's personal financial planning and compensation management, rather than an indicator of changes in the company's operational or strategic outlook. There are no elements suggesting an immediate impact on Choice Hotels' valuation or future performance, maintaining a neutral view on the stock.

via Markets Gazette