Choice Hotels International (NYSE:CHH) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Choice Hotels International (NYSE:CHH) released its earnings results on Thursday. The company reported $1.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.55 by $0.05, Zacks reports. Choice Hotels International had a return on equity of 9,081.29% and a net margin of 23.93%.During the same period in the prior year, the company earned $1.55 EPS. The company’s revenue for the quarter was up .0% compared to the same quarter last year. Choice Hotels International updated its FY 2026 guidance to 6.920-7.140 EPS.

Here are the key takeaways from Choice Hotels International’s conference call:

• Choice reported full-year 2025 adjusted EBITDA of $626 million (up 4%) and adjusted EPS of $6.94, both in line with guidance, and provided 2026 targets of adjusted EBITDA $632M–$647M and EPS $6.92–$7.14.
• Development momentum is a core growth driver: global openings rose 14% YoY, franchise agreements awarded were up ~22%, and 97% of pipeline rooms are in higher‑revenue brands expected to be about 1.7x more accretive than the current portfolio, with a conversion-led model that accelerates openings.
• International expansion accelerated—management cites 37% international revenue growth in 2025, a 13% increase in international rooms to ~160,000, and a shift to direct franchising (directly franchised rooms now >40% of the international portfolio) that improved unit economics.
• Management accelerated selective exits (about 20 underperforming U.S. hotels that ran >20% below company RevPAR) to improve portfolio quality; U.S. average royalty rate rose 8 basis points for the year (10 bps in Q4), supporting franchise economics.
• Near-term demand headwinds remain: global RevPAR fell 4.6% in Q4 (currency‑neutral) and U.S. RevPAR ex‑hurricane was down ~2.2%; management expects Q1 softness and guides 2026 global RevPAR range of -2% to +1%, signaling potential short‑term pressure on top‑line growth.

Choice Hotels International Stock Performance

Shares of Choice Hotels International stock traded up $2.74 on Thursday, hitting $112.14. The stock had a trading volume of 248,020 shares, compared to its average volume of 751,920. The stock has a market cap of $5.19 billion, a price-to-earnings ratio of 13.78, a price-to-earnings-growth ratio of 5.62 and a beta of 0.76. The business’s 50 day moving average is $102.33 and its two-hundred day moving average is $104.08. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 12.81. Choice Hotels International has a twelve month low of $84.04 and a twelve month high of $157.86.

Choice Hotels International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Friday, January 2nd were paid a $0.2875 dividend. The ex-dividend date was Friday, January 2nd. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. Choice Hotels International’s dividend payout ratio is 14.13%.

Insiders Place Their Bets

In related news, SVP Simone Wu sold 8,080 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $101.56, for a total value of $820,604.80. Following the transaction, the senior vice president directly owned 48,803 shares in the company, valued at approximately $4,956,432.68. This represents a 14.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 23.78% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in CHH. UMB Bank n.a. grew its position in Choice Hotels International by 6,416.7% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $37,000 after buying an additional 385 shares in the last quarter. Quarry LP acquired a new stake in shares of Choice Hotels International during the 3rd quarter worth $38,000. Arax Advisory Partners bought a new position in shares of Choice Hotels International in the fourth quarter worth $43,000. Advisory Services Network LLC acquired a new position in Choice Hotels International in the third quarter valued at about $57,000. Finally, Parallel Advisors LLC lifted its position in Choice Hotels International by 627.0% during the fourth quarter. Parallel Advisors LLC now owns 836 shares of the company’s stock worth $80,000 after purchasing an additional 721 shares during the period. Institutional investors and hedge funds own 65.57% of the company’s stock.

Wall Street Analysts Forecast Growth

CHH has been the topic of a number of analyst reports. Wells Fargo & Company assumed coverage on Choice Hotels International in a research note on Tuesday, November 18th. They set an “underweight” rating and a $84.00 price objective on the stock. Argus reiterated a “hold” rating on shares of Choice Hotels International in a research note on Tuesday, December 16th. Truist Financial set a $126.00 price objective on shares of Choice Hotels International and gave the stock a “buy” rating in a research note on Friday, January 9th. JPMorgan Chase & Co. upped their target price on shares of Choice Hotels International from $95.00 to $102.00 and gave the company a “neutral” rating in a report on Tuesday, February 3rd. Finally, Barclays reduced their price target on Choice Hotels International from $99.00 to $98.00 and set an “underweight” rating for the company in a report on Friday, January 16th. Two investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $109.15.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company’s core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.