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

Choice Hotels International (NYSE:CHH) issued its quarterly earnings data on Wednesday. The company reported $2.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.97 by $0.05, Briefing.com reports. The company had revenue of $440.76 million during the quarter, compared to the consensus estimate of $436.48 million. Choice Hotels International had a return on equity of 205.69% and a net margin of 20.28%.The firm’s revenue was up 3.4% compared to the same quarter last year. During the same period last year, the company earned $1.92 earnings per share. Choice Hotels International updated its FY 2026 guidance to 6.860-7.100 EPS.

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

• Raised full-year guidance for adjusted EBITDA to $635–$650 million, U.S. RevPAR growth to 0%–1.25%, global RevPAR growth to 0%–1%, and global net rooms growth to approximately 1.5%.
• U.S. rooms growth trends improved, with openings up 27% year over year, exits down 50%, and U.S. franchise agreements up 30%; management expects positive U.S. net rooms growth for 2026.
• Second-quarter adjusted EBITDA rose 6% to $175 million and adjusted EPS increased 5% to $2.02, supported by higher U.S. royalties, royalty-rate expansion, franchise services revenue, and international growth.
• Choice is accelerating its transition to an asset-light franchising model, with hotel-development outlays down 80% in the first half and initial asset dispositions expected in the first half of 2027, potentially improving future cash flow.
• Despite the stronger operating outlook, adjusted EPS guidance was set at $6.86–$7.10 because of higher expected interest expense and a higher effective tax rate; second-half comparisons also include a roughly $9.5 million unfavorable impact from nonrecurring prior-year liquidated damages.

Choice Hotels International Stock Down 2.8%

NYSE CHH traded down $3.09 during trading hours on Friday, reaching $106.64. 152,119 shares of the company’s stock traded hands, compared to its average volume of 659,518. Choice Hotels International has a 52-week low of $84.04 and a 52-week high of $124.44. The company has a debt-to-equity ratio of 14.08, a current ratio of 0.93 and a quick ratio of 0.95. The firm has a 50-day simple moving average of $110.50 and a 200 day simple moving average of $108.33. The firm has a market cap of $4.85 billion, a PE ratio of 15.07, a PEG ratio of 4.50 and a beta of 0.67.

Choice Hotels International Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were issued a $0.2875 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $1.15 dividend on an annualized basis and a yield of 1.1%. Choice Hotels International’s dividend payout ratio is 15.50%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Choice Hotels International in a research note on Tuesday, July 7th. JPMorgan Chase & Co. raised their target price on Choice Hotels International from $116.00 to $118.00 and gave the company a “neutral” rating in a research note on Tuesday, July 21st. Truist Financial dropped their price target on Choice Hotels International from $129.00 to $128.00 and set a “buy” rating on the stock in a research note on Tuesday, May 26th. Wells Fargo & Company boosted their price objective on Choice Hotels International from $98.00 to $99.00 and gave the company an “underweight” rating in a report on Thursday, July 16th. Finally, Barclays upped their target price on Choice Hotels International from $101.00 to $102.00 and gave the stock an “underweight” rating in a research report on Thursday. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $111.92.

Insider Activity

In other news, CFO Scott E. Oaksmith sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $110.00, for a total value of $220,000.00. Following the sale, the chief financial officer directly owned 35,172 shares of the company’s stock, valued at $3,868,920. The trade was a 5.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 23.87% of the company’s stock.

Institutional Investors Weigh In On Choice Hotels International

A number of institutional investors have recently made changes to their positions in the company. Quarry LP bought a new position in shares of Choice Hotels International in the third quarter worth about $38,000. UMB Bank n.a. grew its holdings in Choice Hotels International by 6,416.7% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $37,000 after purchasing an additional 385 shares during the last quarter. Arax Advisory Partners bought a new stake in shares of Choice Hotels International during the 4th quarter worth approximately $43,000. Advisory Services Network LLC bought a new stake in shares of Choice Hotels International during the third quarter worth $57,000. Finally, Parallel Advisors LLC grew its holdings in shares of Choice Hotels International by 627.0% in 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 last quarter. Hedge funds and other institutional investors own 65.57% of the company’s stock.

About Choice Hotels International

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.