Choice Hotels International, Inc. (CHH) Bank of America Gaming and Lodging Conference 2026 September 9, 2026 11:30 AM EDT
Company Participants
Dominic Dragisich - President, CEO & Director
Conference Call Participants
Shaun Kelley - BofA Securities, Research Division
Presentation
Shaun Kelley
BofA Securities, Research Division
Welcome back, everybody. So now I have to make that tough transition from like weighing the rabbit hole on prediction markets to what's going on in the hotel space. But this is actually really exciting. So to my right is Dom Dragisich. Dom is President and Chief Executive Officer of Choice Hotels. But the real story here is that he was just appointed to this role within the last few weeks. So congratulations, Dom.
Dominic Dragisich
President, CEO & Director
Thank you very much. I appreciate it. It's an honor to be here.
Shaun Kelley
BofA Securities, Research Division
So we've had the chance to work together for a number of years in your prior life as CFO, and we kept touch even in between there. But I don't think everybody is quite as familiar with you.
Question-and-Answer Session
Shaun Kelley
BofA Securities, Research Division
So let's just walk through, if you wouldn't mind, a little bit of your background and bio because you don't trace all your roots back to the hotel industry either. And I'd love to just kind of walk through that and what's led up to to your current role?
Dominic Dragisich
President, CEO & Director
I certainly have a diversified set of experiences, and I know we have a prior relationship. But first thing I want to do is just say week 2 on the job. So it's good to see everybody again. It's great to be back. I was the CFO of the company for about 7 years. So a lot of familiar faces in the
It has been about a month since the last earnings report for Choice Hotels (CHH - Free Report) . Shares have lost about 9.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Choice Hotels due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
CHH Q2 Earnings Beat Estimates as RevPAR and Fees RiseChoice Hotels reported second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year. Adjusted earnings of $2.02 per share beat the consensus estimate of $1.97 by 2.5% and rose 5% year over year. Revenues of $440.76 million surpassed the $431 million consensus mark by 2.3% and increased 3.4% year over year.
Performance benefited from higher U.S. royalties, franchisee programs and services revenues, and partnership revenues. U.S. RevPAR increased 1.3%, while global net rooms grew 2.6%, reflecting improving domestic development trends and continued international growth.
Adjusted EBITDA increased 6% year over year to $175 million. Management attributed the gain primarily to higher U.S. royalties from improving RevPAR and royalty-rate expansion, growth in franchisee programs and services revenues, higher partnership revenues and the continued benefit of the transition to direct franchising in Canada.
Revenues excluding reimbursable revenues from franchised and managed properties increased 7% year over year to $277 million. Choice Hotels reported net income of $64.34 million in the quarter, down 21.3% from $81.73 million a year ago.
Choice Hotels' Cost Profile Pressures Operating ResultsOperating income declined 16.4% year over year to $104.14 million from $124.60 million. Total operating expenses increased 11.5% to $336.62 million, reflecting higher selling, general and administrative expenses, reimbursable expenses and depreciation and amortization.
Selling, general and administrative expenses rose 7.7% to $96.15 million. The increase reflected higher provisions for accounts-receivable credit losses, restructuring and executive severance costs, and expenses related to operating Choice Hotels Canada. Reimbursable expenses from franchised and managed properties totaled $197.67 million versus related reimbursable revenues of $163.32 million.
CHH’s Fee-Led Model Helps Lift RevenuesFranchise and management fees increased 5.9% year over year to $187.54 million, supported by higher international royalty fees, franchise programs and services revenues, and U.S. royalty fees. Partnership services and fees advanced 5.9% to $28.67 million, mainly on higher procurement revenues.
Owned-hotel revenues increased 15.4% to $34.90 million, while other revenues rose 6.5% to $26.33 million. The U.S. average royalty rate expanded 11 basis points. Choice Privileges membership increased 7% to 77 million, while loyalty contribution improved by more than 250 basis points during the quarter.
Choice Hotels' Rooms Growth Improves on ConversionsU.S. gross room openings increased 27% year over year to 6,464 rooms, while exits declined 50% to 5,119 rooms. This resulted in 1,345 net room additions. Management said U.S. net rooms growth improved sequentially for the second consecutive quarter.
U.S. franchise agreements awarded increased 30% year over year, while conversion franchise agreements rose 82%. The U.S. conversion pipeline increased 24% from the prior-year period and 6% sequentially. Conversions are expected to represent approximately 90% of U.S. openings in 2026, while extended stay represents more than 40% of the U.S. pipeline.
CHH’s Cash Flow and Capital Returns Stay ActiveOperating cash flow totaled $67.36 million during the first six months of 2026, down from $116.07 million in the year-ago period. Management attributed the decline primarily to higher franchise agreement acquisition costs as room openings increased and higher marketing and reservation-system reimbursable expenses.
CHH ended the quarter with $42.83 million in cash and cash equivalents and $2 billion of long-term debt. Total liquidity stood at $475 million, while net leverage was 3.1 times adjusted EBITDA. The company returned $139 million to its shareholders through dividends and share repurchases during the first half, while net development outlays declined 80% year over year to $15.1 million.
Choice Hotels Raises 2026 Operating OutlookChoice Hotels raised its full-year 2026 adjusted EBITDA outlook to $635-$650 million from $632-$647 million. U.S. RevPAR growth is now expected at 0-1.25%, global RevPAR growth at 0-1%, U.S. average royalty-rate expansion at 7-9 basis points and global net rooms growth at approximately 1.5%.
Adjusted EPS guidance was updated to $6.86-$7.10 from $6.92-$7.14, primarily reflecting higher expected interest expense and a higher effective tax rate, partly offset by share repurchases. Management continues to expect positive U.S. net rooms growth for 2026 and share repurchases of $175-$225 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.89% due to these changes.
VGM ScoresAt this time, Choice Hotels has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Choice Hotels has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
NORTH BETHESDA, Md., Sept. 4, 2026 /PRNewswire/ -- Choice Hotels International, Inc.'s (NYSE: CHH) President and Chief Executive Officer, Dominic Dragisich, will speak at the 2026 Bank of America Gaming and Lodging Conference, to be held on Wednesday, September 9.
Dragisich Has Served as Interim Chief Executive Officer Since May 2026 Dragisich is a Proven Leader with Over 20 Years of Industry, Financial, and Operational Experience NORTH BETHESDA, Md., Aug. 31, 2026 /PRNewswire/ -- Choice Hotels International, Inc. ("Choice Hotels" or "the Company") (NYSE: CHH), one of the world's largest lodging franchisors, today announced that its Board of Directors has appointed Dominic Dragisich as President and Chief Executive Officer and to the Board of Directors, effective August 31, 2026.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CHH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
As National Waffle Day meets Route 66's centennial, Comfort® Hotels is turning the Santa Monica Pier into the ultimate tribute to America's favorite breakfast food and road trip route
, /PRNewswire/ -- To celebrate National Waffle Day on August 24, Comfort®, the flagship hotel brand of Choice Hotels International, Inc. (NYSE: CHH), is teaming up with brand ambassador, acclaimed actor, producer and writer Keegan-Michael Key to remind travelers that "Waffles are a Comfort® Food." Bringing together two American icons, the Comfort® brand's beloved waffles and the legendary Route 66 — the brand will transform the Santa Monica Pier, the symbolic end of America's most famous road trip, into "The Ultimate Route 66 Comfort® Stop for National Waffle Day." The free, one-day pop-up event will feature fresh waffles, interactive experiences, surprise giveaways, commemorative keepsakes, an appearance by Key, and road trip-inspired fun.
Waffles are a Comfort® Food
Rendering of Waffle Truck Comfort® Hotels is once again shining a spotlight on one of the brand's signature offerings – its iconic waffles. Since adding waffles to its complimentary breakfast lineup in the early 1990s, Comfort® has turned the breakfast staple into a travel tradition, serving more than 30 million waffles annually. With nearly seven in ten Americans (69%) saying summer vacation remains important to them according to a new report, the Comfort® brand's signature waffles have become part of the rituals that make those trips memorable, whether fueling up for a family adventure or starting the day before a business meeting.
From crossing the Route 66 finish line and ringing the waffle gong, to building custom road trip playlists and scoring epic travel kits, every activity at The Ultimate Route 66 Comfort® Stop for National Waffle Day is designed to fuel the adventure. Actor Keegan-Michael Key will make a special appearance. "I've always loved road trips because they give you a chance to explore new places, and make memories with the people who matter most", said Key, reflecting on his childhood travels. "When I was a kid and we were on the road, my stepmother used to make us waffles. And I love that waffles are still part of the experience, and it reminds me of those moments with family that stay with you long after the trip is over. That's why I'm thrilled to celebrate National Waffle Day with Comfort®, and bring together two great American traditions: getting out on the open road and enjoying a delicious waffle."
"Road trips offer the freedom to explore, reconnect, and create lasting memories and every great road trip deserves a great breakfast. At Choice Hotels, we celebrate that waffles are a Comfort® food. For decades, the Comfort® brand's signature waffles have been a favorite part of our guests' journeys, giving travelers a warm, familiar start to the day before they hit the road," said Joe Francisco, Comfort Brand Leader at Choice Hotels International. "As we celebrate National Waffle Day and the centennial of Route 66, we're bringing that tradition to life with an experience that celebrates the joy of travel, the nostalgia of America's most famous highway, and the delight of sharing a great waffle."
The event will be located on the Santa Monica Pier in Santa Monica, CA and is free and open to the public from 9:30 a.m. to 1 p.m. on Monday, August 24th.
Here's what's on the menu at the event:
Visit the Waffle Food Truck for warm, fluffy free waffles with an array of toppings Grab a specialty drink at the coffee bar for the ultimate waffle pairing Cross the Route 66 finish line and ring the waffle gong Create a mobile personalized Road Trip playlist with Spotify. Take home commemorative swag like a Comfort® branded coffee mug Enroll in Choice Privileges® and receive automatic Gold Elite Status as part of the Road Trip Tour celebration Enter for a chance to win a limited-edition Road Trip Toolkit featuring a Stanley® cooler, Choice Privileges® points, snacks and other travel essentials The activation celebrates over 45 years of Comfort® as a trusted travel companion, with more than 2,100 Comfort locations worldwide. Known for modern essentials like free Wi-Fi, complimentary hot breakfasts, fitness centers, and dependable service, Comfort® continues to be the go-to hotel for travelers looking for reliability, value, and ultimately, a comfortable stay.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Comfort®: A Better Us. For the Best You.
The Comfort brand has been trusted by travelers and hotel owners for over 45 years. With more than 2,100 hotels open worldwide, Comfort Inn®, Comfort Inn & Suites®, and Comfort Suites® properties are ready to welcome business and leisure travelers everywhere they are going. The Comfort brand family recently completed a multiyear transformation with updated guest rooms, refreshed public spaces, and a new, modern logo signaling to guests outside the hotel that something's new on the inside. The largest 100% smoke-free hotel brand in North America, Comfort hotels offer spacious rooms, complimentary amenities including a hot, hearty, and healthy breakfast, free Wi-Fi, a business center, and a fitness center and/or swimming pool. For more information, visit www.choicehotels.com/comfort-hotels.
New hotels in Euless, Texas and Bend, Oregon expand the brand's footprint in high-demand destinations as the company's upscale momentum continues
, /PRNewswire/ -- Cambria® Hotels, an upscale brand of Choice Hotels International, Inc. (NYSE: CHH), continues to grow its footprint with the opening of two thoughtfully designed hotels in sought-after destinations across the country: Cambria Hotel Euless – DFW Airport South in Texas and Cambria Hotel Bend – Mt. Bachelor in Oregon. The new properties further strengthen Cambria's presence in key leisure and business travel markets, bringing the brand's upscale hospitality experience to two high-demand destinations.
Cambria Hotel Bend - Mt. Bachelor exterior
Cambria Hotel Bend - Mt. Bachelor courtyard
Cambria Hotel Bend - Mt. Bachelor fitness center
Cambria Hotel Bend - Mt. Bachelor bathroom
Cambria Hotel Bend - Mt. Bachelor bar
Cambria Hotel Euless - DFW Airport South bar
Cambria Hotel Euless - DFW Airport South bar
Cambria Hotel Euless - DFW Airport South fitness center
Cambria Hotel Euless - DFW Airport South bed
Cambria Hotel Euless - DFW Airport South bathroom
Cambria Hotel Euless - DFW Airport South exterior
Cambria Hotel Bend - Mt. Bachelor bed
Designed for modern upscale travelers, Cambria Hotels offers guests a distinct sense of place through design-forward accommodations, flexible food and beverage offerings, and experiences that reflect the surrounding community. These new properties further the Cambria brand's expansion into dynamic markets where business, leisure, and lifestyle travel intersect.
"Cambria has always been about creating a true sense of place for our guests, and that strong foundation continues to translate into meaningful growth," said Indy Adenaw, Senior Vice President, Upscale Segment, Choice Hotels International. "We're excited to welcome travelers to these outstanding new properties in Bend and the Dallas-Fort Worth region, two destinations that exemplify the kind of vibrant markets where Cambria thrives. These openings reflect the dedication of our owners, developers, and teams, whose commitment helps us deliver memorable experiences that today's upscale travelers seek while continuing to strengthen Choice Hotels International's upscale portfolio."
The two openings contribute to the expansion of Choice Hotels' upscale portfolio with more than 75 hotels open across the United States and more than 50 properties in the pipeline, representing a presence in approximately 75% of the top 25 U.S. markets. Upcoming openings are expected in key destinations including Boston; Colorado Springs, Colo.; Jacksonville, Fla.; and the brand's first hotel in Canada, further extending Cambria's presence in strategic markets across North America.
Cambria Hotels plays an important role in Choice Hotels International's broader upscale and upper upscale strategy. Through a portfolio that includes Cambria Hotels, Ascend Collection, Radisson, Radisson Blu, and Radisson Individuals, Choice Hotels is offering owners and developers a compelling suite of brands designed to compete in some of the industry's most sought-after segments. Together, these brands help meet the rising demand for distinctive, experience-driven accommodations while creating additional opportunities for owners to benefit from Choice Hotels' powerful distribution platform, industry-leading franchisee support, and award-winning rewards program, Choice Privileges®.
Choice Hotels continues to expand its upscale footprint in response to evolving traveler preferences and demand for distinctive hospitality experiences. Across leisure destinations, major metropolitan areas, and fast-growing business hubs, the company's upscale brands are strategically positioned to create value for owners while delivering memorable stays for guests.
"Cambria's growth is driven by a disciplined approach that creates long-term value for owners while expanding the brand in markets with strong demand," said Mark Shalala, Senior Vice President, Development, Upscale Brands, Choice Hotels International. "The openings in Oregon and Texas reflect our focus on strategic destinations that strengthen Cambria's presence and support the continued growth of Choice Hotels' upscale portfolio."
Cambria Hotel Euless – DFW Airport South
Conveniently located in the heart of the Dallas-Fort Worth Metroplex, the Cambria Hotel Euless – DFW Airport South delivers upscale accommodations and seamless access to one of the nation's busiest transportation hubs. The property features 107 design-forward guestrooms and suites, an on-site restaurant and bar serving locally inspired fare, and complimentary airport transportation, offering travelers a convenient and elevated stay experience just minutes from Dallas Fort Worth International Airport. Guests can also enjoy modern meeting facilities and easy access to major attractions throughout the region.
The hotel's location provides convenient access to AT&T Stadium, historic downtown Grapevine, and numerous entertainment, dining, and business destinations throughout North Texas. Positioned in one of the country's fastest-growing metropolitan areas, the hotel reflects Cambria's commitment to delivering upscale accommodations that blend thoughtful design, local character, and convenience for both business and leisure travelers.
Cambria Hotel Bend – Mt. Bachelor
Located in the heart of Central Oregon, the Cambria Hotel Bend – Mt. Bachelor offers guests convenient access to the region's renowned outdoor recreation, thriving food and beverage scene, and cultural attractions. Situated near the Old Mill District and Downtown Bend, the hotel features 131 design-forward guestrooms and suites, an on-site restaurant and bar, and inviting outdoor gathering spaces complete with a fire pit and cornhole, while placing travelers just minutes from top destinations including the Deschutes River, Hayden Homes Amphitheater, and Mount Bachelor.
Bend has emerged as one of the Pacific Northwest's premier outdoor destinations, attracting residents and visitors alike with its natural beauty, year-round recreation, and vibrant downtown. In addition to world-class skiing and mountain biking at nearby Mount Bachelor, the city is home to one of the nation's most celebrated craft beer scenes and has experienced significant population growth in recent years. Conveniently located near local dining, shopping, and entertainment, the hotel reflects Cambria's commitment to delivering elevated, locally inspired experiences in destinations travelers are eager to explore.
Cambria hotels participate in Choice Privileges®, the award-winning hotel rewards program, which recently launched an all-new rewards experience enabling members to earn more rewards more frequently, achieve Elite status faster, and access exclusive benefits designed to help get the most from every stay. Members can earn and redeem points for reward nights at Cambria hotels, as well as at more than 7,000 properties across a diverse portfolio of brands in 46 countries and territories.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice® has over 7,500 hotels, representing more than 660,000 rooms, in 49 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit choicehotels.com.
About Cambria® Hotels: Going Places™
The Cambria Hotels brand is designed for the modern traveler, offering guests a distinct experience with simple, guilt-free indulgences allowing them to treat themselves while on the road. Cambria properties feature compelling design inspired by the location, spacious and comfortable rooms, flexible meeting spaces, enhanced beverage options and small plates with flavors inspired by the destination. Cambria Hotels is rapidly expanding in major U.S. cities, with more than 75 hotels open in locations like Chicago, New York, Los Angeles, Washington, D.C., Nashville, and Phoenix. To learn more, visit www.choicehotels.com/cambria.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
SummaryChoice Hotels International remains a Buy based on my assessment of its quarterly results and updated full-year outlook.CHH's Q2 2026 EBITDA rose 6.3% YoY to $175.4M, with EPS up 5.2%, reflecting superior domestic royalty pricing, international portfolio expansion, and non-room platform monetization.Management raised FY2026 EBITDA guidance midpoint to $642.5M, and also increased its U.S. royalty rate and global net unit growth targets for the current year.Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More » Techa Tungateja/iStock via Getty Images
I'm keeping Choice Hotels International, Inc. (CHH) as a 'Buy-rated' name after its 2Q beat-and-raise.
CHH's EBITDA and earnings exceeded expectations last quarter, thanks to a higher U.S. royalty rate and international hotel room expansion. These same
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The Most Shorted Stocks in June: Hold, Short, or Squeeze?Choice Hotels International NYSE: CHH reported second-quarter results marked by higher adjusted EBITDA, improving U.S. room-growth trends and an increase in full-year guidance for several operating measures.
Adjusted EBITDA rose 6% year over year to $175 million, while adjusted diluted earnings per share increased 5% to $2.02. Revenue excluding reimbursable revenue from franchised and managed properties rose 7% to $277 million, Chief Financial Officer Scott Oaksmith said.
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Hilton Demonstrates Asset Light is Right for Investors Interim Chief Executive Officer Dom Dragisich said the company’s U.S. net rooms growth improved sequentially for a second consecutive quarter and was nearly flat from a year earlier. Global rooms grew 2.6% during the quarter, supported by improving U.S. development activity and continued international expansion.
Openings Rise as Exits Decline Choice said global room openings increased 16% year over year. In the U.S., gross room openings rose 27% from the prior-year period and 9% sequentially, while room exits declined 50% year over year to the lowest level in six years. U.S. franchise agreements awarded increased 30% during the quarter.
Why Wyndham Hotels Is The Industry Value Play, An Earnings Story Dragisich said the company’s conversion-led development model remains central to its growth strategy. About 75% of U.S. agreements signed year to date are expected to open during 2026, while conversions are projected to account for about 90% of U.S. openings for the full year.
The U.S. conversion pipeline expanded 6% sequentially and was up 24% from a year earlier, according to management. Choice also shortened the average time from signing to opening for conversion properties by nearly one month.
Extended Stay remained a significant development contributor, representing more than 40% of the U.S. pipeline and posting its 12th consecutive quarter of double-digit rooms growth. International net rooms increased 13% year over year, including a 5.4% increase in Canada, where Choice has transitioned to a direct franchising model.
Management said it expects U.S. net rooms growth to return to positive territory for the full year, aided by stronger openings and an anticipated 250-basis-point improvement in the U.S. net exit rate compared with 2025. Third-quarter U.S. net rooms growth is expected to remain broadly consistent with second-quarter levels before accelerating in the fourth quarter.
RevPAR Improvement and Commercial Initiatives U.S. revenue per available room, or RevPAR, increased 1.3% year over year in the second quarter, while global RevPAR rose 1.7% on a currency-neutral basis. International RevPAR increased 2.1%, led by the Caribbean and Latin America and supported by Canada and Asia-Pacific.
Oaksmith said the FIFA World Cup contributed about 60 basis points to second-quarter U.S. RevPAR. Choice estimates the event will provide roughly a 30-basis-point benefit for the full year because its activity was concentrated in the second quarter.
Dragisich said the company is seeking to improve competitive RevPAR through its commercial and technology capabilities rather than relying solely on industry demand. He noted that Choice has lower representation in urban markets and business-transient travel, areas that contributed to a gap in its RevPAR index performance during the quarter.
The company cited early results from several commercial initiatives:
Choice Privileges membership rose 7% year over year to 77 million, while loyalty contribution increased by more than 250 basis points. Members acquired since the loyalty-program relaunch are generating higher average revenue than comparable members acquired a year earlier. Revenue from small and medium-sized business travelers increased 8% year over year, supported by the Business Direct platform. AI-enabled EasyBid improved group request-for-proposal conversion by 360 basis points and helped drive 16% growth in group revenue. An early pilot of the AI-enabled CHARLIE tool reduced operational support requests by about 40%, according to the company. U.S. average royalty rate increased 11 basis points in the quarter, reflecting a mix shift toward higher-revenue brands and newer franchise agreements. In response to an analyst question, Oaksmith said the increase did not represent higher rates for existing franchisees; rather, older contracts are being replaced over time by agreements using the company’s current published contractual rates.
Asset-Light Transition and Capital Returns Choice continued to reduce investment in hotel development as it shifts back toward an asset-light franchising model. Capital outlays for hotel development declined 80% year over year in the first half of 2026.
The company owns 19 operating hotels and one hotel under construction, including properties associated with developing the Cambria and Everhome brands and properties acquired in the Radisson Americas transaction. Oaksmith said Choice does not plan to retain hotel ownership as a long-term strategy and expects its first asset disposition in the first half of 2027, subject to market conditions.
Choice reported $475 million of total liquidity and net leverage of 3.1 times adjusted EBITDA at quarter-end. Operating cash flow totaled $67 million for the first six months, compared with $116 million in the prior-year period, reflecting higher franchise agreement acquisition costs and increased spending on franchisee-facing tools and guest-delivery capabilities.
Through July 31, Choice returned $172 million to shareholders, including $133 million in share repurchases and $39 million in dividends. The company continues to expect $175 million to $225 million in share repurchases during 2026.
Outlook Raised Choice raised its full-year outlook for adjusted EBITDA, U.S. and global RevPAR, U.S. average royalty rate and global net rooms growth. The company now expects:
Adjusted EBITDA of $635 million to $650 million. Adjusted diluted EPS of $6.86 to $7.10, reflecting higher expected interest expense and a higher effective tax rate, partly offset by repurchases. U.S. RevPAR growth of 0% to 1.25% and global RevPAR growth of 0% to 1%. U.S. average royalty rate expansion of 7 to 9 basis points. Global net rooms growth of approximately 1.5%, up from its prior outlook of about 1%. Oaksmith said third-quarter adjusted EBITDA comparisons will be affected by approximately $9.5 million in liquidated damages recognized in other revenue during the prior-year quarter that are not expected to recur. He added that the company expects adjusted SG&A growth to moderate in the second half from the first-half run rate.
About Choice Hotels International (NYSE:CHH)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.
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Choice Hotels (CHH - Free Report) reported $440.76 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 3.4%. EPS of $2.02 for the same period compares to $1.92 a year ago.
The reported revenue represents a surprise of +2.31% over the Zacks Consensus Estimate of $430.81 million. With the consensus EPS estimate being $1.97, the EPS surprise was +2.54%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Choice Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
RevPAR: $61.95 versus $59.54 estimated by three analysts on average.Global System by Region - U.S - Rooms: 499,226 versus the three-analyst average estimate of 498,782.Global System by Region - Total System - Rooms: 661,089 compared to the 658,146 average estimate based on three analysts.Global System by Region - Total International - Rooms: 161,863 versus the two-analyst average estimate of 161,769.Average Daily Rate (ADR): $101.45 compared to the $99.59 average estimate based on two analysts.RevPAR Growth: 1.7% versus 1% estimated by two analysts on average.Occupancy: 61.1% versus the two-analyst average estimate of 59.9%.Revenues- Revenue for reimbursable costs from franchised and managed properties: $163.32 million versus the three-analyst average estimate of $163.48 million. The reported number represents a year-over-year change of -2.4%.Revenues- Franchise and management fees: $187.54 million versus $185.29 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.Revenues- Owned Hotels: $34.9 million compared to the $31.77 million average estimate based on three analysts. The reported number represents a change of +15.4% year over year.Revenues- Partnership services and fees: $28.67 million versus $27.36 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6% change.Revenues- Other: $26.33 million versus the three-analyst average estimate of $23.1 million. The reported number represents a year-over-year change of +6.5%.View all Key Company Metrics for Choice Hotels here>>>
Shares of Choice Hotels have returned -2.1% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Choice Hotels (CHH - Free Report) came out with quarterly earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.97 per share. This compares to earnings of $1.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.54%. A quarter ago, it was expected that this hotel franchiser would post earnings of $1.35 per share when it actually produced earnings of $1.07, delivering a surprise of -20.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Choice Hotels, which belongs to the Zacks Hotels and Motels industry, posted revenues of $440.76 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.31%. This compares to year-ago revenues of $426.44 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Choice Hotels shares have added about 14% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Choice Hotels?While Choice Hotels has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Choice Hotels was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.40 on $455.57 million in revenues for the coming quarter and $7.14 on $1.63 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, H World Group (HTHT - Free Report) , is yet to report results for the quarter ended June 2026.
This hotel operator is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +25.4%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level.
H World Group's revenues are expected to be $982.8 million, up 9.6% from the year-ago quarter.
U.S. Net Rooms Growth Improved for the Second Consecutive Quarter, Supporting 2.6% Global Net Rooms Growth
, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor with an asset-light model, today reported results for the second quarter ended June 30, 2026.
Highlights include:
Net income was $64 million, or $1.41 per diluted share, for the second quarter.
Adjusted EBITDA totaled $175 million, and adjusted diluted EPS reached $2.02 for the second quarter.
U.S. room openings increased 27% in the second quarter compared to the same period of 2025, as the Company opened approximately 6,400 U.S. rooms—the highest second-quarter level since 2019, while exits declined to their lowest second-quarter level since 2020, supporting continued improvement in U.S. net rooms growth.
Global net rooms grew 2.6% compared to June 30, 2025, driven by 3.6% growth in the higher revenue extended stay, midscale, and upscale brands.
U.S. RevPAR increased 1.3% in the second quarter, compared to the same period of 2025, reflecting improvements in both occupancy and rate.
U.S. franchise agreements awarded increased 30% in the second quarter compared to the same period of 2025, representing approximately 9,400 new U.S. rooms for development.
The Company's U.S. conversion rooms pipeline grew 24% to 24,100 rooms, compared to June 30, 2025, and 6% sequentially from March 31, 2026.
The U.S. royalty rate expanded 11 basis points to 5.2% in the second quarter, compared to the same period of 2025.
The Company returned $139 million to shareholders through dividends and share repurchases year-to-date through June 30, 2026.
The Company raised several full-year 2026 guidance ranges. "Our second quarter results reflect encouraging progress across our key priorities, with U.S. net rooms growth improving for the second consecutive quarter to its strongest first-half performance since 2021 and U.S. RevPAR trends strengthening," said Dom Dragisich, Interim Chief Executive Officer. "Over the past several years, we've built a stronger commercial engine and technology platform, and we continue to invest in both. Our biggest opportunity now is sharpening execution—leveraging those capabilities to further enhance franchisee economics by increasing the number and quality of the guests we deliver while lowering operating costs. While we still have work to do, this business has significantly more potential, and I'm confident we can realize it. The progress we delivered this quarter reinforces that confidence."
Financial Performance
($ in millions, except per-share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Total revenues
$441
$426
$781
$759
Revenue excl. revenue for reimbursable costs from
franchised and managed properties1
$277
$259
$494
$469
Net income
$64
$82
$85
$126
Adjusted net income
$92
$90
$142
$153
Diluted EPS
$1.41
$1.75
$1.84
$2.68
Adjusted diluted EPS
$2.02
$1.92
$3.09
$3.25
Adjusted EBITDA
$175
$165
$301
$295
Net income was $64 million for the second quarter, a 21% decline compared to the same period of 2025. The year-over-year decrease primarily reflected a higher net reimbursable deficit from franchised and managed properties related to investments in franchisee-related tools and guest delivery capabilities, timing of SG&A expenses, and increased depreciation and amortization associated with owned hotels and the prior year acquisition of Choice Hotels Canada. These items were partially offset by higher franchise and management fees.2
Adjusted EBITDA increased 6%, and adjusted diluted EPS increased 5% compared to the same period of 2025.
Franchise and management fees increased 6% to $188 million for the second quarter, compared to the same period of 2025, reflecting higher international royalty fees, higher franchisee programs and services revenue, along with U.S. RevPAR and U.S. royalty rate improvement.
Partnership services and fees increased 6% to $29 million for the second quarter, compared to the same period of 2025, primarily reflecting growth in procurement services revenue. __________________________
1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $163 million and $167 million for second quarter 2026 and 2025, respectively, and $287 million and $291 million year-to-date through June 30, 2026 and June 30, 2025, respectively.
2 Selling, general and administrative expenses for the three months ended June 30, 2026 included $0.2 million of expense related to the post-employment benefits announced on May 20, 2026. The Company expects to recognize approximately $2.7 million of total post-employment benefits through August 31, 2026.
RevPAR
(% change on a currency-neutral basis)
Change vs. Prior Year Period
Three months ended
June 30, 2026
U.S.
1.3 %
International
2.1 %
Global
1.7 %
U.S. RevPAR increased 1.3% in the second quarter, compared to the same period of 2025, driven by a 0.7% increase in rate and a 40-basis-point increase in occupancy, primarily reflecting strength in the East North Central, Middle Atlantic, and West South Central regions.
International RevPAR increased 2.1% on a currency-neutral basis in the second quarter, compared to the same period of 2025, led by the Caribbean and Latin America and further supported by continued strength in Canada and Asia Pacific. System Size and Development
(Rooms)
June 30,
2026
June 30,
2025
Change
U.S.
499,226
500,562
-0.3 %
U.S. upscale, extended stay, and midscale
442,676
439,744
0.7 %
International
161,863
143,838
12.5 %
Global
661,089
644,400
2.6 %
Global upscale, extended stay, and midscale
599,207
578,226
3.6 %
Global room openings increased 16% in the second quarter of 2026 compared to the same period of 2025, as the Company opened approximately 8,300 global rooms.
Extended stay remained a core growth engine, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 13.0% compared to June 30, 2025, marking the 12th consecutive quarter of double-digit growth.
International net rooms grew 12.5% compared to June 30, 2025, led by double-digit growth in Asia Pacific and EMEA, with continued growth in Canada.
Global franchise agreements awarded increased 20% in the second quarter compared to the same period of 2025, representing 11,200 new global rooms for development and reflecting continued demand for conversion-led brands.
The Company's global pipeline totaled approximately 77,300 rooms as of June 30, 2026, with 96% concentrated in extended stay, midscale, and upscale brands. The pipeline included: 71,100 U.S. rooms and 6,200 international rooms. 29,900 extended stay rooms, representing 39% of the total pipeline. 26,400 conversion rooms and 50,900 new-construction rooms. Balance Sheet and Liquidity
As of June 30, 2026, Choice had total available liquidity of $475 million, comprised of cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.1x for the trailing twelve months ended June 30, 2026, within the Company's target range of 3.0x to 4.0x.
During the six months ended June 30, 2026, the Company generated $67 million in cash flows from operating activities, compared to $116 million in the prior-year period, primarily reflecting higher franchise agreement acquisition costs associated with a 27% increase in U.S. room openings and higher marketing and reservation system reimbursable expenses.
During the six months ended June 30, 2026, net capital outlays for hotel development and lending activities declined 80% to $15 million, from $76 million in the prior-year period.3
The Company expects to enter the next phase of its asset-light strategy by recycling capital from its owned hotel portfolio. As of August 5, 2026, the Company owned 19 operating hotels, with one additional hotel under construction. The Company expects the first asset sales to occur during the first half of 2027, subject to market conditions.
Shareholder Returns
During the six months ended June 30, 2026, the Company returned $26 million to shareholders through dividends and $113 million in share repurchases.4
As of June 30, 2026, 1.8 million shares of common stock remained available under the Company's current share repurchase authorization.
Outlook
The Company is updating certain aspects of its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, and other items.
Full-Year 2026
Prior Outlook
Net income
$230 to $241 million
$265 to $275 million
Adjusted net income
$312 to $323 million
$320 to $330 million
Adjusted EBITDA
$635 to $650 million
$632 to $647 million
Adjusted SG&A
Mid-single digits
Mid-single digits
Diluted EPS
$5.07 to $5.31
$5.72 to $5.94
Adjusted diluted EPS
$6.86 to $7.10
$6.92 to $7.14
Effective tax rate
26 %
25 %
Full-Year 2026 vs. 2025
Full-Year 2026 vs. 2025
Global RevPAR growth
0% to 1%
-2% to 1%
U.S. RevPAR growth
0% to 1.25%
-2% to 1%
U.S. royalty rate growth
7 bps to 9 bps
Mid-single digits
Global net system rooms growth
Approximately 1.5%
Approximately 1%
The net income guidance range has been revised from the Company's prior outlook primarily to reflect higher expected marketing and reservation system reimbursable expenses, driven by increased investment in franchisee-facing tools and guest delivery capabilities, as well as higher interest expense and a higher effective tax rate.
The adjusted net income guidance range has been revised from the Company's prior outlook primarily to reflect higher expected interest expense and a higher effective tax rate.
Adjusted EBITDA guidance has been raised from the Company's prior outlook, primarily reflecting improvement in U.S. RevPAR, global net rooms growth, and U.S. royalty rate.
Net capital outlays for hotel development-related activities are expected to decline from $103.4 million in 2025 to a range of $20 million to $45 million in 2026.3
__________________________
3 Net capital outlays include investments in owned hotel properties, investments in affiliates, notes receivable issued, net of collections, proceeds from asset sales, and distributions from sales of affiliates.
4 Share repurchases include repurchases under the Company's stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.
Webcast and Conference Call
Choice will host a conference call to discuss second quarter 2026 results on August 5, 2026, at 10:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (833) 461-5787 (U.S.) or (585) 542-9983 (international) and reference conference ID 558894687. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 49 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy, room openings and open hotels, RevPAR, royalty rate, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of changes in laws and regulations generally, or the interpretation thereof, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; governmental action or inaction relating to the federal budget, including funding lapses and government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; information technology, cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, geopolitical conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.
These and other risk factors are discussed in detail in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measurements and Other Definitions
The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. We further discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.
In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.
Adjusted Net Income and Adjusted Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted diluted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.
Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.
Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided.
Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided.
Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.
Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.
Choice Hotels (CHH - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis hotel franchiser is expected to post quarterly earnings of $1.97 per share in its upcoming report, which represents a year-over-year change of +2.6%.
Revenues are expected to be $430.81 million, up 1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.44% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Choice Hotels?For Choice Hotels, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Choice Hotels will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Choice Hotels would post earnings of $1.35 per share when it actually produced earnings of $1.07, delivering a surprise of -20.74%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Choice Hotels doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Hotels and Motels industry, Marriott International (MAR - Free Report) , is soon expected to post earnings of $3.06 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +15.5%. This quarter's revenue is expected to be $7.26 billion, up 7.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Marriott has been revised 0.1% down to the current level. Nevertheless, the company now has an Earnings ESP of +1.88%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Marriott will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Investors with an interest in Hotels and Motels stocks have likely encountered both H World Group (HTHT - Free Report) and Choice Hotels (CHH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, H World Group has a Zacks Rank of #2 (Buy), while Choice Hotels has a Zacks Rank of #3 (Hold). This means that HTHT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HTHT currently has a forward P/E ratio of 15.19, while CHH has a forward P/E of 15.47. We also note that HTHT has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHH currently has a PEG ratio of 4.39.
Another notable valuation metric for HTHT is its P/B ratio of 7.73. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CHH has a P/B of 36.59.
Based on these metrics and many more, HTHT holds a Value grade of B, while CHH has a Value grade of C.
HTHT sticks out from CHH in both our Zacks Rank and Style Scores models, so value investors will likely feel that HTHT is the better option right now.
WoodSpring Suites® has been ranked the #1 Economy Extended Stay Hotel Brand in the JD Power 2026 North America Hotel Guest Satisfaction Index Study. Extended stay leader once again tops all evaluated categories
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), an industry leader in extended stay, is proud to announce that WoodSpring Suites® has been ranked the #1 Economy Extended Stay Hotel Brand in the JD Power 2026 North America Hotel Guest Satisfaction Index StudySM. The brand once again achieved the top ranking across all six evaluated study dimensions in the segment which include guest room, hotel facility, hotel connectivity, hotel staff, value for prices paid, and check-in and check-out.
With this latest recognition, WoodSpring Suites has now earned top honors in the study for a fifth consecutive year in the economy extended stay category, having previously ranked #1 in 2025, 2024 and 2023—since the category's introduction—following its distinction as the #1 overall economy hotel brand in 2022.
"Earning the top ranking for the fifth time in a row is a powerful reflection of the consistency and dedication our owners, operators, and teams bring to delivering an exceptional guest experience every day," said Matt McElhare, Vice President and Extended Stay Segment Lead, Choice Hotels International. "WoodSpring Suites is purpose-built to serve today's extended stay traveler, and this recognition reinforces our leadership in the segment and our commitment to delivering value, comfort and reliable service for longer-term guests."
An all-new construction brand, WoodSpring Suites is designed to meet the needs of extended stay travelers with spacious, smartly designed suites that feature in-room kitchens, flexible layouts and affordable weekly and monthly rates. The brand continues to expand its footprint nationwide with more than 293 locations, offering guests a simple, dependable stay backed by the strength of Choice Hotels' extended stay platform. As of the end of Q1 2026, the brand includes 583 open properties, with an additional 280 projects in the pipeline and 29 hotels under construction.
WoodSpring Suites' continued recognition underscores Choice Hotels' long-standing leadership in the fast-growing extended stay segment, where the company has built a strong portfolio of brands designed to meet diverse traveler needs while driving long-term value for owners.
The JD Power 2026 North America Hotel Guest Satisfaction Index Study, now in its 30th year, measures overall customer satisfaction based on performance in seven dimensions: hotel connectivity; food and beverage; guest room; hotel facility; hotel staff; value for price; and check-in/check-out. The 2026 study benchmarks the performance of 104 brands across nine market segments and is based on responses from 44,787 hotel guests for stays between May 2025 and May 2026.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
WoodSpring Suites®: It's Simple. Done Better.
WoodSpring Suites is a new-construction economy extended stay brand that offers longer-term guests a welcoming environment and a straightforward stay at an affordable price. With more than 293 locations open across the United States, WoodSpring Suites hotels feature spacious all-suite rooms with fully equipped kitchens, plus on-site laundry facilities, free Wi-Fi, and flexible payment options. Woodspring was ranked the #1 in economy extended stay brand in the JD Power North America Hotel Guest Satisfaction Index Study in 2023, 2024, 2025, and 2026. For more information, visit www.choicehotels.com/woodspring.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
Choice Hotels International New independent director brings deep expertise in AI and advanced analytics
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's leading lodging franchisors, today announced the appointment of Ali Keshavarz, President and Chief Data & Analytics Officer of CVS Health, to its Board of Directors.
"Ali is a highly accomplished leader whose experience and expertise in artificial intelligence will further strengthen our Board as we advance Choice Hotels International's long-term growth strategy and continue creating value for our franchise owners, guests, and shareholders," said Stewart Bainum Jr., chairman of the Choice Hotels International Board of Directors.
"Ali offers a proven track record of leading enterprise data, analytics, and AI transformation at scale," added Dominic Dragisich, interim chief executive officer, Choice Hotels International. "We look forward to benefiting from his unique perspective as we continue to drive growth, improve unit economics for our hotel owners, and leverage the power of AI across the business."
Keshavarz serves as Chief Data & Analytics Officer of CVS Health, where he leads enterprise strategy across data and analytics and is a key leader in the organization's AI strategy across the company's businesses. He previously served as Chief Analytics Officer for Aetna and CVS Caremark, helping build enterprise data and analytics capabilities at scale. Before joining CVS Health, Keshavarz spent more than a decade at McKinsey, where he advised clients on data-driven transformation and co-founded the firm's healthcare analytics practice. He holds an M.B.A. from Columbia Business School and a B.A. in mathematics and economics from Northwestern University.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Choice Hotels International. (PRNewsFoto/Choice Hotels International) , /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, today announced that it will report second quarter 2026 earnings results on Wednesday, August 5, 2026, at approximately 6:30 a.m. ET.
The Company will host a conference call on Wednesday, August 5, 2026, at 10:00 a.m. ET. Dom Dragisich, Interim Chief Executive Officer, and Scott Oaksmith, Chief Financial Officer, Choice Hotels, will review the Company's performance and lead a question-and-answer session.
Participants may access the live webcast through the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (833) 461-5787 (U.S.) or (585) 542-9983 (international) and reference conference ID 558894687.
A replay and transcript of the webcast will be available on the Company's Investor Relations website within 24 hours following the conclusion of the call. Participants are encouraged to dial into the call or access the webcast at least 15 minutes prior to the scheduled start time.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Choice Hotels International New initiative features the Detours Worth Taking guide, limited-edition Summer Detour Kits and on-the-road experiences, highlighting the unexpected stops, hidden gems and local discoveries – paired with nearby Choice Hotel properties for convenient stays along the way
, /PRNewswire/ -- As millions of Americans hit the road this summer, Choice Hotels International, Inc. (NYSE: CHH) is helping travelers embrace a simple idea: sometimes the best part of the journey isn't the destination – it's the detour. That mindset reflects a broader travel trend in the US, with more than 80 percent of travelers open to visiting destinations beyond major gateway cities, according to a recent study by the U.S. Travel Association.
Today, Choice Hotels launched their Great American Detour campaign, a new summer travel initiative celebrating the unexpected stops, hidden gems and local discoveries that transform ordinary road trips into unforgettable adventures. At the center of the campaign is Choice Hotels' inaugural Detours Worth Taking guide, a curated collection of destinations and nearby Choice Hotels designed to help travelers uncover memorable unexpected finds, local favorites and scenic surprises while making the most of their travel budgets.
From quirky roadside landmarks and scenic small towns to regional food destinations and natural wonders, the guide spotlights experiences travelers may miss when focused solely on reaching their final destination.
"Road trips have always been about more than getting from Point A to Point B," said Noha Abdalla, Chief Marketing Officer, Choice Hotels International. "The moments people remember most are often the ones they didn't plan for, like a hidden gem that catches the eye, a recommendation from someone local, or a memorable stop discovered along the way. We're celebrating these unexpected experiences and encouraging travelers to make the most out of every mile. With thousands of hotels located near highways and destinations across the country, we're helping people uncover experiences worth visiting while providing comfortable, convenient places to stay so they can focus on making meaningful memories along the way."
Introducing the Detours Worth Taking Guide
The Detours Worth Taking guide highlights a handpicked selection of destinations that capture the spirit of discovery – featuring authentic local charm, unique experiences and memorable stops worth adding to any road trip. Featured destinations include:
Buffalo, New York Plymouth, Massachusetts Biscayne National Park – Homestead, Florida Chincoteague & Assateague Island – Maryland Baxter Springs & Route 66, Kansas Lake Superior – Duluth, Minnesota Galena, Illinois Olympic National Park – Washington Taos, New Mexico Palisades, Colorado For more information, visit ChoiceHotels.com/explore/road-trips/detours-worth-taking. Additional Detours Worth Taking lists will be released throughout the summer.
Coming Soon: Limited-Edition Summer Detour Kits
To make the trip even more memorable, Choice Hotels will roll out a limited-edition Summer Detour Kit, created to help travelers make the most of every mile and embrace the detours worth taking. Packed with thoughtful road trip essentials and playful surprises, the kit celebrates the joy of spontaneous travel. Items may include a StanleyTM cooler, gift card for gas, CampSnapTM camera, power bank charger, curated snack assortment, road trip games and more. Additional details on a chance to win a kit will be announced on Facebook and Instagram @ChoiceHotels in the coming weeks.
Coming Soon: Choice Hotels Summer Road Trip Tour
Travelers can also look forward to the "Check into More Tour" to bring the spirit of the Great American road trip to life – celebrating the Centennial of iconic Route 66, as well as other scenic detours, local attractions and select Choice Hotels along the way. Through a custom-branded on-the-road experience, Choice Hotels will engage with road trippers across the country, offering interactive games, travel-inspired giveaways, and more. Follow Choice Hotels on Facebook and Instagram for locations and to follow the journey.
The initiative celebrates Choice Hotels' long-standing connection to road trip travel while reflecting the company's broader commitment to helping travelers get more from every journey. With a diverse portfolio of brands and thousands of properties across the U.S. and around the world, Choice Hotels is uniquely positioned to serve road trippers, with more than 4,000 properties within a mile of an interstate exit and more than 2,000 near beaches or national parks. Whether travelers are embarking on a cross-country adventure or a weekend getaway, Choice Hotels offers accommodations for every type of trip, traveler and stay. Through Choice Privileges®, the company's award-winning rewards program, members enjoy simple, attainable and flexible ways to earn and redeem points at over 7,000 properties across 46 countries and territories.
For additional travel inspiration, destination recommendations and summer savings, visit ChoiceHotels.com.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Dominic Dragisich, Interim CEO of Choice Hotels (CHH +1.06%), reported the exercise of 12,796 stock options followed by the sale of 22,621 common shares in an open-market transaction on May 26, 2026, as disclosed in an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)22,621Transaction value~$2.58 millionPost-transaction shares (direct)81,607Post-transaction value (direct ownership)~$9.28 millionTransaction value based on SEC Form 4 weighted average reported price ($114.25); post-transaction value based on May 26, 2026 closing market price ($113.71).
Key questionsHow does the transaction size compare to Dragisich's previous insider sales?
The 22,621 shares sold in this event exceed all prior sell transactions by Dragisich since July 2023 except for the July 11, 2023 sale of 15,877 shares and the Oct. 11, 2024 sale of 9,138 shares; subsequent events ranged from 800 to 5,000 shares, underscoring the larger scale of this disposition as available holdings have decreased.What proportion of Dragisich's current position remains after the transaction?
Direct holdings declined from 104,000 to 81,607 shares, with the post-transaction position representing 0.18% of outstanding shares as of the latest report.What is the derivative context behind the reported trade?
This filing reflects the exercise of 12,796 options followed by immediate sale of 22,621 shares.Company overviewMetricValueRevenue (TTM)$1.60 billionNet income (TTM)$344.08 millionDividend yield1.00%1-year price change-12.10%* 1-year performance calculated using May 26, 2026 as the reference date.
Company snapshotChoice Hotels franchises a portfolio of hotel brands including Comfort Inn, Quality, Clarion, Sleep Inn, Econo Lodge, Radisson, and upscale Cambria Hotels; also offers cloud-based property management software.It generates revenue primarily through franchise fees, royalty payments, and technology services to hotel owners and operators.The company serves independent hotel owners, operators, and travelers in the midscale, economy, and upscale lodging segments across 35 countries.Choice Hotels is a leading global hotel franchisor with over 7,500 hotels and 650,000 rooms under management as of March 31, 2026. The company leverages a scalable franchise model and proprietary technology platforms to drive growth and operational efficiency.
Its diversified brand portfolio and focus on both midscale and upscale segments of the travel industry provide a competitive edge in the global lodging market.
What this transaction means for investorsThe May 26 sale of Choice Hotels stock by Dominic Dragisich came at an interesting time. He was the company’s Chief Growth and Strategy Officer until longtime CEO Patrick Pacious suddenly stepped down on May 20. That’s when Dragisich was tapped by the Board of Directors to take over as Interim CEO.
As a result, Dragisich’s disposition occurred just days after taking the top job. Despite this, his sale is not a red flag for investors. It was a non-discretionary transaction, executed as part of a pre-arranged Rule 10b5-1 trading plan adopted in February of 2026.
Such plans are often implemented by insiders to avoid accusations of trading based on insider information. Therefore, Dragisich’s sale was planned before he took over the CEO role.
The change in leadership adds to a bumpy year for Choice Hotels. Although revenue reached a company record $340.6 million in the first quarter, rising costs contributed to a drop in net income to $20.3 million compared to $44.5 million in Q1 of last year.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
(PRNewsfoto/Choice Hotels International, Inc.) Global Net Rooms Increased 1.7%, with U.S. Net Rooms Growth Improving
Q1 U.S. Hotel Openings Hit Five-Year High
Global Franchise Agreements Awarded Increased 72%
, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, today reported results for the first quarter ended March 31, 2026.
Highlights include:
Total revenues reached a company record $340.6 million for the first quarter. Net income was $20.3 million for the first quarter, representing diluted EPS of $0.44. Adjusted EBITDA totaled $125.7 million, while adjusted diluted EPS reached $1.07 for the first quarter. U.S. royalty rate expanded 11 basis points to 5.22% for the first quarter, compared to the same period of 2025. Global net rooms grew 1.7% compared to March 31, 2025, driven by 2.5% growth in higher revenue extended stay, midscale, and upscale brands. U.S. room openings increased 32% in the first quarter compared to the same period of 2025, reaching the highest first-quarter level since 2023, while exits declined year-over-year to the lowest quarterly level since 2023, driving sequential net rooms growth from year-end 2025. Global franchise agreements awarded increased 72% in the first quarter, compared to the same period of 2025. U.S. pipeline grew sequentially to approximately 71,500 rooms, with the conversion rooms pipeline increasing 17% compared to March 31, 2025, and 3% sequentially from December 31, 2025. Capital recycling generated $24.6 million of proceeds in the first quarter, with hotel development and lending shifting from net outflows in the prior year to net inflows in the current period. "Choice Hotels delivered first-quarter financial results in line with expectations, with key operating indicators signaling an inflection point in underlying trends," said Patrick Pacious, President and Chief Executive Officer. "We are driving sequentially improving U.S. net rooms growth, supported by our conversion-led model and more accretive pipeline, achieving faster, more capital-efficient expansion. Franchisee unit economics continue to strengthen and capital intensity is declining. This positions Choice to deliver more consistent earnings growth and enhances our ability to return capital to shareholders."
Financial Performance
($ in millions, except per-share amounts)
2026
2025
Total revenues
$341
$333
Revenue excl. revenue for reimbursable costs from
franchised and managed properties1
$217
$209
Net income
$20
$45
Adjusted net income
$50
$64
Diluted EPS
$0.44
$0.94
Adjusted diluted EPS
$1.07
$1.34
Adjusted EBITDA
$126
$130
1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $124 million and $123 million for first quarter 2026 and 2025, respectively.
Revenue excluding reimbursable costs increased 3% to $216.7 million in the first quarter, from $209.4 million in the prior year. Adjusted EBITDA was $125.7 million for the first quarter, compared to $129.6 million in the prior year, primarily reflecting timing-related factors and in line with expectations. Adjusted diluted EPS was $1.07 for the first quarter, compared to $1.34 in the prior year, reflecting timing-related factors and a temporarily elevated effective income tax rate that is expected to be approximately 25% for the full year. RevPAR
(% change on a currency-neutral basis)
Change vs. Prior Year Period
Three months ended
March 31, 2026
U.S.
-2.3 %
International
2.6 %
Global
-0.8 %
U.S. results included a significant hurricane-related impact of approximately 410 basis points, affecting the year-over-year comparison.
U.S. RevPAR increased 1.8% in the first quarter, compared to the same period of 2025, excluding the prior-year hurricane-related impact. International RevPAR increased 2.6% on a currency-neutral basis in the first quarter, compared to the same period of 2025. System Size and Development
(Rooms)
March 31, 2026
March 31, 2025
Change
U.S.
497,881
505,601
-1.5 %
U.S. upscale, extended stay, and midscale
440,464
444,230
-0.8 %
International
160,467
141,986
13.0 %
Global
658,348
647,587
1.7 %
Global upscale, extended stay, and midscale
595,580
580,860
2.5 %
Global pipeline exceeded 77,700 rooms as of March 31, 2026, with 97% concentrated in extended stay, midscale, and upscale brands, supporting a more accretive future earnings profile. Franchise agreements awarded increased 65% in the U.S. and 113% in international markets in the first quarter of 2026, compared to the same period of 2025. International net rooms grew 13% compared to March 31, 2025, highlighted by a 59% increase in room openings, bringing the international system to approximately 160,500 rooms, with strong momentum across regions, including Canada and EMEA. Extended stay remains a core growth engine, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 11.8% compared to March 31, 2025, and a pipeline of over 30,300 rooms as of March 31, 2026. U.S. midscale room openings increased 57% compared to the same period of 2025, and the pipeline grew 6% from March 31, 2025, reflecting improving owner returns and demand for cost-efficient prototypes. U.S. economy transient rooms pipeline grew 26% sequentially from December 31, 2025, supported by a 13% increase in franchise agreements awarded in the first quarter of 2026. U.S. upscale room openings increased 112% compared to March 31, 2025, and the pipeline grew 8% compared to March 31, 2025, driven by Radisson Individuals, Ascend Collection, and Radisson brand. Balance Sheet and Liquidity
As of March 31, 2026, Choice had total available liquidity of $474.0 million, including cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.2x for the trailing twelve months ended March 31, 2026.
During the first quarter of 2026, the Company used $23.2 million of cash in operating activities, primarily reflecting the timing of working capital items and increased franchise agreement acquisition cost payments associated with higher global room openings, which increased 37% compared to March 31, 2025.
During the three months ended March 31, 2026, Choice generated $24.6 million in proceeds from capital recycling activities, as cash flows related to hotel development and lending shifted meaningfully from net outflows of $41.3 million in the prior year to net inflows of $3.7 million.
Shareholder Returns
During the three months ended March 31, 2026, the Company returned $75.2 million to shareholders, including $13.1 million in dividends and $62.1 million in share repurchases, under its stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.
As of March 31, 2026, 2.3 million shares of common stock remained available under the Company's current share repurchase authorization.
Outlook
The Company is maintaining its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, share repurchases completed after March 31, 2026, and other items.
Net capital outlays for hotel development-related activities are expected to decline significantly, from $103.4 million in 2025 to a range of $20 million to $45 million in 2026, reflecting the Company's transition to a more capital-efficient model.
Full-Year 2026
Net income
$265 to $275 million
Adjusted net income
$320 to $330 million
Adjusted EBITDA
$632 to $647 million
Adjusted SG&A
Mid-single digits
Diluted EPS
$5.72 to $5.94
Adjusted diluted EPS
$6.92 to $7.14
Effective tax rate
25 %
Full-Year 2026 vs. 2025
Global RevPAR growth
-2% to 1%
U.S. RevPAR growth
-2% to 1%
U.S. royalty rate growth
Mid-single digits
Global net system rooms growth
Approximately 1%
Webcast and Conference Call
Choice will host a conference call to discuss first quarter 2026 results on April 30, 2026, at 11:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (800) 715-9871 (U.S.) or (646) 307-1963 (international) and reference conference ID 2822521. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy and open hotels, RevPAR, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.
These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measurements and Other Definitions
The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. We discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.
In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.
Adjusted Net Income and Adjusted Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted diluted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.
Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.
Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided.
Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided.
Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.
Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.
Choice Hotels (CHH - Free Report) came out with quarterly earnings of $1.07 per share, missing the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -20.68%. A quarter ago, it was expected that this hotel franchiser would post earnings of $1.56 per share when it actually produced earnings of $1.6, delivering a surprise of +2.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Choice Hotels, which belongs to the Zacks Hotels and Motels industry, posted revenues of $340.58 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.95%. This compares to year-ago revenues of $332.86 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Choice Hotels shares have added about 23.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Choice Hotels?While Choice Hotels has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Choice Hotels was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.90 on $430.94 million in revenues for the coming quarter and $7.26 on $1.62 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Civeo (CVEO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 1.
This provider of remote-site workforce housing is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of +15.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Civeo's revenues are expected to be $154.7 million, up 7.4% from the year-ago quarter.
Investors with an interest in Hotels and Motels stocks have likely encountered both Hilton Grand Vacations (HGV) and Choice Hotels (CHH). But which of these two companies is the best option for those looking for undervalued stocks?
The company spotlights new tools, insights and initiatives designed to drive demand, improve efficiency and support stronger franchisee returns across every segment
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, today opened its 70th Annual Convention, bringing together thousands of franchise owners, operators, vendors and industry collaborators for three days centered on the theme of "Making More Possible" for its owners and operators—helping them capture new demand, enhance performance and build long-term success.
With sessions and experiences spanning AI-powered technology, revenue optimization, and operational simplification, the convention underscores Choice Hotels' ongoing mission to deliver value for franchisees by harnessing intelligent, data-driven tools that streamline hotel operations, reduce friction and fuel stronger hotel-level performance. The company is also investing in the tools, programs and experiences that strengthen guest trust, personalize stays, drive loyalty and keep travelers coming back.
"This week is about one thing: Making More Possible — together," said Patrick Pacious, President and Chief Executive Officer. "At Choice Hotels, we're working relentlessly to do three things for owners: helping drive more revenue, deepening our personal connection and support for owners and operators, and harnessing AI-powered innovation to help owners run their businesses more simply and efficiently — now and in the future. At the same time, we're focused on elevating the guest experience — strengthening loyalty through Choice Privileges, and using smarter technology and personalization to make every stay easier, more rewarding and more memorable. With interest rates stabilizing, demand trends continuing to improve, limited hotel room supply and a strong calendar of events across the U.S., it's an increasingly favorable time to operate a hotel and invest in the future."
A Reimagined Revenue Engine Built to Drive Demand
A reimagined revenue engine is taking center stage at the convention, designed to help franchise owners capture higher–value demand and grow topline results across key segments. The revenue engine is anchored by the refreshed Choice Privileges loyalty program and strengthened by new commercial tools, including Choice Hotels EasyBid, an AI–powered Request For Proposal (RFP) platform designed to help owners respond faster and capture more group business. Choice Hotels Business Direct is a self–service solution launching soon for small and medium–sized businesses to book and manage stays directly on ChoiceHotels.com. Together with RAISE, a new AI–powered Rate Management Tool launching later this year, these capabilities work in tandem to help owners price more effectively, move faster on opportunities, and unlock incremental revenue with greater efficiency.
Throughout the convention, franchisees can explore these AI-powered offerings through dedicated learning sessions and an interactive AI Zone featuring live demonstrations designed to showcase how this technology simplifies operations, reduces costs and supports stronger hotel-level performance.
Driving Demand and Delivering Value for Owners Through Guest Loyalty
Choice Hotels continues to invest in strengthening demand and bringing more high–value customers to franchise owners' hotels by deepening guest trust across its brands and converting more travelers into loyal, repeat visitors. As guests become increasingly focused on getting more value for their money, Choice Hotels is meeting those expectations through trusted brands, consistent experiences and meaningful rewards. Central to this effort is the continued evolution of Choice Privileges, now with more than 75 million members worldwide. Designed with guests in mind, the program offers greater flexibility, value, and personalization while driving repeat stays and stronger hotel performance. These efforts are supported by targeted marketing capabilities that enable more personalized messaging and offers, helping to reach the right guests at the right time and drive sustained demand.
"Across every segment, guests are telling us the same thing — value matters," said Dom Dragisich, Chief Growth and Strategy Officer. "They want more for their money: the right amenities, the right location and a brand they trust to deliver a reliable experience. That ability to consistently deliver value — at every price point — plays directly to the strength of the Choice Hotels portfolio."
AI Innovation Designed to Simplify Hotel Operations
As the travel landscape continues to evolve, Choice Hotels is investing in AI–enabled innovations focused on simplifying how owners run their businesses. Convention programming highlights advancements designed to streamline workflows, reduce operational friction, and save time for owners and on–property teams. These tools are intended to make day–to–day operations more efficient — allowing owners to focus more on delivering strong guest experiences while benefiting from smarter, easier–to–use systems behind the scenes.
Global Momentum Across Extended Stay, Upscale, Core and International Markets
Across extended stay, upscale and core brands, Choice Hotels entered 2026 with performance trends that reinforce its strong development momentum across its portfolio.
Extended stay continues to be a major growth driver, building on its strongest year on record in 2025 with momentum carrying into the first quarter of 2026. The segment opened 66 U.S. extended stay hotels and awarded 93 franchise agreements last year. With U.S. extended stay agreements increasing 15% year over year and a pipeline of 30,600 rooms as of year–end, the company is well positioned to continue scaling its footprint and meet sustained demand from guests seeking value–driven, longer–stay options.
In upscale, the company opened 27 U.S. hotels across Ascend Collection, Cambria Hotels and Radisson brands in 2025, supported by early 2026 performance that underscores the strength of the company's upscale and above portfolio, including solid occupancy levels and continued rate resilience in the first quarter.
Across its core brands, Choice Hotels awarded 247 U.S. franchise agreements in 2025, reflecting continued demand and leadership in midscale and economy segments, including strong momentum for Country Inn & Suites and Quality Inn. That strength is reinforced by global midscale franchise agreements awarded growing 14% year over year — including a 50% increase in U.S. agreements for Country Inn & Suites — alongside Q1 demand trends that reflect the enduring relevance of well–positioned midscale and economy brands amid evolving travel patterns.
Internationally, Choice Hotels continues to build momentum across key markets, supported by strong development activity, improving performance and increased operational control. In the first quarter of 2026, international net rooms grew 13% year over year, reinforcing the company's expanding global footprint. This momentum builds on record international development in 2025, when the company onboarded 130 new international hotels and expanded its portfolio to nearly 160,000 rooms outside the United States.
Canada continues to stand out as a key growth market, following Choice Hotels' transition to a direct franchising model. In Q1 2026, the Canadian business delivered its strongest first–quarter growth in over a decade, including RevPAR growth of 5.2% year over year on a currency–neutral basis, revenue growth of more than 20%, and a 55% increase in pipeline rooms, reflecting strong franchisee demand and improving hotel performance.
To learn more about Choice Hotels and its family of brands, visit ChoiceHotels.com.
About Choice Hotels
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Choice Hotels Business Direct, EasyBid, CHARLIE, RAISE, AgentCore, and AgentForce reinforce the company's leadership in hospitality technology and innovation
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, today announced a new set of technologies and AI-powered solutions designed to help franchise owners drive more revenue, improve operating efficiency, and prepare for the next era of travel discovery and booking. The newest innovations include Choice Hotels Business Direct, EasyBid, CHARLIE, and RAISE. In addition to relationships with Amazon Web Services (AWS) and Salesforce to utilize AgentCore and AgentForce respectively, these solutions reinforce Choice Hotels' leadership in delivering technology that helps owners capture demand and operate more efficiently.
President and CEO Patrick Pacious on the new set of technologies and AI-powered solutions designed to help franchise owners drive more revenue, improve operating efficiency, and prepare for the next era of travel discovery and booking.
Choice Hotels International (PRNewsfoto/Choice Hotels International, Inc.) For more than a decade, Choice Hotels has actively leveraged artificial intelligence and is now scaling AI across its business to help drive revenue and enhance operations for owners. These solutions support everything from generating group and business travel demand to enabling smarter pricing.
"At Choice Hotels, we believe that innovation should deliver real-world impact," said Patrick Pacious, President and CEO. "These tools are built to help our owners win more business as AI continues to reshape how travelers search, compare and book hotel stays. Throughout our history, we have been an industry leader in technology and digital transformation, and in today's dynamic world that is more important than ever. We are dedicated to deploying technology at scale to make more possible for our franchisees and guests."
Choice Hotels Business Direct
Launching next week, Choice Hotels Business Direct is a self-service digital booking platform purpose-built for small and medium-sized businesses (SMBs), enabling them to book stays directly on ChoiceHotels.com. The platform helps SMBs create travel policies, gives travel managers greater visibility into travel behavior, and provides travelers and their companies with benefits and rewards—helping hotels capture more midweek demand from this large and growing segment.
Choice Hotels EasyBid and EasyBid Plus
To help owners capture more group demand, Choice Hotels has launched EasyBid, an AI-enhanced group Request for Proposals (RFP) tool. EasyBid helps hotels manage and monitor group RFP opportunities in one place and submit faster, more effective responses. Speed matters in group sales, and EasyBid is built to help hotels respond quickly and convert more opportunities into booked revenue. For owners seeking even greater support, EasyBid Plus enables Choice Hotels to respond to RFPs directly on behalf of owners while maintaining oversight and control at no additional cost. This option is specifically designed to save time and boost win rates by targeting high-quality group leads, making it especially valuable for properties without dedicated sales teams or during periods of high RFP volume.
Turning on-demand tools into teammates with CHARLIE
Meet CHARLIE, an AI-powered virtual "teammate" designed to support hotel teams through Choice Hotels' core operating platforms. CHARLIE acts as a 24/7 digital coach that responds to hotel staff needs, surfaces insights, and bolsters Choice Hotels' brand standards, reducing the time staff spend searching for answers and enabling teams to focus more on enhancing the guest experience.
As Choice Hotels continues to evolve CHARLIE, the company expects to expand the agent's ability to help execute routine tasks, further accelerating productivity and improving consistency across hotel operations.
Making revenue management simpler with RAISE
Choice Hotels will soon launch RAISE, a next-generation rate management tool designed to streamline how owners manage pricing, rates and inventory. Built with extensive owner input, RAISE is designed to simplify complex workflows, reduce manual effort, and help owners stay competitive as market conditions shift by using AI to source the right information at the right time.
Built for enterprise scale: AgentCore and AgentForce
As AI moves from pilots to production, Choice Hotels is investing in the foundational capabilities needed to deploy AI safely and reliably across the enterprise.
AgentCore provides a secure, reusable foundation for intelligent agents, enabling Choice Hotels to scale agentic capabilities across teams while supporting governance and enterprise requirements. AgentForce supports the building and deployment of AI agents as teammates across sales, service, marketing, commerce, and internal operations that can help automate, accelerate, and scale workflows.
"Together, AgentCore and AgentForce help Choice Hotels move beyond isolated AI use cases to an integrated, enterprise-wide approach," said Anna Scozzafava, Chief Data, AI, & Technology Officer. "This positions the company to lead in the emerging world of agentic commerce, where AI agents will increasingly research, compare and book travel on behalf of consumers."
Choice Hotels' technology roadmap is focused on delivering measurable value for owners: growing revenue, simplifying operations, and keeping the company's hotels visible and competitive as AI transforms travel discovery. By combining scale, data, and proprietary tools with an owner-first approach, Choice Hotels is helping franchisees compete in today's marketplace while preparing for what's next.
For more information on Choice Hotels and its technology innovations, visit choicehotels.com.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
Highlights include new AI-driven tools and strategic investments strengthening franchisee economics, along with recognition of top-performing hotels and developers
, /PRNewswire/ -- Last week, Choice Hotels International, Inc. (NYSE: CHH) held its 70th Annual Convention. Throughout the three-day event, the company highlighted how its ongoing growth, strategic investments, and focus on innovation are shaping the future of franchise ownership. At the convention, Choice Hotels unveiled a new suite of technology and AI-driven solutions aimed at helping franchise owners increase revenue, streamline operations, and prepare for the next generation of travel experiences and bookings. The company is continuing to innovate across its segments, including its enhanced Choice Privileges program, now with more than 75 million members, which is driving more repeat stays. The all-new experience enables members to earn rewards more frequently, and reach Elite status faster, along with exclusive benefits to get the most from every stay.
President and CEO Patrick Pacious at Choice Hotels International's 70th Annual Convention.
President and CEO Patrick Pacious and Chief Development Officer David Pepper present Azim Saju and ARK Hospitality with the Premier Legacy Award at Choice Hotels International's 70th Annual Convention.
President and CEO Patrick Pacious and Chief Development Officer David Pepper present Ash Sangani and Giri Hotels with the Premier Developer Award at Choice Hotels International's 70th Annual Convention.
Choice Hotels International unveiled a new suite of technology and AI-driven solutions at its 70th Annual Convention.
Choice Hotels International (PRNewsfoto/Choice Hotels International, Inc.) Choice Hotels also reinforced its commitment to long-term brand health and performance, including continued focus on property quality, owner support resources, and a strong development engine designed to help owners grow in an increasingly favorable operating environment.
"At Choice Hotels, our focus is simple: more revenue opportunities, lower operating friction, and the tools and support to run great hotels with confidence to Make More Possible. By combining the power of our scale, loyalty, and technology with hands-on support, we're helping owners grow profitability, so they can focus on delivering superb guest experiences," said President and CEO Patrick Pacious. "Looking ahead, we're investing to continue to lead in the next era of AI-led travel discovery and booking, while strengthening guest trust and loyalty across our brands. With agentic commerce, AI agents search for, research, compare, and book hotels on behalf of consumers. Choice Hotels is poised for this transformation and will help drive growth and performance for our franchisees for years to come."
In addition to sharing milestones and the key areas Choice Hotels is investing in across its system, the company also awarded and celebrated top-performing hotels and owners.
Premier Award Winners
The Premier Legacy Award recognizes phenomenal and longstanding hotel owners who have built a true legacy with the company. It goes to owners who have demonstrated an incredible commitment to development with Choice Hotels.
Azim Saju and ARK Hospitality (Premier Legacy Award): Azim grew up in the hotel business, beginning with his family's first Econo Lodge purchase in 1981, and went on to buy his first hotel as owner of record—a Sleep Inn—in 2003. Today, he manages more than 100 hotel properties across multiple franchisors and holds ownership stakes in approximately 20, while also serving as a longtime and deeply engaged leader within Choice Hotels Owners Council, including three terms as Chairman and his current role as Director of Region 1. Ash Sangani and Giri Hotels (Premier Developer Award): Ash brings more than 25 years of experience in hotel ownership. Today, he owns 12 Choice Hotels properties and is currently leading development of the Cambria in Burlington, Vermont, the largest and most significant project ever undertaken by Giri Hotels. Best of Choice Winners
Each year, the Best of Choice Awards recognizes the best U.S. hotel from each brand and the best international properties. Each winner demonstrates a commitment to superior guest service and operational excellence, representing the very best Choice Hotels has to offer from across its wide-ranging portfolio.
Cambria Hotel Traverse City – Traverse City, Michigan Clarion Hotel Arlanda Airport Terminal – Stockholm, Sweden Clarion Inn Willow River – Sevierville, Tennessee Clarion Pointe Marshall – Marshall, Texas Comfort Inn Connellsville Riverview – Connellsville, Pennsylvania Comfort Inn & Suites – Terrace, BC, Canada Comfort Inn & Suites Caldwell – Caldwell, Ohio Comfort Suites Near Sam Houston Race Park – Houston, Texas Country Inn & Suites by Radisson, Belleville, ON – Belleville, Ontario, Canada Country Inn & Suites by Radisson, Lewisburg, PA – Lewisburg, Pennsylvania Econo Lodge Lenoir City – Knoxville Area – Lenoir, Tennessee Hotel Casa Don Luis by Faranda Boutique, a member of Radisson Individuals – Cartagena, Colombia Ingot Hotel Perth, an Ascend Collection Hotel – Perth, Australia MainStay Suites Winfield-Teays Valley – Hurricane, West Virginia Park Inn by Radisson, Calgary Airport North, AB – Calgary, AB, Canada Park Inn by Radisson Ortonville – Ortonville, Minnesota Quality Inn Ingleside – Corpus Christi – Ingleside, Texas Quality Inn & Suites - Lévis, QC, Canada Radisson Blu Belo Horizonte, Savassi – Belo Horizonte, Brazil Radisson Hotel Nashville Airport – Nashville, Tennessee Radisson Puebla Angelópolis - Puebla, México Radisson RED Campinas – Campinas, Brazil Rodeway Inn South Gate – Los Angeles South – South Gate, California Sleep Inn Winfield – Teays Valley – Hurricane, West Virginia Suburban Studios Monaca – Pittsburgh – Monaca, Pennsylvania WoodSpring Suites Columbus Urbancrest – Grove City, Ohio Subscribe to receive Choice Hotels news updates via email here.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
Choice Hotels International Concludes 70th Annual Convention, "Making More Possible" for Franchise Owners and Guests Choice Hotels International Concludes 70th Annual Convention, "Making More Possible" for Franchise Owners and Guests PR Newswire
NORTH BETHESDA, Md., May 12, 2026
Highlights include new AI-driven tools and strategic investments strengthening franchisee economics, along with recognition of top-performing hotels and developers
, /PRNewswire/ -- Last week, Choice Hotels International, Inc. (NYSE: CHH) held its 70th Annual Convention. Throughout the three-day event, the company highlighted how its ongoing growth, strategic investments, and focus on innovation are shaping the future of franchise ownership. At the convention, Choice Hotels unveiled a new suite of technology and AI-driven solutions aimed at helping franchise owners increase revenue, streamline operations, and prepare for the next generation of travel experiences and bookings. The company is continuing to innovate across its segments, including its enhanced Choice Privileges program, now with more than 75 million members, which is driving more repeat stays. The all-new experience enables members to earn rewards more frequently, and reach Elite status faster, along with exclusive benefits to get the most from every stay.
Choice Hotels also reinforced its commitment to long-term brand health and performance, including continued focus on property quality, owner support resources, and a strong development engine designed to help owners grow in an increasingly favorable operating environment.
"At Choice Hotels, our focus is simple: more revenue opportunities, lower operating friction, and the tools and support to run great hotels with confidence to Make More Possible. By combining the power of our scale, loyalty, and technology with hands-on support, we're helping owners grow profitability, so they can focus on delivering superb guest experiences," said President and CEO Patrick Pacious. "Looking ahead, we're investing to continue to lead in the next era of AI-led travel discovery and booking, while strengthening guest trust and loyalty across our brands. With agentic commerce, AI agents search for, research, compare, and book hotels on behalf of consumers. Choice Hotels is poised for this transformation and will help drive growth and performance for our franchisees for years to come."
In addition to sharing milestones and the key areas Choice Hotels is investing in across its system, the company also awarded and celebrated top-performing hotels and owners.
Premier Award Winners
The Premier Legacy Award recognizes phenomenal and longstanding hotel owners who have built a true legacy with the company. It goes to owners who have demonstrated an incredible commitment to development with Choice Hotels.
Azim Saju and ARK Hospitality (Premier Legacy Award): Azim grew up in the hotel business, beginning with his family's first Econo Lodge purchase in 1981, and went on to buy his first hotel as owner of record—a Sleep Inn—in 2003. Today, he manages more than 100 hotel properties across multiple franchisors and holds ownership stakes in approximately 20, while also serving as a longtime and deeply engaged leader within Choice Hotels Owners Council, including three terms as Chairman and his current role as Director of Region 1.Ash Sangani and Giri Hotels (Premier Developer Award): Ash brings more than 25 years of experience in hotel ownership. Today, he owns 12 Choice Hotels properties and is currently leading development of the Cambria in Burlington, Vermont, the largest and most significant project ever undertaken by Giri Hotels.Best of Choice Winners
Each year, the Best of Choice Awards recognizes the best U.S. hotel from each brand and the best international properties. Each winner demonstrates a commitment to superior guest service and operational excellence, representing the very best Choice Hotels has to offer from across its wide-ranging portfolio.
Cambria Hotel Traverse City – Traverse City, MichiganClarion Hotel Arlanda Airport Terminal – Stockholm, SwedenClarion Inn Willow River – Sevierville, TennesseeClarion Pointe Marshall – Marshall, TexasComfort Inn Connellsville Riverview – Connellsville, PennsylvaniaComfort Inn & Suites – Terrace, BC, CanadaComfort Inn & Suites Caldwell – Caldwell, OhioComfort Suites Near Sam Houston Race Park – Houston, TexasCountry Inn & Suites by Radisson, Belleville, ON – Belleville, Ontario, CanadaCountry Inn & Suites by Radisson, Lewisburg, PA – Lewisburg, PennsylvaniaEcono Lodge Lenoir City – Knoxville Area – Lenoir, TennesseeHotel Casa Don Luis by Faranda Boutique, a member of Radisson Individuals – Cartagena, ColombiaIngot Hotel Perth, an Ascend Collection Hotel – Perth, AustraliaMainStay Suites Winfield-Teays Valley – Hurricane, West VirginiaPark Inn by Radisson, Calgary Airport North, AB – Calgary, AB, CanadaPark Inn by Radisson Ortonville – Ortonville, MinnesotaQuality Inn Ingleside – Corpus Christi – Ingleside, TexasQuality Inn & Suites - Lévis, QC, CanadaRadisson Blu Belo Horizonte, Savassi – Belo Horizonte, BrazilRadisson Hotel Nashville Airport – Nashville, TennesseeRadisson Puebla Angelópolis - Puebla, MéxicoRadisson RED Campinas – Campinas, BrazilRodeway Inn South Gate – Los Angeles South – South Gate, CaliforniaSleep Inn Winfield – Teays Valley – Hurricane, West VirginiaSuburban Studios Monaca – Pittsburgh – Monaca, PennsylvaniaWoodSpring Suites Columbus Urbancrest – Grove City, OhioSubscribe to receive Choice Hotels news updates via email here.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
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(PRNewsfoto/Choice Hotels International, Inc.) Board Approves Dividend of $0.2875 Per Share on the Company's Common Stock
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor with a capital-light, franchise-driven model, announced that its board of directors has declared a cash dividend of $0.2875 per share on the company's common stock. The dividend is payable on July 15, 2026, to shareholders of record on July 1, 2026.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which, in turn, are based on information currently available to management. Such statements may relate to projections of the company's revenue, expenses, EBITDA, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock and other financial and operational measures, including the company's occupancy and open hotels, RevPAR, and liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness. These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and, as applicable, our Quarter Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Company Reaffirms Full Year 2026 Financial Guidance
, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice Hotels" or "the Company") (NYSE: CHH), one of the world's largest lodging franchisors, today announced a leadership transition under which Patrick Pacious will step down as President and Chief Executive Officer. Pacious will serve as an advisor to the Company through August 31, 2026, to support the transition. The Company's Board of Directors has appointed Dominic Dragisich, Chief Growth & Strategy Officer, as Interim Chief Executive Officer, effective May 20, 2026.
The Board will conduct a comprehensive search in partnership with a leading executive search firm to identify the Company's next Chief Executive Officer and will consider all qualified internal and external candidates.
Over the course of his nearly 21-year tenure with Choice Hotels, including as President and Chief Executive Officer since 2017, Pacious has led a period of significant growth and transformation for the Company. Under his leadership, Choice Hotels expanded its portfolio from 11 to 22 brands, grew its presence in the upscale and extended-stay segments through the acquisitions of WoodSpring Suites and Radisson Hotels Americas, established a high growth direct franchising international platform, advanced franchisee-focused technology and digital initiatives, and more than doubled adjusted EBITDA.
"Leading Choice Hotels has been the greatest privilege of my career," said Pacious. "Together, we have built a higher-quality portfolio of hotels, a more accretive, diverse pipeline, and a capital-light model that enables the Company to capture significant opportunities ahead. Having laid the foundation for a customer-centric, AI-enabled business, in alignment with our long-term strategic plan, now is the right time for a new leader to guide Choice Hotels into its next phase of growth. I look forward to partnering with the Board, Dom and the entire leadership team to facilitate a smooth transition."
"Pat's leadership has helped define a new era for Choice Hotels. Through strategic acquisitions, disciplined portfolio growth, international expansion, and a relentless focus on franchisee success, Choice has become a more resilient and diversified company," said Stewart W. Bainum, Jr., Chairman of the Board of Directors for Choice Hotels International. "On behalf of the Board, the Bainum family and other shareholders, we thank Pat for his leadership, vision, and many contributions."
Bainum added, "Choice Hotels is a stronger Company today with a solid operational and financial foundation, a talented leadership team and significant long-term growth potential. The Board has full confidence in Dom's leadership and the Company's continued momentum as we conduct a comprehensive search process for Choice's next CEO."
Before becoming Chief Growth & Strategy Officer, Dragisich previously served as EVP, Operations and Chief Global Brand Officer and as the Company's Chief Financial Officer from 2017 to 2023. Dragisich has helped lead the Company's strategic evolution, overseeing transformative acquisitions and other major growth initiatives to enhance long-term value.
"I am honored to step into the role of Interim CEO and look forward to building on the Company's strong foundation. We remain focused on delivering long-term value for our franchisees and shareholders and creating great experiences for our guests and associates," said Dragisich.
Reaffirms Full-Year 2026 Outlook
In connection with today's announcement, the Company is reaffirming its full-year 2026 financial outlook provided in the Company's first quarter 2026 earnings results reported on April 30, 2026. The Company remains focused on executing its strategic priorities, driving franchisee success, and delivering long-term shareholder value.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-looking Statements
Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to Choice's financial outlook, adjusted EBITDA, leadership transition process, strategic plans, artificial intelligence technologies, value creation, growth rate and plans related thereto, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of new laws and regulations generally, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; the federal government funding lapse and related government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.
These and other risk factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
On May 20, 2026, Choice Hotels International Inc CHH shares rose 5.8% today, closing at $112.26. The stock has experienced a 52-week range between $84.04 and $136.45, indicating notable volatility over the past year.
GF Value™ verdict: CHH is currently priced at $112.26, which is 17.0% below its GF Value™ of $135.27. GF Score™ of 89/100 indicates a strong overall assessment of the company's potential for long-term returns. Most notable signal: CHH has a momentum rank of 10/10, suggesting strong recent performance trends. Is CHH Overvalued or Undervalued? The current price of Choice Hotels International Inc CHH at $112.26 is below the GF Value™ estimate of $135.27, indicating that the stock is undervalued by approximately 17.0%. This presents a potential investment opportunity, as the margin of safety implies that the stock may be trading at a discount relative to its intrinsic value. The GF Valuation label categorizes CHH as modestly undervalued, suggesting that while there is potential for appreciation, investors should still consider market conditions and company performance when making decisions.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given its current undervaluation, CHH may provide a favorable entry point for those looking to invest in the travel and leisure sector.
How Does CHH's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.1x 21.6x (5-Year Median) Forward P/E 15.7x - Currently, CHH's P/E ratio of 15.1x is significantly below its 5-year median P/E of 21.6x, indicating that the stock is trading at a lower valuation compared to its historical performance. The forward P/E of 15.7x further supports this analysis. This P/E assessment aligns with the GF Value™ verdict, reinforcing the notion that CHH is undervalued in its current market position.
What Does CHH's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 4/10 Profitability 9/10 Growth 8/10 Valuation 8/10 Momentum 10/10 The GF Score™ of 89/100 reflects a strong overall assessment of Choice Hotels International Inc. The company excels in profitability, with a score of 9/10, indicating solid profit margins and operational efficiency. Additionally, a momentum rank of 10/10 suggests that the stock has been performing well recently. However, the financial strength rating of 4/10 indicates some weaknesses in the balance sheet, which may pose risks for long-term sustainability. Overall, the scores suggest that while CHH has potential for growth, there are areas that require monitoring.
What Are Insiders Doing with CHH Stock? In the last three months, insiders have sold $0.2 million worth of CHH stock without any buying activity reported. This pattern of selling may suggest a lack of confidence from insiders regarding the near-term performance of the stock. While insider selling can reflect personal financial decisions rather than company health, it is still a signal that investors should consider when assessing the overall sentiment around the stock.
What This Means for Investors Based on the analysis of GF Value™, Choice Hotels International Inc CHH appears to be undervalued. The current price reflects a significant discount compared to its intrinsic value, presenting an opportunity for potential investors. However, it is essential to consider the financial strength and insider activity as part of a comprehensive investment strategy.
For the complete analysis, visit the Choice Hotels International Inc CHH stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CHH's GF Score™?
CHH's GF Score™ is 89/100, indicating a strong assessment of the company's potential for long-term returns based on various fundamental factors.
Is CHH overvalued or undervalued?
CHH is currently undervalued, with a GF Value™ of $135.27 compared to its current price of $112.26, presenting a potential investment opportunity.
What is CHH's P/E ratio?
CHH's P/E ratio (TTM) is 15.1x, which is significantly below its 5-year median of 21.6x, indicating that the stock is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
I've upgraded Choice Hotels International to 'Buy' after analyzing its AI initiatives and capital-light model transition. CHH's EasyBid tool, introduced in early May, has already eased CHH's service friction and enhanced its lead-to-reservation capture rate. The firm is becoming less capital-intensive. Its FY2026 CAPEX guidance implies a 70% drop, and it's targeting a 60%-65% free cash conversion this year.
Voss Capital established a new position in Choice Hotels International (CHH +2.08%) during the first quarter, acquiring 967,500 shares in a transaction estimated at $100.61 million based on average quarterly pricing, according to a May 15, 2026, SEC filing.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Voss Capital initiated a new position in Choice Hotels International, acquiring 967,500 shares. The estimated value of the purchase was $100.61 million, based on the average price during the first quarter of 2026. The quarter-end value of the position was $100.14 million, reflecting both the purchase and subsequent share price movement.
What else to knowThis was a new position for Voss Capital, LP; the stake comprised 5.31% of the fund’s reportable U.S. equity assets at quarter’s end.Top holdings after the filing:NASDAQ:FLYW: $158.59 million (9.1% of AUM)NASDAQ:CLBT: $133.32 million (7.6% of AUM)NYSE:GFF: $132.64 million (7.6% of AUM)NYSE:SRE: $121.95 million (7.0% of AUM)NASDAQ:EEFT: $104.53 million (6.0% of AUM)As of May 14, 2026, Choice Hotels shares were priced at $105.72, down 15% over the prior year; the stock underperformed the S&P 500 by roughly 40 percentage points over that period.Company OverviewMetricValueRevenue (TTM)$1.60 billionNet Income (TTM)$345.72 millionDividend Yield1%Price (as of market close 2026-05-14)$105.72Company SnapshotChoice Hotels International franchises lodging properties under brands such as Comfort Inn, Quality, Clarion, Sleep Inn, Econo Lodge, and Cambria Hotels, and provides cloud-based property management software.The firm operates a hotel franchising business model, generating revenue primarily from franchise fees, royalties, and technology services to hotel owners.It serves hotel owners and operators worldwide, targeting both leisure and business travelers.Choice Hotels International is a leading global hotel franchisor with a diverse portfolio of well-known brands. The company leverages its scale, technology solutions, and brand recognition to attract hotel owners and deliver value to both franchisees and guests. Its asset-light model and recurring revenue streams support consistent profitability and competitive positioning within the lodging industry.
What this transaction means for investorsVoss Capital stepped into Choice Hotels after a difficult year for the stock, but the company's latest results suggest several key growth indicators are moving in the right direction.
The most encouraging numbers were found in development. Global franchise agreements awarded surged 72% year over year, while U.S. hotel openings reached a five-year high, and global net rooms increased 1.7%. Choice's pipeline also expanded to more than 77,700 rooms, with 97% concentrated in higher-value extended stay, midscale, and upscale brands.
Management believes those trends represent an inflection point. CEO Patrick Pacious said franchisee economics are improving, capital intensity is falling, and the company's conversion-focused strategy is driving more efficient growth. Choice maintained its full-year outlook, including adjusted EBITDA of $632 million to $647 million and adjusted EPS of $6.92 to $7.14.
There were still challenges: First-quarter adjusted EBITDA slipped to $125.7 million from $129.6 million a year ago, and RevPAR remained soft. But the company's asset-light model continues to generate cash, returning $75.2 million to shareholders through dividends and buybacks during the quarter. Ultimately, if growth continues, a turnaround might be in store, and that seems to be what Voss is betting on.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cellebrite and Euronet Worldwide. The Motley Fool has a disclosure policy.
The Austin-area milestone underscores the company's scale, expertise, and continued momentum as a front runner in the fast-growing extended stay segment
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), a leader in the extended stay segment, today announced the opening of its 30th Everhome Suites® hotel. Located in Georgetown, Texas, the milestone reflects the company's continued strength and execution in one of lodging's most attractive growth categories. Since the brand's debut in 2022, Everhome Suites has rapidly expanded its footprint, reinforcing Choice Hotels' leadership position in extended stay and demonstrating the company's ability to scale new brands while delivering value for owners and guests. Nearly half of all new economy and midscale extended stay construction currently underway in the U.S. are a part of the Choice Hotels system, and the company continues to deliver with eleven consecutive quarters of double-digit extended-stay room growth.
Matt McElhare 30th Everhome Property Quote
Choice Hotels International Everhome Suites Georgetown, located outside of Austin, exemplifies the brand's success in markets with strong, repeatable drivers. The Georgetown area is fueled by corporate and project-based demand from major local employers—such as Dell Technologies, Whole Foods Market, and Southwestern University—in addition to continued manufacturing expansion tied to large-scale developments, further reinforcing the appetite for extended stay in the region. Guests also benefit from proximity to Inner Spaced Cavern, Blue Hole Park, and Lake Georgetown.
"As extended stay continues to evolve, success increasingly belongs to companies that can pair scale with deep segment expertise," said Matt McElhare, Vice President and Extended Stay Segment Lead, Choice Hotels International. "The opening of our 30th Everhome Suites is more than a brand milestone – it's another example of Choice Hotels' leadership in extended stay and our ability to execute in a competitive environment. Our platform is designed to grow alongside long-stay demand – combining disciplined operations with a scalable model that helps owners capture opportunity and deliver long-term, reliable performance."
The Georgetown, Texas opening is part of a broader wave of growth, with additional recent openings in Panama City Beach, Florida and Stockbridge, Georgia to further demonstrate Everhome Suites' national momentum. These projects highlight the brand's expanding geographic footprint along with repeat developer and operator relationships.
Beyond the milestone, this achievement reflects Choice Hotels' sustained leadership, scale, and momentum in extended stay, built through years of investment in a dedicated operating platform. With eight Everhome Suites under construction, and 40 in the pipeline as of Q1 2026— the brand's rapid expansion of thoughtfully designed rooms and amenities reflects a focus on fundamentals that are durable and nationally consistent—supported by corporate project work, manufacturing growth, and relocation activity. With close to 600 extended stay hotels across the segment, Choice Hotels offers guests options for a variety of stay occasions and needs while providing owners with the benefit of one of the industry's largest extended stay platforms.
Created for travelers seeking apartment-style accommodations during longer stays, Everhome Suites' recently redesigned prototype features spacious suites with fully equipped kitchens, contemporary design, and thoughtfully curated amenities that help guests feel at home while traveling. The brand delivers a true midscale extended-stay experience, combining the comfort and convenience of residential living with the service and reliability of a hotel stay.
For more information on Everhome Suites development opportunities, visit
www.choicehotels.com/everhome-suites.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Everhome Suites®: Closer to Home
The Everhome Suites brand provides a Closer to Home™ experience that enables guests to live life on their terms during longer-term stays. The new construction midscale hotels are designed to help extended stay guests maintain routine on the road with spacious suites with long stay amenities featuring fully equipped kitchens, spa-style bathrooms, and customizable "me" spaces, including movable workstations, full-size closets, and additional storage. Everhome Suites properties have modern and sophisticated public spaces, 24/7 fitness centers with Peloton bikes, guest laundry facilities, free Wi-Fi, and self-service marketplaces with a variety of fresh and frozen meal and grocery options. For more information, visit www.choicehotels.com/everhome-suites.
Forward-Looking Statements
This press release includes "forward-looking statements" about future events, including anticipated hotel openings, development pipeline growth, and brand expansion. Such statements are subject to numerous risks and uncertainties, including changes in economic conditions, travel demand, development timelines, and other factors discussed in Choice Hotels International's filings with the Securities and Exchange Commission. Actual results may differ materially from those expressed or implied in these forward-looking statements, and Choice undertakes no obligation to update them.
Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, MD 20852, or by email at [email protected].
Investors interested in Hotels and Motels stocks are likely familiar with Hilton Grand Vacations (HGV - Free Report) and Choice Hotels (CHH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Hilton Grand Vacations and Choice Hotels are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HGV is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
HGV currently has a forward P/E ratio of 9.77, while CHH has a forward P/E of 14.93. We also note that HGV has a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CHH currently has a PEG ratio of 1.96.
Another notable valuation metric for HGV is its P/B ratio of 2.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CHH has a P/B of 35.28.
These are just a few of the metrics contributing to HGV's Value grade of B and CHH's Value grade of C.
HGV sticks out from CHH in both our Zacks Rank and Style Scores models, so value investors will likely feel that HGV is the better option right now.
Appointment of seasoned innovator reinforces the company's leadership at the intersection of hospitality, data, AI, and technology
, /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, has promoted Tony Pallas to Chief Technology Officer. In this role, Pallas will lead enterprise technology, engineering, and SkyTouch Technology, Choice Hotels' hotel operations and property management technology platform.
Pallas will report to Anna Scozzafava, Chief Data, AI & Technology Officer, and will help drive the company's next phase of technology innovation.
Choice Hotels International Chief Technology Officer Tony Pallas
Choice Hotels International's Tony Pallas on his promotion to Chief Technology Officer.
Choice Hotels International "Tony is a proven leader with deep technology and hospitality experience. He has consistently demonstrated the ability to build high-performing teams, create cutting-edge technology platforms, and keep customer needs at the center of every decision—delivering meaningful business results," said Anna Scozzafava, Chief Data, AI & Technology Officer, Choice Hotels International. "As we continue advancing our data, AI, and technology priorities—Tony's leadership will help strengthen our ability to scale innovation quickly, execute with excellence, and create long-term value for franchisees, customers, and guests."
The appointment builds on Choice Hotels' continued leadership at the intersection of hospitality and technology. For more than a decade, Pallas has led platform modernization efforts, expanding cloud-based capabilities, and delivering scalable solutions that help drive hotel performance, operational efficiency, and franchisee success. While serving as Chief Commercial and Technology Officer for Choice Hotels' hotel property management system business, Pallas grew annual revenues by 68% and EBITDA by nearly 100%, effectively doubling the business under his tenure.
Most recently, he also served as executive sponsor and chief architect for CHARLIE, one of several AI-powered solutions Choice Hotels unveiled during its annual convention last month. In his new role, he will help support the continued development and adoption of the company's broader AI-enabled capabilities, including Choice Hotels Business Direct, EasyBid and RAISE. Designed to help hotel owners capture more demand, improve operational efficiency, and prepare for the next era of travel discovery and booking—these solutions reflect Choice Hotels' commitment to delivering technology that solves real customer challenges while creating value for franchisees and guests.
Prior to joining Choice Hotels, Pallas counseled companies on emerging technology strategies, product development, and led organizations delivering custom software solutions across a variety of platforms including web, mobile, and IoT.
"Technology continues to play an increasingly important role in how we serve hotel owners, operators and guests. I look forward to working alongside our talented teams to build scalable solutions, advance AI-driven innovation, and deliver technologies that support our stakeholders' success while positioning our company for continued growth in an increasingly digital world. I am honored to take on this role at such an exciting time for Choice Hotels," said Pallas.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing nearly 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
New program highlights regional flavors, enhancing the complimentary breakfast experience for travelers, while keeping streamlined operations for owners.
, /PRNewswire/ -- Sleep Inn® by Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, is introducing Local Favorites, a new breakfast program designed to bring regionally inspired flavor and storytelling to the guest experience. The initiative invites Sleep Inn hotels to feature one locally relevant breakfast item — such as a pastry from a neighborhood bakery, a regional seasoning or a locally inspired coffee — alongside a short story explaining its connection to the community.
Choice Hotels International
Local Favorites Regional Waffles
Maple Apple Regional Waffle
Hicks Orchard Local Apple Sourcing
Local Favorites Apple Donuts from Hicks Orchard Local Favorites is part of the Sleep Inn brand's broader Morning Medley® hot breakfast, a refreshed approach to the brand's complimentary morning offering designed to balance guest preferences with operational simplicity. The Morning Medley program features traditional hot breakfast staples guests care about most, including protein, alongside the locally customized offerings.
"Today's travelers increasingly want experiences that feel connected to the places they visit, and breakfast is one of the most visible ways a hotel can deliver that sense of place," said Mallory Enos, Head of Midscale Brand Strategy & Management. "With Local Favorites, Sleep Inn is giving hotels a simple, flexible way to reflect their communities while reinforcing the reliable, welcoming experience guests know and expect from the brand."
To support hotels that may not know where to start, Sleep Inn is also offering an optional regionally inspired waffle recipe developed in collaboration with Golden Waffle, giving participating properties an easy entry point into the Local Favorites program with a guest-favorite item. Options include banana bread waffles topped with pecans in the Southeast, maple waffles with apple toppings in the Northeast, blueberry waffles with granola in the Northwest, cinnamon roll waffles with chocolate chips in the Southwest, and chocolate waffles with strawberries in the Midwest — each designed to reflect local flavor profiles while remaining simple to execute.
Together, Morning Medley® and Local Favorites create a morning experience for guests that is welcoming, relevant and rooted in a sense of place — reinforcing Sleep Inn's promise to deliver a stay that is both reliably comfortable and uniquely local. These initiatives also underscore the brand's continued investment in simple and thoughtful innovations that support both guest satisfaction and brand growth.
Sleep Inn®: Dream Better Here®
Every Sleep Inn hotel offers a "simply stylish" sanctuary with nature-inspired design elements that are modern but timeless and create a relaxed and serene environment. A new-construction brand, every Sleep Inn hotel is built with a specific vision in mind: to be a sanctuary for travelers as well as an efficient property to build, operate and maintain. Sleep Inn properties boast strong product consistency and an established presence in the midscale hotel category with more than 440 locations open worldwide. All Sleep Inn hotels offer free Wi-Fi, complimentary hot and cold breakfast options, wellness amenities, and a swimming pool and/or fitness center. For more information, visit www.choicehotels.com/sleep-inn.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH), is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 51 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
