Track market-moving stories before they get noisy

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.

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.

© 2026 Choice Hotels International, Inc. All Rights Reserved

SOURCE Choice Hotels International, Inc.

Great American Detour Campaign

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.  

SOURCE Choice Hotels International, Inc.

(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.

Contacts

Allie Summers, Senior Director, Investor Relations
[email protected]

© 2026 Choice Hotels International, Inc. All rights reserved.

Choice Hotels International, Inc.

Exhibit 1

Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

For the Three Months Ended

March 31,

2026

2025

REVENUES

Franchise and management fees

$       149,631

$       145,068

Partnership services and fees

24,734

25,381

Owned hotels

30,433

27,860

Other

11,873

11,127

Revenue for reimbursable costs from franchised and managed properties

123,904

123,424

Total revenues

340,575

332,860

OPERATING EXPENSES

Selling, general and administrative

78,046

74,210

Business combination, diligence and transition costs

236

99

Depreciation and amortization

16,821

13,748

Owned hotels

23,651

21,060

Reimbursable expenses from franchised and managed properties

161,787

143,811

Total operating expenses

280,541

252,928

Operating income

60,034

79,932

OTHER EXPENSES AND (INCOME), NET

Interest expense

23,962

21,242

Interest income

(1,211)

(1,559)

Other losses, net

721

436

Equity in net loss of affiliates

6,252

51

Total other expenses and (income), net

29,724

20,170

Income before income taxes

30,310

59,762

Income tax expense

10,006

15,228

Net income

$         20,304

$         44,534

Basic earnings per share

$          0.44

$           0.95

Diluted earnings per share

$          0.44

$          0.94

Choice Hotels International, Inc.

Exhibit 2

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

March 31,

December 31,

2026

2025

ASSETS

Cash and cash equivalents

$           43,872

$           44,997

Accounts receivable, net

243,511

207,491

Other current assets

123,392

153,510

Total current assets

410,775

405,998

Property and equipment, net

649,883

649,291

Operating lease right-of-use assets

76,559

77,670

Goodwill

304,583

305,758

Intangible assets, net

1,096,143

1,082,486

Notes receivable, net of allowances

27,403

12,490

Investments for employee benefit plans, at fair value

47,899

50,227

Investments in affiliates

132,848

134,975

Other assets

198,493

199,308

Total assets

$        2,944,586

$        2,918,203

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable

$          146,193

$          156,276

Accrued expenses and other current liabilities

86,707

125,282

Deferred revenue

112,853

100,698

Liability for guest loyalty program

88,236

85,035

 Total current liabilities

433,989

467,291

Long-term debt

2,003,236

1,906,122

Long-term deferred revenue

129,946

130,505

Deferred compensation and retirement plan obligations

54,313

56,532

Deferred income taxes

34,081

25,303

Operating lease liabilities

106,384

107,963

Liability for guest loyalty program

41,566

39,771

Other liabilities

3,644

3,487

Total liabilities

2,807,159

2,736,974

Total shareholders' equity

137,427

181,229

Total liabilities and shareholders' equity

$        2,944,586

$        2,918,203

Choice Hotels International, Inc.

Exhibit 3

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Three Months Ended March 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$        20,304

$        44,534

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization

16,821

13,748

Depreciation and amortization – reimbursable expenses from franchised and managed properties

5,115

4,887

Franchise agreement acquisition cost amortization

9,580

9,791

Non-cash share-based compensation and other charges

8,434

9,834

Non-cash interest, investments, and affiliate loss, net

1,800

1,515

Deferred income taxes

7,657

626

Equity in net loss of affiliates, less distributions received

6,252

413

Franchise agreement acquisition costs, net of reimbursements

(42,842)

(26,287)

Change in working capital and other

(56,295)

(38,594)

Net cash (used in) provided by operating activities

(23,174)

20,467

CASH FLOWS FROM INVESTING ACTIVITIES

Investments in other property and equipment

(10,065)

(10,543)

Investments in owned hotel properties

(16,819)

(35,462)

Contributions to investments in affiliates

(3,863)

(5,415)

Issuances of notes receivable

(236)

(1,952)

Collections of notes receivable

24,610

1,487

Other items, net

197

(1,067)

Net cash used in investing activities

(6,176)

(52,952)

CASH FLOWS FROM FINANCING ACTIVITIES

Net borrowings pursuant to revolving credit facilities

97,000

105,500

Purchases of treasury stock

(56,480)

(64,624)

Dividends paid

(13,115)

(13,471)

Proceeds from the exercise of stock options

880

4,803

Net cash provided by financing activities

28,285

32,208

Net change in cash and cash equivalents

(1,065)

(277)

Effect of foreign exchange rate changes on cash and cash equivalents

(60)

154

Cash and cash equivalents, beginning of period

44,997

40,177

Cash and cash equivalents, end of period

$        43,872

$        40,054

Exhibit 4

CHOICE HOTELS INTERNATIONAL, INC.

CURRENCY-NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS

(UNAUDITED)

For the Three Months Ended March 31, 2026

ADR

Occupancy

RevPAR

2026

vs. 2025

2026

vs. 2025

2026

vs. 2025

Total U.S.

$        88.74

(2.1) %

50.9 %

(10)

bps

$          45.18

(2.3) %

     Upscale & Above (1)

140.24

0.5 %

50.1 %

20

bps

70.24

0.8 %

     Midscale & Upper Midscale (2)

92.29

(2.1) %

49.8 %

—

bps

45.93

(2.1) %

     Extended Stay (3)

66.35

0.1 %

66.1 %

(170)

bps

43.86

(2.4) %

     Economy (4)

66.11

(5.5) %

42.3 %

(150)

bps

27.99

(8.5) %

International (5)

96.64

3.7 %

56.9 %

(60)

bps

54.97

2.6 %

Total System (5)

$        90.73

(0.6) %

52.3 %

(10)

bps

$          47.45

(0.8) %

For the Three Months Ended

March 31, 2026

March 31, 2025

U.S. Average Royalty Rate

Total U.S.

5.22 %

5.11 %

(1) Includes Ascend Hotel Collection, Cambria, Park Plaza, Radisson, Radisson Blu, Radisson Individuals, and Radisson RED brands.

(2) Includes Clarion, Comfort Inn, Comfort Suites, Country Inn & Suites, Park Inn, Quality Inn, and Sleep Inn brands.

(3) Includes Everhome Suites, Mainstay Suites, Suburban Studios, and WoodSpring Suites brands.

(4) Includes Econo Lodge and Rodeway brands.

(5) International and Total System results are presented on a currency-neutral basis and exclude the impact of foreign currency exchange movements.

Exhibit 5

CHOICE HOTELS INTERNATIONAL, INC.

SYSTEM HOTEL AND ROOM SUPPLY

(UNAUDITED)

Global System by Brand

March 31, 2026

Hotels

Rooms

Ascend Hotel Collection

513

69,858

Cambria Hotels

77

10,296

Radisson(1)

129

22,584

Comfort(2)

2,136

179,024

Quality

1,885

148,462

Country

404

32,564

Sleep

425

30,444

Clarion(3)

266

36,157

Park Inn

31

2,656

WoodSpring

293

35,261

MainStay

155

11,304

Suburban

117

9,777

Everhome

27

3,108

Econo Lodge

637

36,275

Rodeway

435

24,037

Other (4)

58

6,541

(1) Includes Radisson, Radisson Blu, Radisson Individuals, Radisson RED and Park Plaza brands.

(2) Includes Comfort family of brand extensions including Comfort Inn and Comfort Suites.

(3) Includes Clarion family of brand extensions including Clarion and Clarion Pointe.

(4) Includes other brands under Master Franchise Agreements.

U.S. System by Chain Scale

March 31, 2026

Hotels

Rooms

Upscale & Above

368

59,403

Midscale & Upper Midscale

4,223

322,291

Extended Stay

584

58,770

Economy

1,013

57,417

Global System by Region

March 31, 2026

Hotels

Rooms

U.S

6,188

497,881

Total International

1,400

160,467

     Americas (excluding U.S.)

542

55,857

     Europe & Middle East

478

69,874

     Asia-Pacific

380

34,736

Total System

7,588

658,348

Exhibit 6

CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

(UNAUDITED)

ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

(dollar amounts in thousands)

Three Months Ended

March 31,

2026

2025

Total selling, general and administrative expenses

$       78,046

$       74,210

Mark to market adjustments on non-qualified retirement plan investments

1,051

723

Non-recurring operational restructuring charges and executive severance

(481)

(3,930)

Share-based compensation

(4,812)

(5,890)

Amortization of cloud computing arrangements

(279)

—

Global ERP system implementation and related costs

(300)

(990)

Adjusted selling, general and administrative expenses

$       73,225

$       64,123

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("ADJUSTED EBITDA")

(dollar amounts in thousands)

Three Months Ended

March 31,

2026

2025

Net income

$         20,304

$        44,534

Income tax expense

10,006

15,228

Interest expense

23,962

21,242

Interest income

(1,211)

(1,559)

Amortization of cloud computing arrangements

279

—

Depreciation and amortization

16,821

13,748

Other losses, net

721

436

Equity in net loss of affiliates

6,252

51

Share-based compensation

4,812

5,890

Mark to market adjustments on non-qualified retirement plan investments

(1,051)

(723)

Franchise agreement acquisition costs amortization and charges

5,925

5,386

Revenue for reimbursable costs from franchised and managed properties

(123,904)

(123,424)

Reimbursable expenses from franchised and managed properties

161,787

143,811

Global ERP system implementation and related costs

300

990

Business combination, diligence and transition costs

236

99

Non-recurring operational restructuring charges and executive severance

481

3,930

Adjusted EBITDA

$       125,720

$       129,639

ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE ("EPS")

(dollar amounts in thousands, except per share amounts)

Three Months Ended

March 31,

2026

2025

Net income

$         20,304

$        44,534

Revenue for reimbursable costs from franchised and managed properties

(123,904)

(123,424)

Reimbursable expenses from franchised and managed properties

161,787

143,811

Business combination, diligence and transition costs

236

99

Non-recurring operational restructuring charges and executive severance

481

3,930

Global ERP system implementation and related costs

300

990

Income tax expense on adjustments

(9,605)

(6,297)

Adjusted Net Income

$         49,599

$        63,643

Diluted EPS

$          0.44

$         0.94

Adjusted Diluted EPS

$          1.07

$         1.34

Exhibit 7

CHOICE HOTELS INTERNATIONAL, INC.

OUTLOOK

(UNAUDITED)

Guidance represents the company's range of estimated outcomes for the full year ended December 31, 2026

ADJUSTED EBITDA

(in thousands)

Full Year

Full Year

Lower Range

Upper Range

Net income

$        265,000

$        275,000

Income tax expense

88,300

91,600

Interest expense

85,800

86,000

Interest income

(4,200)

(4,100)

Amortization of cloud computing arrangements

1,200

1,200

Depreciation and amortization

64,100

65,100

Other losses, net

800

800

Equity in net loss of affiliates

11,300

11,700

Share-based compensation

21,000

21,000

Mark to market adjustments on non-qualified retirement plan investments

(1,100)

(1,100)

Franchise agreement acquisition costs amortization and charges

26,300

26,300

Revenue for reimbursable costs from franchised and managed properties

(595,500)

(595,500)

Reimbursable expenses from franchised and managed properties

665,500

665,500

Global ERP system implementation and related costs

1,700

1,700

Business combination, diligence and transition costs

1,300

1,300

Non-recurring operational restructuring charges and executive severance

500

500

Adjusted EBITDA

$        632,000

$        647,000

ADJUSTED NET INCOME & DILUTED EARNINGS PER SHARE ("EPS")

(in thousands, except per share amounts)

Full Year

Full Year

Lower Range

Upper Range

Net income

$        265,000

$        275,000

Revenue for reimbursable costs from franchised and managed properties

(595,500)

(595,500)

Reimbursable expenses from franchised and managed properties

665,500

665,500

Business combination, diligence and transition costs

1,300

1,300

Non-recurring operational restructuring charges and executive severance

500

500

Global ERP system implementation and related costs

1,700

1,700

Income tax expense on adjustments

(18,500)

(18,500)

Adjusted net income

$        320,000

$        330,000

Diluted EPS

$            5.72

$           5.94

Adjusted Diluted EPS

$            6.92

$           7.14

SOURCE Choice Hotels International, Inc.

Choice Hotels International, Inc. (CHH) Q1 2026 Earnings Call Transcript

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.  

SOURCE Choice Hotels International, Inc.

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].

SOURCE Choice Hotels International, Inc.

(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. 

© 2026 Choice Hotels International, Inc. All Rights Reserved   

For further information: [email protected]  

SOURCE Choice Hotels International, Inc.

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.

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].

SOURCE Choice Hotels International, Inc.

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.

SOURCE Choice Hotels International, Inc.