CHH
Consumer CyclicalChoice Hotels International, Inc. · Travel Lodging · $5B
What is Choice Hotels International, Inc.?
Choice Hotels International is one of the largest hotel franchisors in the world, operating a portfolio of well-known lodging brands across economy, midscale, and upscale segments. The company is headquartered in North Bethesda, Maryland.
Rather than owning hotels directly, Choice Hotels licenses its brand names to independent hotel owners and operators, collecting franchise fees in return. This asset-light model means the company earns revenue from royalties, reservation services, and technology solutions without carrying the heavy capital costs of property ownership. It also develops cloud-based property management software for non-franchised hoteliers, adding a technology dimension to its core franchising business.
Choice Hotels was founded in 1939 and is headquartered in North Bethesda, Maryland.
- Economy and midscale hotel franchising under brands like Comfort Inn and Quality
- Extended-stay concepts including WoodSpring Suites and MainStay Suites
- Upscale and boutique options via Cambria Hotels and Ascend Hotel Collection
- Cloud-based property management software for independent hoteliers
- Global reservation and loyalty platform spanning roughly 35 countries
Is CHH a Good Stock to Buy?
UQS Score rates CHH as Below Average overall, reflecting meaningful headwinds across several key pillars.
The Quality pillar stands out as a genuine bright spot — Choice Hotels' asset-light franchise model generates relatively consistent cash flows and keeps capital requirements low compared to hotel owners. This structural advantage in business quality is the clearest positive in the UQS profile.
The Moat, Growth, and Risk pillars all register as Weak, suggesting limited competitive differentiation, constrained expansion prospects, and elevated risk factors that weigh on the overall score. Valuation comes in as Neutral, offering little cushion against those concerns.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does CHH pay dividends?
Yes — Choice Hotels International, Inc. pays a dividend.
Choice Hotels pays a regular dividend, consistent with its asset-light franchise model that generates recurring royalty cash flows. The dividend reflects management's confidence in the durability of fee-based earnings. Investors seeking income alongside lodging-sector exposure may find the payout relevant, though the overall risk profile warrants consideration alongside any yield assessment.
When does CHH report earnings?
Choice Hotels International reports earnings on a quarterly cadence, typical for US-listed equities.
The company's franchise-fee structure tends to produce relatively predictable top-line results, though consumer travel demand and macroeconomic conditions can influence quarterly outcomes. Extended-stay and economy segments have shown resilience in softer demand environments relative to luxury peers.
For the most recent quarter's results and guidance, visit Choice Hotels International's investor relations page directly.
CHH Price History
+3.7% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Choice Hotels International, Inc.?
Based on Choice Hotels International, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
CHH Long-term Outlook
The UQS Growth and Risk pillars both register as Weak for CHH, pointing to a fundamental outlook that carries more uncertainty than opportunity in the near term. The franchise model provides a degree of earnings stability, but limited growth momentum and elevated risk factors suggest the path forward is narrower than for higher-rated peers in the Consumer Cyclical sector.
Growth drivers
- Continued expansion of extended-stay brands in undersupplied markets
- Technology and software services revenue from non-franchised hoteliers
- International franchising growth across existing and new territories
Key risks
- Weak Moat pillar signals limited pricing power versus larger lodging rivals
- Consumer travel spending sensitivity to economic downturns
- Franchisee attrition or brand perception issues affecting royalty streams
CHH vs Peers
Choice Hotels competes in a crowded lodging-franchise landscape alongside global and regional players with varying scale and brand positioning.
Atour focuses on the fast-growing Chinese mid-to-upscale hotel market, giving it a geographically distinct growth profile compared to CHH's North America-heavy footprint.
Wyndham is the closest direct rival — also an asset-light franchisor concentrated in economy and midscale segments — making it the most direct benchmark for CHH's brand and franchisee competition.
Hyatt operates at the upscale and luxury end of the market, competing with CHH's Cambria brand but serving a meaningfully different traveler demographic and price point.
Frequently Asked Questions
What does Choice Hotels International do?
Choice Hotels franchises lodging properties under more than a dozen brand names spanning economy, midscale, extended-stay, and upscale segments. Rather than owning hotels, it collects royalty and franchise fees from independent operators. The company also sells cloud-based property management software to non-franchised hoteliers.
Does CHH pay dividends?
Yes, Choice Hotels pays a regular dividend. The asset-light franchise model generates recurring fee-based cash flows that support the payout. Investors should review the current dividend amount and schedule on the company's investor relations page, as terms can change.
When does CHH report earnings?
Choice Hotels reports earnings on a quarterly cadence, in line with standard US-listed company practice. For exact reporting dates and the most recent results, check the investor relations section of the Choice Hotels website.
Is CHH a good stock to buy?
UQS Score rates CHH as Below Average, driven by Weak readings on the Moat, Growth, and Risk pillars. The Quality pillar is a relative strength. Whether CHH fits a portfolio depends on individual goals and risk tolerance — the full pillar breakdown is available to UQS Pro members.
Is CHH overvalued?
The UQS Valuation pillar for CHH is rated Neutral, suggesting the stock is neither clearly cheap nor obviously expensive relative to the framework's assessment. Given the Weak Growth and Risk readings, a Neutral valuation leaves limited margin of safety. Pro members can view the complete valuation metrics.
How does CHH compare to its competitors?
Among its closest peers, Wyndham Hotels is the most direct rival in the economy and midscale franchise space. Hyatt competes at the upscale end, and Atour operates primarily in China. CHH's UQS profile can be compared side-by-side with these peers inside the Pro platform.
What is CHH's market cap bracket?
Choice Hotels International is classified as a mid-cap company. This places it below the mega-cap and large-cap hotel groups but above smaller regional lodging operators, reflecting its significant but not dominant scale in the global franchising market.
Who founded Choice Hotels International?
Choice Hotels traces its roots to 1939, when a group of independent motel owners joined together to share resources and referrals — an early form of hotel franchising. Detailed founding history is widely available through the company's official corporate history and public filings.
Is CHH a long-term quality investment?
As a long-term quality indicator, CHH's UQS profile is mixed. The Strong Quality pillar reflects the durability of the franchise fee model, but Weak Moat and Growth pillars raise questions about competitive staying power and expansion potential over time. Pro members can explore the full multi-pillar view.
What is the main competitive advantage of Choice Hotels?
Choice Hotels' primary structural advantage is its asset-light franchise model, which generates fee income without owning real estate. However, the UQS Moat pillar rates this advantage as Weak relative to peers, suggesting the brand portfolio and switching costs may not be as durable as those of larger rivals.
What sector does CHH belong to?
Choice Hotels is classified in the Consumer Cyclical sector. This means its business performance is tied to consumer spending on travel and lodging, making it sensitive to economic cycles, employment trends, and discretionary income levels.
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Pro Analysis
CHH — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 43.1 | 78.1 | 38.0 | 21.6 | 8.8 | 56.5 | -0.2 |
| May 22, 2026 | 43.3 | 78.1 | 38.0 | 21.6 | 8.8 | 57.3 | +0.1 |
| May 21, 2026 | 43.2 | 78.1 | 38.0 | 21.6 | 8.8 | 56.8 | -0.5 |
| May 20, 2026 | 43.7 | 78.1 | 38.0 | 21.6 | 8.8 | 59.9 | +0.1 |
| May 19, 2026 | 43.6 | 78.1 | 38.0 | 21.6 | 8.8 | 59.7 | 0.0 |
| May 16, 2026 | 43.6 | 78.1 | 38.0 | 21.6 | 8.8 | 59.5 | -0.1 |
| May 15, 2026 | 43.7 | 78.1 | 38.0 | 21.6 | 8.8 | 60.2 | +0.1 |
| May 14, 2026 | 43.6 | 78.1 | 38.0 | 21.6 | 8.8 | 59.5 | -0.1 |
| May 13, 2026 | 43.7 | 78.1 | 38.0 | 21.7 | 8.8 | 60.2 | -0.1 |
| May 12, 2026 | 43.8 | 78.1 | 38.0 | 21.7 | 8.8 | 60.9 | +0.2 |
CHH — Pillar Breakdown
Quality
— 78.1/100 (25%)Choice Hotels International, Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 21.6/100 (20%)Choice Hotels International, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 8.8/100 (15%)Choice Hotels International, Inc. presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 55.9/100 (15%)Choice Hotels International, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 38/100 (25%)Choice Hotels International, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CHH.
Score Composition
Financial Data
More Stock Analysis
How is the CHH UQS Score Calculated?
The UQS (Unified Quality Score) for Choice Hotels International, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Choice Hotels International, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Choice Hotels International, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.