CHOICE HOTELS INTERNATIONAL INC /DE (CHH) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CHOICE HOTELS INTERNATIONAL INC /DE Do?
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company operates in Hotel Franchising and Corporate & Other segments. It franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Everhome Suites, Cambria Hotels, and Ascend Hotel Collection. The company also develops and markets cloud-based property management software to non-franchised hoteliers. As of December 31, 2021, it had 7,030 hotels with 579,746 rooms located in 50 states, the District of Columbia and approximately 40 countries and territories. Choice Hotels International, Inc. was founded in 1939 and is headquartered in Rockville, Maryland. CHOICE HOTELS INTERNATIONAL INC /DE (CHH) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Restaurants, Hotels, Motels industry. The company is led by CEO Patrick S. Pacious and employs approximately 1,500 people, headquartered in Rockville, Maryland. With a market capitalization of $4.7B, CHH is one of the notable companies in the Consumer Discretionary sector.
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) Stock Rating — Hold (April 2026)
As of April 2026, CHOICE HOTELS INTERNATIONAL INC /DE receives a Hold rating with a composite score of 44.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CHH ranks #1,792 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, CHOICE HOTELS INTERNATIONAL INC /DE ranks #157 of 442 stocks, placing it in the upper half of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CHH Stock Price and 52-Week Range
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) currently trades at $112.07. The stock lost $1.00 (0.9%) in the most recent trading session. The 52-week high for CHH is $136.45, which means the stock is currently trading -17.9% from its annual peak. The 52-week low is $84.03, putting the stock 33.4% above its annual trough. Recent trading volume was 609K shares, suggesting relatively thin trading activity.
Is CHH Overvalued or Undervalued? — Valuation Analysis
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) carries a value factor score of 66/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 11.55x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 53%. The price-to-book ratio stands at 26.25x, versus the sector average of 1.99x. The price-to-sales ratio is 2.91x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, CHH trades at 13.36x EV/EBITDA, versus 4.91x for the sector.
Overall, CHH's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
CHOICE HOTELS INTERNATIONAL INC /DE Profitability — ROE, Margins, and Quality Score
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 227.3%, compared to the Consumer Discretionary sector average of 6.2%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 14.1% versus the sector average of 2.5%.
On a margin basis, CHOICE HOTELS INTERNATIONAL INC /DE reports gross margins of 53.0%, compared to 36.9% for the sector. The operating margin is 30.1% (sector: 3.8%). Net profit margin stands at 24.4%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 2.8% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CHH Debt, Balance Sheet, and Financial Health
CHOICE HOTELS INTERNATIONAL INC /DE has a debt-to-equity ratio of 1052.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.87x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $1.91B. Cash and equivalents stand at $53M.
CHH has a beta of 0.79, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for CHOICE HOTELS INTERNATIONAL INC /DE is 68/100, reflecting average volatility within the normal range for its sector.
CHOICE HOTELS INTERNATIONAL INC /DE Revenue and Earnings History — Quarterly Trend
In TTM 2026, CHOICE HOTELS INTERNATIONAL INC /DE reported revenue of $1.63B and earnings per share (EPS) of $7.97. Net income for the quarter was $412M. Gross margin was 53.0%. Operating income came in at $499M.
In FY 2025, CHOICE HOTELS INTERNATIONAL INC /DE reported revenue of $1.60B and earnings per share (EPS) of $7.97. Net income for the quarter was $370M. Revenue grew 0.8% year-over-year compared to FY 2024. Operating income came in at $448M.
In Q3 2025, CHOICE HOTELS INTERNATIONAL INC /DE reported revenue of $447M and earnings per share (EPS) of $3.89. Net income for the quarter was $180M. Revenue grew 4.5% year-over-year compared to Q3 2024. Operating income came in at $142M.
In Q2 2025, CHOICE HOTELS INTERNATIONAL INC /DE reported revenue of $426M and earnings per share (EPS) of $1.76. Net income for the quarter was $82M. Revenue grew -2.0% year-over-year compared to Q2 2024. Operating income came in at $125M.
Over the past 8 quarters, CHOICE HOTELS INTERNATIONAL INC /DE has demonstrated a growth trajectory, with revenue expanding from $435M to $1.63B. Investors analyzing CHH stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CHH Dividend Yield and Income Analysis
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) does not currently pay a dividend. This is common among smaller companies in the Restaurants, Hotels, Motels industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.
CHH Momentum and Technical Analysis Profile
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) has a momentum factor score of 36/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 3/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CHH vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Within the Consumer Discretionary sector, CHOICE HOTELS INTERNATIONAL INC /DE (CHH) ranks #157 out of 442 stocks based on the Blank Capital composite score. This places CHH in the upper half of all Consumer Discretionary stocks in our coverage universe. Key competitors and sector peers include MONARCH CASINO & RESORT INC (MCRI) with a score of 50.5/100, CASEYS GENERAL STORES INC (CASY) with a score of 57.3/100, INGLES MARKETS INC (IMKTA) with a score of 51.0/100, FIVE BELOW, INC (FIVE) with a score of 51.6/100, and TARGET CORP (TGT) with a score of 52.6/100.
Comparing CHH against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CHH vs S&P 500 (SPY) comparison to assess how CHOICE HOTELS INTERNATIONAL INC /DE stacks up against the broader market across all factor dimensions.
CHH Next Earnings Date
No upcoming earnings date has been announced for CHOICE HOTELS INTERNATIONAL INC /DE (CHH) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CHH? — Investment Thesis Summary
CHOICE HOTELS INTERNATIONAL INC /DE presents a balanced picture with arguments on both sides. The value score of 66/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 36/100, a headwind for near-term performance. Low volatility (stability score 68/100) reduces downside risk.
In summary, CHOICE HOTELS INTERNATIONAL INC /DE (CHH) earns a Hold rating with a composite score of 44.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CHH stock.
Related Resources for CHH Investors
Explore more research and tools: CHH vs S&P 500 comparison, top Consumer Discretionary stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CHH head-to-head with peers: CHH vs MCRI, CHH vs CASY, CHH vs IMKTA.