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

Choice Hotels International (NYSE:CHH) posted its quarterly earnings data on Thursday. The company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.05, Zacks reports. Choice Hotels International had a net margin of 23.93% and a return on equity of 9,081.29%. The company’s revenue for the quarter was up .0% on a year-over-year basis. During the same quarter last year, the business earned $1.55 earnings per share. Choice Hotels International updated its FY 2026 guidance to 6.920-7.140 EPS.

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

• Choice reported full-year 2025 adjusted EBITDA of $626 million (up 4%) and adjusted EPS of $6.94, both in line with guidance, and provided 2026 targets of adjusted EBITDA $632M–$647M and EPS $6.92–$7.14.
• Development momentum is a core growth driver: global openings rose 14% YoY, franchise agreements awarded were up ~22%, and 97% of pipeline rooms are in higher‑revenue brands expected to be about 1.7x more accretive than the current portfolio, with a conversion-led model that accelerates openings.
• International expansion accelerated—management cites 37% international revenue growth in 2025, a 13% increase in international rooms to ~160,000, and a shift to direct franchising (directly franchised rooms now >40% of the international portfolio) that improved unit economics.
• Management accelerated selective exits (about 20 underperforming U.S. hotels that ran >20% below company RevPAR) to improve portfolio quality; U.S. average royalty rate rose 8 basis points for the year (10 bps in Q4), supporting franchise economics.
• Near-term demand headwinds remain: global RevPAR fell 4.6% in Q4 (currency‑neutral) and U.S. RevPAR ex‑hurricane was down ~2.2%; management expects Q1 softness and guides 2026 global RevPAR range of -2% to +1%, signaling potential short‑term pressure on top‑line growth.

Choice Hotels International Trading Up 2.4%

Choice Hotels International stock traded up $2.61 during midday trading on Thursday, hitting $112.01. 283,308 shares of the stock were exchanged, compared to its average volume of 752,838. The stock has a market capitalization of $5.18 billion, a PE ratio of 13.71, a P/E/G ratio of 5.62 and a beta of 0.76. The company has a fifty day simple moving average of $102.33 and a two-hundred day simple moving average of $104.08. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 12.81. Choice Hotels International has a 52 week low of $84.04 and a 52 week high of $157.86.

Choice Hotels International Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Friday, January 2nd were given a $0.2875 dividend. This represents a $1.15 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Friday, January 2nd. Choice Hotels International’s dividend payout ratio (DPR) is currently 14.13%.

Key Stories Impacting Choice Hotels International

Here are the key news stories impacting Choice Hotels International this week:

• Positive Sentiment: Q4 EPS topped estimates — Choice reported $1.60/share, beating the Zacks consensus (~$1.55–1.56) and improving slightly versus year-ago EPS, which supports near-term earnings confidence. Choice Hotels (CHH) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management emphasized international expansion as a profit driver — coverage notes record profit linked to stronger international performance, which investors view as a growth lever outside a softer U.S. market. Choice Hotels shares rise as international expansion drives record profit
• Positive Sentiment: Franchise growth accelerating — the company reported 13% net room growth and a 22% increase in global franchise agreements, signaling strong unit-level expansion that can boost recurring fee revenue over time. Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Revenue was essentially flat year‑over‑year in Q4 and U.S. RevPAR showed softness against tough comps — margins remain strong but top-line growth is muted, making near-term organic growth a watch item. Here’s What Key Metrics Tell Us About Choice Hotels (CHH) Q4 Earnings
• Negative Sentiment: FY‑2026 EPS guidance came in slightly below consensus — management set a range of $6.92–$7.14 vs. the Street ~ $7.04 (and some analysts ~7.07), which caps upside to the multiple and introduces guidance risk despite the quarterly beat. Choice Hotels Q4/Full-Year 2025 Results & Guidance

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Robert W. Baird reduced their price target on shares of Choice Hotels International from $122.00 to $110.00 and set an “outperform” rating on the stock in a research report on Tuesday, November 18th. UBS Group decreased their price objective on Choice Hotels International from $120.00 to $118.00 and set a “neutral” rating on the stock in a research report on Wednesday, January 7th. Weiss Ratings raised Choice Hotels International from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, February 9th. JPMorgan Chase & Co. upped their price target on Choice Hotels International from $95.00 to $102.00 and gave the company a “neutral” rating in a research note on Tuesday, February 3rd. Finally, Jefferies Financial Group cut Choice Hotels International from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, Choice Hotels International has an average rating of “Reduce” and an average price target of $109.15.

Insider Activity

In other Choice Hotels International news, SVP Simone Wu sold 8,080 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $101.56, for a total value of $820,604.80. Following the completion of the sale, the senior vice president directly owned 48,803 shares in the company, valued at $4,956,432.68. This represents a 14.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 23.78% of the stock is owned by company insiders.

Institutional Investors Weigh In On Choice Hotels International

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. boosted its position in Choice Hotels International by 151.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company’s stock valued at $48,833,000 after buying an additional 308,771 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Choice Hotels International by 55.1% in the 4th quarter. Wellington Management Group LLP now owns 574,630 shares of the company’s stock valued at $54,739,000 after acquiring an additional 204,146 shares during the last quarter. Tudor Investment Corp ET AL boosted its holdings in shares of Choice Hotels International by 208.1% during the 4th quarter. Tudor Investment Corp ET AL now owns 280,513 shares of the company’s stock valued at $26,722,000 after acquiring an additional 189,464 shares in the last quarter. BNP Paribas Financial Markets grew its position in Choice Hotels International by 194.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 237,097 shares of the company’s stock worth $30,083,000 after acquiring an additional 156,666 shares during the last quarter. Finally, Susquehanna Portfolio Strategies LLC acquired a new position in Choice Hotels International in the 4th quarter worth about $11,662,000. 65.57% of the stock is owned by institutional investors.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company’s core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.