# Choice Hotels International (CHH.US)

Canonical: https://gigainvestors.com/s/CHH

Analysis as of: 2026-10-16T07:27:24.613Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $106.92 per share; close as of 2026-10-15.

Estimated value: low $71.94 per share, central $90.54 per share, high $105.67 per share. Buy at or below the central value $90.54 per share. Valuation as of 2026-10-16T07:27:24.613Z; scenarios are not confidence intervals.

Expected annual return: 8.9% at the stated quote. About 8.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.26×

- FY2018: 0.31×

- FY2019: 0.29×

- FY2020: 0.16×

- FY2021: 0.40×

- FY2022: 0.34×

- FY2023: 0.24×

- FY2024: 0.29×

- FY2025: 0.28×

- LTM to Jun 2026: 0.25×

### moat: fail

- Recent gross margin fell 4.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 35.2%

- ROIC, second-lowest year: 18.7%

- Typical minus recent gross margin: 4.8 pp

- Typical gross margin (annual median): 45.7%

- Recent gross margin (lower of latest and 3-year median): 40.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.2%

- ROIC including acquisitions, ten-year median: 23.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 85.8%

- FY2017: >100%

- FY2018: 67.2%

- FY2019: 39.5%

- FY2020: 17.8%

- FY2021: 46.8%

- FY2022: 30.9%

- FY2023: 19.6%

- FY2024: 22.2%

- FY2025: 18.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.4B

- Net income, five-year total: $1.5B

- Return on incremental invested capital: 54.9%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.1 pp

- Working capital / revenue, final three-year average: 5.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.81×

- FY2025: 0.66×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 85.8% vs 19.6%

- Per-share earnings: 2.24 to 6.23 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.0%

- Ordinary dilution, 5-year annual growth: -3.5%

- Market cap gain: $1.2B

- Cumulative retained earnings: $1.7B

- Diluted shares, 10-year annual growth: -2.0%

- Diluted shares, 5-year annual growth: -3.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.7%

- Per-share value change: $4.00

- Per-share value, starting three-year median: $2.24

- Per-share value, ending three-year median: $6.23

- Buybacks concentrated in cheaper years (correlation): 0.76

- Average buyback yield: 3.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.3B

- Cumulative net income, 10 years: $2.3B

- ROIC, first three-year median: 85.8%

- ROIC, last three-year median: 19.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.48

- FY2017: $2.03

- FY2018: $3.82

- FY2019: $4.00

- FY2020: $1.36

- FY2021: $5.17

- FY2022: $6.03

- FY2023: $5.10

- FY2024: $6.23

- FY2025: $7.94

### accounting: pass

- Sloan accruals: 3.4%

- Receivables to sales index (DSRI): 0.80×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 14.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.73×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 7.66×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.5%

- FY2017: -15.4%

- FY2018: -2.3%

- FY2019: -3.4%

- FY2020: -2.5%

- FY2021: -4.9%

- FY2022: -1.7%

- FY2023: -1.6%

- FY2024: -0.8%

- FY2025: 3.4%

## Holders

## Price story

Down 31% since Dec 2021 · "CHH Q1 Deep Dive: Revenue Beat Overshadowed by Margin Compression and Guidance Reaffirmation" (finance.yahoo.com, May 2026) · sales +1.4%

Story as of 2026-10-16T09:58:30.068Z; price observation 2026-10-15.

Price needs cash profits to grow 5.5% a year for ten years

- 2025-06-05: CHH Q1 Earnings Call: Flat Sales, Guidance Trimmed Amid Macro Uncertainty ([finance.yahoo.com](https://finance.yahoo.com/news/chh-q1-earnings-call-flat-171712257.html))

- 2026-02-19: Global markets ‘key’ to Choice Hotels’ growth as US RevPAR down in Q4 ([finance.yahoo.com](https://finance.yahoo.com/news/global-markets-key-choice-hotels-110508319.html))

- 2026-05-02: CHH Q1 Deep Dive: Revenue Beat Overshadowed by Margin Compression and Guidance Reaffirmation ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/chh-q1-deep-dive-revenue-213255583.html))

### Sales · FY2025–2026

sales +1.4%; source https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm; observed 2026-02-19.

- FY2017: $1.0B 

- FY2018: $1.0B 

- FY2019: $1.1B 

- FY2020: $774M 

- FY2021: $1.1B 

- FY2022: $1.4B 

- FY2023: $1.5B 

- FY2024: $1.6B 

- FY2025: $1.6B 

- FY2026: $1.6B 

### Gross margin · FY2025

gross margin 40.9%; source https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm; observed 2026-02-19.

- FY2016: 43.1% 

- FY2017: 43.7% 

- FY2018: 48.7% 

- FY2019: 46.8% 

- FY2020: 40.2% 

- FY2021: 56.1% 

- FY2022: 49.9% 

- FY2023: 44.7% 

- FY2024: 47.0% 

- FY2025: 40.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in lodging; annual sales are USD 1.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm (filed 2026-02-19); FY2025: revenue 1596793000; grossProfit 653857000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 40.9% to 47% during 2023–25; it earns 35.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 44.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 47%.

- Source: https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 40.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2016,0.8584088206865584],[2017,1.132065138641902],[2018,0.6720538080985426],[2019,0.39474319992553897],[2020,0.17830507083576977],[2021,0.4682564878976802],[2022,0.308517201198613],[2023,0.19567178169287566],[2024,0.2221074034302704],[2025,0.18709726931497342]]; median 0.35163020056207595. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 2% of cash earnings on expansion; earns 54.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 6785374.5752855465; upkeep 20985625.424714454; owner earnings 130090374.57528555. Growth capex / owner earnings = 0.052158928725035934.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 0; upkeep 25954000; owner earnings 116228000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 3858968.167833224; upkeep 45617031.832166776; owner earnings 201472968.1678332. Growth capex / owner earnings = 0.019153776325063043.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 12124633.544627108; upkeep 51916366.45537289; owner earnings 207083633.5446271. Growth capex / owner earnings = 0.05854945336379862.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 39952000; owner earnings 83891000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 27373000; upkeep 50494000; owner earnings 288957000. Growth capex / owner earnings = 0.09473035780410234.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 29672000; upkeep 63913000; owner earnings 332152000. Growth capex / owner earnings = 0.08933259471567234.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 42556000; upkeep 75735000; owner earnings 258507000. Growth capex / owner earnings = 0.16462223460099726.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 16780046.49748808; upkeep 129071953.50251192; owner earnings 241453046.49748808. Growth capex / owner earnings = 0.06949610593404813.

- Source: https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm (filed 2026-02-19); FY2025: growth capex 4868347.41684857; upkeep 140926652.58315143; owner earnings 245840347.41684857. Growth capex / owner earnings = 0.019802882106222244.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Incremental return on capital 0.5488845669398349, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,46182000],[2017,48651000],[2018,48715000],[2019,48089000],[2020,25274000],[2021,25044000],[2022,52545000],[2023,56457000],[2024,55497000],[2025,53472000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 138304000 USD.

### Are managers owners

Insiders own 39.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHH.US SharesStats.PercentInsiders = 39.108 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.5% yearly over ten years; actual growth was 9.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.06534611964954362. Price 106.92; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.170409689289775 → FY2025 5.277809090099797. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $48.45 per share

- 2016-11: $51.45 per share

- 2016-12: $56.05 per share

- 2017-01: $55.50 per share

- 2017-02: $60.60 per share

- 2017-03: $62.60 per share

- 2017-04: $62.70 per share

- 2017-05: $64.95 per share

- 2017-06: $64.25 per share

- 2017-07: $64.65 per share

- 2017-08: $62.05 per share

- 2017-09: $63.90 per share

- 2017-10: $69.75 per share

- 2017-11: $78.50 per share

- 2017-12: $77.60 per share

- 2018-01: $82.15 per share

- 2018-02: $79.15 per share

- 2018-03: $80.15 per share

- 2018-04: $80.05 per share

- 2018-05: $80.35 per share

- 2018-06: $75.60 per share

- 2018-07: $77.60 per share

- 2018-08: $78.05 per share

- 2018-09: $83.30 per share

- 2018-10: $73.40 per share

- 2018-11: $77.87 per share

- 2018-12: $71.58 per share

- 2019-01: $79.16 per share

- 2019-02: $79.84 per share

- 2019-03: $77.74 per share

- 2019-04: $83.04 per share

- 2019-05: $82.29 per share

- 2019-06: $87.01 per share

- 2019-07: $85.81 per share

- 2019-08: $90.98 per share

- 2019-09: $88.96 per share

- 2019-10: $88.48 per share

- 2019-11: $97.25 per share

- 2019-12: $103.43 per share

- 2020-01: $100.20 per share

- 2020-02: $91.28 per share

- 2020-03: $61.25 per share

- 2020-04: $75.05 per share

- 2020-05: $80.83 per share

- 2020-06: $78.90 per share

- 2020-07: $84.04 per share

- 2020-08: $99.29 per share

- 2020-09: $85.96 per share

- 2020-10: $87.35 per share

- 2020-11: $99.65 per share

- 2020-12: $106.73 per share

- 2021-01: $100.64 per share

- 2021-02: $104.87 per share

- 2021-03: $107.29 per share

- 2021-04: $113.80 per share

- 2021-05: $120.91 per share

- 2021-06: $118.86 per share

- 2021-07: $119.90 per share

- 2021-08: $119.36 per share

- 2021-09: $126.37 per share

- 2021-10: $140.62 per share

- 2021-11: $143.55 per share

- 2021-12: $155.99 per share

- 2022-01: $143.40 per share

- 2022-02: $144.35 per share

- 2022-03: $141.76 per share

- 2022-04: $140.46 per share

- 2022-05: $127.89 per share

- 2022-06: $111.63 per share

- 2022-07: $120.87 per share

- 2022-08: $114.71 per share

- 2022-09: $109.52 per share

- 2022-10: $129.84 per share

- 2022-11: $123.22 per share

- 2022-12: $112.64 per share

- 2023-01: $122.89 per share

- 2023-02: $118.36 per share

- 2023-03: $117.19 per share

- 2023-04: $127.52 per share

- 2023-05: $113.49 per share

- 2023-06: $117.52 per share

- 2023-07: $130.75 per share

- 2023-08: $126.90 per share

- 2023-09: $122.51 per share

- 2023-10: $110.50 per share

- 2023-11: $110.28 per share

- 2023-12: $113.30 per share

- 2024-01: $121.12 per share

- 2024-02: $111.94 per share

- 2024-03: $126.35 per share

- 2024-04: $118.26 per share

- 2024-05: $113.19 per share

- 2024-06: $119.00 per share

- 2024-07: $127.45 per share

- 2024-08: $127.59 per share

- 2024-09: $130.30 per share

- 2024-10: $139.51 per share

- 2024-11: $151.24 per share

- 2024-12: $141.98 per share

- 2025-01: $147.33 per share

- 2025-02: $143.29 per share

- 2025-03: $132.78 per share

- 2025-04: $126.11 per share

- 2025-05: $126.68 per share

- 2025-06: $126.88 per share

- 2025-07: $127.71 per share

- 2025-08: $119.58 per share

- 2025-09: $106.91 per share

- 2025-10: $92.96 per share

- 2025-11: $91.26 per share

- 2025-12: $95.26 per share

- 2026-01: $102.80 per share

- 2026-02: $105.35 per share

- 2026-03: $103.50 per share

- 2026-04: $99.08 per share

- 2026-05: $108.88 per share

- 2026-06: $110.27 per share

- 2026-07: $111.49 per share

- 2026-08: $103.36 per share

- 2026-09: $102.41 per share

- 2026-10: $106.92 per share

## Annual estimated value (USD per share)

- FY2016: low $32.53 per share, central $39.31 per share, high $45.35 per share

- FY2017: low $33.54 per share, central $39.11 per share, high $44.95 per share

- FY2018: low $34.05 per share, central $43.59 per share, high $50.96 per share

- FY2019: low $37.67 per share, central $48.87 per share, high $57.15 per share

- FY2020: low $25.39 per share, central $28.34 per share, high $32.28 per share

- FY2021: low $58.84 per share, central $79.63 per share, high $91.96 per share

- FY2022: low $70.21 per share, central $100.19 per share, high $117.63 per share

- FY2023: low $70.01 per share, central $90.74 per share, high $106.10 per share

- FY2024: low $77.50 per share, central $109.03 per share, high $127.95 per share

- FY2025: low $69.37 per share, central $87.29 per share, high $101.87 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1046311/000104631126000008/chh-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.