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CHH

Choice Hotels International, Inc.

CHH

Choice Hotels International, Inc. • NYSE
$91.26 ▼ -0.16% (-0.15)
Market Cap $4.22 B
52w High $157.86
52w Low $86.49
Dividend Yield 1.15%
P/E 11.25
Volume 218.21K
Outstanding Shares 46.27M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $447.34M ▲ $96.864M ▼ $179.996M ▲ 40.237% ▲ $3.89 ▲ $255.035M ▲
Q2-2025 $426.443M ▲ $103.069M ▲ $81.734M ▲ 19.166% ▲ $1.76 ▲ $149.31M ▲
Q1-2025 $332.86M ▼ $88.057M ▲ $44.534M ▼ 13.379% ▼ $0.95 ▼ $99.639M ▼
Q4-2024 $389.77M ▼ $67.35M ▲ $75.804M ▼ 19.448% ▼ $1.61 ▼ $133.434M ▼
Q3-2024 $427.964M $60.922M $105.716M 24.702% $2.24 $176.486M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $52.583M ▼ $2.908B ▲ $2.758B ▲ $149.774M ▲
Q2-2025 $58.61M ▲ $2.665B ▲ $2.691B ▲ $-26.238M ▲
Q1-2025 $40.054M ▼ $2.578B ▲ $2.642B ▲ $-63.934M ▼
Q4-2024 $40.177M ▼ $2.531B ▼ $2.576B ▼ $-45.271M ▲
Q3-2024 $58.565M $2.544B $2.64B $-96.152M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $179.996M ▲ $68.687M ▼ $-82.709M ▼ $6.307M ▲ $-6.027M ▼ $40.462M ▼
Q2-2025 $81.734M ▲ $95.603M ▲ $-42.196M ▲ $-35.447M ▼ $18.556M ▲ $141.608M ▲
Q1-2025 $44.534M ▼ $20.467M ▼ $-52.952M ▼ $32.208M ▲ $-123K ▲ $-25.538M ▼
Q4-2024 $75.418M ▼ $82.863M ▼ $-21.208M ▼ $-79.542M ▲ $-18.388M ▼ $54.003M ▼
Q3-2024 $105.716M $122.945M $-1.331M $-123.604M $-1.844M $79.492M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Franchising And Management
Franchising And Management
 $0 ▲$0 ▲$150.00M ▲$180.00M ▲
Other Revenue Topic 606 And Not Topic 606
Other Revenue Topic 606 And Not Topic 606
 $10.00M ▲$20.00M ▲$10.00M ▼$20.00M ▲
Owned Hotels
Owned Hotels
 $30.00M ▲$30.00M ▲$30.00M ▲$30.00M ▲
Partnership Services And Fees
Partnership Services And Fees
 $0 ▲$0 ▲$30.00M ▲$30.00M ▲
Revenue For Reimbursable Costs From Franchised And Managed Properties
Revenue For Reimbursable Costs From Franchised And Managed Properties
 $0 ▲$0 ▲$120.00M ▲$170.00M ▲
Initial Franchise Fees
Initial Franchise Fees
 $10.00M ▲$10.00M ▲$0 ▼$0 ▲
Other Revenues From Franchised And Managed Properties
Other Revenues From Franchised And Managed Properties
 $210.00M ▲$200.00M ▼$0 ▼$0 ▲
Platform and Procurement Services
Platform and Procurement Services
 $20.00M ▲$20.00M ▲$0 ▼$0 ▲
Royalty Licensing And Management Fees
Royalty Licensing And Management Fees
 $150.00M ▲$120.00M ▼$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Choice Hotels’ revenue has grown steadily over the past five years and is now roughly double its pandemic-era level. Profitability is strong for a hotel company, with a sizeable share of revenue dropping to operating profit. Earnings did dip a bit after a peak in 2022 but have since rebounded to new highs per share, suggesting both resilient demand and tight cost control. Overall, the income statement shows a mature, high-margin, fee-based business that has recovered well from the travel downturn and is still inching upward rather than surging.

Balance Sheet

Balance Sheet The balance sheet is clearly debt-heavy. Total assets have climbed gradually, but borrowings have grown faster, and reported equity has slipped into slightly negative territory again. For an asset-light franchisor, this can reflect past buybacks, acquisitions, and reliance on debt funding rather than a troubled underlying business, but it does reduce financial cushion. The very small cash balance means the company leans on its steady cash inflows and credit access rather than large cash reserves. In short, the structure is efficient but leaves less room for error if conditions worsen.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has been consistently healthy and well above capital spending needs, leaving solid free cash flow each year, including during the pandemic period. Investment requirements are modest, which fits an asset-light franchise model. That said, with limited cash held on the balance sheet and meaningful debt, the company depends on this steady cash engine continuing, especially through any downturns in travel demand or franchise performance.

Competitive Edge

Competitive Edge Choice sits in a strong niche: an asset-light, mostly franchised network across economy, midscale, and select-upscale segments. Its competitive position is reinforced by a broad brand portfolio, a large loyalty program, and a deep set of proprietary technology tools that embed it into franchisees’ daily operations. These systems make switching to another brand painful for owners, helping defend market share. The company has also bolstered its presence in higher-price segments through acquisitions. Key risks are intense competition from other global hotel chains and online platforms, plus sensitivity to economic and travel cycles.

Innovation and R&D

Innovation and R&D Innovation is a notable bright spot. Choice has fully moved its core systems to the cloud and built its own reservation, property management, and revenue management platforms, many of which now use artificial intelligence to optimize pricing and personalize offers. It is experimenting with generative AI in customer service and upselling, redesigning hotel prototypes to cut owner costs, and rolling out modular “in a box” renovation solutions. International expansion, especially in underpenetrated regions and in extended-stay brands, shows a focus on long-term growth rather than just squeezing the existing base.

Summary

Overall, Choice Hotels looks like a mature, high-margin franchisor that has come out of the pandemic stronger, with higher revenue, solid profitability, and reliable cash generation. Its heavy use of technology and data gives it a meaningful edge with franchisees and supports a defensible business model. On the other hand, the capital structure leans on debt, reported equity is thin or negative, and cash on hand is low, which increases financial sensitivity if travel slows or credit tightens. The main story here is a cash-rich, tech-forward, asset-light business with a solid moat, offset by higher leverage and the usual exposure to the ups and downs of the travel cycle.

NEWS

November 19, 2025 · 9:00 AM UTC

Choice Hotels International to Make Landmark Entry into Africa Starting with Three Hotels in Kenya

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November 5, 2025 · 6:30 AM UTC

Choice Hotels International Reports Third Quarter 2025 Results

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November 4, 2025 · 11:06 AM UTC

Choice Privileges Announces an All-New Rewards Experience that Offers More Rewards, More Often

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October 30, 2025 · 12:40 PM UTC

Radisson Blu Aqua Hotel Chicago Named One of Chicago's Top 5 Hotels in Condé Nast Traveler's Readers' Choice Awards

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October 15, 2025 · 1:24 PM UTC

Choice Hotels International Debuts MainStay Suites™ in Australia with Addition of 581 Rooms

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