Choice Hotels International, Inc. (CHH)

Over the past six months, Choice Hotels International's stock price has been impacted by several events, experiencing a decline of 14.06%. The company reported Q3 2025 earnings per share (EPS) of $2.10, missing the consensus estimate. Choice Hotels introduced a redesigned prototype for its Everhome Suites brand, aiming to accelerate extended stay development. The company announced strong 2025 development performance, including 130 newly onboarded international hotels and significant room growth. Choice Hotels launched a new global "Travel Values" marketing campaign across 45 countries. Choice Hotels announced accelerated growth in Canada with six new Ascend Collection properties in Québec. A significant event impacting the company was the termination of its proposed acquisition of Wyndham Hotels & Resorts in March 2024.

The hotel industry, and consequently Choice Hotels International's products and services, are seasonal in nature. Demand for most hotels is typically lower from November through February compared to the rest of the year. Choice Hotels' franchise fee revenues reflect this seasonality, historically being lower in the first and fourth quarters than in the second and third quarters. The company's diverse geographic footprint and strategic property locations aim to ensure both stable year-round demand and strong seasonal appeal.

Choice Hotels International, Inc. (CHH) is a multinational hospitality company based in North Bethesda, Maryland, operating within the Consumer Services sector as a hotel franchisor. The company's asset-light business model focuses on franchising, generating predictable free cash flow and strong returns. Choice Hotels franchises a diverse portfolio of 22 brands, ranging from full-service upper upscale to economy properties, catering to both business and leisure travelers.

Choice Hotels International has a significant global presence, franchising over 7,500 hotels, representing nearly 650,000 rooms, across 46 countries and territories worldwide. The company has been actively expanding its international footprint in the Caribbean and Latin America, Europe, and the Asia-Pacific region. Choice Hotels is committed to opening 100 hotels in sub-Saharan and southern Africa by 2035.

In the past year, Choice Hotels International has seen positive recognition for its loyalty program and continued growth, but also faced challenges related to franchisee relations and a high-profile failed acquisition. The Choice Privileges loyalty program received positive recognition. The company's brand reputation has faced scrutiny due to increased regulatory focus on franchise agreements and fee structures. The failed hostile takeover bid for Wyndham Hotels & Resorts also generated significant public attention.

Approximately 74.76% of Choice Hotels International, Inc.'s stock is held by institutional owners, including Bamco Inc /ny/, Morgan Stanley, and Vanguard Group Inc. Individual investors hold approximately 25.3% of the shares.