Choice Hotels International (NYSE:CHH) Posts Quarterly Earnings Results, Misses Estimates By $0.28 EPS

Choice Hotels International (NYSE:CHH) posted its quarterly earnings data on Thursday. The company reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.28), Zacks reports. Choice Hotels International had a return on equity of 281.98% and a net margin of 21.55%.The company had revenue of $340.58 million for the quarter, compared to the consensus estimate of $333.48 million. During the same quarter in the previous year, the firm posted $1.34 EPS. The business’s revenue for the quarter was up 2.3% compared to the same quarter last year. 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:

• U.S. room growth is inflecting — gross openings were up ~32% YoY, conversions accelerated (≈60% of franchise agreements this quarter expected to open this year) and Extended Stay now represents >40% of the U.S. pipeline.
• Franchisee unit economics are improving — U.S. average royalty rate expanded 11 bps, Choice Privileges tops 75M members with loyalty contribution +300 bps in March, and small/mid‑business and group revenues rose materially.
• Capital intensity is declining — Q1 development outlays fell 51% YoY, full‑year net capital outlays are guided to ~$20–45M (about 70% lower at the midpoint vs. 2025), and management plans $175–225M of share repurchases in 2026.
• Near‑term earnings were pressured — Q1 adjusted EPS fell to $1.07 from $1.34 and adjusted EBITDA was $126M (vs. $130M) due to SG&A timing and a temporary tax adjustment, contributing to a weaker short‑term print despite maintained full‑year guidance.
• Technology/AI is a differentiator — a cloud‑native platform (AWS/Salesforce partnerships) and tools like EasyBid have cut group RFP response ~30% and boosted conversion ~250 bps, supporting higher franchisee returns and royalty expansion.

Choice Hotels International Price Performance

NYSE:CHH traded up $1.61 during mid-day trading on Friday, hitting $100.69. The company’s stock had a trading volume of 1,130,381 shares, compared to its average volume of 639,832. Choice Hotels International has a fifty-two week low of $84.04 and a fifty-two week high of $136.45. The company has a current ratio of 0.95, a quick ratio of 0.87 and a debt-to-equity ratio of 14.58. The company has a market capitalization of $4.61 billion, a price-to-earnings ratio of 12.71, a P/E/G ratio of 4.12 and a beta of 0.65. The stock has a fifty day moving average of $106.84 and a 200-day moving average of $101.46.

Choice Hotels International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st were given a $0.2875 dividend. This represents a $1.15 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Wednesday, April 1st. Choice Hotels International’s dividend payout ratio is 15.50%.

Insider Activity

In related news, CFO Scott E. Oaksmith sold 1,603 shares of the stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $100.00, for a total value of $160,300.00. Following the completion of the transaction, the chief financial officer owned 37,172 shares of the company’s stock, valued at $3,717,200. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, 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 transaction of $820,604.80. Following the completion of the transaction, the senior vice president directly owned 48,803 shares of the company’s stock, valued at $4,956,432.68. This trade represents a 14.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 10,283 shares of company stock valued at $1,040,947 in the last three months. Company insiders own 23.78% of the company’s stock.

Institutional Trading of Choice Hotels International

Several large investors have recently added to or reduced their stakes in CHH. UMB Bank n.a. grew its stake in Choice Hotels International by 6,416.7% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $37,000 after buying an additional 385 shares during the last quarter. Quarry LP bought a new stake in Choice Hotels International during the third quarter worth about $38,000. Arax Advisory Partners bought a new stake in Choice Hotels International during the fourth quarter worth about $43,000. Advisory Services Network LLC bought a new stake in Choice Hotels International during the third quarter worth about $57,000. Finally, Parallel Advisors LLC grew its stake in Choice Hotels International by 627.0% during the fourth quarter. Parallel Advisors LLC now owns 836 shares of the company’s stock worth $80,000 after buying an additional 721 shares during the last quarter. 65.57% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on CHH shares. Morgan Stanley boosted their price objective on shares of Choice Hotels International from $83.00 to $87.00 and gave the stock an “underweight” rating in a report on Friday, April 10th. Barclays dropped their price objective on shares of Choice Hotels International from $112.00 to $100.00 and set an “underweight” rating on the stock in a report on Thursday. Wells Fargo & Company boosted their price objective on shares of Choice Hotels International from $91.00 to $110.00 and gave the stock an “underweight” rating in a report on Friday, February 20th. Jefferies Financial Group downgraded shares of Choice Hotels International from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Choice Hotels International from $109.00 to $117.00 and gave the stock a “neutral” rating in a report on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $111.25.

Key Headlines Impacting Choice Hotels International

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

• Positive Sentiment: Reported record quarterly revenue of about $340.6M, topping analyst revenue expectations and showing 2.3% year-over-year growth — a sign that demand and fee revenue held up. Market Release / Press Release
• Positive Sentiment: Operational momentum: global net rooms rose ~1.7%, U.S. openings hit a five‑year high, and global franchise agreements awarded increased ~72% — constructive for Choice’s capital‑light, fee-driven model and long‑term royalty base. PR Newswire: Q1 Results
• Neutral Sentiment: Updated FY2026 EPS guidance to $6.92–$7.14, which sits slightly below the Street consensus (~$7.19); a modest guidance gap that tempers upside but still implies solid full‑year profitability. Guidance / Conference Call
• Negative Sentiment: Earnings miss: Q1 EPS was $1.07 vs. consensus ~$1.35 and down from $1.34 a year ago — the profit shortfall hurt near‑term sentiment and raises questions on margin timing. Zacks: Earnings Miss
• Negative Sentiment: Market reaction and commentary noted shares “sank” initially on the profit miss and what some called a disappointing FY26 outlook — indicating investor concern that contributed to intraday volatility and higher volume. Seeking Alpha: Market Reaction

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.