# Choice Hotels International, Inc. (CHH)

> Source: Nexqual · https://nexqual.com/CHH · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Choice Hotels International, Inc. (CHH), nexqual.com/CHH" · informational, not investment advice.

**Price:** USD 111.98 (-1.48% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 113.66 · day 109.43–114.95 · 52w 84.04–123.82 · market cap $5.09B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.62B, net income $328M (20.3% margin), free cash flow $153M (SEC filings).
- Valuation: P/E 15.5x (avg 19.0x at the last 3 fiscal year-ends), EV/EBITDA 14.9x, net debt $1.96B.
- Insider open-market sales, last ~7 months: 5 Form 4 filings, $3.7M; 1 not under a Rule 10b5-1 plan ($541K); 0 by opportunistic insiders, 2 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 3.11 on a 1–5 scale) (18 analysts), mean target USD 114.94 (range 93–131).
- Total return with dividends: 1Y +15.6% vs S&P 500 +14.9%; 5Y -12.8% vs S&P 500 +80.3%.
- Next earnings: 2026-11-02, EPS estimate USD 2.28, revenue estimate $447M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.07B | $1.40B | $1.54B | $1.58B | $1.60B | $1.62B |
| Operating income | $429M | $479M | $375M | $464M | $448M | $408M |
| Net income | $289M | $332M | $259M | $300M | $370M | $328M |
| EPS (diluted) | $5.15 | $5.99 | $5.07 | $6.20 | $7.90 | — |
| Free cash flow | — | $301M | $228M | $213M | $164M | $153M |
| Operating margin | 40.1% | 34.1% | 24.3% | 29.3% | 28.1% | 25.2% |
| Net margin | 27.0% | 23.7% | 16.7% | 18.9% | 23.2% | 20.3% |
| Revenue growth | +38.1% | +31.1% | +10.1% | +2.6% | +0.8% | — |
| Cash + short-term investments | $512M | $41.6M | $26.8M | $40.2M | $45.0M | — |
| Total debt | $1.06B | $1.20B | $1.57B | $1.77B | $1.91B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 15.5x · P/S 3.1x · EV/EBITDA 14.9x · EV/Sales 4.4x · P/FCF 33.2x · P/B 35.8x · FCF yield 3.01% · Earnings yield 6.44% · Dividend yield (paid, TTM) 1.04% · Buyback yield (TTM) 2.61% · Net debt $1.96B · EV $7.05B
P/E at fiscal year-ends: Dec 2025 12.0x, Dec 2024 22.8x, Dec 2023 22.2x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
4 of 5 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-20 | Dragisich Dominic | President & CEO | 1,227 | $137K | 1.3% | Yes (adopted February 24, 2026) | Routine (sold in Jul each year 2023–2025; this trade is outside those months) |
| 2026-08-18 | Jews William L | Director | 5,057 | $541K | 17.4% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-06-16 | Oaksmith Scott E | SVP, Chief Financial Officer | 2,000 | $230K | 5.7% | Yes (adopted March 12, 2026) | Too little history (no open-market trades in 2024) |
| 2026-06-12 | Oaksmith Scott E | SVP, Chief Financial Officer | 2,000 | $220K | 5.4% | Yes (adopted March 12, 2026) | Too little history (no open-market trades in 2024) |
| 2026-05-26 | Dragisich Dominic | Interim CEO | 22,621 | $2.6M | 21.7% | Yes (adopted February 24, 2026) | Routine (sold in Jul each year 2023–2025; this trade is outside those months) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 3.11 on a 1–5 scale), 18 analysts; mean target USD 114.94 (low 93, high 131).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Morgan Stanley | Target raised | Underweight | $92 → $93 |
| 2026-10-21 | JP Morgan | Target raised | Neutral | $119 → $121 |
| 2026-10-19 | Wells Fargo | Target raised | Underweight | $97 → $98 |
| 2026-10-16 | Barclays | Target raised | Underweight | $102 → $103 |
| 2026-10-14 | Freedom Broker | Initiated | Buy | $117 |
| 2026-10-12 | Morgan Stanley | Target raised | Underweight | $91 → $92 |
| 2026-09-29 | Baird | Target lowered | Outperform | $129 → $128 |
| 2026-09-10 | Truist Securities | Target raised | Buy | $128 → $129 |
| 2026-08-28 | UBS | Target raised | Neutral | $119 → $120 |
| 2026-08-27 | Mizuho | Initiated | Neutral | $106 |
| 2026-08-18 | Morgan Stanley | Target raised | Underweight | $86 → $91 |
| 2026-08-11 | Susquehanna | Target raised | Neutral | $110 → $115 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +15.6% | -12.8% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +15.7% | -2.7% |
| Volatility (annualized) | 38.0% | 26.4% |
| Max drawdown | -20.7% (Apr 2026→Sep 2026) | -44.0% (Feb 2025→Dec 2025) |

## Peers (Lodging)
WH (Wyndham Hotels & Resorts, Inc.) USD 75.07 -4.20% · ATAT (Atour Lifestyle Holdings Limite) USD 32.58 -1.75% · HTHT (H World Group Limited) USD 46.31 +1.18% · H (Hyatt Hotels Corporation) USD 176.96 -0.92% · IHG (Intercontinental Hotels Group) USD 167.78 -1.81% · HLT (Hilton Worldwide Holdings Inc.) USD 358.07 -1.15%

## More
Full page: https://nexqual.com/CHH · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Franchise and management fees | $187.5M | 42.5% | +5.9% |
| Revenue for reimbursable costs from franchised and managed properties | $163.3M | 37.1% | -2.4% |
| Owned hotels | $34.9M | 7.9% | +15.4% |
| Partnership services and fees | $28.7M | 6.5% | +5.9% |
| Other | $26.3M | 6.0% | +6.5% |
| Total revenue | $440.8M | 100% | — |

## Company outlook (8-K filed 2026-08-05)

- "The Company is updating certain aspects of its full-year 2026 outlook."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $2.28 | $2.38 | -4.2% | $447.5M | 14 |
| Next quarter (ends 2026-12-31) | $1.61 | $1.69 | -4.6% | $395.9M | 14 |
| Current fiscal year (ends 2026-12-31) | $6.99 | $7.13 | -1.9% | $1.63B | 17 |
| Next fiscal year (ends 2027-12-31) | $7.52 | $7.61 | -1.1% | $1.69B | 18 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-02): ±9.4%; last 8 reports averaged ±3.9%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 41.5% | ±9.4% |
| 2026-12-18 | 56 | 39.8% | ±12.5% |
| 2027-03-19 | 147 | 38.4% | ±19.0% |
| 2027-06-17 | 237 | 38.7% | ±24.6% |