Choice Hotels International, Inc. (NYSE: CHH) Surpasses Earnings and Revenue Estimates

Choice Hotels International Inc. (NYSE: CHH) is a prominent entity in the global lodging industry, known for its diverse range of hotel brands. On July 23, 2025, Dominic Dragisich, the Executive Vice President, Operations & Chief Global Brands Officer, sold 2,500 shares of CHH at $136.45 each. Post-transaction, Dragisich retains 68,381 shares, as per the SEC filing.

Choice Hotels is actively enhancing its brand presence through innovative marketing campaigns. The "Stay in Your Rhythm" and "The WoodSpring Way" campaigns aim to boost brand awareness and drive bookings for its extended stay brands. These campaigns highlight the unique amenities and exceptional hospitality of Everhome Suites, MainStay Suites, Suburban Studios, and WoodSpring Suites.

The company operates over 550 extended stay locations, with 51 more under construction and 350+ in development. This expansion solidifies its leadership in the long-term lodging sector. Choice Hotels' financial metrics, such as a P/E ratio of 19.67 and a price-to-sales ratio of 3.88, reflect investor confidence and the value placed on its earnings and sales.

The enterprise value to sales ratio of 5.10 and the enterprise value to operating cash flow ratio of 23.94 provide insights into the company's valuation relative to its sales and cash flow. An earnings yield of 5.08% indicates the return generated from earnings relative to the stock price, offering a perspective on potential investor returns.

Despite a negative debt-to-equity ratio of -31.08, which may suggest a unique financial strategy, Choice Hotels maintains a current ratio of 0.84. This ratio suggests the company's ability to cover short-term liabilities with its short-term assets, ensuring financial stability in its operations.

• Choice Hotels International, Inc. (NYSE:CHH) maintains a vast network of over 7,500 hotels, offering a diverse portfolio across 46 countries.
• The Choice Privileges rewards program is recognized as the No. 1 Hotel Rewards Program, enhancing value for both franchise owners and shareholders.
• Despite the success of the rewards program, Morgan Stanley has rated Choice Hotels as "Underweight" with a potential downside in stock price, highlighting concerns about the company's financial performance or market conditions.

Choice Hotels International, Inc. (NYSE:CHH) is a prominent player in the global lodging industry, boasting a vast network of over 7,500 hotels across 46 countries. The company offers a diverse portfolio of 22 brands, catering to a wide range of traveler needs. This diversity not only enhances value for franchise owners but also benefits shareholders. The Choice Privileges rewards program, a key component of the company's strategy, has recently been recognized as the No. 1 Hotel Rewards Program by U.S. News & World Report.

The Choice Privileges program has gained popularity due to its user-friendly and valuable loyalty experience. Members can quickly earn free nights and enjoy benefits like room upgrades, early check-in, and late checkout after just 10 nights. The program's reach has expanded significantly following the acquisition of Radisson and a partnership with Preferred Hotels & Resorts. This expansion allows members to earn and redeem points at over 7,000 hotels worldwide, further enhancing the program's appeal.

Despite the accolades, Morgan Stanley maintained an "Underweight" rating for Choice Hotels on July 15, 2025, with a price target of $121. At that time, the stock was priced at $133.21, indicating a potential downside of approximately -9.16%. This suggests that while the rewards program is thriving, there may be concerns about the company's overall financial performance or market conditions.

Choice Hotels' financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 19.60, reflecting the market's valuation of its earnings. The price-to-sales ratio stands at about 3.86, indicating how the market values its revenue. Additionally, the enterprise value to sales ratio is around 5.09, suggesting the market's valuation of the company's total value in relation to its sales.

The company's financial structure is unique, with a notably negative debt-to-equity ratio of -31.08. This may indicate a specific financial strategy or accounting approach. The current ratio of approximately 0.84 suggests that Choice Hotels may face challenges in covering its short-term liabilities with its short-term assets. Despite these financial considerations, the Choice Privileges program continues to be a strong asset for the company, driving customer loyalty and enhancing its competitive position in the hospitality industry.

• Choice Hotels International, Inc. (NYSE: CHH) reported a revenue of $389.77 million, surpassing the estimated $339.79 million.
• The company's earnings per share (EPS) were $1.55, exceeding the Zacks Consensus Estimate of $1.50 per share.
• Despite a negative debt-to-equity ratio, Choice Hotels maintains a strong financial position with a P/E ratio of 23.54.

Choice Hotels International, Inc. (NYSE: CHH), a leading global lodging franchisor, operates in the competitive Zacks Hotels and Motels industry. The company has consistently demonstrated strong financial performance, showcasing its ability to outperform market expectations.

In its latest earnings report, Choice Hotels revealed impressive quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.50 per share. This represents a 3.33% earnings surprise, highlighting the company's growth trajectory from $1.44 in the same quarter last year.

Despite a negative debt-to-equity ratio of -41.57, Choice Hotels maintains a strong financial position. The company's price-to-earnings (P/E) ratio of 23.54 indicates investor confidence in its earnings potential. Additionally, the price-to-sales ratio of 4.35 and enterprise value to sales ratio of 5.51 reflect the market's valuation of the company's sales performance.

Choice Hotels' revenue for the quarter ending December 2024 was $389.77 million, exceeding the Zacks Consensus Estimate by 3.12%. This marks a significant increase from the $358.4 million reported a year ago. However, the company has only surpassed consensus revenue estimates once in the last four quarters, indicating some variability in its revenue performance.

The company's current ratio of approximately 0.73 suggests its ability to cover short-term liabilities with short-term assets. Despite this, Choice Hotels continues to focus on growth, as evidenced by its 3.3% increase in global net rooms system size and a 4.3% rise in its domestic portfolio. These strategic initiatives, along with the relaunch of four brands and expansion of its partnerships business, position Choice Hotels for continued success in 2025.

• A significant shareholder sold 322,652 shares of Choice Hotels International, Inc. (NYSE:CHH), potentially impacting investor sentiment.
• Choice Hotels received a Zacks Rank #1 (Strong Buy) upgrade, indicating positive earnings potential and investor confidence.
• The company's financial metrics, including a P/E ratio of 28.18, price-to-sales ratio of 4.59, and enterprise value to sales ratio of 5.79, highlight its market valuation and revenue-generating potential.

Choice Hotels International, Inc. (NYSE:CHH) is a prominent player in the hospitality industry, known for its wide range of hotel brands catering to various market segments. The company competes with other major hotel chains like Marriott and Hilton. On November 30, 2024, Roberta Bainum, a significant shareholder, sold 322,652 shares of CHH's common stock, which could impact investor sentiment.

Despite this sale, Choice Hotels has received a Zacks Rank #1 (Strong Buy) upgrade, indicating positive expectations for its earnings potential. This upgrade suggests that the stock might see upward movement soon, as highlighted by Zacks. Investors often view such upgrades as a sign of confidence in the company's future performance.

Choice Hotels' financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 28.18, showing the price investors are willing to pay for each dollar of earnings. This ratio is a common measure used to assess whether a stock is over or undervalued compared to its earnings.

The company's price-to-sales ratio is about 4.59, indicating how the market values its sales. Additionally, the enterprise value to sales ratio is around 5.79, reflecting the company's total valuation relative to its sales. These ratios help investors understand how the market perceives the company's revenue-generating potential.

Choice Hotels' financial structure is unique, as evidenced by its negative debt-to-equity ratio of -18.83. This could suggest a distinctive financial strategy or accounting approach. Furthermore, the current ratio of approximately 0.71 indicates the company's ability to cover its short-term liabilities with its short-term assets, which is an important measure of liquidity.

• A significant shareholder sold 322,652 shares of Choice Hotels International, Inc. (NYSE:CHH), potentially impacting investor sentiment.
• Choice Hotels received a Zacks Rank #1 (Strong Buy) upgrade, indicating positive earnings potential and investor confidence.
• The company's financial metrics, including a P/E ratio of 28.18, price-to-sales ratio of 4.59, and enterprise value to sales ratio of 5.79, highlight its market valuation and revenue-generating potential.

Choice Hotels International, Inc. (NYSE:CHH) is a prominent player in the hospitality industry, known for its wide range of hotel brands catering to various market segments. The company competes with other major hotel chains like Marriott and Hilton. On November 30, 2024, Roberta Bainum, a significant shareholder, sold 322,652 shares of CHH's common stock, which could impact investor sentiment.

Despite this sale, Choice Hotels has received a Zacks Rank #1 (Strong Buy) upgrade, indicating positive expectations for its earnings potential. This upgrade suggests that the stock might see upward movement soon, as highlighted by Zacks. Investors often view such upgrades as a sign of confidence in the company's future performance.

Choice Hotels' financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 28.18, showing the price investors are willing to pay for each dollar of earnings. This ratio is a common measure used to assess whether a stock is over or undervalued compared to its earnings.

The company's price-to-sales ratio is about 4.59, indicating how the market values its sales. Additionally, the enterprise value to sales ratio is around 5.79, reflecting the company's total valuation relative to its sales. These ratios help investors understand how the market perceives the company's revenue-generating potential.

Choice Hotels' financial structure is unique, as evidenced by its negative debt-to-equity ratio of -18.83. This could suggest a distinctive financial strategy or accounting approach. Furthermore, the current ratio of approximately 0.71 indicates the company's ability to cover its short-term liabilities with its short-term assets, which is an important measure of liquidity.

• Choice Hotels International, Inc. (NYSE:CHH) reported a Q3 revenue of approximately $428 million, slightly below estimates.
• The company's EPS of $2.23 exceeded the Zacks Consensus Estimate, indicating growth from the previous year.
• Despite a challenging financial structure, CHH's market valuation and earnings yield suggest it remains a viable investment in the hospitality industry.

Choice Hotels International, Inc. (NYSE:CHH) is a prominent player in the hospitality industry, known for its wide range of hotel brands catering to various market segments. The company competes with other major hotel chains like Marriott and Hilton. On November 4, 2024, CHH reported its third-quarter earnings, revealing a revenue of approximately $428 million, slightly below the estimated $434 million.

During the earnings call, key figures such as CEO Pat Pacious and CFO Scott Oaksmith provided insights into the company's performance. Despite the revenue miss, CHH reported an impressive earnings per share (EPS) of $2.23, surpassing the Zacks Consensus Estimate of $1.91. This marks a significant improvement from the $1.82 EPS reported in the same period last year, highlighting the company's growth.

The earnings call was attended by analysts from major financial institutions, including Bank of America and Morgan Stanley, indicating strong interest in CHH's financial health and strategic direction. The company's price-to-earnings (P/E) ratio of 27.10 suggests that investors are willing to pay a premium for its earnings, reflecting confidence in its future prospects.

CHH's financial metrics reveal a complex picture. The price-to-sales ratio of 4.26 and enterprise value to sales ratio of 5.46 indicate a robust market valuation relative to its revenue. However, the negative debt-to-equity ratio of -19.98 points to a unique financial structure, which may warrant further analysis by investors.

The company's current ratio of 0.71 suggests a limited ability to cover short-term liabilities with short-term assets, which could be a concern for stakeholders. Despite these challenges, CHH's earnings yield of 3.69% offers a reasonable return on investment, underscoring its potential as a solid investment choice in the hospitality sector.