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Upturn AI Summary - About
Choice Hotels International Inc(CHH)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for CHH
11/06/2026: CHH (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Choice Hotels International is a prominent hotel franchisor known for its asset-light model and extensive presence in the midscale and economy segments. By focusing on franchise fees rather than real estate ownership, the company has historically achieved strong margins and reliable cash flow. Its primary growth strategy involves expanding into the upscale and extended-stay markets while leveraging digital platforms to capture direct bookings. Key risks include intense competition from global hotel chains and alternative lodging like Airbnb, alongside sensitivity to macroeconomic travel cycles. The stock may suit dividend-seeking and value-oriented investors who value steady cash distribution and a proven, efficient business model.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | While the company grows through unit expansion, it is a mature business with moderate growth expectations. |
| Momentum investor | Mixed fit | Performance is subject to broader travel trends; look for positive sector momentum signals. |
| Value investor | Strong fit | The asset-light business model and consistent cash generation often attract value-oriented investors. |
| Dividend investor | Strong fit | Choice has a reliable history of returning capital to shareholders through dividends and buybacks. |
| Low-risk investor | Mixed fit | The stock is subject to cyclical industry risks and economic sensitivity. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock fluctuates based on macroeconomic data and travel demand cycles. |
| Valuation risk | Medium | Investors should monitor earnings multiples relative to growth expectations. |
| Competition risk (Direct/Airbnb) | Medium / high | Increased competition from alternative lodging and major global hotel chains remains a factor. |
| Business quality | Strong | The franchise-only model provides strong recurring fee revenue with minimal capital expenditure. |
| Dividend income | Medium | Dividends are reliable but not primarily designed for high-yield income seekers. |
| Execution risk | Medium | Integration of new brands and technological updates is critical to maintaining system-wide growth. |
Price Behavior
Flat / Range-Bound
The stock price has been trading within a narrow range with minimal directional movement.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -12.1% | Avg. Invested days 28 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/06/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.29B USD | Price to earnings Ratio 26.42 | 1Y Target Price 115.94 |
Price to earnings Ratio 26.42 | 1Y Target Price 115.94 | ||
Volume (30-day avg) 587.2K shares | Beta 0.67 | 52 Weeks Range 83.10 - 123.15 | Updated Date 11/06/2026 |
52 Weeks Range 83.10 - 123.15 | Updated Date 11/06/2026 | ||
Dividends yield (FY) 0.98% | Basic EPS (TTM) 4.5 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Franchise Fees | Royalty fees and marketing/reservation assessments from franchisees. | The company makes money when hotel owners succeed and pay fees for using Choice's brand and reservation systems. |
| Geographic Exposure | Primary operations in the United States, with expanding international presence. | The company is largely dependent on the health of the US travel and tourism economy. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-11-02 | When Before Market | Estimate 2.27 | Actual 2.33 |
Profitability
Profit Margin 20.35% | Operating Margin (TTM) 49.05% |
Management Effectiveness
Return on Assets (TTM) 8.48% | Return on Equity (TTM) 146.51% |
Valuation
Trailing PE 26.42 | Forward PE 14.71 | Enterprise Value 7.35B | Price to Sales(TTM) 5.22 |
Enterprise Value 7.35B | Price to Sales(TTM) 5.22 | ||
Enterprise Value to Revenue 4.51 | Enterprise Value to EBITDA 16.13 | Shares Outstanding 44.51M | Shares Floating 34.44M |
Shares Outstanding 44.51M | Shares Floating 34.44M | ||
Percent Insiders 39.55 | Percent Institutions 77.85 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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