Choice Hotels International, Inc. (CHH) Stock

Choice Hotels International, Inc. (CHH) is a Consumer Discretionary stock trading at $109.25 (as of 2026-08-20), with a market capitalization of $4.92B and a trailing P/E of 17.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Choice Hotels International, Inc. and its subsidiaries operate as a hotel franchisor, offering lodging under brands including Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, and others. The company also develops and markets cloud-based property management software for non-franchised hoteliers.

Understand Choice Hotels International, Inc.: how it makes money

Choice Hotels International franchises lodging properties under a portfolio of hotel brands worldwide, and it also develops and markets cloud-based property management software to non-franchised hoteliers, generating revenue from its hotel franchising business and its software offerings.

The business model is built around operating as a hotel franchisor with many branded lodging properties, so performance is tied to activity in franchised and managed properties and is complemented by revenue from cloud-based property management software sold to non-franchised hoteliers.

Business quality (Solid): High-level business description is clear, but the provided segment revenue candidates do not map cleanly to the company’s official reportable segments (Hotel Franchising, Corporate & Other), limiting how precisely we can break down revenue drivers.

Valuation: At 15× earnings, CHH trades 46% below the Restaurants, Hotels & Motels average (27×). Note: one-time items can distort reported P/E.

Bull case

Large branded franchise footprint: The company franchises lodging properties under multiple brand names, which supports a diversified brand mix within its franchising model.
Software complement to franchising: Beyond franchising, it develops and markets cloud-based property management software to non-franchised hoteliers.

Bear case

Franchising exposure: Because the company’s core business is hotel franchising, changes affecting franchised and managed properties can meaningfully impact results.
Operating detail limitation from provided data: The provided operational metrics and revenue line items include items that do not clearly align to the company’s official reportable segments, which makes it harder to validate key drivers from the current dataset.

Valuation — source: SEC EDGAR (first-party)
Price	$109.25
Market Cap	$4.92B
P/E Ratio	17.3
EV / EBITDA	15.9
Price / Book	34.58
Price / Sales	3.13
DCF Value (model)	$76.64
DCF Upside vs Price	-29.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.60B
Net Margin	23.2%
Revenue Growth (YoY)	0.8%
EPS Growth (YoY)	27.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	3.24 (safe)

Valuation vs Sector & Industry
Stock P/E	17.3
Sector P/E (Consumer Discretionary)	20.5
Industry P/E (Restaurants, Hotels & Motels)	26.6
vs Sector	-15.7%
vs Industry	-35.1%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BAMCO INC /NY/ ($795.97M)
Institutional Holders Tracked	10

Company
Sector	Consumer Discretionary
Industry	Restaurants, Hotels & Motels
CEO	Patrick S. Pacious
Employees	1,695
Country	US
IPO Date	1996-10-16

Related Companies (Business model: Hotels & Lodging (Asset-Light Franchisors and Asset-Heavy Lodging REITs); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.