Choice Hotels double downgraded to Underperform at BofA on low end softness

As previously reported, BofA double downgraded Choice Hotels (CHH) to Underperform from Buy with a price target of $110, down from $160. Continued low end Lodging weakness for the last two to three years, coupled with the weakest net unit growth of its peer set, decelerating tailwinds from M&A, and less balance sheet upside potential moving forward, has the firm “increasingly questioning underlying fundamentals,” the analyst tells investors.