Choice Hotels International (CHH)
NYSE:CHH
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Earnings Data
Report Date
Aug 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.93Last Year’s EPS
1.92Same Quarter Last Year
Moderate Sell
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call balanced near-term headwinds with a constructive multi-quarter operational improvement story. Near-term financials showed lower adjusted EBITDA and EPS and RevPAR distortion from last year’s hurricanes, causing investor pushback. However, underlying metrics — accelerating conversion-led room growth, a higher-quality and accretive pipeline, improving unit economics (royalty expansion, loyalty momentum), AI-driven franchisee benefits, materially lower capital intensity, and a clear share-repurchase plan — indicate durable improvement in earnings quality and cash generation. Management maintained full-year guidance and provided visibility into capital returns and free cash flow targets.Company Guidance
Inflection in Rooms Growth and Conversion Momentum
Global rooms grew 1.7% year over year with U.S. gross openings up 32% YoY and nearly 6,000 U.S. gross rooms opened in the quarter. U.S. conversion room openings rose ~59% YoY (C-suite commentary) and U.S. conversion franchise agreements increased 63% YoY (CFO), with the U.S. conversion pipeline up 17% YoY and ~60% of quarter franchise agreements expected to open this year.
Strong Developer Demand and Pipeline Quality
Global franchise agreements awarded were up 72% YoY and U.S. franchise agreements awarded were up 65% YoY. 97% of rooms in the global pipeline are in higher-revenue brands, expected to be ~1.7x more accretive than the current portfolio.
Extended Stay Leadership and Segment Strength
Extended stay delivered 11 consecutive quarters of double-digit rooms growth and now represents more than 40% of the U.S. pipeline. Midscale/economy franchise agreements awarded were up 38% YoY, and brand examples show strong momentum (Country Inn & Suites franchise agreements +50% YoY).
Improving Unit Economics and Loyalty Momentum
Average U.S. royalty rate expanded 11 basis points in Q1. Choice Privileges membership exceeded 75 million, up 7% YoY, and loyalty contribution increased by over 300 basis points in March YoY, with newer cohorts generating higher revenue per member.
RevPAR and Occupancy Trends (Adjusted for Hurricanes)
In the 46 states not impacted by last year’s hurricanes, RevPAR was +1.8% YoY driven by occupancy gains; U.S. comparable RevPAR turned positive in February and remained positive in March. International RevPAR grew 2.6% YoY (currency-neutral).
Technology and AI Operational Gains
Choice standardized on a cloud-based AI foundation (AWS) and launched AI-enabled EasyBid, which improved group RFP response time by ~30% and increased conversion rates by ~250 basis points, driving incremental group business and franchisee economics.
Declining Capital Intensity and Capital Return Plans
Development outlays declined 51% YoY in Q1; generated ~$25 million of proceeds in the quarter. Net capital outlays for 2026 are expected to be $20M–$45M (about 70% lower at the midpoint vs. 2025). Company expects $175M–$225M in share repurchases for 2026 and remains on a path to 60%–65% free cash flow conversion over time.
International Scaling — Canada Example
International net rooms were up 13% YoY in Q1. Canada transition to a direct franchise model delivered net rooms growth >30% YoY, pipeline up 55% YoY, RevPAR up ~5%, and rooms growth ~3.5%, illustrating higher-margin international growth potential.
CHH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CHH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 30, 2026 | $117.36 | $99.08 | -15.58% |
Feb 19, 2026 | $109.10 | $110.74 | +1.51% |
Nov 05, 2025 | $90.97 | $96.41 | +5.98% |
Aug 06, 2025 | $124.06 | $123.59 | -0.38% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Choice Hotels International (CHH) report earnings?
Choice Hotels International (CHH) is schdueled to report earning on Aug 12, 2026, Before Open (Confirmed).
What is Choice Hotels International (CHH) earnings time?
Choice Hotels International (CHH) earnings time is at Aug 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CHH EPS forecast?
CHH EPS forecast for the fiscal quarter 2026 (Q2) is 1.93.