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Choice Hotels International (CHH)
NYSE:CHH
Earnings Data
Report Date
May 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.31Last Year’s EPS
1.34Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple clear operational and strategic wins: adjusted EBITDA and EPS in line with guidance, robust international revenue and openings, strong momentum in extended stay and conversion pipelines, membership and partnership revenue growth, and solid liquidity and cash generation. These positives were tempered by near-term RevPAR weakness (notably a 4.6% global Q4 decline and U.S. pressure after lapping hurricane benefits), some working capital timing impacts, and short-term unit growth headwinds from selective exits and higher key money expectations for 2026. Management characterized much of the RevPAR weakness as transitory and highlighted offsetting strength internationally and in higher-revenue segments, which, together with disciplined capital allocation, supports confidence in returning to positive U.S. net room growth and durable earnings expansion.Company Guidance
Adjusted EBITDA and EPS In Line with Guidance
Full-year adjusted EBITDA of $626,000,000, up 4% year-over-year; full-year adjusted EPS of $6.94 per share, both consistent with midpoint of guidance. Fourth-quarter adjusted EBITDA of $141,000,000 and adjusted EPS up ~3% year-over-year to ~$1.6.
Strong International Revenue and System Expansion
International revenues grew 37% in 2025; international system rooms expanded ~13% year-over-year to ~160,000 rooms, with an 82% increase in hotel openings. Directly franchised rooms now represent >40% of the international portfolio (up >20 percentage points over three years).
High-Quality Development Pipeline and Rapid Conversions
97% of rooms in the global pipeline are in higher-revenue brands and projects expected to be ~1.7x more accretive than the current portfolio. The conversion-led model enables faster openings (about five times faster than new construction); U.S. conversion pipeline increased 12% sequentially (from 09/30/2025) and conversion franchise agreements rose ~12% year-over-year in Q4.
Leadership in Extended Stay Segment
Tenth consecutive quarter of double-digit system growth in U.S. extended stay. Extended stay represents >40% of the U.S. pipeline; record U.S. extended stay openings up 8% year-over-year in 2025; ~57,000 extended stay rooms in the U.S. at year-end.
Average Royalty Rate Expansion
U.S. average royalty rate increased 8 basis points for full-year 2025 and 10 basis points in the fourth quarter year-over-year, reflecting shift to higher-revenue brands and improved franchisee economics.
Partnership Revenue and Loyalty Growth
Partnership revenues grew 14% year-over-year for 2025 (16% in Q4), driven by co-brand fees and supplier/strategic partnerships. Choice Privileges membership exceeded 74,000,000 members, up 7% year-over-year, with international enrollment up 11% in 2025.
Developer Interest and Franchise Agreement Momentum
Global franchise agreements awarded up 22% year-over-year (company-disclosed metric); U.S. midscale and economy franchise agreements up ~5% year-over-year; midscale global franchise agreements awarded up 14%, and Country Inn & Suites U.S. franchise agreements increased ~50% in 2025.
Healthy Liquidity and Cash Generation
Total liquidity of $571,000,000; net debt to trailing twelve-month EBITDA at 3.0x (within 3.0x–4.0x target range). Generated >$270,000,000 of operating cash flow for 2025, including nearly $86,000,000 in Q4, supporting disciplined capital allocation and a smaller net use of capital guidance for 2026 (~$20,000,000–$45,000,000).
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 |
|---|---|---|---|
Feb 19, 2026 | $109.40 | $111.05 | +1.51% |
Nov 05, 2025 | $91.22 | $96.68 | +5.98% |
Aug 06, 2025 | $124.41 | $123.94 | -0.38% |
May 08, 2025 | $124.78 | $120.30 | -3.59% |
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 May 12, 2026, Before Open (Confirmed).
What is Choice Hotels International (CHH) earnings time?
Choice Hotels International (CHH) earnings time is at May 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 (Q1) is 1.31.