10-K · February 19, 2026
Choice Hotels positions itself as a fee‑for‑service hotel franchisor with scale (7,575 hotels, 656,825 rooms open) and a development pipeline (825 hotels, 77,862 rooms). FY2025 revenue was roughly flat vs. FY2024 while…
Earnings analysis · 10-Q
CHH earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
Choice Hotels reported total revenues of $340.6 million for Q1 2026, slightly exceeding estimates, but earnings per share (EPS) of $0.44 fell short of the expected $1.32. The decrease in operational performance was…
Read full summary
Choice Hotels reported total revenues of $340.6 million for Q1 2026, slightly exceeding estimates, but earnings per share (EPS) of $0.44 fell short of the expected $1.32. The decrease in operational performance was primarily attributed to a decline in operating income and increased interest expenses, despite a significant increase in international franchise agreements and royalty fees. Looking forward, the company maintains projections for adjusted diluted EPS between $6.92 to $7.14 for FY 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.44
What stood out
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Revenue Exceeds Estimates
Q1 2026 revenue was reported at $340.6 million, surpassing estimates of $333.9 million.
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Major Drop in EPS
Reported diluted EPS was $0.44, significantly below the estimated EPS of $1.32.
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Increase in International Franchise Agreements
Franchise agreements awarded grew by 72% compared to last year.
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Growth in International Royalty Fees
International royalty fees increased by $5.2 million to $11.8 million.
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Higher Interest Expenses
Interest expense increased to $23.96 million from $21.24 million year-over-year.
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Strong Franchise Growth
Total franchised hotels reached 7,588, with a pipeline of 830 hotels under construction.
What to watch
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Decline in Operating Income
Operating income decreased to $60.03 million, down from $79.93 million the previous year.
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Increased Reimbursable Deficit
The reimbursable deficit increased by $17.5 million from the year prior, impacting net income.
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High Effective Tax Rate
Effective tax rate increased to 33.0%, up from 25.5%, affecting net profitability.
Management's outlook
Maintains FY 2026 diluted EPS guidance between $5.72 to $5.94.
Earlier filings 4
10-Q · August 6, 2025
Choice Hotels International's Q2 2025 performance demonstrated a decline in total revenues and margins compared to prior year figures, attributed to mixed segment performance and significant interest expenses. However,…
10-K · February 20, 2025
Choice reiterates a fee-for-service franchising strategy backed by a large system (7,586 open hotels / 653,810 rooms) and a meaningful development pipeline (964 hotels / 97,325 rooms). The 10‑K emphasizes profitable…
10-Q · May 8, 2024
Choice Hotels reported nearly flat revenue of $331.95M for the quarter ended March 31, 2024 versus $332.79M a year ago, but operating income and EPS declined materially as interest expense rose. Operating cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.