Detailed financial statements for Choice Hotels International, Inc. (CHH): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Choice Hotels International, Inc., also known as Choice Hotels, operates as a prominent global hotel franchisor, conducting its extensive business through its various subsidiary entities. The company's activities are primarily divided into two main segments: Hotel Franchising and Corporate & Other.
Analysis Summary
Choice Hotels International, Inc. reported revenue of $1.60B in the most recent fiscal year, growing at a 5-year CAGR of 15.6%. Net income reached $369.9M, with a 37.5% 5-year CAGR.
Trailing-twelve-month margins: gross margin 45.0%, operating margin 25.5%, net margin 20.3%. Free cash flow grew at 10.7% CAGR over 5 years.
At $112.97 (closing price, October 29, 2026), CHH trades at a P/E of 15.96 and an ROE of 214.91%. Market capitalisation stands at $5.1B.
Balance sheet quality for CHH: current ratio of 0.9, net debt of $2.09B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of $124.7M represents 34% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $924.6M | $1.01B | $1.04B | $1.11B | $774.1M | $1.07B | $1.40B | $1.54B | $1.58B | $1.60B |
| Cost of Revenue | $525.7M | $567.1M | $534.3M | $593.6M | $462.9M | $469.7M | $701.9M | $853.9M | $840.7M | $942.9M |
| Gross Profit | $398.9M | $440.3M | $507.0M | $521.2M | $311.2M | $599.6M | $700.1M | $690.3M | $744.2M | $653.9M |
| Research & Development | $11.8M | $11.7M | $11.2M | $9.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $148.7M | $163.4M | $170.0M | $168.8M | $148.9M | $145.6M | $167.7M | $216.1M | $219.9M | 0 |
| Operating Expenses | $160.4M | $175.8M | $184.4M | $187.7M | $189.5M | $170.7M | $221.5M | $315.3M | $280.4M | $200.8M |
| Operating Income | $238.9M | $264.4M | $318.5M | $318.6M | $121.7M | $428.9M | $478.6M | $375.0M | $463.8M | $453.1M |
| EBITDA | $204.3M | $321.5M | $349.9M | $352.9M | $150.5M | $473.7M | $544.5M | $476.5M | $553.6M | $564.9M |
| Interest Expense | $44.4M | $45.0M | $45.9M | $46.8M | $49.0M | $46.7M | $43.8M | $63.8M | $87.1M | $91.1M |
| Pre-tax Income | $200.0M | $224.0M | $273.3M | $269.9M | $53.0M | $376.5M | $436.8M | $337.0M | $395.6M | $456.9M |
| Income Tax | $60.6M | $109.1M | $56.9M | $47.1M | -$22.4M | $87.5M | $104.7M | $78.4M | $96.0M | $86.9M |
| Net Income | $139.4M | $114.9M | $216.4M | $222.9M | $75.4M | $289.0M | $332.2M | $258.5M | $299.7M | $369.9M |
| EPS | $2.48 | $2.03 | $3.83 | $4.00 | $1.36 | $5.20 | $6.05 | $5.11 | $6.26 | $7.97 |
| EPS (Diluted) | $2.46 | $2.02 | $3.80 | $3.98 | $1.35 | $5.15 | $5.99 | $5.07 | $6.20 | $7.90 |
| Shares Outstanding (Diluted) | 56.7 M | 56.9 M | 56.9 M | 55.7 M | 55.5 M | 55.9 M | 55.1 M | 50.7 M | 47.2 M | 46.6 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $447.3M | $390.1M | $340.6M | $440.8M |
| Gross Profit | $209.6M | $179.6M | $121.5M | $217.6M |
| Operating Income | $143.9M | $104.2M | $60.0M | $104.1M |
| EBITDA | $255.0M | $123.3M | $71.1M | $164.3M |
| Net Income | $180.0M | $63.7M | $20.3M | $64.1M |
| EPS | $3.89 | $1.38 | $0.44 | $1.42 |
| EPS (Diluted) | $3.86 | $1.37 | $0.44 | $1.41 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $202.5M | $235.3M | $26.6M | $33.8M | $234.8M | $511.6M | $41.6M | $26.8M | $40.2M | $45.0M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $107.3M | $125.9M | $138.0M | $178.1M | $178.2M | $220.1M | $273.8M | $195.9M | $257.6M | $207.5M |
| Inventory | 0 | 0 | $25.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $344.9M | $402.9M | $243.8M | $236.6M | $432.9M | $761.7M | $347.9M | $296.5M | $339.1M | $406.0M |
| Property, Plant & Equipment | $113.1M | $102.7M | $127.5M | $405.3M | $372.9M | $431.9M | $516.6M | $578.6M | $687.8M | $727.0M |
| Goodwill | $78.9M | $80.8M | $169.0M | $159.2M | $159.2M | $159.2M | $218.7M | $220.2M | $220.2M | $305.8M |
| Intangible Assets | $15.7M | $14.7M | $271.2M | $290.4M | $303.7M | $312.4M | $742.2M | $811.1M | $884.0M | $1.08B |
| Total Assets | $852.5M | $927.6M | $1.14B | $1.39B | $1.59B | $1.93B | $2.10B | $2.39B | $2.53B | $2.92B |
| Accounts Payable | $48.1M | $67.8M | $73.5M | $73.4M | $83.3M | $81.2M | $118.9M | $131.3M | $134.9M | $156.3M |
| Short-term Debt | $1.2M | $1.2M | $1.1M | $7.5M | 0 | $216.4M | $3.0M | $499.3M | 0 | $8.4M |
| Total Current Liabilities | $263.7M | $294.5M | $318.4M | $325.9M | $255.8M | $570.3M | $435.9M | $942.7M | $462.7M | $467.3M |
| Long-term Debt | $839.4M | $725.3M | $753.5M | $844.1M | $1.06B | $844.1M | $1.20B | $1.07B | $1.77B | $2.01B |
| Total Liabilities | $1.16B | $1.14B | $1.32B | $1.41B | $1.59B | $1.67B | $1.95B | $2.36B | $2.58B | $2.74B |
| Retained Earnings | $607.6M | $673.8M | $795.2M | $968.8M | $1.02B | $1.28B | $1.56B | $1.76B | $2.00B | $2.32B |
| Total Equity | -$311.3M | -$212.1M | -$183.8M | -$23.5M | -$5.8M | $265.9M | $154.7M | $35.6M | -$45.3M | $181.2M |
| Total Debt | $840.6M | $726.5M | $754.6M | $883.0M | $1.08B | $1.11B | $1.29B | $1.68B | $1.89B | $2.13B |
| Net Debt | $638.1M | $491.2M | $728.0M | $849.2M | $847.3M | $596.4M | $1.24B | $1.65B | $1.85B | $2.09B |
| Working Capital | $81.2M | $108.4M | -$74.7M | -$89.3M | $177.1M | $191.4M | -$88.0M | -$646.2M | -$123.6M | -$61.3M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $52.6M | $45.0M | $43.9M | $42.8M |
| Total Assets | $2.91B | $2.92B | $2.94B | $2.99B |
| Total Liabilities | $2.76B | $2.74B | $2.81B | $2.85B |
| Total Equity | $149.8M | $181.2M | $137.4M | $142.2M |
| Total Debt | $2.03B | $2.13B | $2.11B | $2.11B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $139.4M | $114.9M | $216.4M | $222.9M | $75.4M | $289.0M | $332.2M | $258.5M | $299.7M | $369.9M |
| Depreciation & Amortization | $11.7M | $27.3M | $30.7M | $36.1M | $48.5M | $50.5M | $63.9M | $75.7M | $70.9M | $16.8M |
| Stock-based Compensation | $15.5M | $23.3M | $16.0M | $17.6M | $9.7M | $35.7M | $43.0M | $46.8M | $43.2M | $38.3M |
| Change in Working Capital | -$7.8M | $58.1M | -$2.0M | -$21.8M | $11.5M | $23.2M | -$5.1M | $6.1M | $17.4M | -$98.0M |
| Operating Cash Flow | $152.0M | $257.4M | $242.9M | $270.6M | $115.1M | $383.7M | $367.1M | $296.6M | $319.4M | $270.4M |
| Capital Expenditure | -$27.8M | -$26.0M | -$49.5M | -$64.0M | -$40.0M | -$77.9M | -$90.0M | -$118.3M | -$145.9M | -$145.8M |
| Acquisitions | -$64.6M | -$50.6M | -$240.9M | -$29.7M | $2.0M | $12.8M | -$553.6M | 0 | -$52.8M | -$73.4M |
| Stock Repurchased | -$35.9M | -$9.8M | -$148.7M | -$50.6M | -$55.5M | -$13.4M | -$434.8M | -$362.8M | -$380.7M | -$138.3M |
| Dividends Paid | -$46.2M | -$48.7M | -$48.7M | -$48.1M | -$25.3M | -$25.0M | -$52.5M | -$56.5M | -$55.5M | -$53.5M |
| Free Cash Flow | $124.3M | $231.4M | $193.4M | $206.5M | $75.1M | $305.8M | $277.1M | $178.3M | $173.6M | $124.7M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $68.7M | $85.7M | -$23.2M | $90.5M |
| Capital Expenditure | -$28.2M | $28.2M | -$26.9M | $26.9M |
| Free Cash Flow | $40.5M | $113.9M | -$50.1M | $117.4M |
| Dividends Paid | -$13.3M | -$13.3M | -$13.1M | -$13.2M |
| Stock-based Compensation | $8.0M | $10.8M | $8.4M | $4.7M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +8.9% | +3.4% | +7.1% | -30.6% | +38.1% | +31.1% | +10.1% | +2.6% | +0.8% | |
| Net Income Growth (YoY) | -17.6% | +88.3% | +3.0% | -66.2% | +283.3% | +14.9% | -22.2% | +15.9% | +23.5% | |
| EPS Growth (YoY) | -18.1% | +88.7% | +4.4% | -66.0% | +282.4% | +16.3% | -15.5% | +22.5% | +27.3% | |
| Shares Change (YoY) | +0.4% | +0.1% | -2.2% | -0.2% | +0.6% | -1.4% | -8.0% | -6.9% | -1.3% | |
| FCF Growth (YoY) | +86.2% | -16.4% | +6.8% | -63.6% | +307.2% | -9.4% | -35.7% | -2.6% | -28.2% | |
| Gross Margin | 43.1% | 43.7% | 48.7% | 46.8% | 40.2% | 56.1% | 49.9% | 44.7% | 47.0% | 40.9% |
| Operating Margin | 25.8% | 26.3% | 30.6% | 28.6% | 15.7% | 40.1% | 34.1% | 24.3% | 29.3% | 28.4% |
| EBITDA Margin | 22.1% | 31.9% | 33.6% | 31.7% | 19.4% | 44.3% | 38.8% | 30.9% | 34.9% | 35.4% |
| Net Margin | 15.1% | 11.4% | 20.8% | 20.0% | 9.7% | 27.0% | 23.7% | 16.7% | 18.9% | 23.2% |
| FCF Margin | 13.4% | 23.0% | 18.6% | 18.5% | 9.7% | 28.6% | 19.8% | 11.5% | 11.0% | 7.8% |
| Effective Tax Rate | 30.3% | 48.7% | 20.8% | 17.4% | -42.2% | 23.3% | 24.0% | 23.3% | 24.3% | 19.0% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $2.19 | $4.07 | $3.40 | $3.71 | $1.35 | $5.47 | $5.03 | $3.52 | $3.68 | $2.68 |
| Dividends Per Share | $0.82 | $0.86 | $0.86 | $0.86 | $0.46 | $0.45 | $0.95 | $1.11 | $1.18 | $1.15 |
| Shares Outstanding (Basic) | 56.2 M | 56.6 M | 56.5 M | 55.4 M | 55.2 M | 55.4 M | 54.6 M | 50.3 M | 47.2 M | 46.2 M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 214.91% |
| Return on Invested Capital | 13.26% |
| Return on Assets | 10.98% |
| Gross Margin | 44.99% |
| Operating Margin | 25.47% |
| Net Margin | 20.27% |
Financial Health
| Debt / Equity | 14.82 |
| Current Ratio | 0.93 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 3.11 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 22.60 | 38.23 | 18.69 | 25.86 | 78.48 | 30.00 | 18.62 | 22.17 | 22.68 | 11.95 |
| P/B | -10.12 | -20.71 | -22.00 | -243.53 | -1,023.79 | 32.49 | 39.76 | 160.22 | -148.01 | 24.27 |
| P/S | 3.41 | 4.36 | 3.88 | 5.14 | 7.61 | 8.08 | 4.39 | 3.69 | 4.23 | 2.75 |
| Gross Margin | 43.1% | 43.7% | 48.7% | 46.8% | 40.2% | 56.1% | 49.9% | 44.7% | 47.0% | 40.9% |
| Operating Margin | 25.8% | 26.3% | 30.6% | 28.6% | 15.7% | 40.1% | 34.1% | 24.3% | 29.3% | 28.4% |
| Net Margin | 15.1% | 11.4% | 20.8% | 20.0% | 9.7% | 27.0% | 23.7% | 16.7% | 18.9% | 23.2% |
Related companies: CZR · RUSHA · CVCO · DORM · WH · GOLF · TNL · SLGN
Explore sector: Consumer Cyclical · Travel Lodging
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