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Morningstar

Choice Hotels International Inc CHH Stock Quote

Morningstar Rating
| Rating as of

NYSE: CHH

Last close prices updated as of Jan 26, 2023, 7:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 124.25
  • Sector Consumer Cyclical
  • Industry Lodging
  • Investment Style Small Growth
  • Day Range 123.89  –  125.90
  • Year Range 104.15  –  153.71
  • Market Cap 6.6224 Bil
  • Volume / Avg 397,340.0 /  366,962.0
  • Price / Sales 5.24
  • Price / Book 23.28
  • Forward Div Yield 0.78%
  • Trailing Div Yield 0.76%

Morningstar‘s Stock Analysis CHH

Valuation
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Is it the right time to buy or sell?
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1-Star Price

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5-Star Price

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Economic Moat

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Capital Allocation

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We See Demand for Choice's Brands Improving in 2023 Amid an Uncertain Economic Background

Dan Wasiolek Senior Equity Analyst

Business Strategy and Outlook

| Dan Wasiolek |

While the coronavirus had a material impact on Choice's 2020 demand, the hotelier's U.S. leisure-based portfolio (which represents around 70% of nights) saw a full return to 2019 revenue per available room levels in 2021. We expect the narrow-moat company to gradually expand room share in the hotel industry in the next decade, supported by rejuvenated Comfort brands (28% of 2021 total domestic rooms), newer Cambria, Ascend, and Everhome concepts (8% combined), the acquisition of the Radisson brand in 2022, and a solid loyalty program with over 60 million members in 2022, up from 44 million at the end of 2019. The company has a high-single-digit share of existing U.S. hotel rooms with an expanding pipeline. We see its room growth averaging 2% over the next decade, above the 1.8% supply lift we estimate for the U.S. industry during that time.

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Key Statistics CHH

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Company Profile CHH

Business Description

As of Dec. 31, 2021, Choice Hotels operated 579,746 rooms across 13 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (29% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands experiencing strong demand prior to COVID-19. Choice added its 13th brand with the launch of extended-stay brand Everhome in January 2020. Choice closed on its Radisson acquisition in August 2022, which will add around 70,000 rooms. Franchises are 99% of total revenue, and the United States represents 79% of total rooms in 2021.

Contact
1 Choice Hotels Circle, Suite 400
Rockville, MD, 20850
Sector Consumer Cyclical
Industry Lodging
Employees 1,500

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Related News CHH

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FAQs for Choice Hotels International Inc Stock

Yes. CHH has a forward dividend yield of 0.78%. See CHH’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

CHH’s market cap is 6.62 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

CHH’s stock style is Small Growth.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

CHH’s price/sales is 5.26.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

CHH’s price/forward earnings is 20.24.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

CHH’s price/book is 23.38.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See CHH’s valuation ratios compared to the Market Index.

CHH’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare CHH’s historical performance against its industry peers and the overall market.