TacticScaleWhat Choice Hotels International Does & How It Makes Money (CHH)
Updated October 2026 · reflects Choice Hotels International's latest reported financials
Hotel franchisor behind Comfort, Quality, Econo Lodge and Radisson brands. It mainly earns franchise fees from hotel owners who operate properties under its brands.
How Choice Hotels International makes money
It mainly earns franchise fees from hotel owners who operate properties under its brands. Its Hotel Franchising & Management segment also includes hotel management.
What Choice Hotels International does
Choice Hotels International is a hotel franchisor based in North Bethesda, Maryland. It was founded in 1939. It licenses a large set of brands to hotel owners in the U.S. and abroad. The brands cover many price points. Econo Lodge and Rodeway Inn are economy brands. Comfort, Quality and Sleep Inn are midscale. WoodSpring Suites, MainStay Suites, Suburban Studios and Everhome Suites are extended-stay. Cambria, Ascend Collection and the Radisson family (Radisson Blu, Radisson RED, Radisson Collection, Park Plaza, Country Inn & Suites by Radisson and others) are upscale. The company reports two segments: Hotel Franchising & Management, and Corporate & Other. Its franchise model means hotel owners carry most of the cost of owning and running the properties. Choice supplies the brands and system and earns income tied to how its franchised hotels perform. That makes the company's results sensitive to travel demand and to how many hotels it has signed up.
Products & services
- Comfort Inn & Comfort Suites
- Quality & Clarion
- Econo Lodge & Rodeway Inn
- WoodSpring Suites & MainStay Suites
- Cambria Hotels & Ascend Collection
- Radisson, Park Plaza & Country Inn & Suites by Radisson
What is Choice Hotels International worth?
On an owner-earnings DCF, Choice Hotels International's most-likely value is about $47 versus a recent price near $106 (55% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$32) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 12.5× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Hyatt Hotels (H) · Wyndham Hotels & Resorts (WH) · Hilton Worldwide (HLT) · Marriott International (MAR)