Choice Hotels International Inc /De (NYSE: CHH)

Choice Hotels International Inc /De is primarily a hotel franchisor that licenses its brands to hotel owners and also owns and manages a limited number of properties. The company operates in the lodging industry, offering a diverse portfolio of brands that span economy midscale upscale and upper upscale segments. As of December 31 2025 the system included 7,575 hotels with 656,825 rooms open and operating and 825 hotels with 77,862 rooms under construction awaiting conversion or approved for development. The brand portfolio includes names such as Comfort Inn Comfort Suites Clarion Clarion Pointe Cambria Hotels Radisson Blu Radisson RED Quality Inn Sleep Inn Econo Lodge Rodeway Inn and many others. The company’s franchises are present in 49 states the District of Columbia and approximately 50 countries and territories outside the United States.

The company generates revenue principally from franchise fees which are based on the gross room revenues or the number of rooms at franchised properties. These franchise fees consist of an initial fee an ongoing royalty fee typically ranging from 5 to 6 percent of gross room revenues and a marketing and reservation fee usually ranging from 3 to 4 percent of gross room revenues. Additional revenue comes from owned and operated hotels through guest stays and from managed hotels via base and incentive management fees and cost reimbursements. Choice Hotels also earns income from partnerships with qualified vendors and travel partners that provide value added solutions to its platform of guests and hotels. The company’s loyalty program Choice Privileges had more than 74 million worldwide members as of December 31 2025 contributing to repeat business and brand engagement.

Choice Hotels holds a strong position within the lodging sector due to its large scale franchising model and extensive brand portfolio which includes names such as Comfort Inn Clarion Pointe Cambria Hotels and Radisson Blu. The company benefits from economies of scale that allow it to add new franchises with relatively low incremental costs while leveraging its reservation system loyalty program and marketing efforts to drive demand. Competitors include other major franchisors such as Marriott International Hilton Worldwide and Hyatt Hotels Corporation. The firm’s scale enables it to negotiate favorable terms with suppliers and to invest in technology platforms that improve property level performance and guest experience. Its diversified brand mix allows it to serve multiple price points and to adapt to changing market conditions.

The company serves hotel owners who operate under its franchise agreements as well as the guests who stay at its branded properties. Its franchisee base consists of independent operators and developers seeking brand affiliation while its guest base includes business travelers leisure travelers and extended stay visitors. The loyalty program Choice Privileges provides a channel for reaching frequent travelers and for encouraging repeat stays across the system. In addition the company works with corporate groups government agencies and organizations such as schools and military entities that utilize its rooms for meetings and events.