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Upturn AI SWOT - About
CHH 
Choice Hotels International Inc (CHH)
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Upturn Advisory Summary
04/01/2025: CHH (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -17.6% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.26B USD | Price to earnings Ratio 21.61 | 1Y Target Price 141.94 |
Price to earnings Ratio 21.61 | 1Y Target Price 141.94 | ||
Volume (30-day avg) 477013 | Beta 1.25 | 52 Weeks Range 108.26 - 157.52 | Updated Date 04/2/2025 |
52 Weeks Range 108.26 - 157.52 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 0.87% | Basic EPS (TTM) 6.2 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 37.88% | Operating Margin (TTM) 61.24% |
Management Effectiveness
Return on Assets (TTM) 12.19% | Return on Equity (TTM) 88.1% |
Valuation
Trailing PE 21.61 | Forward PE 18.8 | Enterprise Value 8049655542 | Price to Sales(TTM) 7.91 |
Enterprise Value 8049655542 | Price to Sales(TTM) 7.91 | ||
Enterprise Value to Revenue 5.08 | Enterprise Value to EBITDA 14.54 | Shares Outstanding 46728100 | Shares Floating 37106482 |
Shares Outstanding 46728100 | Shares Floating 37106482 | ||
Percent Insiders 41.64 | Percent Institutions 66.42 |
Analyst Ratings
Rating 2.88 | Target Price 134.45 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 8 | Sell 4 | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
Choice Hotels International Inc
Company Overview
History and Background
Choice Hotels International Inc. was founded in 1939 as Quality Courts United, a referral system for motel owners. It evolved and rebranded as Choice Hotels in the 1990s, becoming one of the largest lodging franchisors globally.
Core Business Areas
- Franchising: Franchising is the core business, involving licensing its brand names to independently owned hotels. Choice provides marketing, technology, and operational support to franchisees.
Leadership and Structure
Patrick Pacious serves as the President and Chief Executive Officer. The company has a traditional corporate structure with various departments overseeing franchising, marketing, technology, and finance.
Top Products and Market Share
Key Offerings
- Comfort Inn: A mid-scale hotel brand focused on offering reliable accommodations at a value price. Competitors include Hampton Inn (HLT) and Best Western.
- Quality Inn: A budget-friendly hotel brand offering essential amenities. Competitors include Motel 6 (BX) and Red Roof Inn.
- Sleep Inn: A limited-service hotel brand known for its modern design and focus on sleep quality. Competitors include Wingate by Wyndham (WH).
- Radisson: Radisson includes several different types of lodging brands: Radisson Collection, Radisson Blu, Radisson, Radisson RED, and Park Inn by Radisson. Competitors include Hilton, Hyatt, and Marriott.
Market Dynamics
Industry Overview
The lodging industry is cyclical and influenced by economic conditions, travel trends, and consumer spending. It's highly competitive, with numerous brands catering to different market segments.
Positioning
Choice Hotels primarily focuses on the mid-scale and economy segments, offering a strong value proposition to both franchisees and guests. Its scale and franchising model provide a competitive advantage.
Total Addressable Market (TAM)
The global hotel market is estimated at over $500 billion. Choice Hotels is positioned to capture a significant portion of this market, particularly in the mid-scale and economy segments. They have been expanding in the luxury market as well
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive franchise network
- Loyalty program (Choice Privileges)
- Focus on mid-scale and economy segments
Weaknesses
- Dependence on franchisee performance
- Exposure to economic cycles
- Lower average daily rate (ADR) compared to luxury brands
Opportunities
- Expansion into new markets
- Growth of its upscale brand portfolio.
- Leveraging technology to enhance guest experience
- Increase in extended-stay travel
Threats
- Increased competition from online travel agencies (OTAs)
- Economic downturns
- Geopolitical instability
- Changing consumer preferences
Competitors and Market Share
Key Competitors
- HLT
- MAR
- WH
- IHG
Competitive Landscape
Choice Hotels competes effectively in the mid-scale segment through its franchising model. Its strengths lie in brand recognition and loyalty program, while weaknesses include dependence on franchisees.
Major Acquisitions
Radisson Hotels Americas
- Year: 2022
- Acquisition Price (USD millions): 675
- Strategic Rationale: Expanded the company's reach into the upscale market, adding established brands and a larger geographic footprint.
Growth Trajectory and Initiatives
Historical Growth: Discuss Choice Hotels International Inc's growth trends over the past years.
Future Projections: Provide projections for Choice Hotels International Inc's future growth based on analyst estimates.
Recent Initiatives: Highlight recent strategic initiatives undertaken by Choice Hotels International Inc.
Summary
Choice Hotels has a solid franchise model, strong brand presence in the mid-scale market, and a growing upscale portfolio. Acquisition of Radisson Hotels Americas has significantly expanded its reach. They need to stay ahead of economic downturns and evolving travel preferences.
Similar Companies
HLT
Hilton Worldwide Holdings Inc
HLT
Hilton Worldwide Holdings Inc
IHG
InterContinental Hotels Group PLC ADR
IHG
InterContinental Hotels Group PLC ADR
MAR
Marriott International Inc
MAR
Marriott International Inc
WH
Wyndham Hotels & Resorts Inc
WH
Wyndham Hotels & Resorts Inc
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is approximate and based on available information.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Choice Hotels International Inc
Exchange NYSE | Headquaters North Bethesda, MD, United States | ||
IPO Launch date 1997-09-16 | President, CEO & Director Mr. Patrick S. Pacious | ||
Sector Consumer Cyclical | Industry Lodging | Full time employees 1695 | Website https://www.choicehotels.com |
Full time employees 1695 | Website https://www.choicehotels.com | ||
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection brand names. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.
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