3 models fit Choice Hotels International Inc. Common Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Premium(i)Bronze45
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionChoice Hotels International Inc. Common Stock (CHH)
Fair value (3 models)
$90.35
ACCE price target
$112
Rating
Overvalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST; previously $93.90 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $108 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
20.1% above
-16.7% to fair value
ACCE score
59
out of 100
Analysts
17% buy
18 covering
P/E
15.3x
forward 14.4x
1-year return
+10.8%
Dividend yield
1.03%
Choice Hotels International Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Choice Hotels is a franchisor, not an owner-operator: it licenses brands including Comfort, Quality, Clarion, Sleep Inn and Cambria to independent hotel owners and collects royalties, fees and reservation revenue, which explains the 90% gross margin and 38% operating margin. The moat is the scale of its central reservation system and loyalty program, which feeds bookings to franchisees who have little reason to leave a platform that fills rooms cheaply. Revenue growth of 7.1% is coming from net room unit growth in the pipeline plus pricing, and the company's asset-light model means incremental franchise fees carry very little incremental cost. At 15.3x trailing and 12.7x forward earnings, the stock trades at a discount to where a high-return franchisor of this profile has typically been valued, and a 56.6% ROE shows how little capital the model needs to compound. The main reasons to dig deeper are the cyclicality of leisure travel demand, franchisee health if RevPAR softens, and whether the forward earnings estimate holds through a downturn; the score of 54/100 and absence from major indices suggest the market has not yet given it much attention.