Core Viewpoint - The outlook for U.S. Lodging C-Corps and Timeshares has been downgraded due to weaker consumer demand, geopolitical uncertainty, and negative impacts from U.S. airlines, leading to a reduction in 2025 RevPAR forecasts by approximately 125 basis points [1] Group 1: Market Conditions - A 45% probability of a U.S. recession is assumed, although not fully factored in, with a focus on asset-light companies that have global exposure and less reliance on U.S. resorts [2] - The preference is for stocks with more global diversity, lower U.S. resort exposure, asset-light business models, and stronger prospects for non-RevPAR and ancillary revenues in a choppier macro environment [3] Group 2: Historical Context - Historical data indicates that lodging revenue growth is cyclical, with significant downturns during previous recessions, where business demand impacts leisure travel first, and premium chains experience larger RevPAR declines than economy chains [4] - Hotel C-Corps have transitioned to asset-light, fee-based business models over the past decade, which have shown resilience during downturns, as franchise revenues tend to perform better than owned/leased or timeshare revenues [4] Group 3: Company-Specific Updates - Choice Hotels International Inc (CHH) was upgraded from Sell to Buy, with a price forecast lowered from $141 to $138, due to its defensive position driven by franchise revenue structure and strong balance sheet [6] - CHH is less affected by current macroeconomic challenges compared to other U.S. lodging companies, with improving trends in consumer purchase intent and performance among lower-income segments [7] - Hyatt Hotels Corporation (H) was downgraded from Neutral to Sell, with a price forecast lowered from $150 to $110, due to higher macro sensitivity and significant exposure to China [8] - Hilton Worldwide Holdings (HLT) and Marriott International Inc (MAR) were downgraded from Buy to Neutral, with price forecasts lowered from $296 to $235 and from $313 to $245, respectively, due to macro volatility and consumer pressures impacting macro-sensitive segments [9][10] - Both HLT and MAR have strong business models but face high valuations compared to historical cycles, with consensus estimates for IMF and non-RevPAR fees considered too optimistic [11]

Choice Hotels International, Inc. (CHH) is benefiting from steady unit growth and a strong global pipeline. The company is seeing improved performance due to rising demand across its portfolio. Strategic partnerships and a focus on rewards programs are also supporting growth. However, an uncertain macroeconomic environment is a concern.Let us discuss the factors that highlight why investors should retain the stock for now.Growth Catalysts for CHH StockSolid Business Travel Demand: Choice Hotels is witnessin ...

"MasteryX is more than just a conference — it's a launchpad for the future of hospitality technology," said Brian Kirkland, Chief Information Officer, Choice Hotels International. "By upskilling our engineers in AI and emerging tech, we're ensuring that Choice Hotels remains a leader in innovation, continuously delivering smarter, more efficient solutions for our franchisees and guests. Mastery is part of our innovation culture, enabling us to provide reliable, cutting-edge tools designed to help owners gen ...

Company Overview - Choice Hotels International, Inc. is one of the largest lodging franchisors globally, operating over 7,500 hotels with more than 650,000 rooms across 46 countries and territories [3] - The company has a diverse portfolio of 22 brands, catering to various market segments from full-service upper upscale properties to midscale, extended stay, and economy options [3] - Choice Hotels offers the Choice Privileges rewards program and co-brand credit card options, providing members with opportunities to earn reward nights and personalized perks [3] Investor Relations - A teleconference is available for participation, with specific dial-in numbers provided for domestic and international callers [1] - The call will be recorded and accessible for replay on the investor relations website within 24 hours, ensuring that stakeholders can review the information shared [2]

Choice Hotels International, Inc. (CHH) continues to focus on expanding its footprint in the extended stay segment. The company recently announced the opening of three new Everhome Suites properties in Huntsville, AL, Chandler, AZ, and Temecula, CA. This expansion underscores the company’s growing influence in one of the most in-demand categories in hospitality.Everhome Suites, Choice Hotels’ midscale extended stay brand, now boasts 10 open locations nationwide. The brand's growth trajectory remains strong, ...

"The growth of Everhome Suites is a direct result of our strong collaboration with developers and owners to continuously value-engineer the brand so that it is well positioned for growth within the new construction midscale extended stay segment," said Ron Burgett, Senior Vice President, Extended Stay Development, Choice Hotels. "For the combined economy and midscale extended stay segments, our brands including Everhome Suites represent about half of all hotels that opened in 2024 or are currently under con ...

Core Insights - Clarion Pointe has shown remarkable growth, appealing to both travelers and hotel owners in the midscale segment, with a focus on cost-effective and affordable travel experiences [1] - Launched in 2018, Clarion Pointe targets economically savvy customers seeking select-service hotels with modern essentials [1] - The brand benefits from Choice Hotels' strong brand awareness and franchise success system, enhancing its attractiveness to hotel owners [1] Product Offerings - Clarion Pointe hotels feature modern design, curated food and beverage options, fitness essentials, and on-demand TV casting [2] - The brand participates in the Choice Privileges rewards program, which has over 68 million members, and offers a co-branded Mastercard with bonus points for new users [2] Franchise Support - Choice Hotels provides advanced technological tools to franchise owners, including the choiceEDGE guest reservation platform and choiceADVANTAGE property management system, to optimize operations and returns [3] - The company has partnered with Bridge to offer affordable financing solutions for prospective hotel owners [4] Company Overview - Choice Hotels International, Inc. is one of the largest lodging franchisors globally, with over 7,500 hotels and nearly 635,000 rooms across 45 countries [5] - The company has a diverse portfolio of 22 brands, catering to various traveler needs and enhancing value for franchise owners and shareholders [5]

"Choice Hotels is committed to growing and strengthening both Comfort and Country Inn & Suites by Radisson by ensuring we are providing incredible value and return for both owners and guests," said Judd Wadholm, Senior Vice President and General Manager of Choice Hotels' Core Brands, which include upper midscale, midscale and economy brands. "With an average 90 percent brand recognition for both brands, deep expertise in the upper midscale segment, and newly refined brand identities—combined with the power ...

Core Insights - The article discusses the performance and outlook of Choice Hotels International (NYSE: CHH) in light of recent earnings reports and external factors such as the tariff war affecting Canadian markets [1]. Group 1: Company Performance - The earnings report for Choice Hotels International may appear satisfactory, but there are underlying concerns regarding the impact of the ongoing tariff war on the company's operations and market sentiment [1]. Group 2: Analyst Background - The analyst, Nikola, has over three years of experience in finance and consulting, focusing on identifying value in North American public equities with less market hype [1]. - Nikola's professional background includes corporate credit risk analysis, government consulting, and venture capital analysis in the med-tech sector [1]. Group 3: Disclosure Information - The analyst has no current stock or derivative positions in any of the companies mentioned and does not plan to initiate any positions in the near future [2]. - The article reflects the analyst's personal opinions and is not influenced by any business relationships with the companies discussed [2].

Core Insights - Choice Hotels has seen a year-over-year increase in booking conversion rates due to the relaunch of its website and mobile app, benefiting hotel owners [1] - The Country Inn & Suites brand has exceeded performance goals since joining Choice Hotels, with a focus on enhancing guest satisfaction and revenue growth [2] - A refreshed guestroom design introduced in 2023 has led to 84% of guests indicating they would likely stay at a Country Inn & Suites hotel [2] - Choice Hotels maintains a high franchisee retention rate and invests in technological solutions to streamline hotel operations and maximize revenue opportunities for owners [4] - The ChoiceROCS system has helped hotel owners dynamically adjust pricing and promotions, resulting in an average 2% increase in RevPAR Index for participating upper midscale hotels in 2024 [6] - The ChoiceMAX revenue management solution has proven effective for owners by adapting hotel rates to market changes, allowing them to focus on daily operations [7][8] - Choice Hotels has partnered with Bridge to provide affordable financing solutions for prospective and existing hotel owners [8] Company Overview - Choice Hotels International, Inc. is one of the largest lodging franchisors globally, with over 7,500 hotels and more than 650,000 rooms across 46 countries [10] - The company offers a diverse portfolio of 22 brands, catering to various traveler needs and enhancing value for franchise owners and shareholders [10][11] - Country Inn & Suites by Radisson is a leading upper midscale brand under Choice Hotels, known for its hospitality and guest experience [12]