Choice Hotels International (NYSE: CHH) is a hospitality franchising company that licenses hotel brands to independent property owners and operators. It earns revenue primarily through royalty fees, marketing and reservation fees, and other franchise-related fees paid by franchisees based on their properties' gross room revenues. The company operates across multiple brand tiers, from economy to upscale extended-stay segments, competing in the hotel franchising market against companies such as Marriott, Hilton, and Wyndham Hotels and Resorts. Choice Hotels is headquartered in the United States and functions almost entirely as an asset-light franchisor, meaning it does not own or operate the hotels in its system but instead collects recurring fee income from franchisees. The business model ties revenue directly to franchisee occupancy and room rates, making demand for travel and transient lodging the primary driver of income. As of the 10-K filed February 19, 2026, the company remained a well-known seasoned issuer under SEC rules.

Revenue model

Royalty fees, marketing and reservation fees, and other franchise fees collected from franchisee hotel operators, calculated as a percentage of gross room revenues at franchised properties.

Products and services

Hotel franchise licenses across multiple brand tiers spanning economy, midscale, upper-midscale, upscale, and extended-stay segments. Franchisees receive access to reservation systems, loyalty programs, marketing platforms, and brand standards.

Customers and end markets

Franchisee hotel owners and operators are the direct customers. End demand comes from leisure and business travelers, including transient and group segments, primarily in the U.S. travel market.

Value-chain role

Asset-light hotel franchisor. Sits between brand and property ownership, providing brand licensing, reservation technology, and marketing infrastructure to independent hotel operators.

Geographic exposure

Primarily U.S. domestic travel market, with some international franchised properties. The 10-K references U.S. and foreign economic conditions as risk factors, indicating an international footprint.

Competitors

Marriott International, Hilton Worldwide, Wyndham Hotels and Resorts

Source: SEC 10-K, filed 2026-02-19

Industry: Hotels & Motels Peers: Airbnb Inc Carnival Corp Expedia Group Inc Hilton Grand Vacations Inc Hilton Worldwide Holdings Inc Hyatt Hotels Corp Marriott Vacations Worldwide Corp Norwegian Cruise Line Holdings Ltd Royal Caribbean Cruises Ltd Wyndham Hotels & Resorts Inc