Here's What Key Metrics Tell Us About Choice Hotels (CHH) Q3 Earnings

By Zacks Equity Research | November 05, 2025, 9:30 AM

Choice Hotels (CHH) reported $447.34 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 4.5%. EPS of $2.10 for the same period compares to $2.23 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $417.29 million, representing a surprise of +7.2%. The company delivered an EPS surprise of -3.67%, with the consensus EPS estimate being $2.18.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Choice Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • RevPAR Growth: 0.2% versus -3.2% estimated by three analysts on average.
  • RevPAR: $60.33 versus $60.64 estimated by three analysts on average.
  • Rooms - Domestic Franchises: 498,307 versus the three-analyst average estimate of 500,862.
  • Total Franchise Rooms: 649,677 compared to the 646,301 average estimate based on three analysts.
  • Occupancy: 60.3% compared to the 60.8% average estimate based on two analysts.
  • Average Daily Rate (ADR): $100.03 versus the two-analyst average estimate of $99.75.
  • Revenue for reimbursable costs from franchised and managed properties: $169.43 million versus $163.78 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -20.4% change.
  • Franchise and management fees: $193.78 million compared to the $182.48 million average estimate based on four analysts.
  • Revenues- Owned Hotels: $33.17 million versus $31.86 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.
  • Partnership services and fees: $28.87 million versus the four-analyst average estimate of $25.59 million.
  • Other: $22.09 million versus $14.31 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +59.4% change.

View all Key Company Metrics for Choice Hotels here>>>

Shares of Choice Hotels have returned -9.8% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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Choice Hotels International, Inc. (CHH): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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