AI-extracted from the 10-Q filed 2026-08-05 — Q2 2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue of $440.8M grew 3% YoY, but operating income fell 16% to $104.1M, pressured by higher reimbursable marketing deficits and elevated credit loss provisions.
Biggest Revenue Drivers
Revenue for reimbursable costs from franchised and managed properties$163.3M-2% YoY
Reimbursable marketing and reservation revenues; exceeded by reimbursable expenses by $34.3M in the quarter.
Franchise and management fees$187.5M+6% YoY
U.S. royalty fees up 1% on 1.3% RevPAR growth; international royalty fees up 82% including Choice Hotels Canada acquisition impact.
Biggest Revenue Drivers
Total revenue: $440.8M+3% YoY
Revenue for reimbursable costs from franchised and managed properties$163.3M-2% YoY
Reimbursable marketing and reservation revenues; exceeded by reimbursable expenses by $34.3M in the quarter.
Franchise and management fees$187.5M+6% YoY
U.S. royalty fees up 1% on 1.3% RevPAR growth; international royalty fees up 82% including Choice Hotels Canada acquisition impact.
Owned hotels$34.9M+15% YoY
18 open hotels; growth reflects five additional properties opened and improved performance.
Partnership services and fees$28.7M+6% YoY
Qualified vendor and partnership programs with travel-related and other companies.
Largest Expense Items
Reimbursable expenses from franchised and managed properties$197.7M+12% YoY
Marketing, reservation, and managed hotel payroll reimbursements; $34.3M deficit vs. reimbursable revenue.
Selling, general and administrative$96.2M+8% YoY
$4.5M increase in accounts receivable credit loss provisions and $1.7M in restructuring/severance expenses.
Owned hotels$25.5M+14% YoY
Operating expenses for 18 company-owned properties; Cambria and Everhome Suites brands.
Depreciation and amortization$16.8M+25% YoY
$2.0M from Choice Hotels Canada intangible assets; $1.1M from opened owned hotels.
Watch Items from the Filing
Marketing and reservation deficit widened sharply: reimbursable expenses exceeded revenues by $34.3M in Q2 2026 vs. $9.0M in Q2 2025, signaling operating stress in the franchisee ecosystem.
Accounts receivable credit loss provisions jumped $18.1M YoY in the first half; allowance grew from $51.2M to $71.1M, reflecting franchisee credit deterioration.
Notes receivable to franchisees fell from $115.7M (Dec 2025) to $92.1M (June 2026), with 47% of principal in non-accrual status ($42.9M), indicating loan performance stress.
U.S. RevPAR growth decelerated materially; 1.3% increase in Q2 included 60 bps FIFA World Cup benefit, and six-month RevPAR flat (-0.2%) YoY despite 1.1% average royalty rate lift.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Smith GordonReporting ownerGrant or award · Oct 15, 2026
Ramirez Sanchez RaulChief Seg & Intl Op OfficerGrant or award · Oct 15, 2026
About CHOICE HOTELS INTERNATIONAL INC /DE (CHH): stock profile, AI score and financials
CHOICE HOTELS INTERNATIONAL INC /DE (CHH) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores CHH at 53.8/100 on a composite quality score built from its SEC filings, placing it at rank #1,376 of 2,925 stocks — the top half of the AI-ranked universe. CHH scores in the top quartile across balance sheet strength (89.3), profitability (82.8). Areas of concern include institutional flow (15.9) and earnings quality (20.5), which score below median versus the broader universe. Shareholder dilution risk is elevated at 35.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), CHOICE HOTELS INTERNATIONAL INC /DE reports quarterly revenue of $440.8M, net income of $64.3M, an operating margin of 23.6%. Top institutional holders of CHH by reported 13-F value include BAMCO, MORGAN STANLEY, BlackRock, based on the most recent SEC filings. CHH trades on the NYSE exchange and files with the SEC under CIK 1046311. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CHH daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CHOICE HOTELS INTERNATIONAL INC /DE directly from SEC EDGAR.