Choice Hotels International, Inc.
Choice Hotels International, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.6 billion, up 0.75% from fiscal 2024. In the quarter to June 2026, revenue grew 3.36%, EPS fell 19.3%, free cash flow grew 25.4% and total debt rose 5.38%, each against the same quarter a year earlier. Dividend growth for three consecutive years, revenue growth for five.
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Choice Hotels International, Inc. (CHH) Altman Z-score
Choice Hotels International, Inc.'s Altman Z-score for fiscal 2025 is 3.11, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.11 | (0.75) |
| FY2024 | 3.86 | 0.54 |
| FY2023 | 3.32 | (0.98) |
| FY2022 | 4.30 | (1.14) |
| FY2021 | 5.44 | 1.44 |
| FY2020 | 4.00 | (0.90) |
| FY2019 | 4.90 | 0.34 |
| FY2018 | 4.56 | (0.45) |
| FY2017 | 5.01 | 0.61 |
| FY2016 | 4.40 | (0.56) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.02) | — | −0.03 | |
| Retained earnings / total assets | 0.79 | — | 1.11 | |
| EBIT / total assets | 0.15 | — | 0.51 | |
| Market value of equity / total liabilities | 1.61 | — | 0.96 | |
| Sales / total assets | 0.55 | — | 0.55 | |
| Altman Z-score | Safe zone | 3.11 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.55 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ATAT Atour Lifestyle Holdings Limited Sponsored ADR compare | 6.8× |
| MAR Marriott International, Inc. compare | 3.8× |
| IHG Intercontinental Hotels Group compare | 3.2× |
| CHH Choice Hotels International, Inc. | 3.1× |
| HLT Hilton Worldwide Holdings Inc. compare | 2.9× |
| HTHT H World Group Limited Sponsored ADR compare | 2.0× |
| H Hyatt Hotels Corporation compare | 1.8× |
| WH Wyndham Hotels & Resorts compare | 1.7× |
| CVEO Civeo Corporation compare | −1.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets