Choice Hotels International, In CHH

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
53/100
Moderate

About Choice Hotels International, In

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, … Full CHH analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 52.7% (top 8%) and operating margin at 28.1% (top 8%) indicate strong pricing power.
  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.77), suggesting sticky customer base.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
64

Where CHH ranks in Lodging

Choice Hotels International, In ranks #6 of 14 scored companies in Lodging by moat score — the top 43%. The widest moat in the group is Wyndham Hotels & Resorts, Inc. (WH) at 71/100.

Moat scores for companies ranked near CHH in Lodging
# Company Moat score Rating
2 Intercontinental Hotels Group IHG 70/100 Moderate
3 H World Group Limited HTHT 67/100 Moderate
4 Atour Lifestyle Holdings Limite ATAT 64/100 Moderate
5 Hilton Worldwide Holdings Inc. HLT 58/100 Moderate
6 Choice Hotels International, In CHH 53/100 Moderate
7 The Intergroup Corporation INTG 53/100 Moderate
8 Marriott International MAR 50/100 Moderate
9 Civeo Corporation (Canada) CVEO 47/100 Developing
10 GreenTree Hospitality Group Ltd GHG 43/100 Developing

See every General Corporate company ranked by moat score →

How CHH scores on the Corporate Default defenses

Pricing Power

Score 64 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 58 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 68 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 37 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 58 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 36 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CHH's moat

What is Choice Hotels International, In's moat score?

Choice Hotels International, In (CHH) scores 53 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #6 of 14 scored companies in Lodging, the top 43%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 13 companies in Lodging. Its strongest defense is Customer Stickiness (68/100) and its weakest is Scale & Market Position (36/100).

How does Choice Hotels International, In compare with other Lodging companies?

Choice Hotels International, In ranks #6 of 14 scored companies in Lodging by moat score. The widest moat in Lodging is Wyndham Hotels & Resorts, Inc. (WH) at 71/100. The companies ranked closest are Hilton Worldwide Holdings Inc. (HLT) at 58 just above it and The Intergroup Corporation (INTG) at 53 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 13 companies in Lodging. The defenses are then weighted to produce the overall score out of 100.

Why is Choice Hotels International, In scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Choice Hotels International, In?

The Corporate Default template measures 6 defenses, and CHH scores: Pricing Power (64), Cost Advantage (58), Customer Stickiness (68), Capital Efficiency (37), Resilience (58), Scale & Market Position (36). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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