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, …
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Competitive advantage assessment
Key strengths
Margins Consistently Above PeersGross margin at 52.7% (top 8%) and operating margin at 28.1% (top 8%) indicate strong pricing power.
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
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.
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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