Filing Flows › Choice Hotels International (CHH) › How it makes money
How Choice Hotels International (CHH) makes money
Choice Hotels International (CHH) made $458M of revenue in the third quarter 2026 (Q3 2026), +2% from a year earlier. Franchise and management fees brought in $204M (44%); Revenue for reimbursable costs from franchised and managed properties brought in $173M (38%); Owned hotels brought in $38.1M (8%). Of every dollar of revenue, 23¢ was left as operating profit, 13¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Franchise and management fees | $204M | 44.4% | +9% | +5% |
| Revenue for reimbursable costs from franchised and managed properties | $173M | 37.7% | +6% | +2% |
| Owned hotels | $38.1M | 8.3% | +9% | +15% |
| Partnership services and fees | $28.3M | 6.2% | -1% | -2% |
| Other | $15.3M | 3.3% | -42% | -31% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $458M | 100.0% |
| Operating profit | $106M | 23.2% |
| Income tax | $17.1M | 3.7% |
| Net earnings | $57.9M | 12.6% |
| Operating cash flow | $54.6M | 11.9% |
| Free cash flow | $44.3M | 9.7% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $458M | +2% |
| Q2 2026 | $441M | +3% |
| Q1 2026 | $341M | +2% |
| Q4 2025 | $390M | +0.1% |
| Q3 2025 | $447M | +4% |
| Q2 2025 | $426M | -2% |
| Q1 2025 | $333M | +0.3% |
From Choice Hotels International's 10-Q filed Nov 2, 2026 (on EDGAR).
Questions
How does Choice Hotels International make money?
Choice Hotels International (CHH) made $458M of revenue in the third quarter 2026 (Q3 2026), +2% from a year earlier. Franchise and management fees brought in $204M (44%); Revenue for reimbursable costs from franchised and managed properties brought in $173M (38%); Owned hotels brought in $38.1M (8%). Of every dollar of revenue, 23¢ was left as operating profit, 13¢ was left as net earnings.
What is Choice Hotels International's biggest business?
Franchise and management fees: $204M in the third quarter 2026, 44% of revenue, +5% from a year earlier.
What is Choice Hotels International's profit margin?
Net earnings were $57.9M, 12.6% of revenue, in the third quarter 2026; the operating margin was 23.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.