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Choice Hotels International CHH Loyalty program — Contract with customer, liability

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Other financials

Income statement

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Revenue$440.8M+3.4%
Operating income$104.1M-16.4%
Net income$64.3M-21.3%
EPS (diluted)$1.41-19.4%

Balance sheet

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Cash & equivalents$42.8M-26.9%
Total debt$2.1B+4.7%
Total equity$142.2M+642%
Total assets$3.0B+12.2%

Cash flow

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Operating cash flow$90.5M-5.3%
CapEx$10.5M-65.3%
Free cash flow$80.1M+22.4%

Valuation

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Market cap$4.8B-12.9%
Enterprise value$6.86B-8.0%
P/E14.6×-3.3×
P/S-0.5×

Profitability

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Operating margin25.2%-4.9pp
Net margin20.3%+0.8pp
FCF margin9.5%-3.2pp

Returns & leverage

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Return on equity881%+705pp
Debt / equity14.8×
Current ratio0.9×0.0×

Where this comes from

Reported directly by Choice Hotels International in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.

The source filing: Choice Hotels International’s 10-K, filed February 19, 2026.

Filed
Feb 19, 2026, 12:55 PM EST
Fiscal year
FY2025
Accession
0001046311-26-000008

Deferred revenues from initial franchise fees are typically recognized over a ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby the remaining deferred revenue amounts are recognized to revenue in the period of termination. As of December 31, 2025 and 2024, deferred revenues from initial franchise fees were $103.0 million and $111.2 million, respectively. Loyalty points are typically redeemed within three years of issuance. As of December 31, 2025 and 2024, deferred revenues from the loyalty program were $114.9 million and $110.4 million, respectively.

Item 8.Financial Statements and Supplementary Data

FAQ

What is Choice Hotels International's loyalty program — contract with customer, liability?
Choice Hotels International (CHH) reported loyalty program — contract with customer, liability of $114.9M in Q4 2025.
How has Choice Hotels International's loyalty program — contract with customer, liability changed year-over-year?
Choice Hotels International's loyalty program — contract with customer, liability increased by 4.1% year-over-year, from $110.4M to $114.9M.
What does loyalty program — contract with customer, liability mean?
This metric represents the deferred revenue liability associated with loyalty program points earned by customers that remain unredeemed. It reflects the company's obligation to provide future hotel stays or other rewards to members who have accumulated points through qualifying stays. This liability is a critical indicator of the scale of the loyalty program and the potential future redemption costs that the company must fulfill.

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