Choice Hotels barely owns any hotels — it franchises 22 brands (Comfort, Quality, Radisson, Cambria, WoodSpring) to ~7,600 independently owned hotels in 46 countries and collects a royalty on their room revenue. The asset-light model turns a ~5% cut of others' room sales into $604M of EBITDA, most of which is handed back to shareholders through buybacks.
What Choice Hotels International, Inc. really sells
Choice Hotels barely owns any hotels — it franchises 22 brands (Comfort, Quality, Radisson, Cambria, WoodSpring) to ~7,600 independently owned hotels in 46 countries and collects a royalty on their room revenue. The asset-light model turns a ~5% cut of others' room sales into $604M of EBITDA, most of which is handed back to shareholders through buybacks.