Voss Capital Acquires Choice Hotels Shares Worth $100.61 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 49 minutes ago
0mins
Source: NASDAQ.COM
- Share Acquisition: Voss Capital acquired 967,500 shares of Choice Hotels International in Q1, with an estimated transaction value of $100.61 million, indicating strong confidence in the company's prospects.
- Asset Management Growth: The quarter-end position value increased by $100.14 million, reflecting a roughly 5% growth in reportable 13F assets under management, showcasing investor optimism about Choice Hotels' future developments.
- Market Performance Improvement: Global franchise agreements surged 72% year-over-year, and U.S. hotel openings reached a five-year high, indicating the company's competitive strength and growth potential in the market.
- Financial Returns: Despite a slight decline in first-quarter adjusted EBITDA to $125.7 million, the company returned $75.2 million to shareholders through dividends and buybacks, demonstrating its cash-generating ability through an asset-light model.
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Analyst Views on CHH
Wall Street analysts forecast CHH stock price to fall
10 Analyst Rating
2 Buy
5 Hold
3 Sell
Hold
Current: 113.360
Low
91.00
Averages
103.44
High
126.00
Current: 113.360
Low
91.00
Averages
103.44
High
126.00
About CHH
Choice Hotels International, Inc. is a lodging franchisor with over 7,500 hotels, representing over 650,000 rooms, in 50 countries and territories. The Company’s segments include Hotel Franchising & Management and Corporate & Other. The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations, which consists of its 22 brands and brand extensions and the hotel management operations of 13 hotels (including four owned hotels). Its brand names include Clarion, Clarion Pointe, Comfort Inn, Comfort Suites, Country Inn & Suites by Radisson, Sleep Inn, Quality, Park Inn by Radisson, Everhome Suites, WoodSpring Suites, MainStay Suites, Suburban Studios, Radisson Blu, Park Plaza, Cambria Hotels, Ascend Collection, Radisson RED, Radisson Individuals, Radisson, Radisson Collection, Radisson Inn & Suites, Econo Lodge, and Rodeway Inn. Ascend Collection is a global collection brand offering resort, boutique, and historic properties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Voss Capital Establishes New Position in Choice Hotels International
- New Investment Position: Voss Capital initiated a new position in Choice Hotels International during Q1 2026, acquiring 967,500 shares valued at approximately $100.61 million, reflecting confidence in the company's future prospects.
- Significant Stake: This acquisition represents 5.31% of Voss Capital's reportable U.S. equity assets, indicating the growing importance of Choice Hotels within the fund's investment portfolio.
- Growth Potential: Choice Hotels saw a 72% year-over-year increase in global franchise agreements, with U.S. hotel openings reaching a five-year high, showcasing strong market momentum despite facing challenges.
- Stable Financial Performance: Although Q1 adjusted EBITDA decreased from $129.6 million to $125.7 million year-over-year, Choice Hotels returned $75.2 million to shareholders through dividends and buybacks, demonstrating its ongoing profitability and effective cash flow management.
See More
Voss Capital Acquires Choice Hotels Shares Worth $100.61 Million
- Share Acquisition: Voss Capital acquired 967,500 shares of Choice Hotels International in Q1, with an estimated transaction value of $100.61 million, indicating strong confidence in the company's prospects.
- Asset Management Growth: The quarter-end position value increased by $100.14 million, reflecting a roughly 5% growth in reportable 13F assets under management, showcasing investor optimism about Choice Hotels' future developments.
- Market Performance Improvement: Global franchise agreements surged 72% year-over-year, and U.S. hotel openings reached a five-year high, indicating the company's competitive strength and growth potential in the market.
- Financial Returns: Despite a slight decline in first-quarter adjusted EBITDA to $125.7 million, the company returned $75.2 million to shareholders through dividends and buybacks, demonstrating its cash-generating ability through an asset-light model.
See More
Nvidia Reports 85% Revenue Surge in Q1, Exceeds Expectations
- Nvidia's Strong Performance: Nvidia reported a revenue of $81.62 billion for Q1, marking an 85% year-over-year increase that surpassed LSEG's analyst forecast of $78.86 billion, indicating robust market demand and technological leadership, although shares remained relatively unchanged, reflecting investor confidence in future growth.
- Intuit's Workforce Reduction: Intuit's announcement of a 17% workforce cut led to a 10.3% drop in its stock price, while its Q3 revenue of $8.56 billion fell short of the LSEG consensus of $8.61 billion, highlighting the challenges the company faces under economic pressure, which may impact its competitive position in the market.
- E.l.f. Beauty's Stock Surge: E.l.f. Beauty's shares rose nearly 5% after beating Wall Street expectations in Q4, and the company plans to reverse some tariff-related price increases to alleviate consumer hardship from rising gas prices, aiming to enhance brand loyalty and customer retention.
- Star Bulk Carriers Exceeds Earnings Expectations: Star Bulk Carriers reported earnings of 56 cents per share and revenue of $281.2 million for Q1, both exceeding FactSet analyst estimates of 47 cents and $225.9 million, resulting in a 3% increase in stock price, showcasing its strong performance and profitability in the shipping sector.
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Choice Hotels CEO Patrick Pacious Steps Down; Dominic Dragisich Appointed Interim CEO
- Executive Transition: Choice Hotels International announced that CEO Patrick Pacious will step down on May 20, 2026, and will serve as an advisor until August 31, 2026, which may impact the company's strategic direction and market confidence.
- Interim Leadership: The Board has appointed Chief Growth & Strategy Officer Dominic Dragisich as interim CEO, who will be responsible for maintaining operational stability during the transition period to ensure business continuity.
- Financial Outlook: Choice Hotels projects adjusted EBITDA for 2026 to be between $632 million and $647 million, alongside plans for $175 million to $225 million in share repurchases, indicating a decline in capital intensity that could affect shareholder returns.
- Market Reaction: Following a profit miss and a disappointing outlook for FY26, Choice Hotels' shares have declined, reflecting investor concerns regarding the company's future performance.
See More
Leadership Transition at Choice Hotels with 2026 Financial Guidance Reaffirmed
- Executive Transition: Choice Hotels announces the resignation of CEO Patrick Pacious, appointing Chief Growth & Strategy Officer Dominic Dragisich as Interim CEO, marking a significant leadership shift that is expected to impact the company's strategic direction and execution.
- Support for Leadership Transition: Pacious will serve as an advisor until August 31, 2026, to assist the new leadership in ensuring stability and continued growth during this transition period, which is crucial for maintaining operational continuity.
- Financial Outlook Reaffirmed: The company reaffirms its financial outlook for 2026, demonstrating confidence in future growth while emphasizing a focus on driving franchisee success and enhancing long-term shareholder value amidst leadership changes.
- Brand Expansion Achievements: Under Pacious's leadership, Choice Hotels expanded its brand portfolio from 11 to 22 and strengthened its presence in the upscale and extended-stay markets through acquisitions of WoodSpring Suites and Radisson Hotels Americas, showcasing its competitive edge in the industry.
See More
Choice Hotels Unveils New AI Tools to Enhance Franchisee Economics
- Technology Innovation Launch: At its 70th Annual Convention, Choice Hotels unveiled a suite of new AI-driven tools designed to help franchise owners increase revenue and streamline operations, thereby enhancing their economic viability in a competitive hotel market.
- Membership Program Enhancement: The Choice Privileges program now boasts over 75 million members, driving repeat stays by offering more frequent rewards and faster attainment of Elite status, which significantly boosts customer loyalty.
- Strategic Investment Focus: The company's ongoing investments in innovation and technology not only enhance franchisee operational efficiency but also prepare them for the future of travel experiences and booking methods, ensuring a leading position in the industry.
- Industry Recognition: During the convention, Choice Hotels recognized top-performing hotels and developers, further motivating franchisees to elevate service quality and customer satisfaction, which drives overall business growth.
See More
Voss Capital Establishes New Position in Choice Hotels International
- New Investment Position: Voss Capital initiated a new position in Choice Hotels International during Q1 2026, acquiring 967,500 shares valued at approximately $100.61 million, reflecting confidence in the company's future prospects.
- Significant Stake: This acquisition represents 5.31% of Voss Capital's reportable U.S. equity assets, indicating the growing importance of Choice Hotels within the fund's investment portfolio.
- Growth Potential: Choice Hotels saw a 72% year-over-year increase in global franchise agreements, with U.S. hotel openings reaching a five-year high, showcasing strong market momentum despite facing challenges.
- Stable Financial Performance: Although Q1 adjusted EBITDA decreased from $129.6 million to $125.7 million year-over-year, Choice Hotels returned $75.2 million to shareholders through dividends and buybacks, demonstrating its ongoing profitability and effective cash flow management.
See More
Voss Capital Acquires Choice Hotels Shares Worth $100.61 Million
- Share Acquisition: Voss Capital acquired 967,500 shares of Choice Hotels International in Q1, with an estimated transaction value of $100.61 million, indicating strong confidence in the company's prospects.
- Asset Management Growth: The quarter-end position value increased by $100.14 million, reflecting a roughly 5% growth in reportable 13F assets under management, showcasing investor optimism about Choice Hotels' future developments.
- Market Performance Improvement: Global franchise agreements surged 72% year-over-year, and U.S. hotel openings reached a five-year high, indicating the company's competitive strength and growth potential in the market.
- Financial Returns: Despite a slight decline in first-quarter adjusted EBITDA to $125.7 million, the company returned $75.2 million to shareholders through dividends and buybacks, demonstrating its cash-generating ability through an asset-light model.
See More
Nvidia Reports 85% Revenue Surge in Q1, Exceeds Expectations
- Nvidia's Strong Performance: Nvidia reported a revenue of $81.62 billion for Q1, marking an 85% year-over-year increase that surpassed LSEG's analyst forecast of $78.86 billion, indicating robust market demand and technological leadership, although shares remained relatively unchanged, reflecting investor confidence in future growth.
- Intuit's Workforce Reduction: Intuit's announcement of a 17% workforce cut led to a 10.3% drop in its stock price, while its Q3 revenue of $8.56 billion fell short of the LSEG consensus of $8.61 billion, highlighting the challenges the company faces under economic pressure, which may impact its competitive position in the market.
- E.l.f. Beauty's Stock Surge: E.l.f. Beauty's shares rose nearly 5% after beating Wall Street expectations in Q4, and the company plans to reverse some tariff-related price increases to alleviate consumer hardship from rising gas prices, aiming to enhance brand loyalty and customer retention.
- Star Bulk Carriers Exceeds Earnings Expectations: Star Bulk Carriers reported earnings of 56 cents per share and revenue of $281.2 million for Q1, both exceeding FactSet analyst estimates of 47 cents and $225.9 million, resulting in a 3% increase in stock price, showcasing its strong performance and profitability in the shipping sector.
See More
Choice Hotels CEO Patrick Pacious Steps Down; Dominic Dragisich Appointed Interim CEO
- Executive Transition: Choice Hotels International announced that CEO Patrick Pacious will step down on May 20, 2026, and will serve as an advisor until August 31, 2026, which may impact the company's strategic direction and market confidence.
- Interim Leadership: The Board has appointed Chief Growth & Strategy Officer Dominic Dragisich as interim CEO, who will be responsible for maintaining operational stability during the transition period to ensure business continuity.
- Financial Outlook: Choice Hotels projects adjusted EBITDA for 2026 to be between $632 million and $647 million, alongside plans for $175 million to $225 million in share repurchases, indicating a decline in capital intensity that could affect shareholder returns.
- Market Reaction: Following a profit miss and a disappointing outlook for FY26, Choice Hotels' shares have declined, reflecting investor concerns regarding the company's future performance.
See More
Leadership Transition at Choice Hotels with 2026 Financial Guidance Reaffirmed
- Executive Transition: Choice Hotels announces the resignation of CEO Patrick Pacious, appointing Chief Growth & Strategy Officer Dominic Dragisich as Interim CEO, marking a significant leadership shift that is expected to impact the company's strategic direction and execution.
- Support for Leadership Transition: Pacious will serve as an advisor until August 31, 2026, to assist the new leadership in ensuring stability and continued growth during this transition period, which is crucial for maintaining operational continuity.
- Financial Outlook Reaffirmed: The company reaffirms its financial outlook for 2026, demonstrating confidence in future growth while emphasizing a focus on driving franchisee success and enhancing long-term shareholder value amidst leadership changes.
- Brand Expansion Achievements: Under Pacious's leadership, Choice Hotels expanded its brand portfolio from 11 to 22 and strengthened its presence in the upscale and extended-stay markets through acquisitions of WoodSpring Suites and Radisson Hotels Americas, showcasing its competitive edge in the industry.
See More
Choice Hotels Unveils New AI Tools to Enhance Franchisee Economics
- Technology Innovation Launch: At its 70th Annual Convention, Choice Hotels unveiled a suite of new AI-driven tools designed to help franchise owners increase revenue and streamline operations, thereby enhancing their economic viability in a competitive hotel market.
- Membership Program Enhancement: The Choice Privileges program now boasts over 75 million members, driving repeat stays by offering more frequent rewards and faster attainment of Elite status, which significantly boosts customer loyalty.
- Strategic Investment Focus: The company's ongoing investments in innovation and technology not only enhance franchisee operational efficiency but also prepare them for the future of travel experiences and booking methods, ensuring a leading position in the industry.
- Industry Recognition: During the convention, Choice Hotels recognized top-performing hotels and developers, further motivating franchisees to elevate service quality and customer satisfaction, which drives overall business growth.
See More
