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We are primarily a hotel franchisor operating in 49 states, the District of Columbia, and 50 countries and territories. As of December 31, 2025, we had 7,575 hotels with 656,825 rooms open and operating, and 825 hotels with 77,862 rooms under construction, awaiting conversion or approved for development, or committed to future franchise development on outstanding 3 Table of Contents ma…
Margins and capital returns are both well above average: 28.10% operating margin, ROIC at 17.87%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 0.6%, essentially flat. Margins also contracted 1.2pp. This is a business that needs a catalyst.
Free cash flow declined 17% versus the prior year, cash generation momentum has weakened. ROIC dropped from 20.67% to 17.87%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.60B
▲ +0.6% YoY
Net Income (TTM)
$346M
▲ +23.5% YoY
Op. Margin
26.72%
▼ -1.2pp YoY
ROIC
16.05%
▼ -2.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$188M
▼ -17.4% YoY
Op. Cash Flow (TTM)
$227M
▼ -15.3% YoY
Net Debt
$2.07B
Cash & Equiv.
$44M
5Y CAGR: +15.8%
5Y CAGR: +24.8%
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