Fundsmith Reduces $80M in Choice Hotels International, Inc. ($CHH)

In a significant move, Fundsmith has completely sold out its position in Choice Hotels International, Inc. (NYSE: CHH), according to its latest Form 13F filing with the SEC. The fund sold 733,892 shares, bringing its total holdings in the hotel franchisor to zero. This filing reflects Fundsmith's holdings as of the reporting period and may not represent its current position.

What Changed in Fundsmith's Choice Hotels Position

Fundsmith's decision to cut its entire stake in Choice Hotels involved selling 733,892 shares, which was a 100% reduction from its previous holdings. This exit indicates a complete divestment from the company, removing any remaining value from its portfolio.

Other Institutional Activity in Choice Hotels

Other institutional investors have also been active in Choice Hotels. BAMCO Inc. added 303,919 shares, bringing its total to about 7.69 million shares valued at approximately $796 million. Morgan Stanley, on the other hand, reduced its position by 242,590 shares, leaving it with about 3.24 million shares worth nearly $335 million. Kayne Anderson Rudnick Investment Management increased its stake by 244,263 shares, holding about 3.22 million shares valued at $333 million. BlackRock, Inc. made a small addition of 4,797 shares, totaling 2.15 million shares worth about $223 million. Meanwhile, Balyasny Asset Management L.P. significantly boosted its holdings by 1,114,140 shares, ending with 1.17 million shares valued at $121 million.

Choice Hotels Stock Snapshot

Shares of Choice Hotels (NYSE: CHH) traded at $109.56. The company has a market capitalization of approximately $4.98 billion and a P/E ratio of 14.8. Its stock has seen a 52-week low of $84.04 and a high of $136.45. The stock's 50-day moving average is $110.39, while the 200-day moving average is $103.85. The company's beta is 0.683, indicating lower volatility compared to the broader market.

Recent Earnings

Choice Hotels reported revenue of $987.8 million, with a revenue growth of 3.5%. The company's net margin stands at 34.998%, and its return on equity is 9.41%. The next earnings report is expected on August 5, 2026.

Dividend

Choice Hotels offers an annual dividend rate of $1.15, yielding 1.05% with a payout ratio of 15.54%.

Insider Buying and Selling at Choice Hotels International, Inc.

Insider activity at Choice Hotels has been notable. On May 26, 2026, Interim CEO Dominic Dragisich sold 12,796 shares without a set price and bought the same number at $91.28 per share. He also sold 22,621 shares at an average price of $114.25 under a planned transaction. Additionally, insiders John Tague, Liza Landsman, and Monte JM Koch each purchased 1,570 shares on May 21, 2026.

Analysts Set New Price Targets

Analysts have maintained various ratings for Choice Hotels. On May 26, 2026, Truist Securities maintained a 'buy' rating with a $128 target. Morgan Stanley kept a 'sell' rating with an $86 target on May 12, 2026. JP Morgan and Susquehanna both maintained 'hold' ratings with targets of $116 and $110, respectively. The consensus among 15 analysts is a 'hold' recommendation, with a mean target price of $112.53.

About Choice Hotels International, Inc.

Choice Hotels International, Inc., based in North Bethesda, Maryland, is a prominent hotel franchisor operating globally. Established in 1939, the company franchises a wide range of lodging brands, including Comfort Inn, Quality, and Radisson, among others. It operates through segments focused on hotel franchising and management, employing approximately 1,754 people under the leadership of CEO Dominic E. Dragisich.

Bottom Line

Fundsmith's complete exit from Choice Hotels is a notable change in its investment strategy. This move, reported in its latest 13F filing, highlights the fund's shift away from the hotel franchisor. Investors often track such filings for insights into fund strategies, though it's important to remember these filings reflect past positions, not current ones.