UPDATE: UBS Downgrades Choice Hotels (CHH) to Neutral

(Updated - August 1, 2022 5:14 PM EDT)

UBS downgraded Robin Farley Choice Hotels (NYSE: CHH) from Buy to Neutral with a price target of $124.00 (from $167.00).

The analyst comments "We are downgrading CHH to Neutral from Buy with a price target of $124 (from $167 previously) driven by what we see as a difficult environment to grow room rates on top of near double digit % increases compared to 2019 that CHH has been capturing, as well as CHH’s plateauing unit growth. Roughly 2/3rds of CHH's business is leisure travel. We believe leisure demand is likely to return to its more price elastic nature in the next year, particularly if the macro environment leads to a mild recession at the lower end of the consumer market. RevPAR recovery in US from here forward is more likely to come from business transient and group demand, to which CHH has less exposure"

For an analyst ratings summary and ratings history on Choice Hotels click here. For more ratings news on Choice Hotels click here.

Shares of Choice Hotels closed at $120.87 yesterday.

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