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Choice Hotels InternationalFRA:CZH 85 Return-on-Tangible-Asset is 5.32% as of Mar. 2026, which is 76% below its 10-year median of 21.92. GuruFocus rates FRA:CZH with a GF Score™ of 85/100 and a GF Value™ of €119.22. The stock has 4 warning signs investors should review. Among 857 Travel & Leisure companies, Choice Hotels International ranks better than 95.68% on this metric.
The historical rank and industry rank for Choice Hotels International's Return-on-Tangible-Asset or its related term are showing as below:
FRA:CZH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.31 Med: 21.92 Max: 28.62
Current: 22.54
During the past 13 years, Choice Hotels International's highest Return-on-Tangible-Asset was 28.62%. The lowest was 7.31%. And the median was 21.92%.
FRA:CZH's Return-on-Tangible-Asset is ranked better than 95.68% of 857
companies
in the Travel & Leisure industry
Industry Median: 2.83
vs FRA:CZH: 22.54
Choice Hotels International (FRA:CZH) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Choice Hotels International Return-on-Tangible-Asset Related Terms
Choice Hotels International Return-on-Tangible-Asset Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Choice Hotels International Return-on-Tangible-Asset Chart
FRA:CZH vs WH, CVEO, GHG: Return-on-Tangible-Asset Comparison
For the Lodging subindustry, Choice Hotels International's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Choice Hotels International Return-on-Tangible-Asset vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.32% mean?
Choice Hotels International (FRA:CZH) has a Return-on-Tangible-Asset of 5.32% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Choice Hotels International and its competitors. This is 76% below median its historical median of 21.92. Over the past decade, Choice Hotels International's Return-on-Tangible-Asset has ranged from 7.31 to 28.62. According to the industry distribution chart, Choice Hotels International ranks #37 out of 857 companies in the Travel & Leisure industry, placing it in the top 4.3%.
Is Choice Hotels International's Return-on-Tangible-Asset too high?
Choice Hotels International's current Return-on-Tangible-Asset of 5.32% is 76% below median its 10-year median of 21.92. Over the past 10 years, this metric has ranged from a low of 7.31 to a high of 28.62. The Travel & Leisure industry median Return-on-Tangible-Asset is 2.83. Choice Hotels International's value of 5.32% is 88% above this industry median. Based on the distribution chart, Choice Hotels International ranks #37 out of 857 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Choice Hotels International has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's Return-on-Tangible-Asset compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #37 out of 857 companies for Return-on-Tangible-Asset. This places Choice Hotels International in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.83. Choice Hotels International's value of 5.32% is 88% above this benchmark. Historically, Choice Hotels International's own Return-on-Tangible-Asset has ranged from 7.31 to 28.62 over the past decade. While the company's 10-year median is 21.92 vs. the industry median of 2.83, Choice Hotels International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Travel & Leisure company?
The median Return-on-Tangible-Asset among Travel & Leisure companies is 2.83, based on 857 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current Return-on-Tangible-Asset of 5.32% is 88% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Asset is 2.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current Return-on-Tangible-Asset is 5.32%, which is 76% below median its own 10-year median of 21.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choice Hotels International stock overvalued right now?
Choice Hotels International (FRA:CZH) has a current Return-on-Tangible-Asset of 5.32%. The stock's GF Value™ is €119.22, compared to a current price of €95.00 — trading 20.3% below its estimated fair value. The current Return-on-Tangible-Asset is 5.32%, which is 76% below median its 10-year median of 21.92 and 88% above the Travel & Leisure industry median of 2.83. Choice Hotels International's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current Return-on-Tangible-Asset is 5.32% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Choice Hotels International (FRA:CZH) Overvalued in 2026?
Based on GuruFocus' analysis, Choice Hotels International stock appears to be undervalued.
The current stock price of €95.00 is trading 20.3% below its estimated GF Value™ of €119.22.
Key valuation signals for FRA:CZH:
Return-on-Tangible-Asset: 5.32% (76% below median its 10-year median of 21.92)
GF Value™: €119.22 vs. price of €95.00 (20.3% below fair value)
Industry Position: 88% above the Travel & Leisure median (#37 of 857)
No single metric tells the full story. See the FRA:CZH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
At year-end 2025, Choice Hotels operated 657,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total rooms), while Ascend and Cambria (10%) are lifestyle and select-service brands, and WoodSpring (5%) is the company's largest extended-stay brand. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2025.
85GF Score
Get the complete analysis for FRA:CZH
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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