Choice Hotels International, Inc.

CHH: Is Choice Hotels International, Inc. Halal?

Choice Hotels International, Inc.

NYSEConsumer CyclicalUS

$114.64

+1.34%

Market Cap: 5.2B

Compliance Status

Not Halal

Screened on Aug 31, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Choice Hotels International, Inc. (CHH) halal? Not Halal. Based on AAOIFI screening, Choice Hotels International, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Choice Hotels International, Inc. (CHH) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Aug 31, 2026. Source: https://halalscreener.app/en/stock/CHH

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

40.4% of 30.0% limit

What this means for you

Most scholars advise not holding CHH

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Choice Hotels International, Inc.

Choice Hotels International, Inc., also known as Choice Hotels, operates as a prominent global hotel franchisor, conducting its extensive business through its various subsidiary entities. The company's activities are primarily divided into two main segments: Hotel Franchising and Corporate & Other. It authorizes the use of its brand names for a diverse portfolio of lodging establishments, including well-known brands such as Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Everhome Suites, Cambria Hotels, and the Ascend Hotel Collection. Beyond its core franchising operations, Choice Hotels also develops and offers cloud-based property management software solutions specifically designed for independent hoteliers not affiliated with its franchise system. As of March 31, 2022, its widespread network consisted of approximately 7,000 hotels, encompassing roughly 600,000 rooms, distributed across 35 countries and territories worldwide. Established in 1939, Choice Hotels International, Inc. maintains its corporate headquarters in Rockville, Maryland.

Sector: Consumer Cyclical · Industry: Travel Lodging

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 31, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Teamstar Berhad

$0.25

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Lien Hoe Corporation Berhad

$0.11

+0.00%

38
3891.KLA+

Malayan United Industries Berhad

$0.04

-0.11%

53
5336.KLA+

CUCKOO International (MAL) Berhad

$0.41

-0.01%

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Frequently Asked Questions

Is Choice Hotels International, Inc. (CHH) halal to invest in?
Choice Hotels International, Inc. (CHH) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Choice Hotels International, Inc. get a F compliance rating?
Choice Hotels International, Inc. (CHH) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 40.4% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Choice Hotels International, Inc.'s Shariah verdict?
Choice Hotels International, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Choice Hotels International, Inc. re-screened for Shariah compliance?
Choice Hotels International, Inc. (CHH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 31, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.