What happened
According to a filing with the Securities and Exchange Commission dated November 12, 2025, Rock Creek Group, LP, sold 70,500 shares of Choice Hotels International (CHH +0.83%) in the third quarter. The stake’s value declined by $23.74 million relative to the previous quarter, bringing the holding to 741,079 shares worth $79.23 million as of September 30, 2025.
What else to know
- This was a sale, leaving Choice Hotels International at just over 8% of Rock Creek Group’s 13F AUM
Top holdings after the filing:
- NYSEMKT: ITOT: $124.59 million (13% of AUM)
- NYSEMKT: RSP: $105.63 million (11% of AUM)
- NASDAQ: ISHG: $88.85 million (9% of AUM)
- NYSE: CHH: $79.23 million (8% of AUM)
- NYSEMKT: GLD: $68.14 million (7% of AUM)
- As of November 11, 2025, shares were priced at $97.47, down 32.17% over the past year, underperforming the S&P 500 by 46.31 percentage points
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.60 billion |
| Net Income (TTM) | $382.07 million |
| Dividend Yield | 1.18% |
| Price (as of market close 2025-11-11) | $97.47 |
Company snapshot
- Franchises lodging properties under brands such as Comfort Inn, Quality, Clarion, Sleep Inn, Econo Lodge, and Cambria Hotels, and offers cloud-based property management software.
- Generates revenue primarily through hotel franchising and marketing of cloud-based property management software.
- Serves hotel owners, operators, and independent hoteliers across approximately 7,000 properties in 35 countries.
Choice Hotels International, Inc. is a leading global hotel franchisor with a diversified portfolio of well-known brands targeting a broad spectrum of travelers.
Foolish take
In selling Choice Hotels International, Rock Creek may be showing a loss of faith in the hotel stock. The stock lost nearly one-third of its value in a rising market.
Although Rock Creek sold just 9% of its holdings in Choice Hotels, the position has gone from 12% of the portfolio to just over 8% today, a testament to how much the stock has declined.
Additionally, this comes off the report for the second quarter of 2025, which showed a 52% increase in the holdings of this stock. As of the time of the filing, the stock traded at a P/E ratio of around 12, indicating it may have been bargain hunting during Q2.
NYSE: CHH
Key Data Points
However, the more recent decline has taken Choice Hotels’ stock to its lowest point since 2020. Thus, Rock Creek may be questioning whether it really bought a low-cost stock when it made that massive purchase in Q2.
Time will tell how Rock Creek will manage that position, but interested investors are likely anticipating the upcoming fourth quarter report. That should give insight as to whether Rock Creek is sticking by its Choice Hotels position or if it believes buying the consumer discretionary stock was a mistake.
Glossary
Stake: The ownership interest or shares held by an investor in a company.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
13F: A quarterly report filed by institutional investment managers to disclose their U.S. equity holdings.
Quarter-over-quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Holding: A specific investment or asset owned within a portfolio.
Franchisor: A company that grants licenses to others to operate businesses using its brand and business model.
Property management software: Digital tools used by hotels to manage reservations, operations, and guest services.
TTM: The 12-month period ending with the most recent quarterly report.
