We recently released a list 20 underperforming stocks targeted by short sellers. In this article, we will explore Choice Hotels International, Inc. (NYSE: CHH) is positioned with other underperforming stocks targeted by other short sellers.

A brief interest is the percentage of the public stock sold. This is an indicator used by many investors to determine how powerful the company's bear paper is. Due to the nature of short selling, short-term interests have become a popular indicator among investors.

The reason why it is taken so seriously is that people usually conduct solid research on stock betting and are confident about the failure of a company. They take unlimited risks, so when big investors or smart currencies are short-selling, people will notice. They try to uncover red flags that may arouse high interest.

We decided to dig deeper and try to find out where smart money is seeing the hassle. To list our 20 underperforming stocks sold by short sellers, we looked at the worst performing stocks in the past six months and then ranked them in a short-term interest.

The hotel's lobby is dressed in bright colors, reflecting the hospitality and global presence of the hotel franchise company.

Short interest: 14.22%

Performance in 6 months: -33.6%

Choice Hotels International, Inc. (NYSE: CHH) is a hotel franchisee. The company is divided into two areas: hotel franchise and management, as well as companies and others. It uses franchise under Comfort Suites, Sleep Inn, Econo Lodge, Woodspring Suites, Comfort Inn, Radisson Red and other brand names.

The company reported strong results for the fourth quarter, beating management's revenue guidance. Net income from Select Hotels (NYSE:CHH) increased by 16% and diluted earnings per share by 22%. Adjusted EBITDA sets a new benchmark for growth of 12%. The growth in the leisure and business travel sectors increased significantly, with business travel accounting for 40% of the overall portfolio.

Despite its considerable revenue, the company's 2025 outlook has attracted attention. According to the guidelines, net income for 2025 is expected to be $288-300mm, with adjusted EBITDA between 625-640mm. However, achieving these goals is challenging due to the current economic uncertainty. Business travel growth could be affected due to government layoffs and ongoing business uncertainty.

Choice Hotels (NYSE:CHH) also offers guests the possibility of earning airline miles, but the recent poor guidance from Delta Air Lines means that these rewards are unlikely to attract customers.