Voss Capital, LLC, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned -2.1% and -2.2%, respectively, to investors net of fees and expenses, in the fourth quarter compared to a +2.2% return for the Russell 2000 Index, +3.3% return for the Russell 2000 Value Index, and +2.7% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 158.7%, and the delta-adjusted was 78.8% as of December 31, 2025. The weight of the Fund’s top 10 longs was 76.4%, and the top 10 shorts were -27.3%. The letter discussed the storm around Artificial Intelligence. Software companies have the highest AI adoption rates. The firm believes that early users of new technology, rather than infrastructure providers, often receive the largest long-term economic benefits. Incumbent corporations enjoy a structural advantage due to their access to engineering skills and modern multi-agent tools. In addition, you can check the firm’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Voss Capital highlighted stocks like Choice Hotels International, Inc. (NYSE:CHH). Choice Hotels International, Inc. (NYSE:CHH) is a multinational hospitality company operates through Hotel Franchising & Management and Corporate & Other segments. On March 06, 2026, Choice Hotels International, Inc. (NYSE:CHH) stock closed at $100.48 per share. One-month return of Choice Hotels International, Inc. (NYSE:CHH) was -6.75%, and its shares lost 30.48% over the past 52 weeks. Choice Hotels International, Inc. (NYSE:CHH) has a market capitalization of $4.65 billion.
Voss Capital stated the following regarding Choice Hotels International, Inc. (NYSE:CHH) in its fourth quarter 2025 investor letter:
“Choice Hotels International, Inc. (NYSE:CHH) is an asset-light, high-margin (60%+ EBITDA margin on revenue ex-pass-through costs) hotel franchisor trading at a distressed multiple due to cyclical top-line headwinds and KPI deterioration experienced in 2025, namely U.S. RevPAR declines and lack of U.S. room growth. The market has severely punished the stock—down from $154 in early 2025 to $106 today—now pricing in structural decline fears. However, the business is still growing earnings, is highly cash-generative, and may have the ability to unlock a significant amount of cash on the balance sheet to buy back shares at these historically low levels.
The consensus narrative that CHH is a struggling, low-end domestic motel brand has over-stayed its welcome. CHH is actively shifting its portfolio of 7,575 hotels toward higher revenue, stickier segments: • Extended Stay: Now comprises 9% of total rooms and 11.5% of U.S. rooms (57,000 rooms) and growing, with room count +12% year-over-year and comprising 40% of CHH’s active pipeline. Extended Stay hotels benefit from longer average stays, more stable earnings for franchisees, and generate a juicy 6% royalty rate for CHH. This segment has been the portfolio bright spot, posting +3.1% ADR and flat RevPAR in 2025 vs an overall decline in RevPAR across the hotel industry. CHH currently accounts for 40% of all economy and mid-scale extended stay rooms under construction in the U.S…” (Click here to read the full text)
Choice Hotels International, Inc. (NYSE:CHH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held Choice Hotels International, Inc. (NYSE:CHH) at the end of the fourth quarter, up from 31 in the previous quarter. While we acknowledge the risk and potential of Choice Hotels International, Inc. (NYSE:CHH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Choice Hotels International, Inc. (NYSE:CHH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Choice Hotels International, Inc. (NYSE:CHH) and shared a list of fastest growing mid cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
