Why Investing In Choice Hotels Isn't The Smartest Choice Right Now

Author: Shivank Goswami | November 19, 2025 08:14am

Choice Hotels International (NYSE:CHH) is currently in Phase 8 of its 18-phase Adhishthana Cycle on the monthly charts, and the stock has broken its Cakra formation, triggering one of the most bearish signals in the entire framework. This breakdown carries long-term implications, and investors should proceed with caution.

Choice Hotels: Analysing the Cakra Breakdown

According to the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4-8. This pattern, an arc-like channel, usually carries bullish implications, and the ideal outcome is an upside breakout in Phase 9, initiating the Himalayan Formation, a powerful and sustained bullish move.

Choice Hotels began forming its Cakra in Phase 4 back in April 2011, and for more than a decade, the stock moved faithfully within this structure. It respected the arc through Phases 5, 6, 7, and even the early part of Phase 8.

But toward the end of Phase 8, the stock broke the Cakra on the downside, triggering one of the strongest bearish signals in Adhishthana:

"When the underlying breaks the Cakra on the flip side, consolidation typically extends into the Guna Triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralaya."
– Adhishthana: The Principles That Govern Wealth, Time & Tragedy

Since breaking the arc, the stock has already fallen ~30%, and this is likely just the early stage of the Move of Pralaya.

Why This Breakdown Matters

A Cakra breakdown on the weekly chart is already a major bearish event, BellRing Brands, for example, collapsed ~67% after violating its weekly Cakra, as noted in our recent commentary.

But Choice Hotels has broken its Cakra on the monthly chart, a far more serious structural failure. What this means:

• A 5,000-day (14-year) pattern has been decisively violated
  
• Selling pressure is likely to extend across multiple long-term phases, not just months
  
• The next "potential" bullish window, the Guna Triads (Phases 14–16) is more than a decade away.
  

Investor Outlook

With a monthly Cakra breakdown and the Move of Pralaya underway, Choice Hotels' long-term structure has turned decisively bearish. A breakdown of this scale typically occurs only when there is something fundamentally wrong beneath the surface.

For investors:

• Those looking to initiate long positions should avoid the stock entirely
  
• Existing holders may consider reducing exposure or hedging, given the multi-year downside risks
  
• Any short-term rallies are likely to be unsustainable bounce-backs, not trend reversals
  

For now, investing in Choice Hotels isn't the smartest… choice. 

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

Posted In: CHH