RLJ Lodging Trust Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

RLJ Lodging Trust (RLJ) reported its Q4 and full-year 2024 results, showing positive growth trends. Fourth quarter highlights include:

- RevPAR increased 2.2% to $137.53
- Total revenues up 3.2% to $330.0 million
- Adjusted EBITDA grew 2.4% to $81.1 million
- Net loss of $0.9 million ($0.01 per share)

Full year 2024 performance showed:
- RevPAR growth of 2.0% to $144.72
- Total revenues increased 3.3% to $1.4 billion
- Net income of $42.9 million ($0.27 per share)
- Adjusted EBITDA of $361.6 million

The company maintained strong liquidity of $0.9 billion, including $409.8 million in cash. Strategic moves included acquiring Hotel Teatro for $35.5 million and the Wyndham Boston Beacon Hill land for $125.0 million, while completing several hotel conversions and repurchasing 2.3 million shares for $22.0 million.

Positive

• RevPAR growth of 2.2% in Q4 and 2.0% for full year
• Revenue increase of 3.2% in Q4 and 3.3% for full year
• Strong liquidity position of $0.9B
• Strategic acquisitions worth $160.5M completed
• Active share repurchase program returning capital to shareholders

Negative

• Q4 net loss of $0.9M ($0.01 per share)
• Relatively modest RevPAR growth below inflation rate
• Share repurchases at average price of $9.39 indicate stock trading well below book value

Insights

Financial Analyst

RLJ Lodging Trust delivered solid Q4 results with RevPAR growth of 2.2% and total revenue up 3.2% to $330 million, outperforming many peers in the urban lodging segment. This growth translated to Adjusted EBITDA of $81.1 million (up 2.4%) and Adjusted FFO per share of $0.33, despite a minimal net loss of $0.01 per share for the quarter.

The company's full-year performance showed consistent momentum with annual RevPAR growth of 2.0%, revenue of $1.4 billion (up 3.3%), and net income of $0.27 per diluted share. This performance reflects RLJ's strategic positioning in urban markets that are finally seeing demand recovery across all segments, particularly business travel.

RLJ's capital allocation strategy in 2024 focused on multiple value-creation levers:

• Executing strategic acquisitions including the boutique Hotel Teatro ($35.5M) and securing fee simple interest in the land under Wyndham Boston Beacon Hill ($125M) – eliminating a ground lease set to expire in 2028
• Completing three hotel conversions to higher-quality brands (DoubleTree, Marriott Tribute, and Courtyard)
• Divesting two non-core assets for $20.8M
• Repurchasing 2.3 million shares at $9.39 average price (continuing into 2025 with another 1.2M shares at $9.77)
• Maintaining a quarterly dividend of $0.15 per share (representing a conservative payout ratio of approximately 38% based on annual AFFO)

The company's balance sheet remains robust with over $900M in liquidity ($409.8M cash, $500M undrawn revolver) against $2.2B in debt. This financial flexibility positions RLJ well for continued strategic investments while maintaining a defensive posture against potential economic uncertainties.

Looking ahead to 2025, RLJ is positioned to benefit from multiple tailwinds: continued recovery in urban markets, ramp-up of recently converted properties, and potentially more favorable business travel trends. The company's focus on premium-branded, rooms-oriented, high-margin urban hotels should allow it to capitalize on improving fundamentals while its diversified geographic footprint provides some insulation from market-specific disruptions.

Real Estate Investment Specialist

RLJ Lodging Trust's Q4 and full-year 2024 results reveal a company successfully navigating the urban lodging recovery while strategically positioning for long-term value creation. The 2.2% RevPAR growth in Q4 places RLJ in the top quartile of lodging REITs with urban exposure, demonstrating their portfolio's resilience and the effectiveness of their asset management initiatives.

The company's most significant strategic move was the $125 million acquisition of the fee simple interest in the land under the Wyndham Boston Beacon Hill. This transaction transforms a depreciating leasehold interest (with only 3 years remaining) into a perpetual ownership position, effectively removing a ticking clock that would have significantly impaired the property's value. While the price tag appears substantial, it represents a compelling implied cap rate of approximately 6.5-7.0% when considering the eliminated ground rent payments and the property's enhanced long-term value potential.

RLJ's conversion strategy continues to bear fruit, with three properties transitioning to stronger brands. These conversions typically require 12-18 months to fully stabilize, suggesting we'll see continued RevPAR acceleration through 2025-2026 as these assets reach their full potential. Based on industry benchmarks, successful conversions can drive 15-25% RevPAR premiums over their previous brand affiliations.

The company's capital allocation approach reflects disciplined stewardship, balancing growth investments with shareholder returns. The share repurchase program at $9.39 represents a significant discount to estimated NAV (likely in the $12-14 range based on comparable trading multiples and private market transactions), making it immediately accretive. Meanwhile, the $0.15 quarterly dividend (6.5% yield) remains well-covered with a conservative 38% AFFO payout ratio, providing both current income and room for future increases.

From a balance sheet perspective, RLJ maintains one of the strongest positions among lodging REITs with net debt to EBITDA of approximately 4.5x, well below the sector average. This financial flexibility, combined with $900 million in liquidity, positions them to opportunistically pursue additional value-enhancing acquisitions while maintaining defensive positioning against potential economic headwinds.

Looking ahead to 2025, RLJ is uniquely positioned to benefit from multiple tailwinds: continued urban demand recovery, stabilization of converted properties, and potential acceleration in business travel. Their urban-centric, diverse geographic footprint provides both upside exposure to recovering gateway markets and insulation from market-specific disruptions.

Fourth Quarter RevPAR increased 2.2% and Total Revenues increased 3.2%

Fourth Quarter Adjusted EBITDA increased 2.4%

Repurchased 2.3 million shares of common stock for $22.0 million in 2024

BETHESDA, Md.--(BUSINESS WIRE)-- RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months and year ended December 31, 2024.

Fourth Quarter Highlights

• Portfolio Comparable RevPAR of $137.53, an increase of 2.2% over the prior year
• Total Revenues of $330.0 million, an increase of 3.2% over the prior year
• Net loss attributable to common shareholders of $0.9 million
• Net loss per diluted share attributable to common shareholders of $0.01
• Adjusted EBITDA of $81.1 million, an increase of 2.4% over the prior year
• Adjusted FFO per diluted common share and unit of $0.33
• Repurchased 0.3 million common shares for $3.0 million at an average price per share of $9.16
• Ended year with $0.9 billion of liquidity, including approximately $409.8 million of unrestricted cash and $500.0 million in undrawn revolver capacity

Full Year Highlights

• Portfolio Comparable RevPAR of $144.72, an increase of 2.0% over the prior year
• Total Revenues of $1.4 billion, an increase of 3.3% over the prior year
• Net income attributable to common shareholders of $42.9 million
• Net income per diluted share attributable to common shareholders of $0.27
• Adjusted EBITDA of $361.6 million
• Adjusted FFO per diluted common share and unit of $1.57
• Repurchased 2.3 million common shares for $22.0 million at an average price per share of $9.39

"We were pleased with our fourth quarter results, which once again achieved top quartile RevPAR growth, reflecting the positive momentum in our urban-centric portfolio. The quarter was driven by growth in all segments of demand and the continuing strong ramp from our conversions," commented Leslie D. Hale, President and Chief Executive Officer. "Throughout the year, our team also successfully executed several strategic objectives, including advancing our multiyear conversion pipeline, executing two high-quality acquisitions, strengthening our balance sheet, and returning capital to shareholders through accretive share repurchases and increasing our well-covered dividend. Successful execution of these initiatives has positioned RLJ to build on our momentum in 2025 against a backdrop of continued demand growth, a favorable market footprint, and potentially a more business friendly environment. All of these should allow RLJ to continue unlocking embedded value while enhancing shareholder returns.”

The prefix “comparable” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.

Financial and Operating Highlights ($ in millions, except ADR, RevPAR, and per share amounts) (unaudited)
	For the three months ended December 31,				For the year ended December 31,
	2024	2023	Change		2024	2023	Change
Operational Overview: (1)
Comparable ADR	$198.71	$193.96	2.4%		$199.38	$197.68	0.9%
Comparable Occupancy	69.2%	69.4%	(0.3)%		72.6%	71.8%	1.1%
Comparable RevPAR	$137.53	$134.57	2.2%		$144.72	$141.93	2.0%
Financial Overview:
Total Revenues	$330.0	$319.7	3.2%		$1,369.4	$1,325.6	3.3%
Comparable Hotel Revenue	$330.0	$320.4	3.0%		$1,369.3	$1,327.8	3.1%
Net (loss) income attributable to common shareholders	($0.9)	$1.7	(152.9)%		$42.9	$51.3	(16.4)%
Comparable Hotel EBITDA	$90.4	$89.9	0.6%		$398.0	$402.1	(1.0)%
Comparable Hotel EBITDA Margin	27.4%	28.1%	(67) bps		29.1%	30.3%	(122) bps
Adjusted EBITDA	$81.1	$79.2	2.4%		$361.6	$364.5	(0.8)%
Adjusted FFO	$50.2	$53.4	(6.0)%		$241.8	$260.4	(7.1)%
Adjusted FFO Per Diluted Common Share and Unit - Diluted	$0.33	$0.34	(2.9)%		$1.57	$1.66	(5.4)%

Note:

(1) Comparable statistics reflect the Company's 95 hotel portfolio owned as of December 31, 2024.

Acquisitions

During 2024, the Company acquired the 110-room Hotel Teatro in Denver for $35.5 million and the fee simple interest in the land underlying the 304-room Wyndham Boston Beacon Hill for $125.0 million, which was previously subject to a ground lease that was set to expire in 2028. The Company funded both acquisitions with cash on hand.

Dispositions

During 2024, the Company sold two non-core properties, generating a combined $20.8 million of gross proceeds.

Conversions

During 2024, the Company completed the physical conversions of the Wyndham Houston Medical Center to a DoubleTree by Hilton and the Hotel Indigo in New Orleans to the Hotel Tonnelle, a Marriott Tribute Hotel. Additionally, the Company completed the conversion of the Wyndham Pittsburgh University Center to a Courtyard by Marriott during the fourth quarter.

Share Repurchases

During 2024, the Company repurchased 2.3 million shares for $22.0 million, at an average price per share of $9.39, which included approximately 0.3 million common shares repurchased for $3.0 million at an average price per share of $9.16 during the fourth quarter. Additionally, year-to-date the Company has purchased an additional 1.2 million shares for $12.0 million at an average price per share of $9.77. The Company's share buyback program currently has approximately $217.3 million of remaining capacity.

Balance Sheet

As of December 31, 2024, the Company had over $900 million of total liquidity, comprising approximately $409.8 million of unrestricted cash and $500.0 million available under its revolving credit facility ("Revolver"), and $2.2 billion of debt outstanding.

Dividends

The Company’s Board of Trustees declared a quarterly cash dividend of $0.15 per common share of beneficial interest of the Company in the fourth quarter. The dividend was paid on January 15, 2025 to shareholders of record as of December 31, 2024.

The Company's Board of Trustees declared a quarterly cash dividend of $0.4875 on the Company’s Series A Preferred Shares in the fourth quarter. The dividend was paid on January 31, 2025 to shareholders of record as of December 31, 2024.

2025 Outlook

($ in millions, except growth and per share amounts)

The Company is providing its annual outlook for all hotels owned as of February 25, 2025.

	FY 2025
Comparable RevPAR Growth	1.0% to 3.0%
Comparable Hotel EBITDA	$378.0M to $408.0M
Adjusted EBITDA	$345.0M to $375.0M
Adjusted FFO per diluted share	$1.46 to $1.66

Additionally, the Company's full year 2025 outlook includes:

• Net interest expense of $94.0 million to $96.0 million
• Cash corporate G&A in the range of $34.0 million to $35.0 million
• Capital expenditures related to renovations in the range of $80.0 million to $100.0 million
• Diluted weighted average common shares and units of 152.5 million

Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the Company's outlook above and could result in a material change to the Company's outlook.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on February 26, 2025 at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s fourth quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://www.rljlodgingtrust.com. A replay of the conference call webcast will be archived and available through the Investor Relations section of the Company’s website for two weeks.

Supplemental Information

Please refer to the schedule of supplemental information for additional detail and Comparable operating statistics, which will be posted to the Investor Relations section of the Company's website.

About Us

RLJ Lodging Trust ("RLJ") is a self-advised, publicly traded real estate investment trust that owns 95 premium-branded, rooms-oriented, high-margin, urban-centric hotels located within the heart of demand locations. Our hotels are geographically diverse and concentrated in major urban markets that provide multiple demand generators from business, leisure, and other travelers.

Forward-Looking Statements

This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” “may,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward- Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which will be filed on February 26, 2025, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.

For additional information or to receive press releases via email, please visit our website:
http://www.rljlodgingtrust.com

RLJ Lodging Trust
Non-GAAP and Accounting Commentary

Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial Measures

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin. These Non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin, as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company defines such terms.

Funds From Operations (“FFO”)

The Company calculates Funds from Operations (“FFO”) in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.

The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units may be redeemed for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.

EBITDA and EBITDAre

Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization expense. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization expense) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.

In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax benefit or expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.

Adjustments to FFO and EBITDA

The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers outside the normal course of operations. The Company believes that Adjusted FFO, Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor’s understanding of the Company's operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:

• Transaction Costs: The Company excludes transaction costs expensed during the period
• Pre-Opening Costs: The Company excludes certain costs related to pre-opening of hotels
• Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation, non-cash income tax expense or benefit, and non-cash interest expense related to discontinued interest rate hedges
• Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside the normal course of operations

Hotel EBITDA and Hotel EBITDA Margin

With respect to Consolidated Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and certain non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of third-party management companies.

Comparable Hotel EBITDA and Comparable Hotel EBITDA margin include prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels and excludes results from sold hotels as applicable. The following is a summary of Comparable hotel adjustments:

Comparable adjustments: Acquired hotel

For the three and twelve months ended December 31, 2024, Comparable adjustments included the following acquired hotel:

• Hotel Teatro acquired in June 2024

Comparable adjustments: Sold hotels

For the three and twelve months ended December 31, 2024, Comparable adjustments included the following sold hotels:

• Residence Inn Merrillville sold in May 2024
• Fairfield Inn & Suites Denver Cherry Creek sold in September 2024

RLJ Lodging Trust Consolidated Balance Sheets (Amounts in thousands, except share and per share data) (unaudited)
	December 31, 2024				December 31, 2023
Assets
Investment in hotel properties, net	$	4,250,524			$	4,136,216
Investment in unconsolidated joint ventures		7,457				7,398
Cash and cash equivalents		409,809				516,675
Restricted cash reserves		23,516				38,652
Hotel and other receivables, net of allowance of $169 and $265, respectively		25,494				26,163
Lease right-of-use assets		128,111				136,140
Prepaid expense and other assets		38,968				58,051
Total assets	$	4,883,879			$	4,919,295
Liabilities and Equity
Debt, net	$	2,220,081			$	2,220,778
Accounts payable and other liabilities		154,643				147,819
Advance deposits and deferred revenue		40,242				32,281
Lease liabilities		119,102				122,588
Accrued interest		20,900				22,539
Distributions payable		30,634				22,500
Total liabilities		2,585,602				2,568,505
Equity
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at December 31, 2024 and 2023		366,936				366,936
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 153,295,577 and 155,297,829 shares issued and outstanding at December 31, 2024 and 2023, respectively		1,533				1,553
Additional paid-in capital		2,992,487				3,000,894
Accumulated other comprehensive income		13,788				22,662
Distributions in excess of net earnings		(1,090,186	)			(1,055,183	)
Total shareholders’ equity		2,284,558				2,336,862
Noncontrolling interest:
Noncontrolling interest in consolidated joint ventures		7,589				7,634
Noncontrolling interest in the Operating Partnership		6,130				6,294
Total noncontrolling interest		13,719				13,928
Total equity		2,298,277				2,350,790
Total liabilities and equity	$	4,883,879			$	4,919,295

Note:

The corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.

RLJ Lodging Trust Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (unaudited)
	For the three months ended December 31,								For the year ended December 31,
		2024				2023				2024				2023
Revenues
Operating revenues
Room revenue	$	267,690			$	261,612			$	1,121,586			$	1,095,028
Food and beverage revenue		39,593				36,024				153,108				141,625
Other revenue		22,706				22,072				94,746				88,924
Total revenues		329,989				319,708				1,369,440				1,325,577
Expenses
Operating expenses
Room expense		70,682				69,396				288,567				277,058
Food and beverage expense		29,487				28,103				117,766				109,707
Management and franchise fee expense		25,195				24,863				107,978				107,417
Other operating expenses		90,680				85,918				363,631				340,485
Total property operating expenses		216,044				208,280				877,942				834,667
Depreciation and amortization		45,386				44,455				179,431				179,103
Property tax, insurance and other		26,300				23,961				107,043				100,229
General and administrative		12,978				15,968				54,804				58,998
Transaction costs		21				197				320				223
Total operating expenses		300,729				292,861				1,219,540				1,173,220
Other income, net		673				858				5,342				4,364
Interest income		4,123				5,766				17,314				19,743
Interest expense		(28,208	)			(25,301	)			(111,358	)			(98,807	)
(Loss) gain on sale of hotel properties, net		(39	)			(6	)			8,262				(34	)
Loss on extinguishment of indebtedness, net		—				—				(129	)			(169	)
Income before equity in income from unconsolidated joint ventures		5,809				8,164				69,331				77,454
Equity in income from unconsolidated joint ventures		220				104				459				419
Income before income tax expense		6,029				8,268				69,790				77,873
Income tax expense		(518	)			(228	)			(1,599	)			(1,256	)
Net income		5,511				8,040				68,191				76,617
Net (loss) income attributable to noncontrolling interests:
Noncontrolling interest in consolidated joint ventures		(136	)			(96	)			45				35
Noncontrolling interest in the Operating Partnership		1				(9	)			(215	)			(247	)
Net income attributable to RLJ		5,376				7,935				68,021				76,405
Preferred dividends		(6,279	)			(6,279	)			(25,115	)			(25,115	)
Net (loss) income attributable to common shareholders	$	(903	)		$	1,656			$	42,906			$	51,290
Basic per common share data:
Net (loss) income per share attributable to common shareholders	$	(0.01	)		$	0.01			$	0.27			$	0.32
Weighted-average number of common shares		151,751,999				153,326,317				152,856,036				155,928,663
Diluted per common share data:
Net (loss) income per share attributable to common shareholders	$	(0.01	)		$	0.01			$	0.27			$	0.32
Weighted-average number of common shares		151,751,999				154,406,530				153,475,921				156,556,414

Note:

The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.

RLJ Lodging Trust Reconciliation of Non-GAAP Measures (Amounts in thousands, except per share data) (unaudited)
Funds From Operations (FFO) Attributable to Common Shareholders and Unitholders
	For the three months ended December 31,								For the year ended December 31,
		2024				2023				2024				2023
Net income	$	5,511			$	8,040			$	68,191			$	76,617
Preferred dividends		(6,279	)			(6,279	)			(25,115	)			(25,115	)
Depreciation and amortization		45,386				44,455				179,431				179,103
Loss (gain) on sale of hotel properties, net		39				6				(8,262	)			34
Noncontrolling interest in consolidated joint ventures		(136	)			(96	)			45				35
Adjustments related to consolidated joint venture (1)		(48	)			(45	)			(187	)			(175	)
Adjustments related to unconsolidated joint venture (2)		227				232				912				941
FFO		44,700				46,313				215,015				231,440
Transaction costs		21				197				320				223
Pre-opening costs (3)		247				163				1,335				1,351
Loss on extinguishment of indebtedness, net		—				—				129				169
Amortization of share-based compensation		4,544				6,258				20,804				24,285
Non-cash income tax expense (benefit)		10				(5	)			10				(5	)
Non-cash interest expense related to discontinued interest rate hedges		305				482				1,592				1,929
Other expenses (income) (4)		385				(30	)			2,641				996
Adjusted FFO	$	50,212			$	53,378			$	241,846			$	260,388
Adjusted FFO per common share and unit-basic	$	0.33			$	0.35			$	1.57			$	1.66
Adjusted FFO per common share and unit-diluted	$	0.33			$	0.34			$	1.57			$	1.66
Basic weighted-average common shares and units outstanding (5)		152,524				154,098				153,628				156,700
Diluted weighted-average common shares and units outstanding (5)		153,042				155,178				154,248				157,328

Note:

(1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint venture.

(2) Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint venture.

(3) Represents expenses related to the brand conversions of certain hotel properties prior to opening.

(4) Represents expenses and income outside of the normal course of operations.

(5) Includes 0.8 million weighted-average operating partnership units for the three months and year ended December 31, 2024 and 2023.

RLJ Lodging Trust Reconciliation of Non-GAAP Measures (Amounts in thousands) (unaudited)
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
	For the three months ended December 31,								For the year ended December 31,
		2024				2023				2024				2023
Net income	$	5,511			$	8,040			$	68,191			$	76,617
Depreciation and amortization		45,386				44,455				179,431				179,103
Interest expense, net of interest income		24,085				19,535				94,044				79,064
Income tax expense		518				228				1,599				1,256
Adjustments related to unconsolidated joint venture (1)		392				340				1,390				1,374
EBITDA		75,892				72,598				344,655				337,414
Loss (gain) on sale of hotel properties, net		39				6				(8,262	)			34
EBITDAre		75,931				72,604				336,393				337,448
Transaction costs		21				197				320				223
Pre-opening costs (2)		247				163				1,335				1,351
Loss on extinguishment of indebtedness, net		—				—				129				169
Amortization of share-based compensation		4,544				6,258				20,804				24,285
Other expenses (income) (3)		385				(30	)			2,641				996
Adjusted EBITDA		81,128				79,192				361,622				364,472
General and administrative		8,434				9,710				34,000				34,713
Other corporate adjustments		848				1,022				3,133				3,031
Consolidated Hotel EBITDA		90,410				89,924				398,755				402,216
Comparable adjustments - income from sold hotels		(47	)			(454	)			(1,279	)			(2,626	)
Comparable adjustments - income from acquired hotel		—				407				525				2,551
Comparable Hotel EBITDA	$	90,363			$	89,877			$	398,001			$	402,141

Notes: Comparable statistics reflect the Company's 95 hotel portfolio owned as of December 31, 2024.

(1) Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint venture.

(2) Represents expenses related to the brand conversions of certain hotel properties prior to opening.

(3) Represents expenses and income outside of the normal course of operations.

RLJ Lodging Trust Reconciliation of Non-GAAP Measures (Amounts in thousands except margin data) (unaudited)
Comparable Hotel EBITDA Margin
	For the three months ended December 31,								For the year ended December 31,
		2024				2023				2024				2023
Total revenue	$	329,989			$	319,708			$	1,369,440			$	1,325,577
Comparable adjustments - revenue from sold hotels		—				(1,462	)			(3,879	)			(7,013	)
Comparable adjustments - revenue from prior ownership of acquired hotels		—				2,151				3,834				9,318
Other corporate adjustments / non-hotel revenue		(24	)			(18	)			(76	)			(70	)
Comparable Hotel Revenue	$	329,965			$	320,379			$	1,369,319			$	1,327,812
Comparable Hotel EBITDA	$	90,363			$	89,877			$	398,001			$	402,141
Comparable Hotel EBITDA Margin		27.4	%			28.1	%			29.1	%			30.3	%

RLJ Lodging Trust Reconciliation of Non-GAAP Measures - Full-Year Outlook (Amounts in millions) (unaudited)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
	For the year ended December 31, 2025
	Low End				High End
Net income	$	50.0			$	78.0
Depreciation and amortization		180.0				180.0
Interest expense, net of interest income		94.0				96.0
Income tax expense		1.6				1.6
Adjustments related to joint ventures		1.4				1.4
EBITDA/EBITDAre		327.0				357.0
Amortization of share-based compensation		18.0				18.0
Adjusted EBITDA		345.0				375.0
General and administrative		34.0				35.0
Other corporate adjustments		(1.0	)			(2.0	)
Consolidated Hotel EBITDA/Comparable Hotel EBITDA	$	378.0			$	408.0

Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders
	For the year ended December 31, 2025
	Low End				High End
Net income	$	50.0			$	78.0
Preferred dividends		(25.0	)			(25.0	)
Depreciation and amortization		180.0				180.0
Adjustments related to joint ventures		1.0				1.0
FFO		206.0				234.0
Amortization of share-based compensation		18.0				18.0
All other items, net		(1.5	)			0.5
Adjusted FFO	$	222.5			$	252.5
Adjusted FFO per common share and unit-diluted	$	1.46			$	1.66
Diluted weighted-average common shares and units outstanding		152.5				152.5

RLJ Lodging Trust Consolidated Debt Summary (Amounts in thousands except interest rate data) (unaudited)
Loan	Base Term (Years)	Maturity (incl. extensions)	Floating / Fixed (1)	Interest Rate (2)		Balance as of December 31, 2024 (3)
Mortgage Debt
Mortgage loan - 1 hotel	10	Jan 2029	Fixed	5.06%		$	25,000
Mortgage loan - 3 hotels	5	Apr 2026	Floating	4.49%			96,000
Mortgage loan - 4 hotels	5	Apr 2026	Floating	4.93%			85,000
Weighted Average / Mortgage Total				4.74%		$	206,000
Corporate Debt
Revolver (4)	4	May 2028	Floating	6.08%		$	100,000
$225 Million Term Loan Maturing 2026	3	May 2028	Floating	5.33%			225,000
$200 Million Term Loan Maturing 2026	3	January 2028	Floating	6.03%			200,000
$500 Million Term Loan Maturing 2027	3	September 2029	Floating	4.69%			500,000
$500 Million Senior Notes due 2026	5	July 2026	Fixed	3.75%			500,000
$500 Million Senior Notes due 2029	8	September 2029	Fixed	4.00%			500,000
Weighted Average / Corporate Total				4.56%		$	2,025,000
Weighted-Average / Gross Debt				4.58%		$	2,231,000

Notes:

(1) The floating interest rate is hedged, or partially hedged, with an interest rate swap.

(2) Interest rates as of December 31, 2024, inclusive of the impact of interest rate hedges.

(3) Excludes the impact of fair value adjustments and deferred financing costs.

(4) As of December 31, 2024, there was $500.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225541186/en/

Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774

Source: RLJ Lodging Trust

FAQ

What was RLJ Lodging Trust's RevPAR growth in Q4 2024?

RLJ's Portfolio Comparable RevPAR grew 2.2% to $137.53 in Q4 2024.

How many shares did RLJ repurchase in 2024 and at what price?

RLJ repurchased 2.3 million shares for $22.0 million at an average price of $9.39 per share in 2024.

What acquisitions did RLJ complete in 2024?

RLJ acquired the 110-room Hotel Teatro in Denver for $35.5M and the Wyndham Boston Beacon Hill land for $125.0M.

What was RLJ's total revenue and net income for full-year 2024?

RLJ reported total revenue of $1.4B and net income of $42.9M for full-year 2024.

How much liquidity did RLJ have at the end of 2024?

RLJ ended 2024 with $0.9B in liquidity, including $409.8M in cash and $500M in undrawn revolver capacity.