Urban Hotels Outperformance
Urban hotels achieved significant RevPAR growth, outperforming the overall portfolio by 140 basis points. Notably, San Francisco CBD hotels saw a 20% RevPAR increase.
Positive Results from Conversions
The seven completed conversions collectively achieved 10% RevPAR growth, validating the company's strategy in driving operational upside through its conversion pipeline.
Leisure Revenue Growth
Leisure revenues increased by 5%, driven by events such as the U.S. Open, Formula One, and World Cup games, with urban leisure segments achieving 7% revenue growth.
Cost Management Success
RLJ managed to keep operating expense growth flat through aggressive cost management, limiting margin compression to just 90 basis points.
Strong Balance Sheet
The company reinforced its balance sheet by addressing near-term maturities and paying down the remaining balance on its revolver, ending the quarter with nearly $1 billion in liquidity.