RLJ Lodging (RLJ) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: 7.88%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 150.1
• Beta (1Y): 0.98
• Revenue Growth: -0.58%
• EPS Growth: -83.32%
• Country: US
• Employees: 73
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.07
• Shares Outstanding: 151,085,080
• 10 Day Avg. Volume: 1,526,308
• 30 Day Avg. Volume: 2,067,548
• PEG Ratio: -1.47
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 5.47
• Enterprise Value/Market Cap: 3.08
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: 10.32
• 1Y Price Target: $8.00
• Price Target Upside: 16.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $8.00 ▲(16.62% Upside)

RLJ Lodging's overall stock score reflects stable financial performance and technical indicators suggesting short-term bullish momentum. However, high valuation concerns and mixed earnings call results, including RevPAR declines and external challenges, temper the outlook.

Positive Factors

Non-Room Revenue Growth

The growth in non-room revenue highlights RLJ's ability to diversify income streams, enhancing resilience against fluctuations in room demand and improving overall profitability.

Successful Renovations

Completion of major renovations positions RLJ to capitalize on increased demand and improved guest experiences, potentially driving higher occupancy and revenue.

Improved Debt Position

Addressing debt maturities and maintaining substantial liquidity enhances RLJ's financial flexibility, supporting future growth initiatives and stability in uncertain markets.

Negative Factors

RevPAR Decline

The decline in RevPAR indicates challenges in maintaining room revenue, which could pressure overall financial performance if not addressed through strategic initiatives.

Impact of Government Shutdown

The government shutdown's impact on RevPAR highlights RLJ's vulnerability to external disruptions, potentially affecting short-term revenue and operational stability.

Delayed Ramp of Renovated Properties

Delays in realizing benefits from renovations could hinder expected revenue growth, affecting RLJ's ability to leverage its investments in property enhancements.

RLJ Lodging Business Overview & Revenue Model

Company Description

RLJ Lodging Trust (RLJ) is a real estate investment trust (REIT) that focuses on the ownership, acquisition, and development of premium branded hotels in the United States. The company primarily invests in the hospitality sector, targeting upscale and upper midscale hotels that cater to both business and leisure travelers. RLJ's portfolio includes a diverse range of properties affiliated with major hotel brands, allowing it to capitalize on the growing demand for quality accommodations in key markets.

How the Company Makes Money

RLJ generates revenue primarily through the operation of its hotel properties, which includes income from room rentals, food and beverage sales, and ancillary services. The company benefits from its strategic partnerships with well-known hotel brands, which enhance its marketability and occupancy rates. Additionally, RLJ engages in property management and leasing, contributing to its revenue streams. The company may also pursue acquisitions of undervalued or distressed properties to enhance its portfolio, driving future earnings through increased occupancy and operational efficiencies.

RLJ Lodging Financial Statement Overview

Summary

RLJ Lodging demonstrates stable financial performance with strengths in operational efficiency and cash conversion. However, challenges include a decline in revenue growth and free cash flow growth. The company maintains a balanced leverage position, supporting financial stability.

Income Statement

RLJ Lodging's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.15%, which is concerning. However, the company maintains a positive gross profit margin of 38.95% and a modest net profit margin of 1.55%. The EBIT and EBITDA margins are 8.11% and 19.19% respectively, showing operational efficiency. Despite the recent revenue dip, the company has shown resilience in maintaining profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.07, indicating a balanced approach to leveraging. The return on equity is low at 0.93%, suggesting limited returns for shareholders. However, the equity ratio is healthy, showing that a significant portion of assets is financed by equity, which provides stability.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -24.57% in the TTM period. However, the operating cash flow to net income ratio is strong at 6.17, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 1.0, showing that the company is able to convert its net income into free cash flow effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.37B	1.33B	1.19B	785.66M	464.63M
Gross Profit	362.04M	384.45M	390.68M	362.26M	185.29M	-30.23M
EBITDA	328.46M	359.46M	354.64M	319.06M	-20.00M	-73.78M
Net Income	33.45M	68.02M	76.41M	41.92M	-305.17M	-404.44M
Balance Sheet
Total Assets	4.79B	4.88B	4.92B	4.98B	5.15B	5.62B
Cash, Cash Equivalents and Short-Term Investments	374.83M	409.81M	516.67M	481.32M	665.34M	899.81M
Total Debt	2.34B	2.34B	2.34B	2.33B	2.53B	2.71B
Total Liabilities	2.59B	2.59B	2.57B	2.55B	2.74B	2.93B
Stockholders Equity	2.19B	2.28B	2.34B	2.41B	2.40B	2.67B
Cash Flow
Free Cash Flow	222.51M	285.42M	315.14M	256.52M	-5.30M	-242.04M
Operating Cash Flow	251.95M	285.42M	315.14M	256.52M	42.96M	-168.71M
Investing Cash Flow	-117.55M	-275.73M	-134.75M	-135.51M	-24.63M	-66.69M
Financing Cash Flow	-154.68M	-131.69M	-161.45M	-298.49M	-239.25M	243.03M

RLJ Lodging Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLJ, the sentiment is Positive. The current price of 6.86 is below the 20-day moving average (MA) of 7.24, below the 50-day MA of 7.14, and below the 200-day MA of 7.37, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLJ.

RLJ Lodging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
XHR	65 Neutral	$1.33B	25.00	4.58%	3.84%	4.29%	141.01%
DRH	64 Neutral	$1.87B	34.90	3.98%	5.16%	0.95%	-8.40%
INN	63 Neutral	$650.48M	―	0.16%	5.99%	-1.20%	-328.23%
RLJ	62 Neutral	$1.10B	150.10	1.49%	7.88%	-0.58%	-83.32%
PEB	52 Neutral	$1.29B	―	-3.74%	0.35%	0.99%	-360.58%
SVC	42 Neutral	$290.79M	―	-35.25%	2.31%	-0.56%	-14.18%

RLJ Lodging Corporate Events

RLJ Lodging Trust Q3 2025 Earnings Call Highlights

RLJ Lodging Trust’s recent earnings call for the third quarter of 2025 presented a mixed sentiment, highlighting both resilience and challenges. The company demonstrated strategic achievements in non-room revenue growth and successful renovations, yet faced significant hurdles such as a decline in RevPAR, the impact of the government shutdown, and delays in the ramp-up of renovated properties. While urban hotel performance and an improved debt position were positive, broader industry headwinds and uncertainties cast a shadow over the fourth-quarter outlook.

RLJ Lodging Trust Reports Q3 2025 Financial Results

RLJ Lodging Trust is a publicly traded real estate investment trust that owns 94 premium-branded, urban-centric hotels across major urban markets, catering to business and leisure travelers. In its third quarter 2025 earnings report, RLJ Lodging Trust reported a net loss per share of $0.07 and adjusted funds from operations (FFO) per diluted share of $0.27, with total revenues reaching $330 million. Despite a challenging environment, the company maintained a strong balance sheet and liquidity. Key financial metrics showed a decrease in comparable RevPAR by 5.1% and a decline in adjusted EBITDA by 21% compared to the previous year. The company also repurchased 0.2 million shares for $1.3 million, reflecting its commitment to shareholder value. RLJ Lodging Trust’s management expressed confidence in the company’s strategic initiatives and strong balance sheet, which they believe will position the company to benefit as market conditions improve in 2026.

RLJ Lodging Appoints Nikhil Bhalla as CFO

On September 18, 2025, RLJ Lodging Trust announced the appointment of Nikhil Bhalla as Chief Financial Officer. Bhalla, who has been with the company since 2015, has held various leadership roles, most recently as Senior Vice President of Finance and Treasurer. His promotion reflects his strategic insight, financial acumen, and operational excellence, which are expected to support RLJ’s financial strategy and growth initiatives. This appointment underscores the company’s commitment to developing internal talent and enhancing its leadership team.

The most recent analyst rating on (RLJ) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on RLJ Lodging stock, see the RLJ Stock Forecast page.

RLJ Lodging Trust’s Earnings Call: A Mixed Bag

RLJ Lodging Trust’s recent earnings call presented a balanced sentiment, highlighting both positive achievements and challenges. The company exceeded expectations with strong urban hotel performance and successful conversions, yet faced hurdles such as a RevPAR decline and softer group demand. Despite these challenges, RLJ demonstrated robust financial management and strategic initiatives, although it acknowledged a challenging outlook for the third quarter.