RLJ Lodging (RLJ) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: 8.28%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 136.4
• Beta (1Y): 0.98
• Revenue Growth: -2.48%
• EPS Growth: -82.63%
• Country: US
• Employees: 73
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.07
• Shares Outstanding: 151,164,670
• 10 Day Avg. Volume: 1,447,402
• 30 Day Avg. Volume: 2,075,554
• 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: 3.25
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: 13.08
• 1Y Price Target: $8.00
• Price Target Upside: 16.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): $1.35B

• Rating: 58 Neutral
• Price Target: $7.00 ▲(2.04% Upside)

RLJ Lodging's overall score reflects strong financial stability and revenue growth, offset by bearish technical indicators and valuation concerns. The earnings call provided mixed signals, with strategic achievements overshadowed by industry headwinds.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt enhances RLJ Lodging's financial stability, providing flexibility to invest in growth opportunities and withstand economic downturns.

Non-Room Revenue Growth

Growth in non-room revenue highlights successful diversification efforts, reducing reliance on room occupancy and enhancing overall revenue stability.

Successful Renovations

Successful renovations position RLJ Lodging to capture higher revenue and improve asset value, supporting long-term growth and competitive positioning.

Negative Factors

RevPAR Decline

A decline in RevPAR indicates challenges in occupancy and pricing, which could pressure revenue and profitability if not addressed.

Impact of Government Shutdown

The government shutdown's impact on RevPAR underscores vulnerability to external factors, potentially affecting financial performance and strategic planning.

Delayed Ramp of Renovated Properties

Delays in realizing benefits from renovations could hinder expected revenue growth and return on investment, affecting long-term financial performance.

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 shows strong revenue growth and improved operational margins. The absence of debt in 2024 enhances financial stability, though profitability and free cash flow growth need improvement.

Income Statement

RLJ Lodging's revenue has shown a positive growth trajectory over recent years, with a notable recovery from pandemic lows. The gross profit margin is strong at 100%, reflecting efficient cost management. However, the net profit margin is relatively low at 3.13% in 2024, indicating limited profitability, which could be a concern if not improved. EBIT and EBITDA margins have improved significantly, showcasing better operational performance.

Balance Sheet

The balance sheet is strong, with no total debt reported in 2024, indicating a solid financial position. The debt-to-equity ratio is notably low, enhancing financial stability. Return on equity is modest at 1.88%, reflecting moderate returns to shareholders. The equity ratio is healthy, suggesting a robust capital structure.

Cash Flow

RLJ Lodging's cash flow metrics show a mixed picture. Operating cash flow is solid, but there has been a decline in free cash flow growth, down 9.43% from the previous year. The operating cash flow to net income ratio is robust, indicating good cash generation from operations, though the free cash flow to net income ratio could be strengthened for better financial flexibility.

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	473.09M
Gross Profit	526.26M	384.45M	390.68M	362.26M	185.29M	-30.23M
EBITDA	259.26M	359.46M	354.64M	319.06M	-20.00M	-73.78M
Net Income	20.90M	68.02M	76.41M	41.92M	-305.17M	-404.50M
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	0.00	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	251.95M	285.42M	315.14M	132.24M	-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: Negative
• 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 6.93, below the 50-day MA of 7.16, and below the 200-day MA of 7.48, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.05 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
DRH	66 Neutral	$1.69B	31.46	3.98%	5.25%	0.95%	-8.40%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
INN	62 Neutral	$644.39M	―	0.16%	6.23%	-1.20%	-328.23%
RLJ	58 Neutral	$1.04B	136.38	1.49%	8.28%	-2.48%	-82.63%
XHR	58 Neutral	$1.24B	23.30	4.58%	3.97%	4.29%	141.01%
PEB	52 Neutral	$1.22B	-17.90	-3.74%	0.35%	0.99%	-360.58%
SVC	47 Neutral	$344.58M	―	-35.25%	2.00%	-0.56%	-14.18%

RLJ Lodging Corporate Events

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.

RLJ Lodging Trust Reports Resilient Q2 2025 Results

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns 94 premium-branded, rooms-oriented hotels located in urban-centric areas, catering to business and leisure travelers across major urban markets.