RLJ Lodging (RLJ) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: 7.33%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.00
• Revenue Growth: 2.82%
• EPS Growth: -8.08%
• Country: US
• Employees: 73
• Sector: Real Estate
• Sector Strength: 65
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.02
• Shares Outstanding: 151,713,840
• 10 Day Avg. Volume: 2,737,105
• 30 Day Avg. Volume: 2,722,078
• PEG Ratio: -7.14
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.67
• Price Target Upside: 16.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

RLJ Lodging Trust shows a balanced overall performance with strengths in revenue growth and operational margins. The absence of debt and a strong balance sheet enhance financial stability. However, a relatively high P/E ratio and mixed technical indicators suggest caution. Earnings call insights provide a balanced view with growth in urban hotels and group segments, offset by concerns over RevPAR declines and macroeconomic uncertainties.

Positive Factors

Capital Strategy

Proceeds from the asset sale were used to repurchase stock, reflecting a strategic use of capital.

Earnings

RLJ's earnings topped expectations on better top-line performance and better cost controls.

Financial Performance

Margins and expenses were better than anticipated, with Hotel EBITDA surpassing estimates.

Negative Factors

Market Preference

Downgrade of RLJ to Peer Perform is primarily driven by a shift in preference to resorts and group-focused assets.

Outlook

RLJ significantly reduced its 2H24 outlook, which is unchanged today, reflecting 3Q24 outperformance.

Supply Growth

Concerns over supply growth in the select-service segment relative to full-service.

RLJ Lodging Business Overview & Revenue Model

Company Description

RLJ Lodging Trust is a publicly traded real estate investment trust (REIT) that primarily focuses on acquiring premium-branded, focused-service, and compact full-service hotels. The company operates in the hospitality sector and owns a diversified portfolio of hotels across the United States, primarily in urban areas and dense suburban markets. RLJ Lodging Trust's properties are often associated with well-known hotel brands, providing high-quality accommodations and services to business and leisure travelers.

How the Company Makes Money

RLJ Lodging Trust generates revenue primarily through the ownership and operation of its hotel properties. The company's primary revenue stream comes from room rentals, which includes income from nightly stays by guests at its hotels. Additional revenue is earned from food and beverage sales, meeting room rentals, and other ancillary services provided at its hotel locations. RLJ's strategic partnerships with major hotel brands enhance its revenue potential by attracting a steady flow of customers who are loyal to those brands. The company also benefits from economies of scale and operational efficiencies gained through its extensive portfolio of properties.

RLJ Lodging Financial Statement Overview

Summary

RLJ Lodging displays a recovering financial position with strong revenue growth and improving operational margins. The absence of debt in 2024 strengthens the balance sheet, ensuring financial stability. Cash flow generation is adequate, though there is room for improvement in profitability and free cash flow growth to enhance financial resilience and shareholder returns.

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
1.37B	1.37B	1.33B	1.19B	785.66M	473.09M
	Gross Profit
585.00M	384.45M	390.46M	362.26M	185.29M	-21.94M
	EBIT
237.15M	148.31M	331.88M	135.56M	-57.11M	-257.09M
	EBITDA
284.87M	327.74M	354.64M	320.44M	130.67M	-66.53M
	Net Income Common Stockholders
53.89M	68.02M	76.41M	41.92M	-311.09M	-408.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
347.53M	409.81M	516.67M	481.32M	665.34M	899.81M
	Total Assets
4.82B	4.88B	4.92B	4.98B	5.15B	5.62B
	Total Debt
0.00	2.34B	2.34B	2.33B	2.53B	2.71B
	Net Debt
-347.53M	1.93B	1.83B	1.85B	1.87B	1.81B
	Total Liabilities
2.57B	2.59B	2.57B	2.55B	2.74B	2.93B
	Stockholders Equity
2.23B	2.28B	2.34B	2.41B	2.40B	2.67B
Cash Flow		Free Cash Flow
314.75M	285.42M	315.14M	132.24M	-5.30M	-242.04M
	Operating Cash Flow
280.95M	285.42M	315.14M	256.52M	42.96M	-168.71M
	Investing Cash Flow
-141.43M	-275.73M	-134.75M	-135.51M	-24.63M	-66.69M
	Financing Cash Flow
-158.09M	-131.69M	-161.45M	-298.49M	-239.25M	243.03M

RLJ Lodging Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.43
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 7.43 is above the 20-day moving average (MA) of 7.25, below the 50-day MA of 7.52, and below the 200-day MA of 8.83, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLJ.

RLJ Lodging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PK	72 Outperform	$2.16B	18.34	3.46%	9.26%	-3.68%	35.35%
DRH	71 Outperform	$1.60B	39.64	3.22%	2.17%	3.73%	-44.49%
XHR	69 Neutral	$1.20B	54.91	1.83%	4.12%	3.57%	12.66%
PEB	68 Neutral	$1.18B	―	-0.33%	0.40%	2.18%	56.00%
RLJ	64 Neutral	$1.14B	28.72	2.92%	7.33%	2.82%	-8.08%
SHO	61 Neutral	$1.77B	91.83	1.66%	4.05%	-3.90%	-89.21%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%

RLJ Lodging Corporate Events

RLJ Lodging Executive VP Chad Perry Resigns

On April 9, 2025, Chad Perry, Executive Vice President, General Counsel and Corporate Secretary of RLJ Lodging Trust, announced his decision to resign from his roles effective May 9, 2025, to explore principal investing opportunities. His departure is amicable and not due to any disagreements with the company’s operations, policies, or practices.

Spark’s Take on RLJ Stock

According to Spark, TipRanks’ AI Analyst, RLJ is a Neutral.

RLJ Lodging Trust shows a mixed performance with strong revenue growth and a solid balance sheet, but faces challenges with low profitability and declining free cash flow. The bearish technical indicators and overvaluation are offset by a high dividend yield and positive earnings call outlook. Key risks include occupancy declines and market transaction difficulties.

To see Spark’s full report on RLJ stock, click here.

RLJ Lodging CFO Sean Mahoney Announces Retirement

Sean Mahoney, the Executive Vice President and Chief Financial Officer of RLJ Lodging Trust, announced his retirement effective May 2025, after seven years with the company and over 30 years in the hospitality REIT industry. His departure is not due to any disagreement with the company, and he will assist in the transition process until his retirement. RLJ Lodging Trust has initiated a succession process to find his replacement, ensuring continued stability and strategic positioning in the industry.