RLJ Lodging (RLJ) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: 8.39%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 1.08
• Revenue Growth: 1.42%
• EPS Growth: -20.13%
• Country: US
• Employees: 73
• Sector: Real Estate
• Sector Strength: 47
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.15
• Shares Outstanding: 151,164,670
• 10 Day Avg. Volume: 2,139,418
• 30 Day Avg. Volume: 1,546,419
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.09
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $8.50
• Price Target Upside: 18.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: $7.50 ▲(4.90% Upside)

RLJ Lodging's overall stock score reflects a mix of strengths and challenges. The company's strong financial position and high dividend yield are positive factors. However, bearish technical indicators and valuation concerns weigh on the score. The earnings call provided a balanced view with both achievements and challenges, contributing positively to the overall assessment.

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 self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 103 hotels with approximately 22,570 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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 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. However, low net profit margins and declining free cash flow growth indicate areas for 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	1.37B	1.37B	1.33B	1.19B	785.66M	473.09M
Gross Profit	624.25M	384.45M	390.46M	362.26M	185.29M	-30.23M
EBITDA	345.15M	335.30M	354.64M	310.00M	137.76M	-73.78M
Net Income	45.23M	68.02M	76.41M	41.92M	-305.17M	-404.50M
Balance Sheet
Total Assets	4.82B	4.88B	4.92B	4.98B	5.15B	5.62B
Cash, Cash Equivalents and Short-Term Investments	373.90M	409.81M	516.67M	536.39M	665.34M	899.81M
Total Debt	0.00	2.34B	2.34B	2.33B	2.53B	2.71B
Total Liabilities	2.58B	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	334.02M	285.42M	315.14M	132.24M	-5.30M	-242.04M
Operating Cash Flow	261.65M	285.42M	315.14M	256.52M	42.96M	-168.71M
Investing Cash Flow	-108.88M	-275.73M	-134.75M	-135.51M	-24.63M	-66.69M
Financing Cash Flow	-165.92M	-131.69M	-161.45M	-298.49M	-239.25M	243.03M

RLJ Lodging Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 7.15 is below the 20-day moving average (MA) of 7.44, below the 50-day MA of 7.39, and below the 200-day MA of 8.26, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 66.38 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
XHR	73 Outperform	$1.28B	21.04	5.00%	3.89%	4.81%	185.08%
SHO	66 Neutral	$1.72B	425.35	0.96%	3.97%	0.37%	-97.38%
Sector *	63 Neutral	$6.83B	13.33	-1.02%	7.20%	3.67%	-27.11%
PK	62 Neutral	$2.22B	41.86	1.58%	12.83%	-3.19%	-81.33%
DRH	61 Neutral	$1.64B	28.69	4.22%	5.27%	1.72%	-3.49%
RLJ	60 Neutral	$1.10B	34.72	2.53%	8.39%	1.42%	-20.13%
PEB	55 Neutral	$1.20B	―	-0.81%	0.39%	2.00%	50.70%

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.