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RLJ Lodging Trust (RLJ)
NYSE:RLJ
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RLJ Lodging
(NYSE:RLJ)
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Rating:58Neutral
Price Target:
$7.50
â–¼(-2.34% Downside)
RLJ Lodging's overall score reflects a stable financial position with operational efficiency but is weighed down by valuation concerns and mixed technical signals. The earnings call and corporate events provide some positive outlook, but challenges in revenue growth and external headwinds remain significant.
Positive Factors
Non-Room Revenue Growth
The growth in non-room revenue indicates successful diversification and ROI initiatives, which can provide a more stable revenue stream and reduce reliance on room occupancy.
Successful Renovations
Completion of renovations can enhance property appeal and drive future revenue growth, positioning RLJ Lodging to capitalize on increased demand and higher room rates.
Improved Debt Position
A strong liquidity position and managed debt maturities enhance financial stability, providing flexibility to invest in growth opportunities and weather economic uncertainties.
Negative Factors
RevPAR Decline
Declining RevPAR indicates challenges in maintaining pricing power and occupancy, which can pressure revenue and profitability if not addressed.
Impact of Government Shutdown
External factors like government shutdowns can disrupt operations and revenue, highlighting the vulnerability to macroeconomic events and policy changes.
Delayed Ramp of Renovated Properties
Delays in realizing benefits from renovations can postpone expected revenue growth, impacting short-term financial performance and strategic goals.
RLJ Lodging (RLJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield7.76%
Average Volume (3M)1.95M
Price to Earnings (P/E)159.0
Beta (1Y)0.88
Revenue Growth-0.58%
EPS Growth-83.32%
CountryUS
Employees73
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.07
Shares Outstanding151,085,080
10 Day Avg. Volume1,272,892
30 Day Avg. Volume1,953,785
Financial Highlights & Ratios
PEG Ratio-1.47
Price to Book (P/B)0.68
Price to Sales (P/S)1.14
P/FCF Ratio5.47
Enterprise Value/Market Cap2.98
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit9.36
Enterprise Value/Ebitda10.32
Forecast
1Y Price Target
$7.90Price Target Upside2.86% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
RLJ Lodging Business Overview & Revenue Model
Company DescriptionRLJ 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 MoneyRLJ Lodging generates revenue primarily through the operation of its hotel properties, which includes income from room rentals, food and beverage sales, and other ancillary services offered to guests. The company benefits from a diverse portfolio of hotels, allowing it to capitalize on varying market demands and trends. Key revenue streams include daily room rates and occupancy levels, which are influenced by factors such as location, brand affiliation, and seasonal travel patterns. Additionally, RLJ Lodging often enters into management agreements with established hotel operators, which can provide a steady income stream while minimizing operational risks. Partnerships with major hotel brands enhance its visibility and market reach, further contributing to its earnings potential.
RLJ Lodging Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
RLJ Lodging Trust's earnings call for the third quarter of 2025 highlighted resilience and strategic achievements in non-room revenue growth and successful renovations. However, significant challenges such as a decline in RevPAR, the impact of the government shutdown, and delays in the ramp-up of renovated properties paint a mixed picture. The company's urban hotel performance and improved debt position are positive notes, but these are somewhat overshadowed by broader industry headwinds and uncertainties affecting the fourth-quarter outlook.Q3-2025 Updates
Positive Updates
RevPAR Index Gain
Despite a 5.1% decline in RevPAR, RLJ Lodging Trust gained market share with an increase in RevPAR index, showcasing the resilience and quality of their assets.
Strong Non-Room Revenue Growth
Non-room revenue grew by 1.3%, outperforming RevPAR by over 600 basis points, driven by ROI initiatives in food and beverage, parking, and expanded market offerings.
Successful Renovations and Conversions
The company's transformative renovations in Waikiki, Key West, and Fort Lauderdale are substantially complete. Recent conversions achieved 6% growth, with new projects in Pittsburgh and Boston expected to unlock significant EBITDA upside.
Urban Hotel Performance
Urban markets outperformed the broader portfolio with a 50 basis points lead. San Francisco CBD hotels achieved 19.4% RevPAR growth, driven by conferences and events.
Improved Debt Position
The company ended the quarter with $1 billion in liquidity and addressed all 2025 debt maturities, with 74% of debt fixed or hedged.
Negative Updates
RevPAR Decline
The company experienced a 5.1% decline in RevPAR, driven by a 3.1% drop in occupancy and a 2.1% decline in ADR, impacted by renovations and broader industry headwinds.
Impact of Government Shutdown
The government shutdown in October led to a RevPAR decline of 2% for the month, affecting the company's fourth-quarter outlook and resulting in a revised full-year guidance.
Delayed Ramp of Renovated Properties
Current travel-related headwinds and macro uncertainty are delaying the anticipated contribution from major renovations in Key West and Waikiki.
Softer Business Travel and Group Demand
Group revenues were impacted by calendar shifts, and non-government-related business travel only achieved 2.4% revenue growth, with government-related demand significantly below last year.
Company Guidance
During the RLJ Lodging Trust's third-quarter 2025 earnings call, the company reported a 5.1% decline in RevPAR, attributed to a mix of occupancy and ADR challenges, as well as impacts from transformative renovations and external factors such as the government shutdown. Despite these headwinds, urban hotels outpaced the broader portfolio by 50 basis points, with notable RevPAR growth of 19.4% in San Francisco CBD. The company experienced a 2.4% increase in non-government business travel revenue, driven by sectors like tech and finance. Non-room revenues grew by 1.3%, outpacing RevPAR performance by over 600 basis points, demonstrating the success of ROI initiatives. The company adjusted its full-year guidance, anticipating RevPAR growth to range between negative 1.9% and negative 2.6%, with adjusted FFO per diluted share between $1.31 and $1.37. Looking ahead to 2026, RLJ expects positive industry tailwinds, including a more stable economic environment and significant events like the World Cup, to drive improved performance.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
Positive
7.68
Price Trends
7.42
Positive
7.33
Positive
7.22
Positive
Market Momentum
0.05
Positive
53.79
Neutral
59.47
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 7.68 is above the 20-day moving average (MA) of 7.66, above the 50-day MA of 7.42, and above the 200-day MA of 7.22, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 59.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLJ.
RLJ Lodging Risk Analysis
RLJ Lodging disclosed 2 risk factors in its most recent earnings report. RLJ Lodging reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RLJ Lodging Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.84B | 35.10 | 3.98% | 5.13% | 0.95% | -8.40% | |
64 Neutral | $1.40B | 26.71 | 4.58% | 3.71% | 4.29% | 141.01% | |
59 Neutral | $560.34M | -24.97 | 0.16% | 6.61% | -1.20% | -328.23% | |
58 Neutral | $1.14B | 159.01 | 1.49% | 7.76% | -0.58% | -83.32% | |
54 Neutral | $1.32B | -10.07 | -3.74% | 0.34% | 0.99% | -360.58% | |
49 Neutral | $344.58M | -1.25 | -35.25% | 2.31% | -0.56% | -14.18% |
* Real Estate Sector Average
RLJ
RLJ Lodging
7.68
-1.53
-16.61%
DRH
Diamondrock
9.16
0.68
8.02%
INN
Summit Hotel Properties
4.71
-1.53
-24.52%
SVC
Service Properties
2.09
-0.44
-17.39%
PEB
Pebblebrook Hotel
11.93
-1.15
-8.79%
XHR
Xenia Hotels & Resorts
14.96
0.74
5.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.