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RLJ Lodging Trust (RLJ)
NYSE:RLJ
US Market

RLJ Lodging (RLJ) AI Stock Analysis

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RLJ

RLJ Lodging

(NYSE:RLJ)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
$7.50
▲(9.33% Upside)
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.

RLJ Lodging (RLJ) vs. SPDR S&P 500 ETF (SPY)

RLJ Lodging Business Overview & Revenue Model

Company DescriptionRLJ Lodging Trust is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and operation of premium branded, focused-service and compact full-service hotels. The company primarily operates in the hospitality sector, targeting key markets across the United States. RLJ Lodging Trust's portfolio includes properties affiliated with major hotel brands, providing a range of services to both leisure and business travelers.
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)
|
Next Earnings Date:Mar 02, 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
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

RLJ Lodging Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.86
Price Trends
50DMA
7.21
Positive
100DMA
7.26
Positive
200DMA
7.27
Positive
Market Momentum
MACD
0.12
Negative
RSI
63.61
Neutral
STOCH
85.66
Negative
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 7.49, below the 50-day MA of 7.21, and below the 200-day MA of 7.27, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 85.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLJ.

RLJ Lodging Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$1.91B35.673.98%5.05%0.95%-8.40%
64
Neutral
$1.44B27.044.58%3.57%4.29%141.01%
63
Neutral
$629.77M-27.200.16%6.19%-1.20%-328.23%
58
Neutral
$1.18B160.461.49%7.76%-0.58%-83.32%
54
Neutral
$1.31B-9.68-3.74%0.34%0.99%-360.58%
42
Neutral
$314.32M-1.13-35.25%2.11%-0.56%-14.18%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RLJ
RLJ Lodging
7.70
-1.69
-18.00%
DRH
Diamondrock
9.25
0.52
5.96%
INN
Summit Hotel Properties
5.17
-1.13
-17.94%
SVC
Service Properties
1.90
-0.39
-17.03%
PEB
Pebblebrook Hotel
11.47
-2.07
-15.29%
XHR
Xenia Hotels & Resorts
15.09
0.71
4.94%

RLJ Lodging Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
RLJ Lodging Appoints Nikhil Bhalla as CFO
Positive
Sep 18, 2025

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.

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.Date of analysis: Dec 09, 2025