RLJ Lodging Trust (RLJ)
NYSE:RLJ
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RLJ Lodging
(NYSE:RLJ)
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Rating:64Neutral
Price Target:
$9.00
â–²(11.25% Upside)
Action:ReiteratedDate:05/01/26
RLJ’s score is driven primarily by solid cash generation and a constructive technical setup (price above key moving averages with positive MACD). This is tempered by weakening 2025 profitability/revenue momentum and a very high P/E despite an attractive dividend yield. The latest earnings call supports a moderately positive view via constructive 2026 guidance and balance-sheet actions, but near-term demand softness and cost pressures remain key risks.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow across 2022–2025 provides durable internal funding for dividends, renovations, and share repurchases. Persistent cash conversion versus net income increases financial flexibility to withstand cyclical lodging downturns and supports capital recycling strategies.
Negative Factors
2025 revenue and margin weakness
A ~10% revenue decline and sharp net margin compression in 2025 signal underlying vulnerability in demand and cost absorption. If this momentum persists, it erodes adjusted FFO and free cash flow, constraining sustainable dividend coverage and limiting the firm’s ability to fund renovations or buybacks without tapping liquidity or selling assets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow across 2022–2025 provides durable internal funding for dividends, renovations, and share repurchases. Persistent cash conversion versus net income increases financial flexibility to withstand cyclical lodging downturns and supports capital recycling strategies.
Read all positive factors
RLJ Lodging (RLJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend Yield7.76%
Average Volume (3M)2.10M
Price to Earnings (P/E)645.8
Beta (1Y)0.85
Revenue Growth-1.43%
EPS Growth-94.61%
CountryUS
Employees73
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.04
Shares Outstanding151,917,540
10 Day Avg. Volume2,422,531
30 Day Avg. Volume2,096,275
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)0.51
Price to Sales (P/S)0.83
P/FCF Ratio9.50
Enterprise Value/Market Cap2.51
Enterprise Value/Revenue2.34
Enterprise Value/Gross Profit-270.55
Enterprise Value/Ebitda9.80
Forecast
1Y Price Target
$7.13Price Target Upside-11.93% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering4
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$1.36B
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 ...
How the Company Makes Money
RLJ Lodging makes money primarily by owning hotel properties and collecting the economic returns generated by those properties’ hotel operations. Its core revenue model is hotel-level income (room and other hotel revenues) less operating costs, wi...
RLJ Lodging Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial positives—outperformance versus expectations, meaningful non-room revenue growth (+7.2% Q4), strong conversion/renovation returns (recent conversions +15% RevPAR), robust liquidity and proactive refinancing, and active capital returns—while acknowledging near‑term demand headwinds from a government shutdown, modest Q4 RevPAR contraction (-1.5%), group softness, and manageable cost and interest pressures. Management provided constructive 2026 guidance (RevPAR +0.5%–3%) and positioned the portfolio to benefit from urban market tailwinds and special events, indicating stronger confidence in the outlook despite short-term noise.Positive Updates
Quarter Results Ahead of Expectations
Q4 comparable hotel EBITDA of $87.8M, adjusted EBITDA of $80.4M, and adjusted FFO per diluted share of $0.32; results came in ahead of guidance despite a choppy operating environment.
Negative Updates
Government Shutdown Impacted Demand
Protracted government shutdown materially weighed on Oct/Nov results, primarily impacting DC and Southern California; government-related business was ~3% in a normalized year and was down approximately 20% in the prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarter Results Ahead of Expectations
Q4 comparable hotel EBITDA of $87.8M, adjusted EBITDA of $80.4M, and adjusted FFO per diluted share of $0.32; results came in ahead of guidance despite a choppy operating environment.
Read all positive updates
Company Guidance
RLJ guided 2026 on the assumption the current operating environment continues, calling for comparable RevPAR growth of 0.5%–3% (midpoint balancing rate and occupancy), comparable hotel EBITDA of $344M–$374M, corporate adjusted EBITDA of $312M–$342M and adjusted FFO per diluted share of $1.21–$1.41 (assuming no additional share repurchases); they forecast capital expenditures of $80M–$90M, cash G&A of $32.5M–$33.5M, net interest expense of $101M–$103M, and expect total revenue growth to outpace RevPAR by roughly 50 basis points, with first‑quarter adjusted EBITDA representing about 22% of the full year (January RevPAR was down 1.9%), and the outlook assumes no further acquisitions, dispositions or balance‑sheet activity beyond what’s been completed (note adjustments for asset sales and a $4.7M non‑recurring property tax credit).RLJ Lodging Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.35B | 1.37B | 1.33B | 1.19B | 785.66M |
| Gross Profit | -11.69M | 384.45M | 390.68M | 362.26M | 185.29M |
| EBITDA | 318.38M | 359.46M | 354.64M | 319.06M | -20.00M |
| Net Income | 28.51M | 68.02M | 76.41M | 41.92M | -305.17M |
Balance Sheet | |||||
| Total Assets | 4.74B | 4.88B | 4.92B | 4.98B | 5.15B |
| Cash, Cash Equivalents and Short-Term Investments | 410.16M | 409.81M | 516.67M | 481.32M | 665.34M |
| Total Debt | 2.32B | 2.34B | 2.34B | 2.33B | 2.53B |
| Total Liabilities | 2.56B | 2.59B | 2.57B | 2.55B | 2.74B |
| Stockholders Equity | 2.17B | 2.28B | 2.34B | 2.41B | 2.40B |
Cash Flow | |||||
| Free Cash Flow | 117.39M | 285.42M | 315.14M | 256.52M | -5.30M |
| Operating Cash Flow | 243.80M | 285.42M | 315.14M | 256.52M | 42.96M |
| Investing Cash Flow | -57.36M | -275.73M | -134.75M | -135.51M | -24.63M |
| Financing Cash Flow | -177.70M | -131.69M | -161.45M | -298.49M | -239.25M |
RLJ Lodging Technical Analysis
Positive
8.09
Price Trends
7.74
Positive
7.55
Positive
7.26
Positive
Market Momentum
0.13
Negative
61.16
Neutral
84.06
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 8.09 is above the 20-day moving average (MA) of 7.63, above the 50-day MA of 7.74, and above the 200-day MA of 7.26, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.06 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.09B | 18.22 | 6.59% | 5.13% | -0.83% | 145.28% | |
67 Neutral | $1.59B | -12.05 | -2.57% | 0.34% | 2.84% | -83.41% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $1.26B | 645.83 | 1.29% | 7.76% | -1.43% | -94.61% | |
63 Neutral | $605.39M | -65.40 | -0.63% | 6.61% | -0.32% | -195.85% | |
62 Neutral | $1.50B | 21.68 | 5.33% | 3.71% | 3.80% | 310.82% | |
46 Neutral | $1.00B | -1.51 | -29.70% | 2.31% | -4.40% | 26.62% |
* Real Estate Sector Average
RLJ
RLJ Lodging
8.24
1.68
25.63%
DRH
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10.20
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43.91%
INN
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4.97
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28.42%
SVC
Service Properties
1.55
-0.31
-16.80%
PEB
Pebblebrook Hotel
14.05
4.94
54.28%
XHR
Xenia Hotels & Resorts
16.27
5.87
56.41%
RLJ Lodging Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
RLJ Lodging Shareholders Reaffirm Board, Auditor and Compensation
Positive
Apr 30, 2026
On April 24, 2026, RLJ Lodging Trust held its 2026 annual meeting of shareholders, at which investors re-elected nine trustees, including Executive Chairman Robert L. Johnson and President and CEO Leslie D. Hale, to serve until the next annual mee...
Business Operations and StrategyPrivate Placements and Financing
RLJ Lodging Trust Extends Debt Maturities, Bolsters Liquidity
Positive
Feb 18, 2026
On February 18, 2026, RLJ Lodging Trust announced it had successfully refinanced all of its debt maturities through 2028, extending its $600 million revolving credit facility to 2031 and upsizing and recasting an existing unsecured term loan to ab...
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.