RLJ RLJ Lodging Trust

Fourth Quarter RevPAR increased 2.2% and Total Revenues increased 3.2%

Fourth Quarter Adjusted EBITDA increased 2.4%

Repurchased 2.3 million shares of common stock for $22.0 million in 2024

RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months and year ended December 31, 2024.

Fourth Quarter Highlights

• Portfolio Comparable RevPAR of $137.53, an increase of 2.2% over the prior year
• Total Revenues of $330.0 million, an increase of 3.2% over the prior year
• Net loss attributable to common shareholders of $0.9 million
• Net loss per diluted share attributable to common shareholders of $0.01
• Adjusted EBITDA of $81.1 million, an increase of 2.4% over the prior year
• Adjusted FFO per diluted common share and unit of $0.33
• Repurchased 0.3 million common shares for $3.0 million at an average price per share of $9.16
• Ended year with $0.9 billion of liquidity, including approximately $409.8 million of unrestricted cash and $500.0 million in undrawn revolver capacity

Full Year Highlights

• Portfolio Comparable RevPAR of $144.72, an increase of 2.0% over the prior year
• Total Revenues of $1.4 billion, an increase of 3.3% over the prior year
• Net income attributable to common shareholders of $42.9 million
• Net income per diluted share attributable to common shareholders of $0.27
• Adjusted EBITDA of $361.6 million
• Adjusted FFO per diluted common share and unit of $1.57
• Repurchased 2.3 million common shares for $22.0 million at an average price per share of $9.39

"We were pleased with our fourth quarter results, which once again achieved top quartile RevPAR growth, reflecting the positive momentum in our urban-centric portfolio. The quarter was driven by growth in all segments of demand and the continuing strong ramp from our conversions," commented Leslie D. Hale, President and Chief Executive Officer. "Throughout the year, our team also successfully executed several strategic objectives, including advancing our multiyear conversion pipeline, executing two high-quality acquisitions, strengthening our balance sheet, and returning capital to shareholders through accretive share repurchases and increasing our well-covered dividend. Successful execution of these initiatives has positioned RLJ to build on our momentum in 2025 against a backdrop of continued demand growth, a favorable market footprint, and potentially a more business friendly environment. All of these should allow RLJ to continue unlocking embedded value while enhancing shareholder returns.”

The prefix “comparable” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.

Financial and Operating Highlights

($ in millions, except ADR, RevPAR, and per share amounts)

(unaudited)

 

 

For the three months ended

December 31,

 

For the year ended

December 31,

 

2024

2023

Change

 

2024

2023

Change

Operational Overview: (1)

 

 

 

 

 

 

 

Comparable ADR

$198.71

$193.96

2.4%

 

$199.38

$197.68

0.9%

Comparable Occupancy

69.2%

69.4%

(0.3)%

 

72.6%

71.8%

1.1%

Comparable RevPAR

$137.53

$134.57

2.2%

 

$144.72

$141.93

2.0%

 

 

 

 

 

 

 

 

Financial Overview:

 

 

 

 

 

 

 

Total Revenues

$330.0

$319.7

3.2%

 

$1,369.4

$1,325.6

3.3%

Comparable Hotel Revenue

$330.0

$320.4

3.0%

 

$1,369.3

$1,327.8

3.1%

 

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

($0.9)

$1.7

(152.9)%

 

$42.9

$51.3

(16.4)%

 

 

 

 

 

 

 

 

Comparable Hotel EBITDA

$90.4

$89.9

0.6%

 

$398.0

$402.1

(1.0)%

Comparable Hotel EBITDA Margin

27.4%

28.1%

(67) bps

 

29.1%

30.3%

(122) bps

Adjusted EBITDA

$81.1

$79.2

2.4%

 

$361.6

$364.5

(0.8)%

 

 

 

 

 

 

 

 

Adjusted FFO

$50.2

$53.4

(6.0)%

 

$241.8

$260.4

(7.1)%

Adjusted FFO Per Diluted Common Share and Unit - Diluted

$0.33

$0.34

(2.9)%

 

$1.57

$1.66

(5.4)%

Note:

(1) Comparable statistics reflect the Company's 95 hotel portfolio owned as of December 31, 2024.

Acquisitions

During 2024, the Company acquired the 110-room Hotel Teatro in Denver for $35.5 million and the fee simple interest in the land underlying the 304-room Wyndham Boston Beacon Hill for $125.0 million, which was previously subject to a ground lease that was set to expire in 2028. The Company funded both acquisitions with cash on hand.

Dispositions

During 2024, the Company sold two non-core properties, generating a combined $20.8 million of gross proceeds.

Conversions

During 2024, the Company completed the physical conversions of the Wyndham Houston Medical Center to a DoubleTree by Hilton and the Hotel Indigo in New Orleans to the Hotel Tonnelle, a Marriott Tribute Hotel. Additionally, the Company completed the conversion of the Wyndham Pittsburgh University Center to a Courtyard by Marriott during the fourth quarter.

Share Repurchases

During 2024, the Company repurchased 2.3 million shares for $22.0 million, at an average price per share of $9.39, which included approximately 0.3 million common shares repurchased for $3.0 million at an average price per share of $9.16 during the fourth quarter. Additionally, year-to-date the Company has purchased an additional 1.2 million shares for $12.0 million at an average price per share of $9.77. The Company's share buyback program currently has approximately $217.3 million of remaining capacity.

Balance Sheet

As of December 31, 2024, the Company had over $900 million of total liquidity, comprising approximately $409.8 million of unrestricted cash and $500.0 million available under its revolving credit facility ("Revolver"), and $2.2 billion of debt outstanding.

Dividends

The Company’s Board of Trustees declared a quarterly cash dividend of $0.15 per common share of beneficial interest of the Company in the fourth quarter. The dividend was paid on January 15, 2025 to shareholders of record as of December 31, 2024.

The Company's Board of Trustees declared a quarterly cash dividend of $0.4875 on the Company’s Series A Preferred Shares in the fourth quarter. The dividend was paid on January 31, 2025 to shareholders of record as of December 31, 2024.

2025 Outlook

($ in millions, except growth and per share amounts)

The Company is providing its annual outlook for all hotels owned as of February 25, 2025.

 

FY 2025

Comparable RevPAR Growth

1.0% to 3.0%

Comparable Hotel EBITDA

$378.0M to $408.0M

Adjusted EBITDA

$345.0M to $375.0M

Adjusted FFO per diluted share

$1.46 to $1.66

Additionally, the Company's full year 2025 outlook includes:

• Net interest expense of $94.0 million to $96.0 million
• Cash corporate G&A in the range of $34.0 million to $35.0 million
• Capital expenditures related to renovations in the range of $80.0 million to $100.0 million
• Diluted weighted average common shares and units of 152.5 million

Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the Company's outlook above and could result in a material change to the Company's outlook.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on February 26, 2025 at 10:00 a.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s fourth quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://www.rljlodgingtrust.com. A replay of the conference call webcast will be archived and available through the Investor Relations section of the Company’s website for two weeks.

Supplemental Information

Please refer to the schedule of supplemental information for additional detail and Comparable operating statistics, which will be posted to the Investor Relations section of the Company's website.

About Us

RLJ Lodging Trust ("RLJ") is a self-advised, publicly traded real estate investment trust that owns 95 premium-branded, rooms-oriented, high-margin, urban-centric hotels located within the heart of demand locations. Our hotels are geographically diverse and concentrated in major urban markets that provide multiple demand generators from business, leisure, and other travelers.

Forward-Looking Statements

This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” “may,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward- Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which will be filed on February 26, 2025, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.

For additional information or to receive press releases via email, please visit our website: http://www.rljlodgingtrust.com

RLJ Lodging Trust Non-GAAP and Accounting Commentary

Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial Measures

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin. These Non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin, as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company defines such terms.

Funds From Operations (“FFO”)

The Company calculates Funds from Operations (“FFO”) in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.

The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units may be redeemed for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.

EBITDA and EBITDAre

Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization expense. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization expense) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.

In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax benefit or expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.

Adjustments to FFO and EBITDA

The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers outside the normal course of operations. The Company believes that Adjusted FFO, Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor’s understanding of the Company's operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:

• Transaction Costs: The Company excludes transaction costs expensed during the period
• Pre-Opening Costs: The Company excludes certain costs related to pre-opening of hotels
• Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation, non-cash income tax expense or benefit, and non-cash interest expense related to discontinued interest rate hedges
• Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside the normal course of operations

Hotel EBITDA and Hotel EBITDA Margin

With respect to Consolidated Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and certain non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of third-party management companies.

Comparable Hotel EBITDA and Comparable Hotel EBITDA margin include prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels and excludes results from sold hotels as applicable. The following is a summary of Comparable hotel adjustments:

Comparable adjustments: Acquired hotel

For the three and twelve months ended December 31, 2024, Comparable adjustments included the following acquired hotel:

• Hotel Teatro acquired in June 2024

Comparable adjustments: Sold hotels

For the three and twelve months ended December 31, 2024, Comparable adjustments included the following sold hotels:

• Residence Inn Merrillville sold in May 2024
• Fairfield Inn & Suites Denver Cherry Creek sold in September 2024

RLJ Lodging Trust

Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

(unaudited)

 

 

December 31, 2024

 

December 31, 2023

Assets

 

 

 

Investment in hotel properties, net

$

4,250,524

 

 

$

4,136,216

 

Investment in unconsolidated joint ventures

 

7,457

 

 

 

7,398

 

Cash and cash equivalents

 

409,809

 

 

 

516,675

 

Restricted cash reserves

 

23,516

 

 

 

38,652

 

Hotel and other receivables, net of allowance of $169 and $265, respectively

 

25,494

 

 

 

26,163

 

Lease right-of-use assets

 

128,111

 

 

 

136,140

 

Prepaid expense and other assets

 

38,968

 

 

 

58,051

 

Total assets

$

4,883,879

 

 

$

4,919,295

 

Liabilities and Equity

 

 

 

Debt, net

$

2,220,081

 

 

$

2,220,778

 

Accounts payable and other liabilities

 

154,643

 

 

 

147,819

 

Advance deposits and deferred revenue

 

40,242

 

 

 

32,281

 

Lease liabilities

 

119,102

 

 

 

122,588

 

Accrued interest

 

20,900

 

 

 

22,539

 

Distributions payable

 

30,634

 

 

 

22,500

 

Total liabilities

 

2,585,602

 

 

 

2,568,505

 

Equity

 

 

 

Shareholders’ equity:

 

 

 

Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized

 

 

 

Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at December 31, 2024 and 2023

 

366,936

 

 

 

366,936

 

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 153,295,577 and 155,297,829 shares issued and outstanding at December 31, 2024 and 2023, respectively

 

1,533

 

 

 

1,553

 

Additional paid-in capital

 

2,992,487

 

 

 

3,000,894

 

Accumulated other comprehensive income

 

13,788

 

 

 

22,662

 

Distributions in excess of net earnings

 

(1,090,186

)

 

 

(1,055,183

)

Total shareholders’ equity

 

2,284,558

 

 

 

2,336,862

 

Noncontrolling interest:

 

 

 

Noncontrolling interest in consolidated joint ventures

 

7,589

 

 

 

7,634

 

Noncontrolling interest in the Operating Partnership

 

6,130

 

 

 

6,294

 

Total noncontrolling interest

 

13,719

 

 

 

13,928

 

Total equity

 

2,298,277

 

 

 

2,350,790

 

Total liabilities and equity

$

4,883,879

 

 

$

4,919,295

 

Note:

The corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.

RLJ Lodging Trust

Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(unaudited)

 

 

For the three months ended December 31,

 

For the year ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

Room revenue

$

267,690

 

 

$

261,612

 

 

$

1,121,586

 

 

$

1,095,028

 

Food and beverage revenue

 

39,593

 

 

 

36,024

 

 

 

153,108

 

 

 

141,625

 

Other revenue

 

22,706

 

 

 

22,072

 

 

 

94,746

 

 

 

88,924

 

Total revenues

 

329,989

 

 

 

319,708

 

 

 

1,369,440

 

 

 

1,325,577

 

Expenses

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Room expense

 

70,682

 

 

 

69,396

 

 

 

288,567

 

 

 

277,058

 

Food and beverage expense

 

29,487

 

 

 

28,103

 

 

 

117,766

 

 

 

109,707

 

Management and franchise fee expense

 

25,195

 

 

 

24,863

 

 

 

107,978

 

 

 

107,417

 

Other operating expenses

 

90,680

 

 

 

85,918

 

 

 

363,631

 

 

 

340,485

 

Total property operating expenses

 

216,044

 

 

 

208,280

 

 

 

877,942

 

 

 

834,667

 

Depreciation and amortization

 

45,386

 

 

 

44,455

 

 

 

179,431

 

 

 

179,103

 

Property tax, insurance and other

 

26,300

 

 

 

23,961

 

 

 

107,043

 

 

 

100,229

 

General and administrative

 

12,978

 

 

 

15,968

 

 

 

54,804

 

 

 

58,998

 

Transaction costs

 

21

 

 

 

197

 

 

 

320

 

 

 

223

 

Total operating expenses

 

300,729

 

 

 

292,861

 

 

 

1,219,540

 

 

 

1,173,220

 

Other income, net

 

673

 

 

 

858

 

 

 

5,342

 

 

 

4,364

 

Interest income

 

4,123

 

 

 

5,766

 

 

 

17,314

 

 

 

19,743

 

Interest expense

 

(28,208

)

 

 

(25,301

)

 

 

(111,358

)

 

 

(98,807

)

(Loss) gain on sale of hotel properties, net

 

(39

)

 

 

(6

)

 

 

8,262

 

 

 

(34

)

Loss on extinguishment of indebtedness, net

 

—

 

 

 

—

 

 

 

(129

)

 

 

(169

)

Income before equity in income from unconsolidated joint ventures

 

5,809

 

 

 

8,164

 

 

 

69,331

 

 

 

77,454

 

Equity in income from unconsolidated joint ventures

 

220

 

 

 

104

 

 

 

459

 

 

 

419

 

Income before income tax expense

 

6,029

 

 

 

8,268

 

 

 

69,790

 

 

 

77,873

 

Income tax expense

 

(518

)

 

 

(228

)

 

 

(1,599

)

 

 

(1,256

)

Net income

 

5,511

 

 

 

8,040

 

 

 

68,191

 

 

 

76,617

 

Net (loss) income attributable to noncontrolling interests:

 

 

 

 

 

 

 

Noncontrolling interest in consolidated joint ventures

 

(136

)

 

 

(96

)

 

 

45

 

 

 

35

 

Noncontrolling interest in the Operating Partnership

 

1

 

 

 

(9

)

 

 

(215

)

 

 

(247

)

Net income attributable to RLJ

 

5,376

 

 

 

7,935

 

 

 

68,021

 

 

 

76,405

 

Preferred dividends

 

(6,279

)

 

 

(6,279

)

 

 

(25,115

)

 

 

(25,115

)

Net (loss) income attributable to common shareholders

$

(903

)

 

$

1,656

 

 

$

42,906

 

 

$

51,290

 

Basic per common share data:

 

 

 

 

 

 

 

Net (loss) income per share attributable to common shareholders

$

(0.01

)

 

$

0.01

 

 

$

0.27

 

 

$

0.32

 

Weighted-average number of common shares

 

151,751,999

 

 

 

153,326,317

 

 

 

152,856,036

 

 

 

155,928,663

 

Diluted per common share data:

 

 

 

 

 

 

 

Net (loss) income per share attributable to common shareholders

$

(0.01

)

 

$

0.01

 

 

$

0.27

 

 

$

0.32

 

Weighted-average number of common shares

 

151,751,999

 

 

 

154,406,530

 

 

 

153,475,921

 

 

 

156,556,414

 

Note:

The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands, except per share data)

(unaudited)

 

Funds From Operations (FFO) Attributable to Common Shareholders and Unitholders

 

For the three months ended December 31,

 

For the year ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income

$

5,511

 

 

$

8,040

 

 

$

68,191

 

 

$

76,617

 

Preferred dividends

 

(6,279

)

 

 

(6,279

)

 

 

(25,115

)

 

 

(25,115

)

Depreciation and amortization

 

45,386

 

 

 

44,455

 

 

 

179,431

 

 

 

179,103

 

Loss (gain) on sale of hotel properties, net

 

39

 

 

 

6

 

 

 

(8,262

)

 

 

34

 

Noncontrolling interest in consolidated joint ventures

 

(136

)

 

 

(96

)

 

 

45

 

 

 

35

 

Adjustments related to consolidated joint venture (1)

 

(48

)

 

 

(45

)

 

 

(187

)

 

 

(175

)

Adjustments related to unconsolidated joint venture (2)

 

227

 

 

 

232

 

 

 

912

 

 

 

941

 

FFO

 

44,700

 

 

 

46,313

 

 

 

215,015

 

 

 

231,440

 

Transaction costs

 

21

 

 

 

197

 

 

 

320

 

 

 

223

 

Pre-opening costs (3)

 

247

 

 

 

163

 

 

 

1,335

 

 

 

1,351

 

Loss on extinguishment of indebtedness, net

 

—

 

 

 

—

 

 

 

129

 

 

 

169

 

Amortization of share-based compensation

 

4,544

 

 

 

6,258

 

 

 

20,804

 

 

 

24,285

 

Non-cash income tax expense (benefit)

 

10

 

 

 

(5

)

 

 

10

 

 

 

(5

)

Non-cash interest expense related to discontinued interest rate hedges

 

305

 

 

 

482

 

 

 

1,592

 

 

 

1,929

 

Other expenses (income) (4)

 

385

 

 

 

(30

)

 

 

2,641

 

 

 

996

 

Adjusted FFO

$

50,212

 

 

$

53,378

 

 

$

241,846

 

 

$

260,388

 

 

 

 

 

 

 

 

 

Adjusted FFO per common share and unit-basic

$

0.33

 

 

$

0.35

 

 

$

1.57

 

 

$

1.66

 

Adjusted FFO per common share and unit-diluted

$

0.33

 

 

$

0.34

 

 

$

1.57

 

 

$

1.66

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares and units outstanding (5)

 

152,524

 

 

 

154,098

 

 

 

153,628

 

 

 

156,700

 

Diluted weighted-average common shares and units outstanding (5)

 

153,042

 

 

 

155,178

 

 

 

154,248

 

 

 

157,328

 

Note:

(1) Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint venture.

(2) Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint venture.

(3) Represents expenses related to the brand conversions of certain hotel properties prior to opening.

(4) Represents expenses and income outside of the normal course of operations.

(5) Includes 0.8 million weighted-average operating partnership units for the three months and year ended December 31, 2024 and 2023.

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

 

For the three months ended December 31,

 

For the year ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income

$

5,511

 

 

$

8,040

 

 

$

68,191

 

 

$

76,617

 

Depreciation and amortization

 

45,386

 

 

 

44,455

 

 

 

179,431

 

 

 

179,103

 

Interest expense, net of interest income

 

24,085

 

 

 

19,535

 

 

 

94,044

 

 

 

79,064

 

Income tax expense

 

518

 

 

 

228

 

 

 

1,599

 

 

 

1,256

 

Adjustments related to unconsolidated joint venture (1)

 

392

 

 

 

340

 

 

 

1,390

 

 

 

1,374

 

EBITDA

 

75,892

 

 

 

72,598

 

 

 

344,655

 

 

 

337,414

 

Loss (gain) on sale of hotel properties, net

 

39

 

 

 

6

 

 

 

(8,262

)

 

 

34

 

EBITDAre

 

75,931

 

 

 

72,604

 

 

 

336,393

 

 

 

337,448

 

Transaction costs

 

21

 

 

 

197

 

 

 

320

 

 

 

223

 

Pre-opening costs (2)

 

247

 

 

 

163

 

 

 

1,335

 

 

 

1,351

 

Loss on extinguishment of indebtedness, net

 

—

 

 

 

—

 

 

 

129

 

 

 

169

 

Amortization of share-based compensation

 

4,544

 

 

 

6,258

 

 

 

20,804

 

 

 

24,285

 

Other expenses (income) (3)

 

385

 

 

 

(30

)

 

 

2,641

 

 

 

996

 

Adjusted EBITDA

 

81,128

 

 

 

79,192

 

 

 

361,622

 

 

 

364,472

 

General and administrative

 

8,434

 

 

 

9,710

 

 

 

34,000

 

 

 

34,713

 

Other corporate adjustments

 

848

 

 

 

1,022

 

 

 

3,133

 

 

 

3,031

 

Consolidated Hotel EBITDA

 

90,410

 

 

 

89,924

 

 

 

398,755

 

 

 

402,216

 

Comparable adjustments - income from sold hotels

 

(47

)

 

 

(454

)

 

 

(1,279

)

 

 

(2,626

)

Comparable adjustments - income from acquired hotel

 

—

 

 

 

407

 

 

 

525

 

 

 

2,551

 

Comparable Hotel EBITDA

$

90,363

 

 

$

89,877

 

 

$

398,001

 

 

$

402,141

 

Notes: Comparable statistics reflect the Company's 95 hotel portfolio owned as of December 31, 2024.

(1) Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint venture.

(2) Represents expenses related to the brand conversions of certain hotel properties prior to opening.

(3) Represents expenses and income outside of the normal course of operations.

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands except margin data)

(unaudited)

 

Comparable Hotel EBITDA Margin

 

For the three months ended December 31,

 

For the year ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Total revenue

$

329,989

 

 

$

319,708

 

 

$

1,369,440

 

 

$

1,325,577

 

Comparable adjustments - revenue from sold hotels

 

—

 

 

 

(1,462

)

 

 

(3,879

)

 

 

(7,013

)

Comparable adjustments - revenue from prior ownership of acquired hotels

 

—

 

 

 

2,151

 

 

 

3,834

 

 

 

9,318

 

Other corporate adjustments / non-hotel revenue

 

(24

)

 

 

(18

)

 

 

(76

)

 

 

(70

)

Comparable Hotel Revenue

$

329,965

 

 

$

320,379

 

 

$

1,369,319

 

 

$

1,327,812

 

 

 

 

 

 

 

 

 

Comparable Hotel EBITDA

$

90,363

 

 

$

89,877

 

 

$

398,001

 

 

$

402,141

 

 

 

 

 

 

 

 

 

Comparable Hotel EBITDA Margin

 

27.4

%

 

 

28.1

%

 

 

29.1

%

 

 

30.3

%

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures - Full-Year Outlook

(Amounts in millions)

(unaudited)

 

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

 

For the year ended December 31, 2025

 

Low End

 

High End

Net income

$

50.0

 

 

$

78.0

 

Depreciation and amortization

 

180.0

 

 

 

180.0

 

Interest expense, net of interest income

 

94.0

 

 

 

96.0

 

Income tax expense

 

1.6

 

 

 

1.6

 

Adjustments related to joint ventures

 

1.4

 

 

 

1.4

 

EBITDA/EBITDAre

 

327.0

 

 

 

357.0

 

Amortization of share-based compensation

 

18.0

 

 

 

18.0

 

Adjusted EBITDA

 

345.0

 

 

 

375.0

 

General and administrative

 

34.0

 

 

 

35.0

 

Other corporate adjustments

 

(1.0

)

 

 

(2.0

)

Consolidated Hotel EBITDA/Comparable Hotel EBITDA

$

378.0

 

 

$

408.0

 

Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders

 

For the year ended December 31, 2025

 

Low End

 

High End

Net income

$

50.0

 

 

$

78.0

 

Preferred dividends

 

(25.0

)

 

 

(25.0

)

Depreciation and amortization

 

180.0

 

 

 

180.0

 

Adjustments related to joint ventures

 

1.0

 

 

 

1.0

 

FFO

 

206.0

 

 

 

234.0

 

Amortization of share-based compensation

 

18.0

 

 

 

18.0

 

All other items, net

 

(1.5

)

 

 

0.5

 

Adjusted FFO

$

222.5

 

 

$

252.5

 

 

 

 

 

Adjusted FFO per common share and unit-diluted

$

1.46

 

 

$

1.66

 

 

 

 

 

Diluted weighted-average common shares and units outstanding

 

152.5

 

 

 

152.5

 

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands except interest rate data)

(unaudited)

 

Loan

Base Term (Years)

Maturity (incl. extensions)

Floating / Fixed (1)

Interest Rate (2)

 

Balance as of December 31, 2024 (3)

Mortgage Debt

 

 

 

 

 

 

Mortgage loan - 1 hotel

10

Jan 2029

Fixed

5.06%

 

$

25,000

Mortgage loan - 3 hotels

5

Apr 2026

Floating

4.49%

 

 

96,000

Mortgage loan - 4 hotels

5

Apr 2026

Floating

4.93%

 

 

85,000

Weighted Average / Mortgage Total

 

 

 

4.74%

 

$

206,000

 

 

 

 

 

 

 

Corporate Debt

 

 

 

 

 

 

Revolver (4)

4

May 2028

Floating

6.08%

 

$

100,000

$225 Million Term Loan Maturing 2026

3

May 2028

Floating

5.33%

 

 

225,000

$200 Million Term Loan Maturing 2026

3

January 2028

Floating

6.03%

 

 

200,000

$500 Million Term Loan Maturing 2027

3

September 2029

Floating

4.69%

 

 

500,000

$500 Million Senior Notes due 2026

5

July 2026

Fixed

3.75%

 

 

500,000

$500 Million Senior Notes due 2029

8

September 2029

Fixed

4.00%

 

 

500,000

Weighted Average / Corporate Total

 

 

 

4.56%

 

$

2,025,000

 

 

 

 

 

 

 

Weighted-Average / Gross Debt

 

 

 

4.58%

 

$

2,231,000

Notes:

(1) The floating interest rate is hedged, or partially hedged, with an interest rate swap.

(2) Interest rates as of December 31, 2024, inclusive of the impact of interest rate hedges.

(3) Excludes the impact of fair value adjustments and deferred financing costs.

(4) As of December 31, 2024, there was $500.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225541186/en/

Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774