RLJ Lodging Trust (NYSE:RLJ) Announces Earnings Results

by · The Cerbat Gem

RLJ Lodging Trust (NYSE:RLJ – Get Free Report) issued its earnings results on Monday. The real estate investment trust reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.02, Zacks reports. The company had revenue of $339.98 million for the quarter, compared to the consensus estimate of $323.51 million. RLJ Lodging Trust had a return on equity of 1.54% and a net margin of 2.11%.The firm’s quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.31 EPS.

Here are the key takeaways from RLJ Lodging Trust’s conference call:

  • RLJ reported strong Q1 outperformance with RevPAR +4.8%, non-room revenue +8.2%, hotel EBITDA up ~7.2% and margins expanded ~45 bps, driving total revenue growth of ~5.4%.
  • Urban and business-transient demand accelerated, with notable market strength (Northern California RevPAR +27%, New York City >8%) and improving group pace (end-of-quarter pace +900 bps) plus early World Cup blocks/deposits.
  • Capital allocation is delivering high returns—four major renovations drove ~9% RevPAR and ~10% EBITDA growth, seven completed conversions produced ~16% EBITDA growth, and management cites ~40% upside potential at Boston with more conversions planned.
  • Balance sheet actions improved flexibility—refinancings added ≈$500M undrawn capacity, plan to redeem $500M notes (due July 1) resulting in no maturities until 2029, ~$950M liquidity, and a ~4.6% weighted average interest rate.
  • Management warned of macro/geopolitical uncertainty and shorter booking windows (especially for group), kept full-year guidance but expects Q2 EBITDA contribution slightly below last year and set 2026 comparable RevPAR guidance of +1.5% to +3.5%.

RLJ Lodging Trust Stock Up 0.2%

Shares of NYSE RLJ opened at $8.32 on Tuesday. The business has a fifty day moving average of $7.82 and a two-hundred day moving average of $7.62. The company has a debt-to-equity ratio of 1.21, a quick ratio of 2.96 and a current ratio of 2.96. RLJ Lodging Trust has a 52-week low of $6.54 and a 52-week high of $8.63. The stock has a market cap of $1.26 billion, a PE ratio of 415.75 and a beta of 1.09.

RLJ Lodging Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 7.2%. The ex-dividend date was Tuesday, March 31st. RLJ Lodging Trust’s payout ratio is 3,000.00%.

Institutional Trading of RLJ Lodging Trust

Several large investors have recently made changes to their positions in RLJ. Beacon Pointe Advisors LLC acquired a new position in shares of RLJ Lodging Trust during the fourth quarter worth approximately $136,000. XTX Topco Ltd raised its position in RLJ Lodging Trust by 15.3% in the 4th quarter. XTX Topco Ltd now owns 44,165 shares of the real estate investment trust’s stock worth $329,000 after purchasing an additional 5,874 shares during the last quarter. Voloridge Investment Management LLC acquired a new position in RLJ Lodging Trust during the 4th quarter worth $914,000. Millennium Management LLC lifted its holdings in RLJ Lodging Trust by 141.6% during the 4th quarter. Millennium Management LLC now owns 188,352 shares of the real estate investment trust’s stock worth $1,403,000 after buying an additional 110,393 shares in the last quarter. Finally, Man Group plc boosted its position in RLJ Lodging Trust by 7.4% in the 4th quarter. Man Group plc now owns 537,105 shares of the real estate investment trust’s stock valued at $4,001,000 after buying an additional 37,052 shares during the last quarter. Institutional investors own 92.35% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on RLJ. Weiss Ratings reissued a “sell (d+)” rating on shares of RLJ Lodging Trust in a research report on Monday, April 20th. LADENBURG THALM/SH SH began coverage on shares of RLJ Lodging Trust in a report on Thursday, March 26th. They issued a “neutral” rating and a $8.50 price objective for the company. Truist Financial lowered their target price on shares of RLJ Lodging Trust from $8.00 to $7.00 and set a “hold” rating on the stock in a research report on Monday, April 6th. Barclays began coverage on RLJ Lodging Trust in a report on Tuesday, January 6th. They set an “underweight” rating and a $6.00 target price on the stock. Finally, Zacks Research raised RLJ Lodging Trust from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $8.00.

Read Our Latest Stock Report on RLJ

Key RLJ Lodging Trust News

Here are the key news stories impacting RLJ Lodging Trust this week:

  • Positive Sentiment: Q1 beat — RLJ reported FFO/EPS of $0.33 and revenue of ~$340M, topping consensus and showing year‑over‑year growth in comparable RevPAR and hotel EBITDA. Investors see the quarter as proof of operating momentum. Q1 Results
  • Positive Sentiment: Raised FY‑2026 guidance — Management raised full‑year EPS guidance to a range above Street expectations (company-provided 1.29–1.45 vs. consensus ~1.22), signaling confidence in ongoing recovery and cash flow. Guidance Raise
  • Positive Sentiment: Share buyback added — Management announced a new buyback program (discussed in post‑earnings coverage), which supports EPS and is a direct shareholder‑friendly action. This is a near‑term tailwind for the stock. Buyback & Valuation
  • Positive Sentiment: RevPAR and non‑room revenue initiatives — RLJ nudged up RevPAR expectations and emphasized growing ancillary revenue (F&B, meetings, other services), which can expand margins if trends hold. RevPAR Forecast
  • Neutral Sentiment: Earnings call & materials available — Full transcript and slide deck provide color on rate mix, group trends and capex plans; useful for owners evaluating sustainability of the beat. Earnings Call Transcript
  • Neutral Sentiment: Valuation takeaways — Recent coverage revisits valuation after the quarter and buyback; some analysts see upside if guidance is sustained, others note REIT metrics make valuation sensitive to rate expectations. Valuation Note
  • Negative Sentiment: Short‑term caution flagged — Some analysts (e.g., Seeking Alpha piece) caution that near‑term performance could be uneven and that upside depends on continued demand and corporate/group recovery. Cautious Short Term
  • Negative Sentiment: Balance‑sheet & profitability considerations — Despite operational gains, RLJ shows low ROE/net margins and levered capitalization (debt/equity ~1.2). That makes the REIT sensitive to interest rates or slower demand recovery. Financial Metrics

About RLJ Lodging Trust

(Get Free Report)

RLJ Lodging Trust is a self-managed, publicly traded real estate investment trust (REIT) that acquires, owns and operates premium-branded, focused-service and compact full-service hotels. The company’s portfolio is concentrated in major U.S. markets, targeting properties that benefit from strong corporate and leisure demand, limited new supply and established brand affiliations.

The trust’s hotels are affiliated with leading global lodging brands across the spectrum of service levels, including lifestyle and upscale segments.

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