RLJ Lodging Trust (RLJ) investor relations material

Portfolio overview and market positioning

• Diversified, urban-centric portfolio with 92 hotels and 20,588 rooms, focused on premium branded, high-margin properties.

• Over two-thirds of the portfolio is in urban markets, with significant exposure to Sunbelt regions and top U.S. cities.

• Urban markets are expected to benefit from major 2026 events, including the FIFA World Cup and the 250th Anniversary of America.

• Portfolio segmented into Urban Lifestyle, Urban Gateway, Resort, and Urban Metro, each contributing to EBITDA.

• High margin portfolio generates significant free cash flow and is positioned for both internal and external growth.

Operating performance and financial outlook

• Q1 RevPAR grew 4.8%, outpacing the industry by 100 basis points, with balanced growth in ADR and occupancy.

• Business transient and leisure revenues increased by 9% and 5% respectively, with strong group and non-room revenue growth.

• Seven completed conversions achieved 16% EBITDA growth in Q1; major renovations delivered 10% EBITDA growth.

• 2026 outlook projects comparable RevPAR growth of 1.5–3.5%, hotel EBITDA of $356M–$380M, and adjusted FFO/share of $1.29–$1.45.

• Adjusted EBITDA for Q1 was $80.9M, with hotel EBITDA margins rising to 26.4%.

Growth strategy and value creation

• Multiple channels for growth: internal (conversions, ROIs, margin expansion), external (acquisitions), and capital returns (dividends, share repurchases).

• Phase I conversions exceeded expectations, delivering $34M EBITDA vs. $25M underwritten; Phase II underway with further incremental EBITDA expected.

• Targeting two incremental conversions per year, with a pipeline of 10–15 additional opportunities identified.

• Recent acquisitions in high-growth markets, such as Hotel Teatro Denver, are delivering stabilized NOI yields of 7.5–8.5%.

• Share repurchases since 2018 total $346M, with 50% growth in 2024.