RLJ Lodging Trust (RLJ) Q1 2026 earnings summary

Executive summary

• Operates 92–93 hotels with approximately 20,800 rooms as of March 31, 2026, focusing on premium-branded, high-margin, urban properties.

• Achieved first quarter RevPAR growth of 4.8% to $148.55, with comparable hotel revenue up 5.4% to $340.0 million.

• Urban-centric portfolio outperformed, driven by strong business transient and leisure demand, high-impact renovations, and conversions.

• EBITDA and Adjusted EBITDA grew year-over-year, with margin expansion and significant contributions from recent renovations and conversions.

• Major refinancing transactions completed, extending debt maturities and increasing liquidity, with a new $250 million share repurchase program approved for May 2026–May 2027.

Financial highlights

• Q1 2026 comparable hotel occupancy was 70.8%, ADR rose 2.1% to $209.91, and RevPAR reached $148.55, up 4.8% year-over-year.

• Comparable hotel EBITDA was $89.9 million, margin 26.4%, and Adjusted EBITDA was $80.9 million, both up year-over-year.

• Adjusted FFO per diluted share was $0.33, up 6.5% year-over-year; Adjusted FFO totaled $49.5 million.

• Non-room revenues grew 8.2%, outpacing RevPAR growth.

• Total liquidity exceeded $950 million, with $353.1 million in cash and $600 million undrawn revolver capacity.

Outlook and guidance

• FY 2026 guidance: Comparable RevPAR growth of 1.5%–3.5%, hotel EBITDA of $356M–$380M, Adjusted EBITDA of $324M–$348M, and Adjusted FFO per share of $1.29–$1.45.

• Capital expenditures expected at $80M–$90M; net interest expense at $101M–$103M; cash G&A at $32.5M–$33.5M.

• Second quarter Adjusted EBITDA expected to be slightly below last year due to strong Q1 outperformance.

• All debt maturities addressed until 2029 through refinancing and new term loans.

• Forward-looking statements caution that actual results may differ materially due to risks and uncertainties.