RLJ Lodging Trust (RLJ) investor relations material

RLJ Lodging Trust Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Q2 2025 earnings summary8 Aug, 2025

Executive summary

  • Second quarter results exceeded expectations in some areas, but overall saw declines in RevPAR, revenue, and net income due to renovations and market-specific challenges.

  • Portfolio included 94–95 hotels with about 21,200 rooms as of June 30, 2025, focusing on premium-branded, high-margin properties.

  • Share repurchases were prioritized, with 3.2–3.3 million shares repurchased for $28 million YTD and a new $250M program approved.

  • Major renovations and conversions advanced, with assets expected to ramp up in Q4.

  • Management highlighted cost controls, portfolio resiliency, and disciplined capital allocation.

Financial highlights

  • Q2 2025 total revenue was $363.1M, down 1.7% year-over-year; net income attributable to common shareholders was $22.2M–$28.6M.

  • Q2 2025 comparable hotel EBITDA was $113.0M–$113.4M, with margins at 31.1%, down 90 basis points.

  • Q2 2025 adjusted EBITDA was $104.0M, and adjusted FFO per diluted share was $0.48, both down year-over-year.

  • Q2 2025 occupancy was 75.5%, ADR was $205.03–$205.27, and RevPAR was $154.90–$155.08, all declining year-over-year.

  • Non-room revenues and food & beverage profit rose, despite lower occupancy.

Outlook and guidance

  • FY 2025 guidance: comparable RevPAR growth of -1.0% to +1.0%, comparable hotel EBITDA of $365.5M–$395.5M, adjusted EBITDA of $332.5M–$362.5M, and adjusted FFO per diluted share of $1.38–$1.58.

  • Management expects the low end of guidance, citing a softer Q3 due to holiday shifts, tough comps, and renovations.

  • Q4 outlook is more favorable, with tailwinds from easier comps and ramping renovated assets.

  • 2026 and beyond expected to benefit from improving economic backdrop and constrained supply.

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Frequently asked questions

RLJ Lodging Trust is a real estate investment trust (REIT) specializing in the ownership of premium-branded, focused-service, and compact full-service hotels. The company's portfolio includes properties primarily affiliated with well-recognized brands such as Marriott, Hilton, and Hyatt. RLJ Lodging Trust focuses on high-demand urban, airport, and suburban markets, catering to both business and leisure travelers. Its revenue is generated through hotel operations managed by third-party operators. The company is headquartered in Bethesda, Maryland, and its shares are listed on the NYSE.

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