RLJ Lodging Trust (RLJ) Citi Conference Presentation summary

Portfolio overview and strategy

• Geographically diversified portfolio of 95 premium-branded, high-margin hotels with 21,156 rooms and strong urban market exposure, with over two-thirds of assets in urban locations and Sunbelt markets representing over 50% of hotel EBITDA.

• Urban lifestyle and gateway hotels generate 75% of EBITDA, with additional exposure to resort and urban metro segments.

• Portfolio ADR is $199 and RevPAR is $145, with EBITDA per key at $19k.

• Brand mix includes Hilton (41%), Marriott (37%), Hyatt (8%), and independent/other (13%).

• Urban properties benefit from seven-day-a-week demand and "bleisure" trends, while resort and metro assets add diversification.

Operating performance and outlook

• Achieved 2.2% RevPAR growth in Q4 2024, outperforming industry peers, with urban hotels up 3.7%.

• Business transient demand increased ~8%, group bookings up 3.1%, and leisure up 6% (urban leisure +8%).

• Total revenue rose 3.2% and comparable hotel EBITDA increased by $0.5M.

• Q1 2025 RevPAR increased 3.2%, primarily from ADR growth; Q1 adjusted EBITDA expected between $74M and $77M.

• 2025 outlook anticipates continued outperformance, with strong group, business transient, and international travel demand, and benefits from major events in key markets.

Growth catalysts and capital allocation

• Multiple channels of growth include organic growth, conversions, acquisitions, and a robust pipeline of future opportunities.

• Phase I and II internal initiatives expected to generate $14M–$18M incremental EBITDA; conversions in Pittsburgh and Nashville to be completed in 2025, with Boston Beacon Hill conversion set for 2026.

• Recent acquisitions in high-growth markets, such as Hotel Teatro in Denver for $35.5M, deliver stabilized margins of ~32% and strong RevPAR growth.

• ROI projects in 2024 included renovations and new profit centers at several properties, driving out-of-room spend and incremental EBITDA.

• Phase 2 value creation expected to add $9M–$11M incremental EBITDA, with two conversions targeted per year.