RLJ Lodging Trust (RLJ) Investor presentation summary

Portfolio overview and positioning

• Owns 92 premium-branded, high-margin hotels with 20,588 rooms, diversified across urban, resort, and metro markets.

• Over two-thirds of the portfolio is concentrated in urban markets, with significant exposure to Sunbelt regions.

• Urban lifestyle and gateway hotels generate 76% of EBITDA, with strong representation in top U.S. economic centers.

• Portfolio is positioned to benefit from major 2026 events, including the FIFA World Cup and America's 250th anniversary.

• High margin profile generates significant free cash flow and supports a flexible capital structure.

Operating performance and growth drivers

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

• Business transient revenue increased 9% and leisure revenue rose 5% in Q1, driven by robust urban demand.

• Group pace improved by 900 basis points, and non-room revenue grew 8.2% in Q1.

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

• 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.

Internal and external growth initiatives

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

• Phase I conversions contributed $34M EBITDA upon stabilization, surpassing initial underwriting; Phase II underway with $9-11M forecasted EBITDA contribution.

• Targeting two incremental conversions per year, with embedded value-add opportunities across the portfolio.

• Recent acquisitions in top growth markets, such as Hotel Teatro Denver, deliver stabilized NOI yields of 7.5-10%.

• $346M in shares repurchased since 2018, with 50% growth in 2024.