RLJ Lodging Trust (RLJ) Q1 2025 earnings summary

Executive summary

• First quarter 2025 results exceeded expectations with strong urban hotel performance and conversions, despite headwinds in March and April and a weaker industry backdrop.

• Portfolio includes 94–95 premium-branded, urban-centric hotels with 20,982–21,200 rooms as of March 31, 2025, focused on high-margin, rooms-oriented properties.

• Sold one non-core hotel for $24.3 million, recording a $1.3 million gain, and repurchased 2.7 million shares for $24.3 million, funded by asset sale proceeds.

• Refinanced and upsized a $200 million term loan to $300 million, repaid revolver, and extended mortgage maturities.

• Board approved a new $250 million share repurchase program for May 2025–May 2026.

Financial highlights

• Q1 2025 total revenue was $328.1 million, up $3.7 million year-over-year, with occupancy at 69.1–69.2%, ADR at $204.31–$204.38, and RevPAR at $141.23–$141.39, up 1.6% year-over-year.

• Comparable Hotel EBITDA was $85.3–$85.9 million (26.1% margin), down year-over-year; Adjusted EBITDA was $77.6 million, and Adjusted FFO per diluted share was $0.31.

• Net loss attributable to common shareholders was $2.9 million, or $(0.02) per share.

• Trailing twelve months comparable hotel EBITDA was $394.3 million; net income for TTM ended Q1 2025 was $66.6 million.

• Total hotel operating cost growth moderated to 2.9%, over 100 basis points lower than the previous quarter.

Outlook and guidance

• Full-year 2025 guidance: comparable RevPAR growth between -1% and 1%, hotel EBITDA $365.5–$395.5 million, adjusted EBITDA $332.5–$362.5 million, and adjusted FFO per share $1.38–$1.58.

• Guidance assumes no further acquisitions, dispositions, or refinancings, and capital expenditures of $80–$100 million.

• Second quarter expected to be the weakest, with March and April RevPAR down 1.3% and 1–2% respectively; back half of the year expected to be flat.

• Outlook reflects continued macroeconomic uncertainty and assumes current trends persist.

• No material changes to risk factors or forward-looking statements; focus remains on portfolio quality, capital recycling, and prudent capital structure.