RLJ Lodging Trust (RLJ) Q2 2024 earnings summary

Executive summary

• Q2 2024 RevPAR rose 2.6% year-over-year to $157.30, with total revenue up 3.5% to $371.0M, led by urban and top 25 markets and strong group and business transient demand.

• Net income for Q2 was $37.3M, down from $41.7M in Q2 2023, primarily due to higher operating and interest expenses.

• Acquired Hotel Teatro in Denver for $35.5M and Wyndham Boston Beacon Hill for $125M; sold a non-core Indiana hotel for $8.1M, with proceeds recycled into share repurchases and dividend increases.

• Booking pace for group business is 107% of last year, with robust citywide events and business transient demand.

• Operates 96 hotels with 21,290 rooms as of June 30, 2024, excluding one unconsolidated property.

Financial highlights

• Q2 2024 occupancy was 76.7%, ADR was $205.20, and RevPAR was $157.30, all up year-over-year.

• Total revenue for Q2 2024 was $371.0M, up from $358.9M in Q2 2023; room revenue was $303.7M, food and beverage $40.8M.

• Hotel EBITDA reached $118.6M with a margin of 32.0%, and Adjusted EBITDA was $109.0M.

• Adjusted FFO per diluted share was $0.51; net income margin for Q2 was 10.1%.

• Ended Q2 with $771.1M in liquidity, $2.2B in debt, and $407.2M in cash and equivalents.

Outlook and guidance

• FY 2024 comparable RevPAR growth expected between 1.0% and 2.5%.

• Comparable hotel EBITDA projected at $382.5M–$402.5M; Adjusted EBITDA at $346.5M–$366.5M.

• Adjusted FFO per diluted share guidance is $1.45–$1.58.

• Capital expenditures for 2024 estimated at $100M–$120M; net interest expense at $93M–$95M.

• Guidance assumes no further acquisitions, dispositions, or refinancings.