RLJ Lodging Trust (RLJ) Q2 2025 earnings summary

Executive summary

• Second quarter results exceeded expectations in some areas, with a diversified portfolio, disciplined expense management, and strong urban hotel performance, but overall saw year-over-year declines in RevPAR, revenue, and net income due to renovations and market softness.

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

• Market capitalization is $1.1B, total enterprise value $3.3B, and total capitalization $3.7B.

• Management highlighted portfolio resiliency, cost controls, and ongoing renovations, with expectations of a softer Q3 but positive Q4 tailwinds.

• Approved a new $250M share repurchase program and repurchased 3.3M shares for $28.2M in 2025.

Financial highlights

• Q2 2025 total revenue was $363.1M, down 1.7% year-over-year; net income attributable to common shareholders was $22.2M ($0.15/share), down from $30.8M ($0.20/share) in Q2 2024.

• Comparable hotel EBITDA for Q2 2025 was $113.0M, margin 31.1%, both down year-over-year; adjusted EBITDA was $104.0M, adjusted FFO per diluted share was $0.48.

• Q2 2025 occupancy was 75.5%, ADR $205.27, RevPAR $155.08, all slightly down year-over-year.

• For the six months ended June 30, 2025, total revenue was $691.2M, net income $31.8M, and adjusted FFO per diluted share $0.79.

• Non-room revenues increased 1.5%, and F&B profit rose 180 basis points.

Outlook and guidance

• FY 2025 outlook expects 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, with management expecting the low end of the range.

• Third quarter expected to be the softest of the year due to tough comps, renovations, and weak group/government demand; Q4 outlook is more favorable with tailwinds from holiday shifts and strong citywide events.

• Expense growth for the back half of the year is expected to be about 2%.

• Guidance does not include future acquisitions, dispositions, financings, or share repurchases.