RLJ Lodging Trust (RLJ) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 results exceeded expectations, with RevPAR up 2.0% to $145.23 and net income rising 26.3% to $20.6 million, driven by urban-centric and business transient demand.

• Portfolio consists of 95–96 premium-branded, urban-focused hotels in major markets, with a strategy centered on high-margin, focused-service properties.

• Significant 2024 activities included a $500 million term loan, two hotel conversions, share repurchases totaling 2.3 million shares for $22 million, and a 50% dividend increase to $0.15 per share.

• Market capitalization is $1.4 billion, with total enterprise value of $3.6 billion and total capitalization of $4.0 billion.

• Urban hotels and business transient segments led growth, with urban lifestyle hotels up 3.2% in RevPAR and business transient revenue up nearly 9%.

Financial highlights

• Q3 2024 comparable hotel EBITDA was $100.7 million (margin 29.2%–32.0%), with adjusted EBITDA at $91.9 million and adjusted FFO per diluted share at $0.40.

• Q3 occupancy was 75.1% (up 1.4% year-over-year), ADR was $193.39 (up 0.6%), and RevPAR was $145.23 (up 2.0%).

• Q3 total revenue was $345.7 million, up 3%–3.4% year-over-year; net income attributable to common shareholders was $14.3 million.

• Trailing twelve months comparable hotel EBITDA was $397.5 million.

• YTD September 2024 occupancy was 73.7%, ADR $199.59, and RevPAR $147.13, all up year-over-year.

Outlook and guidance

• 2024 guidance reaffirmed: comparable RevPAR growth of 1.0%–2.5%, adjusted EBITDA of $346.5M–$366.5M, and adjusted FFO per share of $1.45–$1.58.

• Fourth quarter RevPAR expected to be constrained by hurricane and election impacts, with October forecasted at 1.5% growth.

• 2025 expected to benefit from urban market concentration, conversions, and major citywide events.

• Net interest expense projected at $92M–$94M; capital expenditures of $100M–$220M.