RLJ Lodging Trust (RLJ) Q3 2025 earnings summary

Executive summary

• Operates 94–95 hotels with approximately 20,982–21,200 rooms as of September 30, 2025, focused on premium-branded, high-margin, rooms-oriented hotels in urban markets.

• Third quarter results aligned with expectations, reflecting portfolio resiliency, effective cost controls, and out-of-room revenue growth of 1.3% year-over-year, despite a 5.1% RevPAR decline and lower occupancy.

• Major renovations in Waikiki, Key West, and Fort Lauderdale are substantially complete, with conversions in Nashville and Pittsburgh progressing; strategic investments continue to position the portfolio for future value creation.

• Sold one hotel for $24.3 million, refinanced a term loan to $300 million, repaid $100 million on the revolver, and approved a new $250 million share repurchase program, repurchasing 3.3 million shares for $28.6 million.

• Government shutdown in October led to a 2% RevPAR decline for the month, impacting Q4 outlook and delaying ramp-up of renovated assets.

Financial highlights

• Q3 2025 total revenue was $330.0 million, down 4.5% year-over-year; nine-month revenue was $1.02 billion, down 1.7%.

• Q3 2025 comparable hotel occupancy was 73.0%, ADR was $189.74–$190, and RevPAR was $138.29–$139, down 5.1% year-over-year.

• Q3 2025 Adjusted EBITDA was $72.6 million (down 21% year-over-year); nine-month Adjusted EBITDA was $254.2 million.

• Q3 2025 net loss attributable to common shareholders was $3.8–$10.0 million; nine-month net income was $9.2–$28.0 million.

• Q3 2025 Adjusted FFO per diluted share was $0.27 (down 32.5% year-over-year); nine-month Adjusted FFO was $160.7 million.

Outlook and guidance

• Full-year 2025 guidance: comparable RevPAR growth between -2.6% and -1.9%; comparable hotel EBITDA $357.5M–$365.5M; adjusted EBITDA $324M–$332M; adjusted FFO per diluted share $1.31–$1.37; capital expenditures expected at $80M–$100M.

• Guidance assumes no further acquisitions, dispositions, or refinancings; capital allocation remains focused on portfolio quality and prudent structure.

• 2026 outlook is positive, with expected benefits from major events (World Cup, Super Bowl, 250th U.S. anniversary) and continued urban market recovery.

• Forward-looking statements caution that actual results may differ materially due to risks and uncertainties.