RLJ Lodging Trust (RLJ) Q4 2023 earnings summary

Executive summary

• Portfolio comprised 96 hotels and 21,246 rooms at Dec. 31, 2023; Q4 comparable occupancy was 69.3% and FY occupancy was 71.8%.

• FY comparable RevPAR was $141.24, up 9.0% YoY and 97% of 2019 levels; comparable Hotel EBITDA was $401.4M.

• Management cited urban leisure, improving business travel, group bookings and completed conversions as momentum into 2024.

Financial highlights

• Q4 total revenue rose 5.8% YoY to $319.7M; comparable hotel revenue was $319.5M, up 5.7%.

• Q4 net income attributable to common shareholders was $1.7M versus $0.3M; diluted EPS was $0.01 versus $0.00.

• Q4 Adjusted EBITDA was $79.2M, up 0.3%; Adjusted FFO was $53.4M and $0.34 per diluted share and unit, up 1.1% and 3.0%, respectively.

• FY revenue increased 11.0% to $1.326B; net income attributable to common shareholders was $51.3M versus $16.8M, and diluted EPS was $0.32 versus $0.10.

• FY Adjusted EBITDA increased 8.3% to $364.5M; Adjusted FFO increased 17.8% to $260.4M and 22.1% to $1.66 per diluted share and unit.

Outlook and guidance

• FY 2024 comparable RevPAR growth guidance is 2.5%–5.5%; Comparable Hotel EBITDA is $395M–$425M, Adjusted EBITDA $360M–$390M and Adjusted FFO per diluted share $1.55–$1.75.

• FY 2024 net interest expense is forecast at $91M–$93M, with the YoY increase attributed to expiring swaps; renovation capex is projected at $100M–$120M.

• Q1 2024 RevPAR growth is expected to be positive but below the low end of FY guidance, reflecting Easter timing and difficult prior-year comparisons.

• Guidance assumes 154.0M diluted weighted-average common shares and units; future acquisitions, dispositions, financings or repurchases are excluded and could materially change the outlook.