RLJ Lodging Trust (RLJ) Q4 2024 earnings summary

Executive summary

• Achieved top-quartile RevPAR growth for 2024, outpacing the industry and expanding market share, with strong momentum in urban-centric portfolio of 95 hotels and 21,156 rooms as of December 31, 2024.

• Completed key objectives: acquired Hotel Teatro, completed three conversions, advanced future conversion pipeline, and executed two property sales.

• Addressed all 2025 debt maturities, recycled disposition proceeds into share repurchases, and increased quarterly dividends.

• Urban markets, representing two-thirds of the portfolio, led performance with 3.7% RevPAR growth in Q4 and notable strength in Miami, New Orleans, Chicago, Houston, New York, and LA/Anaheim.

• Out-of-room spend and focused expense management drove EBITDA growth for the second consecutive quarter.

Financial highlights

• FY 2024 total revenue for comparable hotels reached $1.37B, up 3.3% year-over-year, with Q4 revenue at $330.0 million.

• Q4 RevPAR grew 2.2% year-over-year to $137.53, with ADR at $198.71 and occupancy at 69.2%; FY 2024 RevPAR was $144.72, up 2.0%.

• Q4 hotel EBITDA was $90.4 million, margin at 27.4%; FY 2024 comparable hotel EBITDA was $398.0 million, margin at 29.1%.

• Adjusted EBITDA for FY 2024 was $361.6 million; Q4 adjusted EBITDA was $81.1 million.

• Adjusted FFO per diluted share for FY 2024 was $1.57; Q4 adjusted FFO was $50.2 million.

Outlook and guidance

• 2025 guidance: comparable RevPAR growth of 1–3%, hotel EBITDA of $378–408 million, adjusted EBITDA of $345–375 million, and adjusted FFO per share of $1.46–1.66.

• Capital expenditures expected at $80–100 million; net interest expense at $94–96 million.

• Group demand expected to remain healthy, with 2025 group pace mid-single digits ahead of 2024.

• Urban markets expected to outperform, with citywide events and return-to-office mandates as tailwinds.

• Renovations in high-occupancy markets and Austin Convention Center closure factored into 2025 outlook.