Rlj Lodging Trust Stock Earnings Reports

RLJ Lodging Trust reported a strong start to 2026 driven by an urban-centric portfolio that outperformed the industry. Q1 highlights include comparable RevPAR growth of 4.8% (100–110 bps of outperformance vs. industry urban markets), strong sequential acceleration (Feb +6%, Mar +9%), non-room revenue growth of 8.2% (driving total revenue growth of 5.4%), and hotel EBITDA of $89.9M (up 7.2% year-over-year) with margin expansion of 45 bps. Business-transient demand accelerated (BT revenues +9%) and group pace improved (quarter-for-quarter pace up 900 bps at quarter end), while conversions and high-impact renovations meaningfully contributed to outperformance (completed conversions and renovations showing high single- to double-digit EBITDA gains). On capital allocation and balance sheet: the company refinanced to expand undrawn capacity by $500M, plans to pay off $500M of senior notes due July 1 (leaving no maturities until 2029), ended Q1 with ~ $950M liquidity and $2.2B of debt, and will continue a dividend of $0.15 per share. Updated 2026 guidance (incorporating Q1 outperformance but leaving FY cadence intact) calls for comparable RevPAR growth of +1.5% to +3.5%, hotel EBITDA of $356M–$380M, corporate adjusted EBITDA of $324M–$348M, and adjusted FFO/share of $1.29–$1.45. Management remains cautiously optimistic about urban demand durability (business transient, urban leisure, group) but notes macro uncertainty and shorter booking windows for some segments. The company expects ~$80M–$90M of total capex in 2026, focused on ROI renovations and conversions, and intends to continue a disciplined balance between disposals, buybacks (leverage-neutral), and conversion investments.