Rlj Lodging Trust Stock Earnings Reports

RLJ Lodging Trust reported a strong first quarter 2026 driven by an urban-centric portfolio and accelerating business transient demand. Key operating results: RevPAR grew 4.8% (outperforming industry by ~100 bps), occupancy rose to 70.8%, ADR increased to $210, and non-room revenues grew 8.2%, contributing to total revenue growth of 5.4%. Hotel EBITDA rose ~7% year-over-year with margin expansion of 45 bps; adjusted FFO per diluted share was $0.33. Performance was broad-based across urban markets (notably Northern California +27% RevPAR and NYC >8%), and conversions/renovations materially boosted results (completed conversions delivered ~16% EBITDA growth; four major renovations showed ~9% RevPAR and ~10% EBITDA gains). Balance sheet actions added flexibility: refinancings increased undrawn capacity by $500M, liquidity exceeded $950M, 84 of 92 hotels unencumbered, weighted average debt cost ~4.6%, and 75% of debt fixed or hedged. Management reiterated full-year guidance but incorporated Q1 outperformance; outlook for 2026 comparable RevPAR growth is 1.5%–3.5% and adjusted FFO per share $1.29–$1.45. Capital allocation priorities remain conversions/ROI investments, disciplined dispositions when opportune, and buybacks on a leverage-neutral basis; 2026 capex guidance is $80M–$90M. Management is cautiously optimistic given macro uncertainty but expects urban markets, business transient, and non-room revenue initiatives to sustain outperformance.