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RLJ Lodging
(NYSE:RLJ)
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Rating:62Neutral
Price Target:
$12.00
â–¼(-2.76% Downside)
Action:Reiterated
Date:08/08/26
The score is primarily supported by a strong, guidance-raising earnings call and solid cash generation, offset by pressured profitability (including negative gross profit in recent periods) and mixed balance-sheet consistency. Technicals are currently weak versus short-term averages, while valuation is helped by a ~4.9% dividend but clouded by a highly negative P/E.
Positive Factors
Stable cash generation
Consistent, improving operating cash flow and positive free cash flow provide durable internal funding for capex, renovations, dividends and share buybacks. This strengthens flexibility to execute repositionings and weather near-term lodging cyclicality over the next several quarters.
Negative Factors
Weak reported profitability
Negative gross profit in recent periods indicates margin erosion at the hotel level from higher costs or nonrecurring charges. Even with positive EBITDA, sustained gross-profit weakness constrains ability to convert revenue into durable net income and dividends over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable cash generation
Consistent, improving operating cash flow and positive free cash flow provide durable internal funding for capex, renovations, dividends and share buybacks. This strengthens flexibility to execute repositionings and weather near-term lodging cyclicality over the next several quarters.
Read all positive factors
RLJ Lodging (RLJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.68B
Dividend Yield5.46%
Average Volume (3M)1.84M
Price to Earnings (P/E)268.7
Beta (1Y)0.70
Revenue Growth1.07%
EPS Growth-96.66%
CountryUS
Employees75
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding152,375,870
10 Day Avg. Volume1,610,494
30 Day Avg. Volume1,843,829
Financial Highlights & Ratios
PEG Ratio-5.33
Price to Book (P/B)0.51
Price to Sales (P/S)0.83
P/FCF Ratio9.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.33Price Target Upside-8.16% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.04
Revenue Forecast (FY)$1.39B
RLJ Lodging Business Overview & Revenue Model
Company Description
RLJ Lodging Trust functions as a self-managed, publicly listed real estate investment trust (REIT). Its core holdings consist primarily of upscale, branded hotels known for their strong profitability and efficient operations, specifically those ca...
How the Company Makes Money
RLJ Lodging Trust makes money primarily from hotel-level operating revenue generated at its owned properties, which flows up to the REIT after hotel operating expenses and management fees. The core revenue streams are (1) rooms revenue (the larges...
RLJ Lodging Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a notably positive operating quarter with broad-based RevPAR, ADR, occupancy and EBITDA growth driven by urban markets, business-transient recovery, successful renovations/conversions and a strong balance sheet. Management raised full-year guidance and highlighted high-return conversion projects and accretive dispositions. Offsetting risks include higher-than-expected expense growth (variable and fixed), elevated energy and transaction costs, limited short-term visibility due to a short booking window and some timing/seasonality headwinds (e.g., Salesforce calendar shift). Overall the positives (outperformance, capital allocation flexibility, conversion ROI and strengthened guidance) substantially outweigh the challenges.Positive Updates
Strong RevPAR and Rate Performance
Second-quarter RevPAR grew 6.8% to $167, driven by ADR growth of 4.9% to $217 and occupancy rising to 77% (up 130 bps). Monthly momentum included April +5.8%, May +2.5%, June +12.4% and preliminary July ~+11%.
Negative Updates
Higher-than-Expected Expense Growth
Expense growth was above expectations driven by higher occupancy and a higher transient mix. Per occupied room expenses rose ~4.9%; fixed costs were up 6.4% (or ~3.4% excluding a prior-year tax benefit). Management expects H2 total expense growth ~3% (midpoint) to ~4% (high end).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong RevPAR and Rate Performance
Second-quarter RevPAR grew 6.8% to $167, driven by ADR growth of 4.9% to $217 and occupancy rising to 77% (up 130 bps). Monthly momentum included April +5.8%, May +2.5%, June +12.4% and preliminary July ~+11%.
Read all positive updates
Company Guidance
RLJ raised its full‑year 2026 outlook, now forecasting comparable RevPAR growth of 3.5%–4.5%, comparable hotel EBITDA of $369M–$389M, corporate adjusted EBITDA of $336M–$356M, and adjusted FFO per diluted share of $1.37–$1.50; the update reflects the sale of Hyatt Place Fremont and assumes no further acquisitions, dispositions, or balance‑sheet activity. Management expects $80M–$90M of capital expenditures, cash G&A of $33.5M–$34.5M, and net interest expense of $101M–$103M, with third quarter cadence stronger than fourth (Q3 adjusted‑EBITDA contribution roughly 100 bps higher than last year) and implied second‑half total expense growth of roughly 3% at the midpoint (4% at the high end), with per‑occupied‑room trends similar. The guidance is conditioned on continued business‑travel recovery, healthy urban leisure and group pace, strong in‑the‑quarter‑for‑the‑quarter bookings, and the continued ramp of conversions.RLJ Lodging Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.35B | 1.37B | 1.33B | 1.19B | 785.66M |
| Gross Profit | -68.92M | -11.69M | 384.45M | 390.68M | 362.26M | 185.29M |
| EBITDA | 326.30M | 318.38M | 359.46M | 354.64M | 319.06M | -20.00M |
| Net Income | 27.38M | 28.51M | 68.02M | 76.41M | 41.92M | -305.17M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 4.74B | 4.88B | 4.92B | 4.98B | 5.15B |
| Cash, Cash Equivalents and Short-Term Investments | 937.60M | 410.16M | 409.81M | 516.67M | 481.32M | 665.34M |
| Total Debt | 2.81B | 2.32B | 2.34B | 2.34B | 2.33B | 2.53B |
| Total Liabilities | 3.07B | 2.56B | 2.59B | 2.57B | 2.55B | 2.74B |
| Stockholders Equity | 2.15B | 2.17B | 2.28B | 2.34B | 2.41B | 2.40B |
Cash Flow | ||||||
| Free Cash Flow | 266.99M | 117.39M | 285.42M | 315.14M | 256.52M | -5.30M |
| Operating Cash Flow | 266.99M | 243.80M | 285.42M | 315.14M | 256.52M | 42.96M |
| Investing Cash Flow | -35.59M | -57.36M | -275.73M | -134.75M | -135.51M | -24.63M |
| Financing Cash Flow | 340.80M | -177.70M | -131.69M | -161.45M | -298.49M | -239.25M |
RLJ Lodging Technical Analysis
Neutral
12.34
Price Trends
11.50
Negative
9.93
Positive
8.62
Positive
Market Momentum
-0.15
Positive
36.54
Neutral
12.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLJ, the sentiment is Neutral. The current price of 12.34 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.50, and above the 200-day MA of 8.62, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 36.54 is Neutral, neither overbought nor oversold. The STOCH value of 12.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RLJ.
RLJ Lodging Risk Analysis
RLJ Lodging disclosed 2 risk factors in its most recent earnings report. RLJ Lodging reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RLJ Lodging Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.52B | 16.92 | 10.27% | 3.27% | 1.03% | 159.56% | |
68 Neutral | $2.05B | -27.24 | -1.90% | 0.21% | 2.08% | -25.62% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $734.18M | -26.28 | -0.84% | 4.56% | 1.24% | -143.19% | |
63 Neutral | $1.76B | -256.15 | -0.62% | 2.61% | 1.65% | -112.43% | |
62 Neutral | $1.68B | 268.70 | 1.26% | 4.86% | 1.07% | -96.66% | |
47 Neutral | $1.06B | -1.05 | -65.18% | 2.36% | -12.04% | -75.70% |
* Real Estate Sector Average
RLJ
RLJ Lodging
10.99
4.35
65.39%
DRH
Diamondrock
12.36
4.77
62.87%
INN
Summit Hotel Properties
6.04
1.08
21.77%
SVC
Service Properties
8.13
-4.10
-33.54%
PEB
Pebblebrook Hotel
18.25
8.33
83.99%
XHR
Xenia Hotels & Resorts
19.16
6.54
51.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.