RLJ Lodging Trust (RLJ)
NYSE:RLJ
Want to see RLJ full AI Analyst Report?
Top Page
RLJ Lodging
(NYSE:RLJ)
Select Model
Select Model
Rating:67Neutral
Price Target:
$11.50
â–²(42.15% Upside)
Action:Reiterated
Date:05/09/26
The score is driven by improving cash flow and a supportive earnings-call outlook with strengthened liquidity and extended maturities, alongside a technically strong uptrend. Offsetting these positives are thin profitability/low ROE and leverage-related risk, while valuation is mixed (high yield but negative P/E).
Positive Factors
Strong liquidity and refinancings
Extended liquidity and recent refinancings materially reduce near-term refinancing risk and give management durable optionality. With large undrawn capacity and no maturities until 2029, RLJ can fund capex, conversions, opportunistic buybacks or weather demand cycles without relying on stressed capital markets.
Negative Factors
Thin profitability & low ROE
Persistently low net and gross margins and weak ROE constrain the firm's ability to generate attractive returns on invested capital. Even with revenue recovery, thin profitability limits retained earnings, reduces reinvestment firepower and makes long-term dividend or growth expansion more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and refinancings
Extended liquidity and recent refinancings materially reduce near-term refinancing risk and give management durable optionality. With large undrawn capacity and no maturities until 2029, RLJ can fund capex, conversions, opportunistic buybacks or weather demand cycles without relying on stressed capital markets.
Read all positive factors
RLJ Lodging (RLJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.61B
Dividend Yield7.76%
Average Volume (3M)2.70M
Price to Earnings (P/E)63.8
Beta (1Y)0.83
Revenue Growth-0.83%
EPS Growth-103.51%
CountryUS
Employees73
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.01
Shares Outstanding151,929,730
10 Day Avg. Volume1,783,957
30 Day Avg. Volume2,699,380
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)0.51
Price to Sales (P/S)0.83
P/FCF Ratio9.50
Enterprise Value/Market Cap2.11
Enterprise Value/Revenue2.50
Enterprise Value/Gross Profit174.91
Enterprise Value/Ebitda10.58
Forecast
1Y Price Target
$9.10Price Target Upside12.48% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$1.37B
RLJ Lodging Business Overview & Revenue Model
Company Description
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 103 hotels with approximately ...
How the Company Makes Money
RLJ Lodging makes money primarily by owning hotel properties and collecting the economic returns generated by those properties’ hotel operations. Its core revenue model is hotel-level income (room and other hotel revenues) less operating costs, wi...
RLJ Lodging Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial strengths — RevPAR outperformance, robust urban market gains (notably Northern California), meaningful non-room revenue growth with margin expansion, solid EBITDA growth and conversions/renovations delivering tangible returns — alongside proactive balance sheet actions. Headwinds include elevated energy costs, shorter group booking windows that reduce visibility, a modest near-term shift in EBITDA contribution into the back half of the year, and a still-recovering transaction market. On balance the positive operational execution and strong liquidity/balance-sheet positioning outweigh the cited risks.Positive Updates
Solid Top-Line Revenue and RevPAR Outperformance
Reported RevPAR grew 4.8% in Q1 (RevPAR $149), outperforming the broader industry by ~100 basis points; RevPAR strengthened sequentially (February +6.1%, March +8.9%) with April preliminary ~+4%.
Negative Updates
Elevated Energy Costs and Weather-Related Impacts
Energy expenses were elevated in Q1 due to winter storms and disruptions in energy markets (war-related), which pressured operating expenses despite offsetting reductions elsewhere.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Top-Line Revenue and RevPAR Outperformance
Reported RevPAR grew 4.8% in Q1 (RevPAR $149), outperforming the broader industry by ~100 basis points; RevPAR strengthened sequentially (February +6.1%, March +8.9%) with April preliminary ~+4%.
Read all positive updates
Company Guidance
RLJ incorporated its strong Q1 into a revised 2026 outlook while leaving the cadence for the rest of the year unchanged, guiding comparable RevPAR growth of 1.5%–3.5%, comparable hotel EBITDA of $356M–$380M, corporate adjusted EBITDA of $324M–$348M and adjusted FFO per diluted share of $1.29–$1.45; it expects total 2026 capex of $80M–$90M, cash G&A of $32.5M–$33.5M and net interest expense of $101M–$103M, and reiterated that total revenue growth should outpace RevPAR. The company noted Q1 outperformance (Q1 RevPAR +4.8%, non‑room revenue +8.2%, total revenues +5.4%, hotel EBITDA $89.9M, hotel EBITDA margin 26.4%), said Q2 adjusted EBITDA contribution will be slightly below last year with the balance back‑loaded to the back half, and highlighted balance‑sheet flexibility (>$950M liquidity, $600M undrawn revolver capacity, $500M of additional undrawn capacity created by recent refinancings, $2.2B debt, 84 of 92 hotels unencumbered, weighted‑average interest rate 4.6%, 75% fixed/hedged, no maturities until 2029 after planned July payoff) and a $0.15 quarterly dividend.RLJ Lodging Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.36B | 1.35B | 1.37B | 1.33B | 1.19B | 785.66M |
| Gross Profit | 19.43M | -11.69M | 384.45M | 390.68M | 362.26M | 185.29M |
| EBITDA | 321.42M | 318.38M | 359.46M | 354.64M | 319.06M | -20.00M |
| Net Income | 24.80M | 28.51M | 68.02M | 76.41M | 41.92M | -305.17M |
Balance Sheet | ||||||
| Total Assets | 4.70B | 4.74B | 4.88B | 4.92B | 4.98B | 5.15B |
| Cash, Cash Equivalents and Short-Term Investments | 387.46M | 410.16M | 409.81M | 516.67M | 481.32M | 665.34M |
| Total Debt | 2.31B | 2.32B | 2.34B | 2.34B | 2.33B | 2.53B |
| Total Liabilities | 2.54B | 2.56B | 2.59B | 2.57B | 2.55B | 2.74B |
| Stockholders Equity | 2.14B | 2.17B | 2.28B | 2.34B | 2.41B | 2.40B |
Cash Flow | ||||||
| Free Cash Flow | 253.71M | 117.39M | 285.42M | 315.14M | 256.52M | -5.30M |
| Operating Cash Flow | 253.71M | 243.80M | 285.42M | 315.14M | 256.52M | 42.96M |
| Investing Cash Flow | -62.07M | -57.36M | -275.73M | -134.75M | -135.51M | -24.63M |
| Financing Cash Flow | -176.57M | -177.70M | -131.69M | -161.45M | -298.49M | -239.25M |
RLJ Lodging Technical Analysis
Positive
8.09
Price Trends
8.60
Positive
8.13
Positive
7.60
Positive
Market Momentum
0.52
Negative
81.15
Negative
94.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLJ, the sentiment is Positive. The current price of 8.09 is below the 20-day moving average (MA) of 9.57, below the 50-day MA of 8.60, and above the 200-day MA of 7.60, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 81.15 is Negative, neither overbought nor oversold. The STOCH value of 94.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.37B | 22.82 | 6.89% | 5.13% | -0.40% | 136.86% | |
67 Neutral | $1.61B | 63.83 | 1.14% | 7.76% | -0.83% | -103.51% | |
67 Neutral | $721.53M | -47.96 | -1.46% | 6.61% | 0.26% | -233.17% | |
67 Neutral | $1.91B | -36.71 | -2.07% | 0.34% | 2.84% | -83.41% | |
66 Neutral | $1.69B | 25.20 | 5.76% | 3.71% | 2.31% | 208.08% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
50 Neutral | $1.07B | -1.10 | -38.18% | 2.31% | -8.19% | 24.63% |
* Real Estate Sector Average
RLJ
RLJ Lodging
10.60
3.78
55.49%
DRH
Diamondrock
11.61
4.18
56.20%
INN
Summit Hotel Properties
5.74
1.46
34.24%
SVC
Service Properties
1.57
-0.77
-32.99%
PEB
Pebblebrook Hotel
16.89
7.16
73.50%
XHR
Xenia Hotels & Resorts
18.39
6.55
55.28%
RLJ Lodging Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
RLJ Lodging Shareholders Reaffirm Board, Auditor and Compensation
Positive
Apr 30, 2026
On April 24, 2026, RLJ Lodging Trust held its 2026 annual meeting of shareholders, at which investors re-elected nine trustees, including Executive Chairman Robert L. Johnson and President and CEO Leslie D. Hale, to serve until the next annual mee...
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.