Yahoo Finance

• RevPAR Growth: 1.6% driven by a 2.1% increase in ADR, offset by a 0.5% decline in occupancy.

• Urban Hotels RevPAR Growth: 3.6% with weekday urban RevPAR growing by 4.9%.

• Group Revenue Growth: 10% driven by strong city-wide events.

• Leisure Segment Revenue Growth: 2% in the first quarter.

• Hotel EBITDA: $85.3 million with a margin of 26.1%.

• Adjusted EBITDA: $77.6 million.

• Adjusted FFO per Diluted Share: $0.31.

• First Quarter Occupancy: 69.1% with an ADR of $204.31 and RevPAR of $141.23.

• Total Revenue Growth: 1.2% with a 3.8% increase in out-of-room spend.

• Operating Cost Growth: 2.9% in the first quarter.

• Share Repurchases: Approximately 2.7 million shares for $24.3 million at an average price of $8.91 per share.

• Quarterly Dividend: $0.15 per share.

• 2025 RevPAR Growth Outlook: Between 1% and up 1%.

• 2025 Comparable Hotel EBITDA Outlook: Between $365.5 million and $395.5 million.

• 2025 Corporate Adjusted EBITDA Outlook: Between $332.5 million and $362.5 million.

• 2025 Adjusted FFO per Diluted Share Outlook: Between $1.38 and $1.58.

• Warning! GuruFocus has detected 5 Warning Sign with RLJ.

Release Date: May 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RLJ Lodging Trust (NYSE:RLJ) achieved RevPAR growth of 1.6% in the first quarter, driven by a 2.1% increase in ADR.

• The company's urban hotels experienced robust RevPAR growth of 3.6%, with several markets achieving high single-digit growth.

• RLJ successfully recycled capital by selling a non-core asset at an attractive 18 times multiple and redeploying proceeds into accretive share repurchases.

• The company strengthened its balance sheet by addressing current and forward debt maturities, including a new $300 million term loan maturing in 2030.

• RLJ's conversions are showing strong performance, with recent conversions in Houston, New Orleans, and Pittsburgh achieving 35% RevPAR growth.

Negative Points

• March and April performance fell short of initial expectations, with RevPAR down 1.3% in March and forecasted to decline 1-2% in April.

• The company is experiencing softness in government and international demand, which is expected to persist throughout the year.

• Booking windows have shortened significantly, with 58% of bookings occurring within seven days, reflecting heightened uncertainty.

• The transaction market is currently challenging, with fewer opportunities for asset sales due to the uncertain economic environment.

• RLJ adjusted its full-year guidance downward due to reduced visibility and continued macroeconomic risks, reflecting a more cautious outlook.