In This Article:
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RevPAR Growth: 2.2% increase over the prior year, driven by a 2.5% increase in ADR.
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Occupancy Rate: 69.2% for the fourth quarter.
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Average Daily Rate (ADR): $198.71.
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RevPAR: $137.53.
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Business Transient RevPAR Growth: 8% above 2023, with a 7% ADR increase and 1% occupancy growth.
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Total Revenue Growth: 3%, outpacing RevPAR growth.
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Hotel EBITDA: $90.4 million, with a margin of 27.4%.
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Adjusted EBITDA: $81.1 million for the fourth quarter.
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Adjusted FFO per Diluted Share: $0.33.
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Liquidity: Over $0.9 billion at the end of the fourth quarter.
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Total Debt: $2.2 billion, with 69% either fixed or hedged.
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Weighted Average Interest Rate: 4.6%.
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Share Repurchase: Approximately 2.3 million shares for $22 million in 2024; 1.2 million shares for $12 million in 2025.
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Quarterly Dividend: $0.15 per share.
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2025 RevPAR Growth Guidance: Expected to range between 1% and 3%.
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2025 Comparable Hotel EBITDA Guidance: Between $378 million and $408 million.
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2025 Corporate Adjusted EBITDA Guidance: Between $345 million and $375 million.
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2025 Adjusted FFO per Diluted Share Guidance: Between $1.46 and $1.66.
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2025 Capital Expenditures: Estimated between $80 million and $100 million.
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2025 Cash G&A: Estimated between $34 million and $35 million.
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2025 Net Interest Expense: Estimated between $94 million and $96 million.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RLJ Lodging Trust (NYSE:RLJ) achieved top quartile RevPAR growth that outpaced the industry, expanding market share.
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The company completed three successful hotel conversions in Houston, New Orleans, and Pittsburgh, contributing to robust RevPAR growth of over 10% in 2024.
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RLJ addressed all of its 2025 debt maturities, enhancing financial stability.
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The company increased its quarterly dividend by 50%, demonstrating a commitment to enhancing shareholder returns.
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RLJ's urban-centric portfolio showed strong performance, with urban markets achieving 3.7% RevPAR growth in the fourth quarter, driven by improving trends in corporate travel and robust group demand.
Negative Points
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The transaction market remains choppy with a wide bid-ask spread, limiting opportunities for asset sales.
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Occupancy declined slightly by 0.2% in the fourth quarter, despite an increase in ADR.
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The company faces potential displacement from scheduled 2025 renovations in high occupancy markets, which could impact short-term performance.
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The macroeconomic environment remains uncertain, with potential headline volatility affecting lodging fundamentals.
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RLJ's RevPAR guidance for 2025 is relatively modest, with expected growth between 1% and 3%, reflecting cautious optimism amid economic uncertainties.