RLJ Q1 2025 Earnings Report
Key Takeaways
RLJ Lodging Trust reported solid first quarter 2025 results, exceeding expectations, driven by strong performance in urban markets and momentum from conversions. The company successfully recycled capital from asset dispositions into share repurchases and strengthened its balance sheet by addressing near-term debt maturities.
Comparable RevPAR increased by 1.6% to $141.23.
Total Revenues for the quarter were $328.1 million.
Net Income was $3.2 million.
Adjusted FFO per diluted common share and unit was $0.31.
The company addressed all 2025 debt maturities and fully paid down its revolver.
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RLJ Revenue by Segment
Forward Guidance
The company is updating its full-year 2025 outlook to reflect first quarter results and the sale of the Courtyard Atlanta Buckhead, assuming current operating trends continue through the remainder of the year.
Positive Outlook
- Comparable RevPAR Growth expected between -1.0% to +1.0%.
- Comparable Hotel EBITDA expected between $365.5 million to $395.5 million.
- Adjusted EBITDA expected between $332.5 million to $362.5 million.
- Adjusted FFO per diluted share expected between $1.38 to $1.58.
- Diluted weighted average common shares and units of 151.5 million assumed.
Challenges Ahead
- Heightened macroeconomic uncertainty is tempering the near-term view on fundamentals.
- Net interest expense is expected in the range of $94.0 million to $96.0 million.
- Cash corporate G&A is expected in the range of $34.0 million to $35.0 million.
- Capital expenditures related to renovations are expected in the range of $80.0 million to $100.0 million.
- No changes to prior assumptions for renovation displacement.
- Impact of the closure of the Austin convention center is included in the outlook.