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Jun 30, 2024

RLJ Q2 2024 Earnings Report

Reported solid second quarter performance driven by strong gains in urban markets and announced an increase in quarterly dividend.

Key Takeaways

RLJ Lodging Trust reported a positive second quarter with a 2.6% increase in comparable RevPAR and a 3.5% increase in total revenue. The company acquired Hotel Teatro in Denver and increased its quarterly dividend. The company is updating its full-year outlook range to incorporate recent transactions, year-to-date operating performance, and the current economic environment.

Portfolio Comparable RevPAR increased by 2.6% year-over-year to $157.30.

Total Revenue increased by 3.5% year-over-year to $369.3 million.

Net Income totaled $37.3 million.

The company acquired Hotel Teatro in Denver for $35.5 million.

Total Revenue
$369M
Previous year: $357M
+3.5%
EPS
$0.2
Previous year: $0.22
-9.1%
Gross Profit
$71.2M
Previous year: $120M
-40.8%
Cash and Equivalents
$407M
Previous year: $477M
-14.6%
Free Cash Flow
$82M
Total Assets
$4.92B
Previous year: $4.93B
-0.3%

RLJ

RLJ

RLJ Revenue by Segment

Forward Guidance

The Company is updating its full-year outlook range to incorporate recent transactions, year-to-date operating performance, and the current economic environment. FY 2024 Comparable RevPAR Growth is expected to be 1.0% to 2.5%. Comparable Hotel EBITDA is expected to be $382.5M to $402.5M. Adjusted EBITDA is expected to be $346.5M to $366.5M. Adjusted FFO per diluted share is expected to be $1.45 to $1.58.

Positive Outlook

  • Comparable RevPAR Growth of 1.0% to 2.5%.
  • Comparable Hotel EBITDA of $382.5M to $402.5M.
  • Adjusted EBITDA of $346.5M to $366.5M.
  • Adjusted FFO per diluted share of $1.45 to $1.58.
  • Net interest expense of $93.0 million to $95.0 million.

Challenges Ahead

  • Capital expenditures related to renovations in the range of $100.0 million to $120.0 million.
  • Diluted weighted average common shares and units of 155.0 million.
  • No future acquisitions are incorporated into the Company's outlook and could result in a material change to the Company's outlook.
  • No future dispositions are incorporated into the Company's outlook and could result in a material change to the Company's outlook.
  • No future financings are incorporated into the Company's outlook and could result in a material change to the Company's outlook.

Revenue & Expenses

Visualization of income flow from segment revenue to net income