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Jun 30
RLJ Q2 2025 Earnings Report
RLJ Lodging Trust reported its second quarter 2025 financial and operating results, exceeding expectations despite a decrease in comparable RevPAR.
Key Takeaways
RLJ Lodging Trust delivered strong second quarter results, surpassing expectations due to portfolio resiliency, continued ramp-up of conversions, and effective cost controls. The company reported total revenues of $363.1 million, net income of $28.6 million, and adjusted FFO per diluted common share and unit of $0.48. Strategic initiatives included advancing renovations, addressing near-term maturities, and executing accretive share repurchases.
Total Revenues reached $363.1 million, a slight decrease of 1.7% year-over-year.
Net Income was $28.6 million, with Net Income per share attributable to common shareholders at $0.15.
Adjusted FFO per diluted common share and unit stood at $0.48, while Adjusted EBITDA was $104.0 million.
The company repurchased 0.8 million shares for approximately $6.0 million and successfully addressed all near-term 2025 maturities.
RLJ
RLJ
RLJ Revenue by Segment
Revenue by Segment
Room Revenue
CapyFin.comFood and Beverage Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company anticipates a softer third quarter due to calendar shifts, tough citywide comparisons, and ongoing renovations, but expects positive tailwinds in the fourth quarter from a more favorable calendar, strong citywides, and ramping conversions/renovations. The low end of the full-year guidance range is now considered the most likely outcome.
Positive Outlook
- Anticipated positive tailwinds in the fourth quarter.
- More favorable calendar in Q4.
- Strong citywide events expected in several markets in Q4.
- Ramping of conversions and renovations contributing positively in Q4.
- Portfolio's lean operating model and focus on cost containment expected to drive bottom-line execution.
Challenges Ahead
- Softer backdrop anticipated in the third quarter.
- Impact of calendar shifts in Q3.
- Tough citywide comparisons in Q3.
- Continued renovations at key properties impacting Q3 results.
- Limited visibility due to macroeconomic uncertainty.