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Sep 30
RLJ Q3 2025 Earnings Report
RLJ Lodging Trust reported its third quarter 2025 earnings, with results generally consistent with expectations despite a challenging market.
Key Takeaways
RLJ Lodging Trust reported total revenues of $330.0 million and a net loss of $3.8 million for the third quarter of 2025. The company achieved a comparable RevPAR of $138.51, a decrease of 5.1% year-over-year, and an Adjusted FFO per diluted common share and unit of $0.27. Despite a lower occupancy environment, the company saw continued growth in out-of-room spend and maintained disciplined cost control.
Total Revenues for the third quarter were $330.0 million, a decrease of 4.5% compared to the prior year.
The company reported a Net Loss of $3.8 million and a Net Loss per share of $0.07.
Comparable RevPAR was $138.51, representing a 5.1% decrease over the prior year, impacted by difficult prior year comparisons, softer citywide calendars, and transformative renovations.
Adjusted FFO per diluted common share and unit was $0.27, a decrease of 32.5% from the prior year.
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CapyFin.com Forward Guidance
RLJ Lodging Trust updated its full-year 2025 outlook, reflecting year-to-date performance and the anticipated impact of the ongoing government shutdown and macro uncertainty. The company expects Comparable RevPAR growth to be between -2.6% and -1.9% and Adjusted FFO per diluted share to range from $1.31 to $1.37.
Positive Outlook
- Continued growth in out-of-room spend, highlighting the success of ROI initiatives.
- Disciplined cost control efforts contributing to solid bottom-line results.
- Advancement of conversion pipeline and transformative renovations to unlock embedded value.
- Strong balance sheet and liquidity with approximately $1.0 billion of total liquidity.
- Anticipated building blocks and tailwinds supporting a more constructive backdrop in 2026.
Challenges Ahead
- Moderated near-term view due to the recent government shutdown.
- Ongoing macro uncertainty impacting the full-year outlook.
- Comparable RevPAR growth expected to be negative for the full year.
- No future acquisitions, dispositions, financings, or share repurchases are incorporated into the outlook, which could materially change it.
- Impact of difficult prior year comparisons and softer citywide calendars on industry performance.