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Dec 31, 2019

RLJ Q4 2019 Earnings Report

RLJ Lodging Trust reported results for the fourth quarter of 2019.

Key Takeaways

RLJ Lodging Trust reported a net income of $34.9 million and an Adjusted EBITDA of $96.3 million for the fourth quarter of 2019. The company successfully sold five hotels in Austin, TX for $67.6 million and repurchased 0.7 million shares for approximately $12.2 million.

Pro forma RevPAR decreased by 0.5%.

Pro forma Hotel EBITDA Margin was 30.0%.

Net income reached $34.9 million.

Adjusted EBITDA totaled $96.3 million.

Total Revenue
$347M
Previous year: $400M
-13.2%
EPS
$0.25
Previous year: $0.12
+108.3%
Gross Profit
$102M
Previous year: $121M
-16.2%
Cash and Equivalents
$882M
Previous year: $320M
+175.6%
Total Assets
$5.85B
Previous year: $6B
-2.5%

RLJ

RLJ

Forward Guidance

The Company’s outlook includes only hotels owned as of February 25, 2020. For the full year 2020, the Company anticipates: Pro forma RevPAR growth-1.5% to +0.5%, Pro forma Hotel EBITDA Margin 29.4% to 31.0%, Pro forma Consolidated Hotel EBITDA $413.0M to $443.0M, Corporate Cash General & Administrative Expense $35.0M to $36.0M, Adjusted EBITDA $378.0M to $408.0M, Adjusted FFO per Diluted Share and Unit $1.62 to $1.77

Positive Outlook

  • Pro forma RevPAR growth -1.5% to +0.5%
  • Pro forma Hotel EBITDA Margin 29.4% to 31.0%
  • Pro forma Consolidated Hotel EBITDA $413.0M to $443.0M
  • Corporate Cash General & Administrative Expense $35.0M to $36.0M
  • Adjusted EBITDA $378.0M to $408.0M

Challenges Ahead

  • The outlook does not incorporate the refinancing of the $475 million senior unsecured notes.
  • The outlook does not incorporate any incremental share repurchases.
  • Future acquisitions or dispositions are also not assumed in the Company's outlook.
  • Interest expense of $88.0 million to $90.0 million
  • Capital expenditures related to renovations in the range of $90.0 million to $110.0 million