RLJ Lodging Trust Q2 revenue misses expectations, net income falls

RLJ Lodging Trust

07/08/2025 21:39

Overview

RLJ Lodging Q2 revenue falls 1.7% yr/yr, missing analyst expectations

Net income for Q2 declines 23.2% compared to last year

Company repurchased 0.8 mln shares and addressed all near-term maturities

Outlook

Company expects FY 2025 Comparable RevPAR growth of -1.0% to +1.0%

RLJ Lodging Trust sees FY 2025 Adjusted EBITDA of $332.5M to $362.5M

Company anticipates softer Q3 due to calendar shifts and renovations

RLJ Lodging Trust sees FY 2025 Adjusted FFO per share $1.38 to $1.58

Result Drivers

PORTFOLIO RESILIENCE - RLJ attributes its performance to the resilience of its portfolio and disciplined cost controls, despite a decline in RevPAR

RENOVATIONS AND CONVERSIONS - Continued ramp-up of conversions and transformative renovations contributed to results, per CEO Leslie D. Hale

SHARE REPURCHASES - Company executed accretive share repurchases, addressing near-term maturities and recycling capital

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$363.10 mln
$364.90 mln (9 Analysts)
Q2 Net Income
$28.63 mln
Q2 Adjusted Hotel EBITDA
$113.02 mln
Q2 Adjusted FFO
$72.66 mln
Q2 Adjusted RevPAR
$155.08


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy."

Wall Street's median 12-month price target for RLJ Lodging Trust is $9.50, about 22.8% above its August 6 closing price of $7.33

The stock recently traded at 140 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release: ID:nBw2b8RrSa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)