RLJ Lodging Trust — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the three months ended June 30, 2026, was $382.988 million, a 5.5% increase year-over-year; for the six months, revenue was $722.965 million, a 4.6% increase.
• Comparable Hotel Revenue for the three months was $382.020 million (up 6.8% YoY); for the six months, it was $720.606 million (up 6.1% YoY).
• Net income for the three months ended June 30, 2026, was $31.328 million, up 9.4% from the prior year; for the six months, net income was $30.979 million, a 2.6% decrease.
• Comparable Hotel EBITDA for the three months was $119.514 million (up 7.1% YoY); for the six months, it was $209.179 million (up 7.1% YoY).
• Comparable Hotel EBITDA Margin was 31.3% for the three months (up 10 basis points YoY) and 29.0% for the six months (up 20 basis points YoY).
• Adjusted EBITDA for the three months was $110.393 million (up 6.1% YoY); for the six months, it was $191.266 million (up 5.3% YoY).
• Adjusted FFO for the three months was $78.527 million (up 8.1% YoY); for the six months, it was $128.047 million (up 7.1% YoY).
• Adjusted FFO per diluted common share and unit was $0.52 for the three months (up 8.3% YoY) and $0.85 for the six months (up 7.6% YoY).
• Total debt as of June 30, 2026, was $2.695 billion; total liquidity was $1.0 billion.
• Debt maturities are not due until 2029, inclusive of extension options.
• Cash and cash equivalents were $937.599 million as of June 30, 2026.

Guidance and Future Outlook

• The Company raised its full-year 2026 outlook to reflect second quarter outperformance and continued positive trends.
• Full-year 2026 Comparable RevPAR growth is now guided to +3.5% to +4.5%.
• Full-year 2026 Comparable Hotel EBITDA is guided to $369 million to $389 million.
• Full-year 2026 Adjusted EBITDA is guided to $336 million to $356 million.
• Full-year 2026 Adjusted FFO per diluted share is guided to $1.37 to $1.50.
• Net interest expense for 2026 is guided to $101.0 million to $103.0 million.
• Cash corporate G&A for 2026 is guided to $33.5 million to $34.5 million.
• Capital expenditures related to renovations for 2026 are guided to $80.0 million to $90.0 million.
• Diluted weighted average common shares and units for 2026 are projected at 151.5 million.

Business Segments and Product Lines

• Comparable RevPAR increased 6.8% in the second quarter, driven by a 4.9% increase in ADR and a 1.8% increase in occupancy.
• Comparable non-room revenues increased 7.1% in the second quarter, exceeding comparable RevPAR growth by 30 basis points.
• The Company completed and relaunched an Autograph Collection asset in Pittsburgh, increasing exposure to the lifestyle segment.
• The portfolio consists of 91 premium-branded hotels as of June 30, 2026.
• The Company sold one hotel in Fremont, California, during the second quarter for $13.2 million.

Market and Competitive Landscape

• Business travel is showing continued acceleration.
• Urban leisure trends remain robust.
• Growth across markets and demand segments is described as broad-based.

Risks and Challenges

• Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the outlook and could result in material changes.
• Forward-looking statements involve risks and uncertainties, including assumptions regarding business plans and operating results, which could differ materially from actual results.

Management Commentary and Tone

• Leslie D. Hale, President and CEO, expressed pleasure with results exceeding expectations, citing broad-based portfolio strength.
• Management noted confidence in the durability of demand trends due to the broad-based nature of growth year-to-date.
• The tone reflects confidence in the continuation of positive trends through the second half of the year and the ramp of conversions and renovations.

Other Key Points

• The Board declared a quarterly cash dividend of $0.15 per common share, paid on July 15, 2026.
• The Board declared a second quarter cash dividend of $0.4875 per Series A Preferred Share, paid on July 31, 2026.
• On June 30, 2026, the Company drew $344.0 million under a $569.0 million delayed draw term loan maturing in 2031 and $150.0 million under a delayed draw term loan maturing in 2033.
• On July 1, 2026, proceeds from the term loans and cash on hand were used to fully repay $500.0 million in Senior Notes due 2026.
• The Fremont, California hotel sale represented a 29.2x Hotel EBITDA multiple on a trailing-twelve month basis, including required capital expenditures.
• The Company has $600.0 million of borrowing capacity on its Revolver as of June 30, 2026.