newsfilter.io
Nov 4, 2026, 5:21 PM ETReal Estate

RLJ Lodging Trust — Third Quarter 2026 Earnings Summary

RLJRLJ LODGING TRUST
Source

Financial Performance

  • Total revenue for the three months ended September 30, 2026, was $354.5 million, a 7.4% increase year-over-year (YoY) from $330.0 million.
  • Comparable Hotel Revenue was $354.5 million, up 9.1% YoY.
  • Net income for the quarter was $4.6 million, compared to a net loss of $3.8 million in the prior year period.
  • Comparable Hotel EBITDA was $93.9 million, an increase of 17.5% YoY.
  • Comparable Hotel EBITDA Margin expanded 190 basis points YoY to 26.5%.
  • Adjusted EBITDA was $85.2 million, up 17.3% YoY.
  • Adjusted FFO per diluted common share and unit was $0.34, an increase of 25.9% YoY.
  • For the nine months ended September 30, 2026, Total Revenue was $1.08 billion (up 5.5% YoY), Net Income was $35.6 million (up 27.0% YoY), and Adjusted FFO per diluted share was $1.19 (up 11.2% YoY).
  • As of September 30, 2026, the Company held over $1.0 billion in total liquidity, including $448.3 million in unrestricted cash and $600.0 million available under its revolving credit facility.
  • Total debt outstanding was $2.2 billion as of September 30, 2026.
  • Non-room revenues increased 6.5% during the quarter.

Guidance and Future Outlook

  • The Company raised its full-year 2026 outlook based on third-quarter outperformance and strong preliminary results for October.
  • Full-year 2026 Comparable RevPAR growth is now guided to +5.75% to +6.25%.
  • Full-year 2026 Comparable Hotel EBITDA is guided to $377 million to $383 million.
  • Full-year 2026 Adjusted EBITDA is guided to $352 million to $358 million.
  • Full-year 2026 Adjusted FFO per diluted share is guided to $1.47 to $1.51.
  • Full-year 2026 Net interest expense is guided to $101.0 million to $103.0 million.
  • Full-year 2026 Cash corporate G&A is guided to $34.5 million to $35.5 million.
  • Full-year 2026 Capital expenditures related to renovations are guided to $80.0 million to $90.0 million.
  • The outlook excludes the seven Chicago Midway assets sold subsequent to the third quarter.

Business Segments and Product Lines

  • Comparable RevPAR increased 9.7% driven by a 6.4% increase in Average Daily Rate (ADR) and a 230 basis point increase in occupancy.
  • Business travel, leisure, and group demand were cited as key drivers, with urban markets disproportionately benefiting.
  • The Company's portfolio consists of 91 comparable hotels as of September 30, 2026.
  • Conversions and renovations are ramping, contributing to growth in non-room revenues.

Market and Competitive Landscape

  • The Company reported robust RevPAR growth of 9.7%, outpacing the industry.
  • Demand is supported by a favorable macro backdrop including healthy corporate earnings and elevated levels of business investment.
  • The market is characterized by muted supply.
  • The Company's urban-centric portfolio is positioned to capture current market trends.

Risks and Challenges

  • The press release notes that potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the outlook and could result in material changes.
  • Forward-looking statements are subject to risks and uncertainties, including actual results differing materially from expectations.

Management Commentary and Tone

  • Leslie D. Hale, President and CEO, stated the quarter delivered results that exceeded expectations across all metrics.
  • Management highlighted that operating fundamentals accelerated, with business travel leading alongside sustained strength in leisure and group.
  • The tone was confident, citing robust top-line growth, disciplined cost control, and margin expansion.
  • Management expressed belief that positive trends will carry into the remainder of the year.

Other Key Points

  • In October 2026, the Company completed the sale of seven hotel properties near the Chicago Midway Airport for $110.0 million.
  • The sale represented a multiple of 13.8x forecasted 2026 Hotel EBITDA (16.1x including required capital expenditures).
  • RLJ provided $20.0 million in seller financing as part of the Midway disposition.
  • The Board declared a quarterly cash dividend of $0.15 per common share, paid on October 15, 2026.
  • The Board declared a third-quarter cash dividend of $0.4875 per Series A Preferred Share, paid on October 30, 2026.
  • The Company owns 84 premium-branded hotels as of the reporting period.
  • An analyst and investor conference call was scheduled for November 5, 2026.