RLJ Lodging Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Comparable RevPAR increased 9.7% year-over-year to $153.36 for the three months ended September 30, 2026.
• Comparable Hotel Revenue grew 9.1% to $354.5 million for the quarter; Total Revenue increased 7.4% to $354.5 million.
• Net income was $4.6 million for the quarter, compared to a net loss of $3.8 million in the prior year period.
• Comparable Hotel EBITDA rose 17.5% to $93.9 million for the quarter, with margins expanding 190 basis points to 26.5%.
• Adjusted EBITDA increased 17.3% to $85.2 million for the quarter.
• Adjusted FFO per diluted common share and unit increased 25.9% to $0.34 for the quarter.
• For the nine months ended September 30, 2026, Net income was $35.6 million (up 27.0%), Comparable Hotel EBITDA was $303.0 million (up 10.1%), and Adjusted FFO per diluted share was $1.19 (up 11.2%).
• Total debt outstanding was $2.2 billion as of September 30, 2026.
• Liquidity totaled over $1.0 billion, comprised of $448.3 million in unrestricted cash and $600.0 million available under the revolving credit facility.

Guidance and Future Outlook:

• Full-year 2026 Comparable RevPAR growth guidance raised to +5.75% to +6.25%.
• Full-year 2026 Comparable Hotel EBITDA guidance raised to $377 million to $383 million.
• Full-year 2026 Adjusted EBITDA guidance raised to $352 million to $358 million.
• Full-year 2026 Adjusted FFO per diluted share guidance raised to $1.47 to $1.51.
• Net interest expense guidance for 2026 is $101.0 million to $103.0 million.
• Cash corporate G&A guidance for 2026 is $34.5 million to $35.5 million.
• Capital expenditures related to renovations for 2026 are projected at $80.0 million to $90.0 million.
• Outlook excludes the seven Chicago Midway assets sold in October 2026.

Business Segments and Product Lines:

• Business travel led demand growth alongside sustained strength in leisure and group segments, disproportionately benefiting urban markets.
• Non-room revenues increased 6.5% for the quarter, driven by corporate transient and group demand and return-on-investment initiatives.
• The Company owns 84 premium-branded hotels in urban markets as of the reporting period.
• Conversions and renovations ramped up during the quarter, contributing to non-revenue growth momentum.

Market and Competitive Landscape:

• RevPAR growth of 9.7% outpaced the industry, driven by increases in both demand and rate.
• The market backdrop includes muted supply, healthy corporate earnings, and elevated levels of business investment.
• The Company's urban-centric portfolio is positioned to capture favorable macro trends.

Risks and Challenges:

• Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the outlook and could materially change results.
• Forward-looking statements involve risks and uncertainties, including market conditions and operational factors, which could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• Leslie D. Hale, President and CEO, stated the quarter delivered strong results exceeding expectations across all metrics.
• Management noted operating fundamentals accelerated, with robust top-line growth and disciplined cost control expanding margins.
• CEO expressed confidence that positive trends will carry into the remainder of the year, citing strong preliminary results for October.

Other Key Points:

• In October 2026, the Company sold seven hotel properties near the Chicago Midway Airport for $110.0 million, representing a multiple of 13.8x forecasted 2026 Hotel EBITDA.
• The Midway transaction included $20.0 million in seller financing provided by RLJ.
• The Board declared a quarterly cash dividend of $0.15 per common share, paid on October 15, 2026.
• The Board declared a cash dividend of $0.4875 per Series A Preferred Share, paid on October 30, 2026.
• The Company has a diluted weighted average common shares and units count of 151.7 million for the full-year 2026 outlook.