RLJ Lodging Trust (NYSE: RLJ) lifts outlook after strong Q2 2026
Rhea-AI Filing Summary
RLJ Lodging Trust reported strong results for the quarter ended June 30, 2026, highlighted by Comparable RevPAR of $167.15, up 6.8% year over year, driven by a 4.9% increase in ADR and higher occupancy. Comparable Hotel Revenue was $382.0 million, also up 6.8%, and net income rose 9.4% to $31.3 million. Comparable Hotel EBITDA grew 7.1% to $119.5 million, with a Comparable Hotel EBITDA Margin of 31.3%. Adjusted EBITDA increased 6.1% to $110.4 million, while Adjusted FFO reached $78.5 million or $0.52 per diluted common share and unit, an 8.3% increase.
The company sold one hotel in Fremont, California for $13.2 million, representing 29.2x trailing-twelve-month Hotel EBITDA including required capital expenditures. On June 30, 2026 it 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, then used these proceeds and cash on hand on July 1, 2026 to repay $500.0 million of Senior Notes due 2026. After this, RLJ had $1.0 billion of total liquidity, $2.2 billion of debt, and no debt maturities until 2029.
For full-year 2026, RLJ raised its outlook, now expecting Comparable RevPAR growth of +3.5% to +4.5%, Comparable Hotel EBITDA of $369 million to $389 million, Adjusted EBITDA of $336 million to $356 million, and Adjusted FFO per diluted share of $1.37 to $1.50. The Board declared a quarterly cash dividend of $0.15 per common share and $0.4875 on its Series A Preferred Shares, both paid in July 2026 to shareholders of record as of June 30, 2026.
Positive
- Raised 2026 guidance, now targeting Comparable RevPAR growth of +3.5% to +4.5%, Comparable Hotel EBITDA of $369M–$389M, Adjusted EBITDA of $336M–$356M, and Adjusted FFO per diluted share of $1.37–$1.50.
- Delivered broad-based Q2 growth with Comparable RevPAR up 6.8%, net income up 9.4% to $31.3M, Comparable Hotel EBITDA up 7.1%, and Adjusted FFO per diluted share up 8.3% to $0.52.
- Completed a refinancing by drawing $494.0M of delayed draw term loans and repaying $500.0M Senior Notes due 2026, resulting in $1.0B liquidity and no debt maturities until 2029.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Comparable RevPAR: $167.15
Q2 2026 Adjusted FFO per diluted share: $0.52
Q2 2026 net income: $31.3 million
+5 more
8 metrics
Q2 2026 Comparable RevPAR
$167.15
Second quarter 2026, up 6.8% over the prior year
Q2 2026 Adjusted FFO per diluted share
$0.52
Second quarter 2026, an 8.3% increase over the prior year
Q2 2026 net income
$31.3 million
Net income for the quarter ended June 30, 2026, up 9.4% year over year
Fremont hotel sale price
$13.2 million
Proceeds from sale of one hotel in Fremont, California at 29.2x TTM Hotel EBITDA
Post-refinancing total liquidity
$1.0 billion
Liquidity after repaying $500.0 million Senior Notes due 2026
Post-refinancing total debt
$2.2 billion
Debt outstanding after repayment of Senior Notes due 2026
Q2 2026 common share dividend
$0.15 per share
Quarterly cash dividend declared for common shares, paid July 15, 2026
2026 Adjusted FFO guidance
$1.37 to $1.50 per diluted share
Full-year 2026 Adjusted FFO per diluted share outlook range
Key Terms
Comparable RevPAR, Adjusted FFO, EBITDAre, Funds From Operations, +1 more
5 terms
Comparable RevPAR financial
"Comparable RevPAR of $167.15, an increase of 6.8% over the prior year"
Comparable RevPAR measures how much revenue a hotel earns per available room, but only for properties that were open during both the current and prior comparison periods, so it excludes new or recently renovated properties. Investors use it as an “apples-to-apples” gauge of underlying hotel performance and demand trends, because it separates steady operating results from growth driven by acquisitions or portfolio changes.
Adjusted FFO financial
"Adjusted FFO per diluted common share and unit of $0.52, an increase of 8.3%"
Adjusted funds from operations (FFO) is a measure of how much cash a real estate investment generates from its regular business activities, excluding certain adjustments like accounting items or non-recurring expenses. It provides a clearer picture of the company's ongoing financial health, helping investors understand its true cash-generating ability. Think of it as measuring how much money a store makes from sales, after removing one-time costs or gains, to see its steady income flow.
EBITDAre financial
"the Company presents EBITDAre in accordance with NAREIT guidelines"
EBITDARE is a financial measure that shows a company's earnings before accounting for interest, taxes, depreciation, amortization, and restructuring costs. It helps investors understand how well a business is performing by focusing on its core operations, ignoring one-time or non-operational expenses. Think of it as checking a company's true earning power, similar to assessing a car’s performance by its engine without considering external factors like fuel costs or repairs.
Funds From Operations financial
"Funds From Operations (“FFO”) The Company calculates Funds from Operations"
Funds from operations (FFO) measures the cash a real estate-focused company generates from its core property operations by adjusting net income to add back non-cash expenses like building depreciation and removing one-time gains or losses from property sales. Investors use FFO like a household’s monthly take-home pay—it's a clearer view of ongoing cash available to pay dividends, maintain properties and fund growth than raw accounting profit.
delayed draw term loan financial
"under its $569.0 million delayed draw term loan maturing in 2031"
A delayed draw term loan is a financing agreement that lets a borrower take one or more lump-sum loans from a lender at agreed future dates within a set time window instead of receiving all funds up front. It matters to investors because it changes when and how much debt a company will carry, affecting cash flexibility, interest costs and risk exposure—think of it like an approved credit line you only tap when you need cash for a project.
Earnings Snapshot
Total revenue (Q2 2026): $382.988 million · Guidance included
three and six months ended June 30, 2026
Total revenue (Q2 2026)
$382.988 million
up 5.5% versus Q2 2025
Net income (Q2 2026)
$31.3 million
up 9.4% versus Q2 2025
Adjusted EBITDA (Q2 2026)
$110.4 million
up 6.1% versus Q2 2025
Adjusted FFO per diluted share (Q2 2026)
$0.52
up 8.3% versus Q2 2025
Comparable RevPAR (Q2 2026)
$167.15
up 6.8% versus Q2 2025
Guidance
For full-year 2026, the company guides to Comparable RevPAR growth of +3.5% to +4.5%, Comparable Hotel EBITDA of $369M to $389M, Adjusted EBITDA of $336M to $356M, and Adjusted FFO per diluted share of $1.37 to $1.50.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did RLJ Lodging Trust (RLJ) perform in the second quarter of 2026?
RLJ Lodging Trust delivered solid Q2 2026 results, with Comparable RevPAR of $167.15, up 6.8% year over year. Net income reached $31.3 million, Comparable Hotel EBITDA was $119.5 million, and Adjusted FFO per diluted common share and unit rose 8.3% to $0.52.
What full-year 2026 guidance did RLJ Lodging Trust (RLJ) provide?
RLJ Lodging Trust raised its 2026 outlook, expecting Comparable RevPAR growth of +3.5% to +4.5%. It forecasts Comparable Hotel EBITDA of $369M–$389M, Adjusted EBITDA of $336M–$356M, and Adjusted FFO per diluted share of $1.37–$1.50, excluding potential future transactions.
What balance sheet actions did RLJ Lodging Trust (RLJ) take around its 2026 debt maturity?
RLJ Lodging Trust drew $344.0 million under a delayed draw term loan maturing 2031 and $150.0 million under a term loan maturing 2033. On July 1, 2026 it used these proceeds and cash on hand to fully repay $500.0 million Senior Notes due 2026, leaving $1.0 billion liquidity and no maturities until 2029.
What dividends did RLJ Lodging Trust (RLJ) declare for the second quarter of 2026?
For Q2 2026, RLJ Lodging Trust’s Board declared a quarterly cash dividend of $0.15 per common share, paid July 15, 2026. It also declared a $0.4875 second-quarter cash dividend on its Series A Preferred Shares, paid July 31, 2026, with both dividends to holders of record on June 30, 2026.
Did RLJ Lodging Trust (RLJ) make any asset sales in the second quarter of 2026?
Yes. RLJ Lodging Trust sold one hotel in Fremont, California for $13.2 million. The sale price represented 29.2x trailing-twelve-month Hotel EBITDA, including required capital expenditures, reflecting a relatively high multiple on the asset’s recent operating performance.
Which non-GAAP measures does RLJ Lodging Trust (RLJ) emphasize and why?
RLJ Lodging Trust highlights FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin. Management believes these non-GAAP metrics help investors evaluate ongoing operating performance, compare results across periods and REITs, and focus on property-level profitability versus corporate capital structure and non-operational items.
What are RLJ Lodging Trust’s (RLJ) key operating drivers behind Q2 2026 growth?
RLJ Lodging Trust cites broad-based demand across its portfolio, including accelerating business travel and robust urban leisure trends. Growth was supported by a 4.9% ADR increase, higher occupancy, 7.1% growth in comparable non-room revenues, and the successful ramp of recent renovations and lifestyle-focused conversions.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 06, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(301 ) 280-7777
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12 (b) of the Exchange Act:
| Title of Class | Trading Symbol | Name of Exchange on Which Registered | ||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On August 6, 2026 , RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in this Current Report on Form 8-K (including Exhibit 99.1 hereto) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) The following exhibits are filed as part of this report:
| Exhibit Number | Description | |||||||
| 99.1 | Press release dated August 6, 2026, issued by RLJ Lodging Trust, providing financial results for the quarter ended June 30, 2026. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RLJ LODGING TRUST | ||||||||
Dated: | By: | /s/ Leslie D. Hale | ||||||
| Leslie D. Hale | ||||||||
| President and Chief Executive Officer | ||||||||
EXHIBIT LIST
| Exhibit Number | Description | |||||||
| 99.1 | Press release dated August 6, 2026, issued by RLJ Lodging Trust, providing financial results for the quarter ended June 30, 2026. | |||||||
Press Release
RLJ Lodging Trust Reports Second Quarter 2026 Results
Q2 RevPAR increased 6.8%
Adjusted FFO per diluted common share and unit of $0.52 increased 8.3%
Adjusted EBITDA of $110.4 million increased 6.1%
Increasing full-year outlook
Bethesda, MD, August 6, 2026 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and six months ended June 30, 2026.
Second Quarter Highlights
•Comparable RevPAR of $167.15, an increase of 6.8% over the prior year
•Comparable Hotel Revenue of $382.0 million, an increase of 6.8% over the prior year
•Net income of $31.3 million, an increase of 9.4% over the prior year
•Comparable Hotel EBITDA of $119.5 million, an increase of 7.1% over the prior year
•Comparable Hotel EBITDA Margin of 31.3%
•Adjusted EBITDA of $110.4 million, an increase of 6.1% over the prior year
•Adjusted FFO per diluted common share and unit of $0.52, an increase of 8.3% over the prior year
"We are pleased with our strong second quarter results, which exceeded our expectations, driven by the broad-based strength across our portfolio, including the continued acceleration of business travel and robust urban leisure trends. Our results further benefitted from our continued success in driving out-of-room spend as well as the successful ramp of our recently completed renovations and conversions.We also continued to advance our conversion pipeline with the completion and relaunch of our Autograph Collection asset in Pittsburgh, further increasing our exposure to the lifestyle segment and evolving consumer preferences.” commented Leslie D. Hale, President and Chief Executive Officer. "The broad-based nature of the growth across markets and demand segments year-to-date give us confidence in the durability of the demand trends we are seeing. As a result, we are raising our full-year guidance to reflect our second quarter outperformance and the continuation of these positive trends through the second half of the year as well as the ongoing ramp of our conversions and renovations."
The prefix “comparable” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.
1
Financial and Operating Highlights
($ in thousands, except ADR, RevPAR, Change, and per share amounts)
(unaudited)
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
Operational Overview: (1) | ||||||||||||||||||||
| Comparable ADR | $217.18 | $206.96 | 4.9% | $213.93 | $206.49 | 3.6% | ||||||||||||||
| Comparable Occupancy | 77.0% | 75.6% | 1.8% | 73.9% | 72.4% | 2.1% | ||||||||||||||
| Comparable RevPAR | $167.15 | $156.52 | 6.8% | $158.10 | $149.46 | 5.8% | ||||||||||||||
| Financial Overview: | ||||||||||||||||||||
| Total Revenue | $382,988 | $363,103 | 5.5% | $722,965 | $691,222 | 4.6% | ||||||||||||||
| Comparable Hotel Revenue | $382,020 | $357,542 | 6.8% | $720,606 | $679,058 | 6.1% | ||||||||||||||
| Net income | $31,328 | $28,631 | 9.4% | $30,979 | $31,803 | (2.6)% | ||||||||||||||
| Comparable Hotel EBITDA | $119,514 | $111,544 | 7.1% | $209,179 | $195,327 | 7.1% | ||||||||||||||
| Comparable Hotel EBITDA Margin | 31.3% | 31.2% | 10 bps | 29.0% | 28.8% | 20 bps | ||||||||||||||
| Adjusted EBITDA | $110,393 | $104,008 | 6.1% | $191,266 | $181,602 | 5.3% | ||||||||||||||
| Adjusted FFO | $78,527 | $72,658 | 8.1% | $128,047 | $119,579 | 7.1% | ||||||||||||||
| Adjusted FFO Per Diluted Common Share and Unit | $0.52 | $0.48 | 8.3% | $0.85 | $0.79 | 7.6% | ||||||||||||||
Note:
(1) Comparable statistics reflect the Company's 91 hotel portfolio owned as of June 30, 2026.
Operational Update
For the three months ended June 30, 2026, Comparable RevPAR increased by 6.8%, driven by ADR growth of 4.9%, with each month of the quarter exceeding the Company's expectations. Comparable non-room revenues increased 7.1%, exceeding comparable RevPAR growth by 30 basis points and reflecting the continued success of the Company's return-on-investment initiatives. This strong top line performance drove Comparable Hotel EBITDA growth of 7.1% and Adjusted EBITDA growth of 6.1% over the prior year period.
Disposition
During the second quarter of 2026, the Company opportunistically sold one hotel in Fremont, California for $13.2 million, which represents 29.2x Hotel EBITDA on a trailing-twelve month basis, including required capital expenditures.
Balance Sheet
On June 30, 2026, the Company drew $344.0 million under its $569.0 million delayed draw term loan
maturing in 2031 and $150.0 million under its delayed draw term loan maturing in 2033 for total proceeds
of $494.0 million. Subsequent to quarter end, on July 1, 2026, the Company used these proceeds, together
with cash on hand, to fully repay the $500.0 million Senior Notes due 2026 on their maturity date.
Following this repayment, the Company had $1.0 billion of total liquidity, $2.2 billion of debt and no debt maturities until 2029, inclusive of extension options.
Dividends
The Company’s Board of Trustees declared a quarterly cash dividend of $0.15 per common share of beneficial interest of the Company in the second quarter. The dividend was paid on July 15, 2026 to shareholders of record as of June 30, 2026.
2
The Company's Board of Trustees declared a second quarter cash dividend of $0.4875 on the Company’s Series A Preferred Shares. The dividend was paid on July 31, 2026 to shareholders of record as of June 30, 2026.
2026 Outlook
The Company is updating its full-year outlook to incorporate the strong second quarter outperformance and it's expectations that positive trends will continue through the second half of the year.
| FY 2026 | |||||
| Comparable RevPAR Growth | +3.5% to +4.5% | ||||
| Comparable Hotel EBITDA | $369M to $389M | ||||
| Adjusted EBITDA | $336M to $356M | ||||
| Adjusted FFO per diluted share | $1.37 to $1.50 | ||||
Additionally, the Company's full year 2026 outlook includes:
•Net interest expense in the range of $101.0 million to $103.0 million
•Cash corporate G&A in the range of $33.5 million to $34.5 million
•Capital expenditures related to renovations in the range of $80.0 million to $90.0 million
•Diluted weighted average common shares and units of 151.5 million
Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the
Company's outlook above and could result in a material change to the Company's outlook.
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on August 7, 2026 at 12:00 p.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust’s second quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://www.rljlodgingtrust.com. A replay of the conference call webcast will be archived and available through the Investor Relations section of the Company’s website for two weeks.
Supplemental Information
Please refer to the presentation of supplemental information for additional detail and comparable operating statistics, which will be available through the Investor Relations section of the Company's website.
About Us
RLJ Lodging Trust ("RLJ") is a self-advised, publicly traded real estate investment trust that owns 91 premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels located within the heart of demand locations. We own a geographically diversified portfolio of hotels located in urban markets that exhibit multiple demand generators and attractive long-term growth prospects.
Forward-Looking Statements
This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected
3
operating results, and the assumptions upon which those statements are based, that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which will be filed on August 7, 2026, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.
###
Additional Contacts:
Leslie D. Hale, President and Chief Executive Officer – (301) 280-7777
Nikhil Bhalla, Chief Financial Officer – (301) 280-7777
For additional information or to receive press releases via email, please visit our website:
https://www.rljlodgingtrust.com
4
RLJ Lodging Trust
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin. These Non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin, as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company defines such terms.
Funds From Operations (“FFO”)
The Company calculates Funds from Operations (“FFO”) in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss, excluding gains or losses from sales of real estate, impairment, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company’s operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company’s operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts (“REITs”), even though FFO does not represent an amount that accrues directly to common shareholders.
The Company’s calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest (“OP units”) in RLJ Lodging Trust, L.P., the Company’s operating partnership, because the OP units may be redeemed for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.
EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) is defined as net income or loss excluding: (1) interest expense; (2) income tax expense; and (3) depreciation and amortization expense. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization expense) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.
In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. The Company believes that the presentation of EBITDAre provides useful
5
information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.
Adjustments to FFO and EBITDA
The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers outside the normal course of operations. The Company believes that Adjusted FFO, Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor’s understanding of the Company's operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:
•Transaction Costs: The Company excludes transaction costs expensed during the period
•Pre-Opening Costs: The Company excludes certain costs related to pre-opening of hotels
•Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation, non-cash income tax expense or benefit, and non-cash interest expense related to discontinued interest rate hedges
•Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses representing income and expenses outside the normal course of operations
Hotel EBITDA and Hotel EBITDA Margin
With respect to Comparable Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and certain non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company’s hotels and the effectiveness of third-party management companies.
Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin include prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels and excludes results from sold hotels as applicable.
Comparable adjustments: Sold hotels
For the three and six months ended June 30, 2026 and 2025, Comparable adjustments included the following sold hotels:
•Courtyard Atlanta Buckhead sold in March 2025
•Embassy Suites by Hilton Dallas-Love Field sold in December 2025
•Residence Inn Houston by the Galleria sold in December 2025
•Hyatt Place Fremont/Silicon Valley sold in June 2026
6
RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Investment in hotel properties, net | $ | 4,047,317 | $ | 4,112,387 | |||||||
| Investment in unconsolidated joint ventures | 7,494 | 7,357 | |||||||||
| Cash and cash equivalents | 937,599 | 410,160 | |||||||||
| Restricted cash reserves | 35,768 | 31,901 | |||||||||
Hotel and other receivables, net of allowance of $96 and $170, respectively | 30,024 | 29,643 | |||||||||
| Lease right-of-use assets | 122,785 | 123,524 | |||||||||
| Prepaid expense and other assets | 52,699 | 27,158 | |||||||||
| Total assets | $ | 5,233,686 | $ | 4,742,130 | |||||||
| Liabilities and Equity | |||||||||||
| Debt, net | $ | 2,695,154 | $ | 2,197,218 | |||||||
| Accounts payable and other liabilities | 156,580 | 141,568 | |||||||||
| Advance deposits and deferred revenue | 46,400 | 51,029 | |||||||||
| Lease liabilities | 119,262 | 118,189 | |||||||||
| Accrued interest | 20,470 | 20,532 | |||||||||
| Distributions payable | 30,893 | 30,934 | |||||||||
| Total liabilities | 3,068,759 | 2,559,470 | |||||||||
| Equity | |||||||||||
| Shareholders’ equity: | |||||||||||
| Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized | |||||||||||
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at June 30, 2026 and December 31, 2025 | 366,936 | 366,936 | |||||||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 152,375,872 and 151,085,078 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | 1,524 | 1,511 | |||||||||
| Additional paid-in capital | 2,982,795 | 2,977,616 | |||||||||
| Distributions in excess of net earnings | (1,206,064) | (1,178,456) | |||||||||
| Accumulated other comprehensive income | 6,738 | 1,919 | |||||||||
| Total shareholders’ equity | 2,151,929 | 2,169,526 | |||||||||
| Noncontrolling interests: | |||||||||||
| Noncontrolling interest in the Operating Partnership | 5,570 | 5,696 | |||||||||
| Noncontrolling interest in consolidated joint ventures | 7,428 | 7,438 | |||||||||
| Total noncontrolling interest | 12,998 | 13,134 | |||||||||
| Total equity | 2,164,927 | 2,182,660 | |||||||||
| Total liabilities and equity | $ | 5,233,686 | $ | 4,742,130 | |||||||
Note: The corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q.
7
RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(unaudited)
| For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||||
| Room revenue | $ | 311,760 | $ | 296,101 | $ | 587,017 | $ | 563,755 | |||||||||||||||
| Food and beverage revenue | 43,735 | 41,934 | 83,452 | 79,447 | |||||||||||||||||||
| Other revenue | 27,493 | 25,068 | 52,496 | 48,020 | |||||||||||||||||||
| Total revenues | 382,988 | 363,103 | 722,965 | 691,222 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Room expense | 77,931 | 74,565 | 150,663 | 145,416 | |||||||||||||||||||
| Food and beverage expense | 32,093 | 30,375 | 62,855 | 59,664 | |||||||||||||||||||
| Management and franchise fee expense | 29,321 | 28,393 | 54,395 | 53,595 | |||||||||||||||||||
| Other operating expenses | 99,727 | 92,787 | 196,153 | 184,498 | |||||||||||||||||||
| Total property operating expenses | 239,072 | 226,120 | 464,066 | 443,173 | |||||||||||||||||||
| Depreciation and amortization | 47,496 | 46,363 | 94,691 | 92,151 | |||||||||||||||||||
| Property tax, insurance and other | 26,784 | 26,490 | 53,756 | 53,693 | |||||||||||||||||||
| General and administrative | 13,424 | 11,138 | 26,403 | 23,784 | |||||||||||||||||||
| Transaction costs | 692 | 56 | 724 | 112 | |||||||||||||||||||
| Total operating expenses | 327,468 | 310,167 | 639,640 | 612,913 | |||||||||||||||||||
| Other income, net | 987 | 1,148 | 1,819 | 2,036 | |||||||||||||||||||
| Interest income | 3,265 | 3,361 | 6,203 | 6,616 | |||||||||||||||||||
| Interest expense | (28,116) | (27,876) | (55,793) | (55,428) | |||||||||||||||||||
| (Loss) gain on sale of hotel properties, net | (116) | (378) | (3,763) | 943 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | (26) | (34) | (399) | (34) | |||||||||||||||||||
| Income before equity in income (loss) from unconsolidated joint ventures | 31,514 | 29,157 | 31,392 | 32,442 | |||||||||||||||||||
| Equity in income (loss) from unconsolidated joint ventures | 100 | (187) | 137 | (6) | |||||||||||||||||||
| Income before income tax expense | 31,614 | 28,970 | 31,529 | 32,436 | |||||||||||||||||||
| Income tax expense | (286) | (339) | (550) | (633) | |||||||||||||||||||
| Net income | 31,328 | 28,631 | 30,979 | 31,803 | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests: | |||||||||||||||||||||||
| Noncontrolling interest in the Operating Partnership | (128) | (113) | (94) | (96) | |||||||||||||||||||
| Noncontrolling interest in consolidated joint ventures | (164) | (65) | 10 | 108 | |||||||||||||||||||
| Net income attributable to RLJ | 31,036 | 28,453 | 30,895 | 31,815 | |||||||||||||||||||
| Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 24,757 | $ | 22,174 | $ | 18,338 | $ | 19,258 | |||||||||||||||
| Basic per common share data: | |||||||||||||||||||||||
| Net income per share attributable to common shareholders | $ | 0.16 | $ | 0.15 | $ | 0.12 | $ | 0.12 | |||||||||||||||
| Weighted-average number of common shares | 149,883,674 | 149,532,971 | 149,605,007 | 150,217,440 | |||||||||||||||||||
| Diluted per common share data: | |||||||||||||||||||||||
| Net income per share attributable to common shareholders | $ | 0.16 | $ | 0.15 | $ | 0.12 | $ | 0.12 | |||||||||||||||
| Weighted-average number of common shares | 150,928,683 | 149,598,953 | 150,382,279 | 150,355,083 | |||||||||||||||||||
Note: The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Quarterly Report on Form 10-Q.
8
RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands, except per share data)
(unaudited)
Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders
| For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 31,328 | $ | 28,631 | $ | 30,979 | $ | 31,803 | |||||||||||||||
| Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) | |||||||||||||||||||
| Depreciation and amortization | 47,496 | 46,363 | 94,691 | 92,151 | |||||||||||||||||||
| Loss (gain) on sale of hotel properties, net | 116 | 378 | 3,763 | (943) | |||||||||||||||||||
| Noncontrolling interest in consolidated joint ventures | (164) | (65) | 10 | 108 | |||||||||||||||||||
| Adjustments related to consolidated joint venture (1) | (50) | (49) | (100) | (98) | |||||||||||||||||||
| Adjustments related to unconsolidated joint venture (2) | 225 | 237 | 449 | 481 | |||||||||||||||||||
| FFO | 72,672 | 69,216 | 117,235 | 110,945 | |||||||||||||||||||
| Transaction costs | 692 | 56 | 724 | 112 | |||||||||||||||||||
| Pre-opening costs (3) | 573 | 52 | 871 | 451 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | 26 | 34 | 399 | 34 | |||||||||||||||||||
| Amortization of share-based compensation | 4,042 | 2,888 | 7,699 | 7,237 | |||||||||||||||||||
| Non-cash income tax benefit | (18) | — | (18) | — | |||||||||||||||||||
| Non-cash interest expense related to discontinued interest rate hedges | (78) | 144 | (78) | 288 | |||||||||||||||||||
| Other expenses (4) | 618 | 268 | 1,215 | 512 | |||||||||||||||||||
| Adjusted FFO | $ | 78,527 | $ | 72,658 | $ | 128,047 | $ | 119,579 | |||||||||||||||
| Adjusted FFO per common share and unit-basic | $ | 0.52 | $ | 0.48 | $ | 0.85 | $ | 0.79 | |||||||||||||||
| Adjusted FFO per common share and unit-diluted | $ | 0.52 | $ | 0.48 | $ | 0.85 | $ | 0.79 | |||||||||||||||
| Basic weighted-average common shares and units outstanding (5) | 150,655 | 150,305 | 150,376 | 150,989 | |||||||||||||||||||
| Diluted weighted-average common shares and units outstanding (5) | 151,700 | 150,371 | 151,153 | 151,127 | |||||||||||||||||||
Notes:
(1)Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint venture.
(2)Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint venture.
(3)Represents expenses related to the brand conversions of certain hotel properties prior to opening.
(4)Represents expenses and income outside of the normal course of operations.
(5)Includes 0.8 million weighted-average operating partnership units for the three and six months ended June 30, 2026 and 2025.
9
RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands)
(unaudited)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
| For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 31,328 | $ | 28,631 | $ | 30,979 | $ | 31,803 | |||||||||||||||
| Depreciation and amortization | 47,496 | 46,363 | 94,691 | 92,151 | |||||||||||||||||||
| Interest expense, net of interest income | 24,851 | 24,515 | 49,590 | 48,812 | |||||||||||||||||||
| Income tax expense | 286 | 339 | 550 | 633 | |||||||||||||||||||
| Adjustments related to unconsolidated joint venture (1) | 365 | 484 | 785 | 800 | |||||||||||||||||||
| EBITDA | 104,326 | 100,332 | 176,595 | 174,199 | |||||||||||||||||||
| Loss (gain) on sale of hotel properties, net | 116 | 378 | 3,763 | (943) | |||||||||||||||||||
EBITDAre | 104,442 | 100,710 | 180,358 | 173,256 | |||||||||||||||||||
| Transaction costs | 692 | 56 | 724 | 112 | |||||||||||||||||||
| Pre-opening costs (2) | 573 | 52 | 871 | 451 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | 26 | 34 | 399 | 34 | |||||||||||||||||||
| Amortization of share-based compensation | 4,042 | 2,888 | 7,699 | 7,237 | |||||||||||||||||||
| Other expenses (3) | 618 | 268 | 1,215 | 512 | |||||||||||||||||||
| Adjusted EBITDA | 110,393 | 104,008 | 191,266 | 181,602 | |||||||||||||||||||
| General and administrative (4) | 8,764 | 8,001 | 17,489 | 16,055 | |||||||||||||||||||
| Other corporate adjustments | 460 | 1,379 | 785 | 1,642 | |||||||||||||||||||
| Consolidated Hotel EBITDA | 119,617 | 113,388 | 209,540 | 199,299 | |||||||||||||||||||
| Comparable adjustments - income from sold hotels | (103) | (1,844) | (361) | (3,972) | |||||||||||||||||||
| Comparable Hotel EBITDA | $ | 119,514 | $ | 111,544 | $ | 209,179 | $ | 195,327 | |||||||||||||||
Notes:
(1)Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint venture.
(2)Represents expenses related to the brand conversions of certain hotel properties prior to opening.
(3)Represents expenses and income outside the normal course of operations.
(4)Excludes amortization of share-based compensation and general and administrative expenses outside the normal course of operations.
10
RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands except margin data)
(unaudited)
Comparable Hotel EBITDA Margin
| For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total revenue | $ | 382,988 | $ | 363,103 | $ | 722,965 | $ | 691,222 | |||||||||||||||
| Comparable adjustments - revenue from sold hotels | (950) | (5,543) | (2,324) | (12,129) | |||||||||||||||||||
| Other corporate adjustments / non-hotel revenue | (18) | (18) | (35) | (35) | |||||||||||||||||||
| Comparable Hotel Revenue | $ | 382,020 | $ | 357,542 | $ | 720,606 | $ | 679,058 | |||||||||||||||
| Comparable Hotel EBITDA | $ | 119,514 | $ | 111,544 | $ | 209,179 | $ | 195,327 | |||||||||||||||
| Comparable Hotel EBITDA Margin | 31.3 | % | 31.2 | % | 29.0 | % | 28.8 | % | |||||||||||||||
11
RLJ Lodging Trust
Reconciliation of Non-GAAP Measures - Full-Year Outlook
(Amounts in millions)
(unaudited)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
| For the year ended December 31, 2026 | |||||||||||
| Low End | High End | ||||||||||
| Net income | $ | 21.6 | $ | 38.6 | |||||||
| Depreciation and amortization | 190.0 | 190.0 | |||||||||
| Interest expense, net of interest income | 101.0 | 103.0 | |||||||||
| Income tax expense | 1.1 | 1.1 | |||||||||
| Adjustments related to joint ventures | 1.6 | 1.6 | |||||||||
| EBITDA | 315.3 | 334.3 | |||||||||
| Loss on sale of hotel properties, net | 3.8 | 3.8 | |||||||||
EBITDAre | 319.1 | 338.1 | |||||||||
| Amortization of share-based compensation | 16.8 | 16.8 | |||||||||
| All other items, net | 0.1 | 1.1 | |||||||||
| Adjusted EBITDA | 336.0 | 356.0 | |||||||||
| General and administrative | 33.5 | 34.5 | |||||||||
| Other corporate adjustments | (0.1) | (1.1) | |||||||||
| Consolidated Hotel EBITDA | 369.4 | 389.4 | |||||||||
| Comparable adjustments - income from sold hotels | (0.4) | (0.4) | |||||||||
| Comparable Hotel EBITDA | $ | 369.0 | $ | 389.0 | |||||||
Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders
| For the year ended December 31, 2026 | |||||||||||
| Low End | High End | ||||||||||
| Net income | $ | 21.6 | $ | 38.6 | |||||||
| Preferred dividends | (25.1) | (25.1) | |||||||||
| Depreciation and amortization | 190.0 | 190.0 | |||||||||
| Loss on sale of hotel properties, net | 3.8 | 3.8 | |||||||||
| Adjustments related to joint ventures | 1.0 | 1.0 | |||||||||
| FFO | 191.3 | 208.3 | |||||||||
| Amortization of share-based compensation | 16.8 | 16.8 | |||||||||
| All other items, net | (0.3) | 2.7 | |||||||||
| Adjusted FFO | $ | 207.8 | $ | 227.8 | |||||||
| Adjusted FFO per common share and unit-diluted | $ | 1.37 | $ | 1.50 | |||||||
Diluted weighted-average common shares and units outstanding | 151.5 | 151.5 | |||||||||
12
RLJ Lodging Trust
Consolidated Debt Summary
(Amounts in thousands except interest data)
(unaudited)
| Loan | Base Term (Years) | Maturity (incl. extensions) | Floating / Fixed (1) | Interest Rate (2) | Balance as of June 30, 2026 (3) | |||||||||||||||
| Mortgage Debt | ||||||||||||||||||||
| Mortgage loan - 1 hotel | 10 | January 2029 | Fixed | 5.06% | $ | 25,000 | ||||||||||||||
| Mortgage loan - 3 hotels | 5 | April 2029 | Floating | 5.17% | 91,700 | |||||||||||||||
| Mortgage loan - 4 hotels | 5 | April 2029 | Floating | 5.16% | 72,700 | |||||||||||||||
| Weighted Average / Mortgage Total | 5.15% | $ | 189,400 | |||||||||||||||||
| Corporate Debt | ||||||||||||||||||||
| Revolver (4) | 4 | February 2031 | Floating | — | $ | — | ||||||||||||||
| $569 Million Term Loan Maturing 2031 (5) | 3 | February 2031 | Floating | 5.40% | 569,000 | |||||||||||||||
| $500 Million Term Loan Maturing 2027 | 3 | September 2029 | Floating | 5.06% | 500,000 | |||||||||||||||
| $500 Million Senior Notes due 2026 (5) | 5 | July 2026 | Fixed | 3.75% | 500,000 | |||||||||||||||
| $500 Million Senior Notes due 2029 | 8 | September 2029 | Fixed | 4.00% | 500,000 | |||||||||||||||
| $300 Million Term Loan Maturing 2030 | 3 | April 2030 | Floating | 5.40% | 300,000 | |||||||||||||||
| $150 Million Term Loan Maturing 2033 (5) | 7 | February 2033 | Floating | 5.80% | 150,000 | |||||||||||||||
| Weighted Average / Corporate Total | 4.75% | $ | 2,519,000 | |||||||||||||||||
| Weighted-Average / Gross Debt | 4.78% | $ | 2,708,400 | |||||||||||||||||
Notes:
(1) The floating interest rate is hedged, or partially hedged, with an interest rate swap.
(2) Interest rates as of June 30, 2026, inclusive of the impact of interest rate hedges.
(3) Excludes the impact of fair value adjustments and deferred financing costs.
(4) As of June 30, 2026, there was $600.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually.
(5) On June 30, 2026, the Company drew the remaining $344.0 million under the $569.0 million delayed draw term loan and the total balance of the $150.0 million delayed draw term loan. On July 1, 2026, the Company used these proceeds to repay its $500.0 million Senior Notes due 2026.
13