RLJ Lodging Trust swings to $4.6M Q3 2026 profit
RLJ completed an October sale of seven hotels near Chicago Midway Airport for $110.0 million, with $20.0 million of seller financing.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
RLJ Lodging Trust reported third-quarter 2026 results: Comparable Hotel Revenue was $354.5 million, up 9.1%, and net income was $4.6 million versus a $3.8 million loss a year earlier. Comparable RevPAR was $153.36, up 9.7%; Adjusted EBITDA was $85.2 million, up 17.3%; Adjusted FFO per diluted common share and unit was $0.34, up 25.9%.
RLJ raised its 2026 outlook to comparable RevPAR growth of +5.75% to +6.25%, Comparable Hotel EBITDA of $377 million to $383 million, Adjusted EBITDA of $352 million to $358 million, and Adjusted FFO per diluted share of $1.47 to $1.51. The comparable RevPAR and Hotel EBITDA outlooks exclude the seven Chicago Midway hotels sold after the third quarter.
In October 2026, RLJ completed the sale of seven hotels near Chicago Midway Airport for $110.0 million and provided $20.0 million of seller financing. At September 30, 2026, it had over $1.0 billion of liquidity, including approximately $448.3 million of unrestricted cash and $600.0 million available under its Revolver, and $2.2 billion of debt outstanding. The board declared a $0.15 quarterly common-share dividend, paid October 15, 2026, and a $0.4875 Series A preferred-share dividend, paid October 30, 2026.
2 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointComparable Hotel Revenue rose 9.1% to $354.5 million in Q3 2026.
- Moderate pointAdjusted EBITDA rose 17.3% to $85.2 million in Q3 2026.
Negative
- None.
Filing Explained
The release identifies Adjusted FFO, Adjusted EBITDA and related measures as company-defined non-GAAP measures and says they should supplement, not replace, net income; the adjusted growth figures therefore need to be read alongside the company’s net income result.
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, or exhibit attachments filed with this report.
Key Figures
Comparable Hotel Revenue: $354.5 million
Comparable RevPAR: $153.36
Adjusted EBITDA: $85.2 million
+4 more
7 metrics
Comparable Hotel Revenue
$354.5 million
Three months ended September 30, 2026; up 9.1% year over year
Comparable RevPAR
$153.36
Three months ended September 30, 2026; up 9.7% year over year
Adjusted EBITDA
$85.2 million
Three months ended September 30, 2026; up 17.3% year over year
Adjusted FFO per diluted common share and unit
$0.34
Three months ended September 30, 2026; up 25.9% year over year
2026 comparable RevPAR growth outlook
+5.75% to +6.25%
Full-year 2026 outlook
2026 Comparable Hotel EBITDA outlook
$377 million to $383 million
Full-year 2026 outlook
Debt outstanding
$2.2 billion
As of September 30, 2026
Key Terms
RevPAR, Adjusted FFO, EBITDAre, Hotel EBITDA Margin, +1 more
5 terms
RevPAR financial
"Comparable RevPAR of $153.36"
RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.
Adjusted FFO financial
"Adjusted FFO per diluted common share and unit"
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.
Hotel EBITDA Margin financial
"Hotel EBITDA and Hotel EBITDA Margin"
seller financing financial
"provided $20.0 million of seller financing"
Seller financing is a deal where the seller acts like the bank and lets the buyer pay for an asset over time instead of requiring full cash up front. For investors, that changes when and how much cash is received, creates extra credit risk because the seller depends on the buyer’s payments, and can affect valuation and liquidity — similar to getting a steady stream of loan payments rather than one lump sum sale.
Earnings Snapshot
Comparable Hotel Revenue: $354.5 million · Guidance included
Three months ended September 30, 2026
Comparable Hotel Revenue
$354.5 million
+9.1%
Comparable RevPAR
$153.36
+9.7%
Comparable Hotel EBITDA
$93.9 million
+17.5%
Adjusted EBITDA
$85.2 million
+17.3%
Adjusted FFO per diluted common share and unit
$0.34
+25.9%
Guidance
Full-year 2026 outlook: comparable RevPAR growth +5.75% to +6.25%; Comparable Hotel EBITDA $377 million to $383 million; Adjusted EBITDA $352 million to $358 million; Adjusted FFO per diluted share $1.47 to $1.51. Comparable RevPAR and Hotel EBITDA outlooks exclude the seven Chicago Midway assets sold subsequent to the third quarter.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What results did RLJ report for Q3 2026?
RLJ reported Comparable Hotel Revenue of $354.5 million and Adjusted EBITDA of $85.2 million for the three months ended September 30, 2026, up 9.1% and 17.3%, respectively, from a year earlier. Adjusted FFO per diluted common share and unit was $0.34, up 25.9%.
What is RLJ's 2026 outlook?
RLJ's outlook includes comparable RevPAR growth of +5.75% to +6.25%, Comparable Hotel EBITDA of $377 million to $383 million, Adjusted EBITDA of $352 million to $358 million, and Adjusted FFO per diluted share of $1.47 to $1.51. The comparable RevPAR and Hotel EBITDA outlooks exclude the seven hotels sold after the third quarter.
What were the terms of RLJ's October 2026 hotel sale?
RLJ completed the sale of seven hotels near Chicago Midway Airport for $110.0 million, representing 13.8x forecasted 2026 Hotel EBITDA, or 16.1x including required capital expenditures. RLJ provided $20.0 million of seller financing.
How much liquidity and debt did RLJ report at September 30, 2026?
RLJ reported over $1.0 billion of liquidity, including approximately $448.3 million of unrestricted cash and $600.0 million available under its Revolver. Debt outstanding was $2.2 billion.
What dividends did RLJ declare in Q3 2026?
RLJ declared a $0.15 per-share common dividend, paid October 15, 2026, and a $0.4875 Series A preferred-share dividend, paid October 30, 2026. Shareholders of record for both dividends were determined as of September 30, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 04, 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 November 4, 2026 , RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the quarter ended September 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 November 4, 2026, issued by RLJ Lodging Trust, providing financial results for the quarter ended September 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 November 4, 2026, issued by RLJ Lodging Trust, providing financial results for the quarter ended September 30, 2026. | |||||||
Press Release
RLJ Lodging Trust Reports Third Quarter 2026 Results
Q3 RevPAR increased 9.7%
Adjusted FFO per diluted common share and unit of $0.34 increased 25.9%
Adjusted EBITDA of $85.2 million increased 17.3%
Increasing full-year outlook
Bethesda, MD, November 4, 2026 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three and nine months ended September 30, 2026.
Third Quarter Highlights
•Comparable RevPAR of $153.36, an increase of 9.7% over the prior year
•Comparable Hotel Revenue of $354.5 million, an increase of 9.1% over the prior year
•Net income of $4.6 million
•Comparable Hotel EBITDA of $93.9 million, an increase of 17.5% over the prior year
•Comparable Hotel EBITDA Margin of 26.5%, an increase of 190 basis points over the prior year
•Adjusted EBITDA of $85.2 million, an increase of 17.3% over the prior year
•Adjusted FFO per diluted common share and unit of $0.34, an increase of 25.9% over the prior year
“We delivered another strong quarter, with results that once again exceeded our expectations across all metrics. Operating fundamentals accelerated during the quarter, with business travel leading the way alongside sustained strength in leisure and group, which disproportionately benefited our urban markets. As a result, we achieved robust RevPAR growth of 9.7%, outpacing the industry, driven by increases in both demand and rate. The ramp of our conversions and renovations provided additional momentum, which contributed to continued growth in non-room revenues. This robust top-line growth, combined with our disciplined cost control efforts, allowed us to expand margins and grow Hotel EBITDA at nearly twice the pace of revenues,” commented Leslie D. Hale, President and Chief Executive Officer. “Given our third quarter outperformance, strong preliminary results for October, and our expectation that positive trends will carry into the remainder of the year, we are raising our full-year guidance. Overall, against a backdrop of muted supply, demand continues to be supported by a favorable macro backdrop, including healthy corporate earnings and elevated levels of business investment, and we believe our urban-centric portfolio is well positioned to capture these trends.”
The prefix “comparable” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.
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Financial and Operating Highlights
($ in thousands, except ADR, RevPAR, Change, and per share amounts)
(unaudited)
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||
Operational Overview: (1) | ||||||||||||||||||||
| Comparable ADR | $203.35 | $191.16 | 6.4% | $210.32 | $201.29 | 4.5% | ||||||||||||||
| Comparable Occupancy | 75.4% | 73.1% | 3.1% | 74.4% | 72.6% | 2.4% | ||||||||||||||
| Comparable RevPAR | $153.36 | $139.82 | 9.7% | $156.51 | $146.21 | 7.0% | ||||||||||||||
| Financial Overview: | ||||||||||||||||||||
| Total Revenue | $354,476 | $330,045 | 7.4% | $1,077,441 | $1,021,267 | 5.5% | ||||||||||||||
| Comparable Hotel Revenue | $354,470 | $324,985 | 9.1% | $1,075,076 | $1,004,043 | 7.1% | ||||||||||||||
| Net income (loss) | $4,576 | ($3,798) | 220.5% | $35,555 | $28,005 | 27.0% | ||||||||||||||
| Comparable Hotel EBITDA | $93,859 | $79,880 | 17.5% | $303,039 | $275,207 | 10.1% | ||||||||||||||
| Comparable Hotel EBITDA Margin | 26.5% | 24.6% | 190 bps | 28.2% | 27.4% | 80 bps | ||||||||||||||
| Adjusted EBITDA | $85,150 | $72,583 | 17.3% | $276,415 | $254,185 | 8.7% | ||||||||||||||
| Adjusted FFO | $51,994 | $41,103 | 26.5% | $180,040 | $160,684 | 12.0% | ||||||||||||||
| Adjusted FFO Per Diluted Common Share and Unit | $0.34 | $0.27 | 25.9% | $1.19 | $1.07 | 11.2% | ||||||||||||||
Note:
(1) Comparable statistics reflect the Company's 91 hotel portfolio owned as of September 30, 2026.
Operational Update
Comparable RevPAR increased by 9.7% for the three months ended September 30, 2026, driven by ADR growth of 6.4% and a 230 basis point increase in occupancy. Non-room revenues increased by 6.5%, aided by strong growth in corporate transient and group demand, and reflecting the continued success of the Company’s return-on-investment initiatives. Robust revenue growth and disciplined expense management drove year-over-year Comparable Hotel EBITDA growth of 17.5% and Comparable Hotel EBITDA margin expansion of 190 basis points, contributing to Adjusted EBITDA growth of 17.3% over the prior year period.
Midway Portfolio Disposition
In October 2026, the Company completed the sale of seven hotel properties located near the Chicago Midway Airport for $110.0 million, which represents a multiple of 13.8x forecasted 2026 Hotel EBITDA, or 16.1x including required capital expenditures. As part of the transaction, RLJ provided $20.0 million of seller financing.
Balance Sheet
As of September 30, 2026, the Company had over $1.0 billion of total liquidity, comprised of approximately $448.3 million of unrestricted cash and $600.0 million available under its revolving credit facility (the "Revolver"), as well as $2.2 billion of debt outstanding.
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 third quarter. The dividend was paid on October 15, 2026 to shareholders of record as of September 30, 2026.
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The Company's Board of Trustees declared a third quarter cash dividend of $0.4875 on the Company’s Series A Preferred Shares. The dividend was paid on October 30, 2026 to shareholders of record as of September 30, 2026.
2026 Outlook
The Company is updating its full-year outlook to incorporate its third quarter outperformance and improved outlook for the fourth quarter. Comparable RevPAR and Hotel EBITDA outlooks exclude the seven Chicago Midway assets sold subsequent to the third quarter.
| FY 2026 | |||||
| Comparable RevPAR Growth | +5.75% to +6.25% | ||||
| Comparable Hotel EBITDA | $377M to $383M | ||||
| Adjusted EBITDA | $352M to $358M | ||||
| Adjusted FFO per diluted share | $1.47 to $1.51 | ||||
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 $34.5 million to $35.5 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 151.7 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 November 5, 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 third 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 84 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.
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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 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 September 30, 2026, which will be filed on November 5, 2026, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.
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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
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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
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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 nine months ended September 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
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RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Investment in hotel properties, net | $ | 3,922,238 | $ | 4,112,387 | |||||||
| Investment in unconsolidated joint ventures | 7,234 | 7,357 | |||||||||
| Cash and cash equivalents | 448,342 | 410,160 | |||||||||
| Restricted cash reserves | 37,485 | 31,901 | |||||||||
Hotel and other receivables, net of allowance of $208 and $170, respectively | 31,568 | 29,643 | |||||||||
| Lease right-of-use assets | 121,610 | 123,524 | |||||||||
| Prepaid expense and other assets | 52,344 | 27,158 | |||||||||
| Hotel properties held for sale, net | 105,847 | — | |||||||||
| Total assets | $ | 4,726,668 | $ | 4,742,130 | |||||||
| Liabilities and Equity | |||||||||||
| Debt, net | $ | 2,196,326 | $ | 2,197,218 | |||||||
| Accounts payable and other liabilities | 168,505 | 141,568 | |||||||||
| Advance deposits and deferred revenue | 49,149 | 51,029 | |||||||||
| Lease liabilities | 118,630 | 118,189 | |||||||||
| Accrued interest | 5,822 | 20,532 | |||||||||
| Distributions payable | 31,239 | 30,934 | |||||||||
| Liabilities associated with hotel properties held for sale | 5,257 | — | |||||||||
| Total liabilities | 2,574,928 | 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 September 30, 2026 and December 31, 2025 | 366,936 | 366,936 | |||||||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 152,336,663 and 151,085,078 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 1,523 | 1,511 | |||||||||
| Additional paid-in capital | 2,987,969 | 2,977,616 | |||||||||
| Distributions in excess of net earnings | (1,230,993) | (1,178,456) | |||||||||
| Accumulated other comprehensive income | 13,416 | 1,919 | |||||||||
| Total shareholders’ equity | 2,138,851 | 2,169,526 | |||||||||
| Noncontrolling interests: | |||||||||||
| Noncontrolling interest in the Operating Partnership | 5,447 | 5,696 | |||||||||
| Noncontrolling interest in consolidated joint ventures | 7,442 | 7,438 | |||||||||
| Total noncontrolling interest | 12,889 | 13,134 | |||||||||
| Total equity | 2,151,740 | 2,182,660 | |||||||||
| Total liabilities and equity | $ | 4,726,668 | $ | 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.
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RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(unaudited)
| For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||||
| Room revenue | $ | 288,366 | $ | 267,367 | $ | 875,383 | $ | 831,122 | |||||||||||||||
| Food and beverage revenue | 38,183 | 36,884 | 121,635 | 116,331 | |||||||||||||||||||
| Other revenue | 27,927 | 25,794 | 80,423 | 73,814 | |||||||||||||||||||
| Total revenues | 354,476 | 330,045 | 1,077,441 | 1,021,267 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Room expense | 78,239 | 74,685 | 228,902 | 220,101 | |||||||||||||||||||
| Food and beverage expense | 30,693 | 29,314 | 93,548 | 88,978 | |||||||||||||||||||
| Management and franchise fee expense | 26,826 | 25,253 | 81,221 | 78,848 | |||||||||||||||||||
| Other operating expenses | 102,640 | 94,112 | 298,793 | 278,610 | |||||||||||||||||||
| Total property operating expenses | 238,398 | 223,364 | 702,464 | 666,537 | |||||||||||||||||||
| Depreciation and amortization | 47,723 | 46,996 | 142,414 | 139,147 | |||||||||||||||||||
| Property tax, insurance and other | 24,636 | 26,647 | 78,392 | 80,340 | |||||||||||||||||||
| General and administrative | 13,325 | 11,782 | 39,728 | 35,566 | |||||||||||||||||||
| Transaction costs | 142 | 128 | 866 | 240 | |||||||||||||||||||
| Total operating expenses | 324,224 | 308,917 | 963,864 | 921,830 | |||||||||||||||||||
| Other income, net | 1,034 | 670 | 2,853 | 2,706 | |||||||||||||||||||
| Interest income | 3,666 | 3,502 | 9,869 | 10,118 | |||||||||||||||||||
| Interest expense | (29,831) | (28,309) | (85,624) | (83,737) | |||||||||||||||||||
| Gain (loss) on sale of hotel properties, net | 9 | (141) | (3,754) | 802 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | — | — | (399) | (34) | |||||||||||||||||||
| Income (loss) before equity in loss from unconsolidated joint ventures | 5,130 | (3,150) | 36,522 | 29,292 | |||||||||||||||||||
| Equity in loss from unconsolidated joint ventures | (260) | (307) | (123) | (313) | |||||||||||||||||||
| Income (loss) before income tax expense | 4,870 | (3,457) | 36,399 | 28,979 | |||||||||||||||||||
| Income tax expense | (294) | (341) | (844) | (974) | |||||||||||||||||||
| Net income (loss) | 4,576 | (3,798) | 35,555 | 28,005 | |||||||||||||||||||
| Net loss (income) attributable to noncontrolling interests: | |||||||||||||||||||||||
| Noncontrolling interest in the Operating Partnership | 6 | 52 | (88) | (44) | |||||||||||||||||||
| Noncontrolling interest in consolidated joint ventures | (14) | 10 | (4) | 118 | |||||||||||||||||||
| Net income (loss) attributable to RLJ | 4,568 | (3,736) | 35,463 | 28,079 | |||||||||||||||||||
| Preferred dividends | (6,279) | (6,279) | (18,836) | (18,836) | |||||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (1,711) | $ | (10,015) | $ | 16,627 | $ | 9,243 | |||||||||||||||
| Basic per common share data: | |||||||||||||||||||||||
| Net (loss) income per share attributable to common shareholders | $ | (0.01) | $ | (0.07) | $ | 0.10 | $ | 0.06 | |||||||||||||||
| Weighted-average number of common shares | 149,915,491 | 149,129,419 | 149,709,639 | 149,850,781 | |||||||||||||||||||
| Diluted per common share data: | |||||||||||||||||||||||
| Net (loss) income per share attributable to common shareholders | $ | (0.01) | $ | (0.07) | $ | 0.10 | $ | 0.06 | |||||||||||||||
| Weighted-average number of common shares | 149,915,491 | 149,129,419 | 150,903,798 | 149,987,216 | |||||||||||||||||||
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 September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | 4,576 | $ | (3,798) | $ | 35,555 | $ | 28,005 | |||||||||||||||
| Preferred dividends | (6,279) | (6,279) | (18,836) | (18,836) | |||||||||||||||||||
| Depreciation and amortization | 47,723 | 46,996 | 142,414 | 139,147 | |||||||||||||||||||
| (Gain) loss on sale of hotel properties, net | (9) | 141 | 3,754 | (802) | |||||||||||||||||||
| Noncontrolling interest in consolidated joint ventures | (14) | 10 | (4) | 118 | |||||||||||||||||||
| Adjustments related to consolidated joint venture (1) | (51) | (50) | (152) | (147) | |||||||||||||||||||
| Adjustments related to unconsolidated joint venture (2) | 222 | 225 | 671 | 706 | |||||||||||||||||||
| FFO | 46,168 | 37,245 | 163,402 | 148,191 | |||||||||||||||||||
| Transaction costs | 142 | 128 | 866 | 240 | |||||||||||||||||||
| Pre-opening costs (3) | 91 | 69 | 962 | 520 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | — | — | 399 | 34 | |||||||||||||||||||
| Amortization of share-based compensation | 4,619 | 4,043 | 12,317 | 11,280 | |||||||||||||||||||
| Non-cash income tax expense | 18 | — | — | — | |||||||||||||||||||
| Non-cash interest expense related to discontinued interest rate hedges | (234) | 144 | (311) | 433 | |||||||||||||||||||
| Other expenses (income) (4) | 1,190 | (526) | 2,405 | (14) | |||||||||||||||||||
| Adjusted FFO | $ | 51,994 | $ | 41,103 | $ | 180,040 | $ | 160,684 | |||||||||||||||
| Adjusted FFO per common share and unit-basic | $ | 0.35 | $ | 0.27 | $ | 1.20 | $ | 1.07 | |||||||||||||||
| Adjusted FFO per common share and unit-diluted | $ | 0.34 | $ | 0.27 | $ | 1.19 | $ | 1.07 | |||||||||||||||
| Basic weighted-average common shares and units outstanding (5) | 150,686 | 149,901 | 150,481 | 150,623 | |||||||||||||||||||
| Diluted weighted-average common shares and units outstanding (5) | 153,341 | 150,117 | 151,675 | 150,759 | |||||||||||||||||||
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 nine months ended September 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 September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | 4,576 | $ | (3,798) | $ | 35,555 | $ | 28,005 | |||||||||||||||
| Depreciation and amortization | 47,723 | 46,996 | 142,414 | 139,147 | |||||||||||||||||||
| Interest expense, net of interest income | 26,165 | 24,807 | 75,755 | 73,619 | |||||||||||||||||||
| Income tax expense | 294 | 341 | 844 | 974 | |||||||||||||||||||
| Adjustments related to unconsolidated joint venture (1) | 359 | 382 | 1,144 | 1,182 | |||||||||||||||||||
| EBITDA | 79,117 | 68,728 | 255,712 | 242,927 | |||||||||||||||||||
| (Gain) loss on sale of hotel properties, net | (9) | 141 | 3,754 | (802) | |||||||||||||||||||
EBITDAre | 79,108 | 68,869 | 259,466 | 242,125 | |||||||||||||||||||
| Transaction costs | 142 | 128 | 866 | 240 | |||||||||||||||||||
| Pre-opening costs (2) | 91 | 69 | 962 | 520 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | — | — | 399 | 34 | |||||||||||||||||||
| Amortization of share-based compensation | 4,619 | 4,043 | 12,317 | 11,280 | |||||||||||||||||||
| Other expenses (income) (3) | 1,190 | (526) | 2,405 | (14) | |||||||||||||||||||
| Adjusted EBITDA | 85,150 | 72,583 | 276,415 | 254,185 | |||||||||||||||||||
| General and administrative (4) | 8,729 | 7,706 | 26,219 | 23,761 | |||||||||||||||||||
| Other corporate adjustments | 414 | 736 | 1,199 | 2,378 | |||||||||||||||||||
| Consolidated Hotel EBITDA | 94,293 | 81,025 | 303,833 | 280,324 | |||||||||||||||||||
| Comparable adjustments - income from sold hotels | (434) | (1,145) | (794) | (5,117) | |||||||||||||||||||
| Comparable Hotel EBITDA | $ | 93,859 | $ | 79,880 | $ | 303,039 | $ | 275,207 | |||||||||||||||
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 September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total revenue | $ | 354,476 | $ | 330,045 | $ | 1,077,441 | $ | 1,021,267 | |||||||||||||||
| Comparable adjustments - revenue from sold hotels | — | (5,042) | (2,324) | (17,171) | |||||||||||||||||||
| Other corporate adjustments / non-hotel revenue | (6) | (18) | (41) | (53) | |||||||||||||||||||
| Comparable Hotel Revenue | $ | 354,470 | $ | 324,985 | $ | 1,075,076 | $ | 1,004,043 | |||||||||||||||
| Comparable Hotel EBITDA | $ | 93,859 | $ | 79,880 | $ | 303,039 | $ | 275,207 | |||||||||||||||
| Comparable Hotel EBITDA Margin | 26.5 | % | 24.6 | % | 28.2 | % | 27.4 | % | |||||||||||||||
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 | $ | 35.6 | $ | 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 | 329.3 | 334.3 | |||||||||
| Loss on sale of hotel properties, net | 3.8 | 3.8 | |||||||||
EBITDAre | 333.1 | 338.1 | |||||||||
| Amortization of share-based compensation | 16.9 | 16.9 | |||||||||
| All other items, net | 2.0 | 3.0 | |||||||||
| Adjusted EBITDA | 352.0 | 358.0 | |||||||||
| General and administrative | 34.5 | 35.5 | |||||||||
| Other corporate adjustments | (0.7) | (1.7) | |||||||||
| Consolidated Hotel EBITDA | 385.8 | 391.8 | |||||||||
| Comparable adjustments - income from sold hotels | (8.8) | (8.8) | |||||||||
| Comparable Hotel EBITDA | $ | 377.0 | $ | 383.0 | |||||||
Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders
| For the year ended December 31, 2026 | |||||||||||
| Low End | High End | ||||||||||
| Net income | $ | 35.6 | $ | 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 | 205.3 | 208.3 | |||||||||
| Amortization of share-based compensation | 16.9 | 16.9 | |||||||||
| All other items, net | 1.1 | 4.1 | |||||||||
| Adjusted FFO | $ | 223.3 | $ | 229.3 | |||||||
| Adjusted FFO per common share and unit-diluted | $ | 1.47 | $ | 1.51 | |||||||
Diluted weighted-average common shares and units outstanding | 151.7 | 151.7 | |||||||||
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 September 30, 2026 (3) | |||||||||||||||
| Mortgage Debt | ||||||||||||||||||||
| Mortgage loan - 1 hotel | 10 | January 2029 | Fixed | 5.06% | $ | 25,841 | ||||||||||||||
| Mortgage loan - 3 hotels | 5 | April 2031 | Floating | 5.21% | 91,700 | |||||||||||||||
| Mortgage loan - 4 hotels | 5 | April 2031 | Floating | 5.20% | 72,700 | |||||||||||||||
| Weighted Average / Mortgage Total | 5.18% | $ | 190,241 | |||||||||||||||||
| Corporate Debt | ||||||||||||||||||||
| Revolver (4) | 4 | February 2031 | Floating | — | $ | — | ||||||||||||||
| $569 Million Term Loan Maturing 2031 | 3 | February 2031 | Floating | 5.51% | 569,000 | |||||||||||||||
| $500 Million Term Loan Maturing 2027 | 3 | September 2029 | Floating | 4.97% | 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 | 5.51% | 300,000 | |||||||||||||||
| $150 Million Term Loan Maturing 2033 | 7 | February 2033 | Floating | 5.91% | 150,000 | |||||||||||||||
| Weighted Average / Corporate Total | 5.03% | $ | 2,019,000 | |||||||||||||||||
| Weighted-Average / Gross Debt | 5.05% | $ | 2,209,241 | |||||||||||||||||
Notes:
(1) The floating interest rate is hedged, or partially hedged, with an interest rate swap or cap.
(2) Interest rates as of September 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 September 30, 2026, there was $600.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually.
13