RLJ Lodging Trust (NYSE: RLJ) earnings ease in 2025 as REIT extends debt maturities
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
RLJ Lodging Trust reported softer 2025 results but highlighted a stronger balance sheet and clear 2026 outlook. For the fourth quarter, comparable RevPAR was $136.79, down 1.5%, while comparable hotel revenue inched up 0.2% to $325.1 million. Net income was $0.5 million, Adjusted EBITDA was $80.4 million, and Adjusted FFO was $48.7 million, or $0.32 per diluted common share and unit.
For the full year 2025, RLJ generated total revenues of $1.35 billion and net income of $28.6 million. Adjusted EBITDA was $334.6 million, and Adjusted FFO was $209.4 million, or $1.39 per diluted common share and unit, both down from 2024. The company sold two hotels for $49.5 million, repurchased 3.3 million shares for $28.6 million, and ended the year with over $1.0 billion of liquidity against $2.2 billion of debt. Management refinanced all debt maturities through 2028 and guided 2026 Adjusted EBITDA to $312–342 million and Adjusted FFO per diluted share to $1.21–$1.41.
Positive
- Balance sheet de-risking: RLJ refinanced all debt maturities through 2028, intends to use delayed-draw term loan proceeds to repay $500 million of notes due July 2026, and now has no debt maturing until 2029, reducing near-term refinancing risk.
- Strong liquidity position: The company ended 2025 with over $1.0 billion of liquidity, including approximately $410.2 million of unrestricted cash and $600.0 million of revolver capacity, providing flexibility for operations, capital expenditures, and capital allocation.
Negative
- Earnings and margin deterioration: 2025 net income declined to $28.6 million from $68.2 million, while Adjusted EBITDA fell to $334.6 million from $361.6 million and comparable hotel EBITDA margin dropped from 29.1% to 27.3%, signaling broad profitability pressure.
- FFO under pressure: Adjusted FFO decreased to $209.4 million, or $1.39 per diluted common share and unit, from $241.8 million and $1.57, respectively, representing a double-digit decline in a key cash-flow proxy for equity holders.
Insights
2025 earnings softened, but RLJ extended its debt runway and set cautious 2026 guidance.
RLJ Lodging Trust saw modest top-line pressure in 2025 with comparable RevPAR down
Cash generation followed the same trend. Adjusted FFO dropped to
Balance sheet actions are a key offset. RLJ ended 2025 with over
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): February 26, 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 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 February 26, 2026 , RLJ Lodging Trust (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2025. 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 February 26, 2026, issued by RLJ Lodging Trust, providing financial results for the quarter and year ended December 31, 2025. | |||||||
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: February 26, 2026 | By: | /s/ LESLIE D. HALE | ||||||
| Leslie D. Hale | ||||||||
President, Chief Executive Officer, and Trustee | ||||||||
EXHIBIT LIST
| Exhibit Number | Description | |||||||
| 99.1 | Press release dated February 26, 2026, issued by RLJ Lodging Trust, providing financial results for the quarter and year ended December 31, 2025. | |||||||
Press Release
RLJ Lodging Trust Reports Fourth Quarter and Full Year 2025 Results
Fourth Quarter Adjusted FFO per diluted common share and unit of $0.32
Fourth Quarter Adjusted EBITDA of $80.4 million
Addressed all debt maturities through 2028
Bethesda, MD, February 26, 2026 – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months and year ended December 31, 2025.
Fourth Quarter Highlights
•Comparable RevPAR of $136.79, a decrease of 1.5% over the prior year
•Comparable Hotel Revenue of $325.1 million, an increase of 0.2% over the prior year
•Net Income of $0.5 million
•Adjusted EBITDA of $80.4 million
•Adjusted FFO per diluted common share and unit of $0.32
•Sold two hotels for a combined $49.5 million
•Ended year with over $1.0 billion of liquidity, including approximately $410.2 million of unrestricted cash and $600.0 million in undrawn revolver capacity
Full Year Highlights
•Comparable RevPAR of $143.49, a decrease of 1.7% over the prior year
•Comparable Hotel Revenue of $1.3 billion
•Net Income of $28.6 million
•Adjusted EBITDA of $334.6 million
•Adjusted FFO per diluted common share and unit of $1.39
“We achieved solid fourth quarter results that came in ahead of our outlook despite a choppy operating environment that was further constrained by a protracted government shutdown, driven by the outperformance of our urban markets, the successful ramp of our completed conversions, robust non-room revenue growth, and benefits from our disciplined cost management efforts. These results capped a productive year for RLJ in which we advanced a number of our strategic initiatives," commented Leslie D. Hale, President and Chief Executive Officer. “As we look ahead to 2026, we are cautiously optimistic given the positive setup for the broader economy and building blocks in place which should support lodging fundamentals. Against this backdrop, we believe our favorable footprint positions us to capture benefits from unique catalysts including the FIFA World Cup and America's 250th Anniversary celebrations in addition to the continued momentum of business and leisure demand in Urban markets, as well as the ongoing ramp from our recent conversions and renovations. Even as geopolitical uncertainty remains, these tailwinds, combined with our recently fortified balance sheet, give us confidence in our ability to unlock embedded value and enhance shareholder returns.”
1
The prefix “comparable” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.
Financial and Operating Highlights
($ in millions, except ADR, RevPAR, and per share amounts)
(unaudited)
| For the three months ended December 31, | For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||
| Operational Overview: (1) | |||||||||||||||||||||||
| Comparable ADR | $199.20 | $200.54 | (0.7)% | $200.39 | $201.04 | (0.3)% | |||||||||||||||||
| Comparable Occupancy | 68.7% | 69.3% | (0.9)% | 71.6% | 72.6% | (1.4)% | |||||||||||||||||
| Comparable RevPAR | $136.79 | $138.92 | (1.5)% | $143.49 | $146.05 | (1.7)% | |||||||||||||||||
| Financial Overview: | |||||||||||||||||||||||
| Total Revenues | $328.6 | $330.0 | (0.4)% | $1,349.9 | $1,369.4 | (1.4)% | |||||||||||||||||
| Comparable Hotel Revenue | $325.1 | $324.6 | 0.2% | $1,332.8 | $1,345.9 | (1.0)% | |||||||||||||||||
| Net Income | $0.5 | $5.5 | (90.9)% | $28.6 | $68.2 | (58.1)% | |||||||||||||||||
| Comparable Hotel EBITDA | $87.8 | $89.1 | (1.5)% | $363.5 | $392.0 | (7.3)% | |||||||||||||||||
| Comparable Hotel EBITDA Margin | 27.0% | 27.5% | (44) bps | 27.3% | 29.1% | (185) bps | |||||||||||||||||
| Adjusted EBITDA | $80.4 | $81.1 | (0.9)% | $334.6 | $361.6 | (7.5)% | |||||||||||||||||
| Adjusted FFO | $48.7 | $50.2 | (3.0)% | $209.4 | $241.8 | (13.4)% | |||||||||||||||||
| Adjusted FFO Per Diluted Common Share and Unit | $0.32 | $0.33 | (3.0)% | $1.39 | $1.57 | (11.5)% | |||||||||||||||||
Note:
(1) Comparable statistics reflect the Company's 92 hotel portfolio owned as of December 31, 2025.
Operational Update
Overall industry performance during the fourth quarter was impacted by the extended U.S. government shutdown that began on October 1, 2025, which disrupted otherwise positive demand trends that were expected in October and November. As a result, the Company's comparable RevPAR declined by 1.5%. Comparable non-room revenues increased 7.2%, reflecting the success of the Company’s return-on-investment initiatives and contributed to comparable total revenue growth of 0.2% over the prior year period. Fixed expenses during the quarter included $4.7 million of real estate tax credits.
Dispositions
During the fourth quarter of 2025, the Company sold two hotels for $49.5 million representing a 16.3x multiple on 2025 Hotel EBITDA, including required capital expenditures.
Share Repurchases
During 2025, the Company repurchased 3.3 million shares for approximately $28.6 million. The Company's share repurchase program currently has approximately $245.7 million of remaining capacity.
2
Balance Sheet
As of December 31, 2025, the Company had over $1.0 billion of total liquidity, comprising of approximately $410.2 million of unrestricted cash and $600.0 million available under its revolving credit facility ("Revolver"), and $2.2 billion of debt outstanding.
In December, the Company paid down $26.3 million of mortgage debt using proceeds from dispositions. Additionally, as previously announced, in February 2026 the Company completed the successful refinancing of all of its debt maturities through 2028, further laddering its debt maturity schedule and strengthening its balance sheet. The refinancing consists of four tranches including the extension of its Revolver, the upsize and recast of one of its existing term loans, the addition of a new seven-year term loan, as well as the refinancing of its secured debt maturing in 2026. The Company intends to use the incremental delayed draw proceeds from the term loans to repay its $500 million senior notes maturing in July 2026. Following these refinancing transactions, the Company’s next debt maturity is not until 2029.
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 fourth quarter. The dividend was paid on January 15, 2026 to shareholders of record as of December 31, 2025.
The Company's Board of Trustees declared a quarterly cash dividend of $0.4875 on the Company’s Series A Preferred Shares in the fourth quarter. The dividend was paid on January 30, 2026 to shareholders of record as of December 31, 2025.
2026 Outlook
($ in millions, except growth and per share amounts)
The Company is providing its annual outlook for all hotels owned as of February 26, 2026.
| FY 2026 | |||||
| Comparable RevPAR Growth | +0.5% to +3.0% | ||||
| Comparable Hotel EBITDA | $344M to $374M | ||||
| Adjusted EBITDA | $312M to $342M | ||||
| Adjusted FFO per diluted share | $1.21 to $1.41 | ||||
Additionally, the Company's full year 2026 outlook includes:
•Net interest expense of $101.0 million to $103.0 million
•Cash corporate G&A in the range of $32.5 million to $33.5 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 150.8 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.
3
Earnings Call
The Company will conduct its quarterly analyst and investor conference call on February 27, 2026 at 10:00 a.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 fourth 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 schedule of supplemental information for additional detail and Comparable operating statistics, which will be posted to the Investor Relations section of the Company's website.
About RLJ
RLJ Lodging Trust ("RLJ") is a self-advised, publicly traded real estate investment trust that owns 92 premium-branded, rooms-oriented, high-margin, urban-centric hotels located within the heart of demand locations. Our hotels are geographically diverse and concentrated in major urban markets that provide multiple demand generators from business, leisure, and other travelers.
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,” “may,” 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, which will be filed on February 27, 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:
http://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 (calculated in accordance with GAAP), 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 NAREIT's 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) provision for income taxes, including income taxes applicable to sales of assets; 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 (calculated in accordance with GAAP) excluding interest
5
expense, income tax benefit or 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 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 Consolidated 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. The following is a summary of Comparable hotel adjustments:
Comparable adjustments: Acquired hotel
For the three and twelve months ended December 31, 2025 and 2024, Comparable adjustments included the following acquired hotel:
•Hotel Teatro acquired in June 2024
Comparable adjustments: Sold hotels
For the three and twelve months ended December 31, 2025 and 2024, Comparable adjustments included the following sold hotels:
•Residence Inn Merrillville sold in May 2024
•Fairfield Inn & Suites Denver Cherry Creek sold in September 2024
•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
6
RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)
| December 31, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Investment in hotel properties, net | $ | 4,112,387 | $ | 4,250,524 | |||||||
| Investment in unconsolidated joint ventures | 7,357 | 7,457 | |||||||||
| Cash and cash equivalents | 410,160 | 409,809 | |||||||||
| Restricted cash reserves | 31,901 | 23,516 | |||||||||
Hotel and other receivables, net of allowance of $170 and $169, respectively | 29,643 | 25,494 | |||||||||
| Lease right-of-use assets | 123,524 | 128,111 | |||||||||
| Prepaid expense and other assets | 27,158 | 38,968 | |||||||||
| Total assets | $ | 4,742,130 | $ | 4,883,879 | |||||||
| Liabilities and Equity | |||||||||||
| Debt, net | $ | 2,197,218 | $ | 2,220,081 | |||||||
| Accounts payable and other liabilities | 141,568 | 154,643 | |||||||||
| Advance deposits and deferred revenue | 51,029 | 40,242 | |||||||||
| Lease liabilities | 118,189 | 119,102 | |||||||||
| Accrued interest | 20,532 | 20,900 | |||||||||
| Distributions payable | 30,934 | 30,634 | |||||||||
| Total liabilities | 2,559,470 | 2,585,602 | |||||||||
| 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 December 31, 2025 and 2024 | 366,936 | 366,936 | |||||||||
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 151,085,078 and 153,295,577 shares issued and outstanding at December 31, 2025 and 2024, respectively | 1,511 | 1,533 | |||||||||
| Additional paid-in capital | 2,977,616 | 2,992,487 | |||||||||
| Accumulated other comprehensive income | 1,919 | 13,788 | |||||||||
| Distributions in excess of net earnings | (1,178,456) | (1,090,186) | |||||||||
| Total shareholders’ equity | 2,169,526 | 2,284,558 | |||||||||
| Noncontrolling interest: | |||||||||||
| Noncontrolling interest in consolidated joint ventures | 7,438 | 7,589 | |||||||||
| Noncontrolling interest in the Operating Partnership | 5,696 | 6,130 | |||||||||
| Total noncontrolling interest | 13,134 | 13,719 | |||||||||
| Total equity | 2,182,660 | 2,298,277 | |||||||||
| Total liabilities and equity | $ | 4,742,130 | $ | 4,883,879 | |||||||
Note:
The corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.
7
RLJ Lodging Trust
Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(unaudited)
| For the three months ended December 31, | For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||||
| Room revenue | $ | 262,143 | $ | 267,690 | $ | 1,093,265 | $ | 1,121,586 | |||||||||||||||
| Food and beverage revenue | 41,887 | 39,593 | 158,218 | 153,108 | |||||||||||||||||||
| Other revenue | 24,563 | 22,706 | 98,377 | 94,746 | |||||||||||||||||||
| Total revenues | 328,593 | 329,989 | 1,349,860 | 1,369,440 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Room expense | 73,304 | 70,682 | 293,405 | 288,567 | |||||||||||||||||||
| Food and beverage expense | 30,821 | 29,487 | 119,799 | 117,766 | |||||||||||||||||||
| Management and franchise fee expense | 23,909 | 25,195 | 102,757 | 107,978 | |||||||||||||||||||
| Other operating expenses | 92,948 | 90,680 | 371,558 | 363,631 | |||||||||||||||||||
| Total property operating expenses | 220,982 | 216,044 | 887,519 | 877,942 | |||||||||||||||||||
| Depreciation and amortization | 47,209 | 45,386 | 186,356 | 179,431 | |||||||||||||||||||
| Property tax, insurance and other | 20,975 | 26,300 | 101,315 | 107,043 | |||||||||||||||||||
| General and administrative | 12,078 | 12,978 | 47,644 | 54,804 | |||||||||||||||||||
| Transaction costs | 170 | 21 | 410 | 320 | |||||||||||||||||||
| Total operating expenses | 301,414 | 300,729 | 1,223,244 | 1,219,540 | |||||||||||||||||||
| Other income, net | 771 | 673 | 3,477 | 5,342 | |||||||||||||||||||
| Interest income | 3,462 | 4,123 | 13,580 | 17,314 | |||||||||||||||||||
| Interest expense | (28,561) | (28,208) | (112,298) | (111,358) | |||||||||||||||||||
| (Loss) gain on sale of hotel properties, net | (2,328) | (39) | (1,526) | 8,262 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | (13) | — | (47) | (129) | |||||||||||||||||||
| Income before equity in income (loss) from unconsolidated joint ventures | 510 | 5,809 | 29,802 | 69,331 | |||||||||||||||||||
| Equity in income (loss) from unconsolidated joint ventures | 213 | 220 | (100) | 459 | |||||||||||||||||||
| Income before income tax expense | 723 | 6,029 | 29,702 | 69,790 | |||||||||||||||||||
| Income tax expense | (174) | (518) | (1,148) | (1,599) | |||||||||||||||||||
| Net income | 549 | 5,511 | 28,554 | 68,191 | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests: | |||||||||||||||||||||||
| Noncontrolling interest in consolidated joint ventures | (148) | (136) | (30) | 45 | |||||||||||||||||||
| Noncontrolling interest in the Operating Partnership | 29 | 1 | (15) | (215) | |||||||||||||||||||
| Net income attributable to RLJ | 430 | 5,376 | 28,509 | 68,021 | |||||||||||||||||||
| Preferred dividends | (6,279) | (6,279) | (25,115) | (25,115) | |||||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (5,849) | $ | (903) | $ | 3,394 | $ | 42,906 | |||||||||||||||
| Basic per common share data: | |||||||||||||||||||||||
| Net (loss) income per share attributable to common shareholders | $ | (0.04) | $ | (0.01) | $ | 0.01 | $ | 0.27 | |||||||||||||||
| Weighted-average number of common shares | 149,104,884 | 151,751,999 | 149,662,774 | 152,856,036 | |||||||||||||||||||
| Diluted per common share data: | |||||||||||||||||||||||
| Net (loss) income per share attributable to common shareholders | $ | (0.04) | $ | (0.01) | $ | 0.01 | $ | 0.27 | |||||||||||||||
| Weighted-average number of common shares | 149,104,884 | 151,751,999 | 149,912,078 | 153,475,921 | |||||||||||||||||||
Note:
The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company’s Annual Report on Form 10-K.
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 December 31, | For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 549 | $ | 5,511 | $ | 28,554 | $ | 68,191 | |||||||||||||||
| Preferred dividends | (6,279) | (6,279) | (25,115) | (25,115) | |||||||||||||||||||
| Depreciation and amortization | 47,209 | 45,386 | 186,356 | 179,431 | |||||||||||||||||||
| Loss (gain) on sale of hotel properties, net | 2,328 | 39 | 1,526 | (8,262) | |||||||||||||||||||
| Noncontrolling interest in consolidated joint ventures | (148) | (136) | (30) | 45 | |||||||||||||||||||
| Adjustments related to consolidated joint venture (1) | (50) | (48) | (198) | (187) | |||||||||||||||||||
| Adjustments related to unconsolidated joint venture (2) | 227 | 227 | 934 | 912 | |||||||||||||||||||
| FFO | 43,836 | 44,700 | 192,027 | 215,015 | |||||||||||||||||||
| Transaction costs | 170 | 21 | 410 | 320 | |||||||||||||||||||
| Pre-opening costs (3) | 354 | 247 | 874 | 1,335 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | 13 | — | 47 | 129 | |||||||||||||||||||
| Amortization of share-based compensation | 4,060 | 4,544 | 15,340 | 20,804 | |||||||||||||||||||
| Non-cash income tax expense | 13 | 10 | 13 | 10 | |||||||||||||||||||
| Non-cash interest expense related to discontinued interest rate hedges | 144 | 305 | 577 | 1,592 | |||||||||||||||||||
| Other expenses (4) | 144 | 385 | 130 | 2,641 | |||||||||||||||||||
| Adjusted FFO | $ | 48,734 | $ | 50,212 | $ | 209,418 | $ | 241,846 | |||||||||||||||
| Adjusted FFO per common share and unit-basic | $ | 0.33 | $ | 0.33 | $ | 1.39 | $ | 1.57 | |||||||||||||||
| Adjusted FFO per common share and unit-diluted | $ | 0.32 | $ | 0.33 | $ | 1.39 | $ | 1.57 | |||||||||||||||
| Basic weighted-average common shares and units outstanding (5) | 149,877 | 152,524 | 150,435 | 153,628 | |||||||||||||||||||
| Diluted weighted-average common shares and units outstanding (5) | 150,320 | 153,042 | 150,684 | 154,248 | |||||||||||||||||||
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 months and year ended December 31, 2025 and 2024.
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 December 31, | For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 549 | $ | 5,511 | $ | 28,554 | $ | 68,191 | |||||||||||||||
| Depreciation and amortization | 47,209 | 45,386 | 186,356 | 179,431 | |||||||||||||||||||
| Interest expense, net of interest income | 25,099 | 24,085 | 98,718 | 94,044 | |||||||||||||||||||
| Income tax expense | 174 | 518 | 1,148 | 1,599 | |||||||||||||||||||
| Adjustments related to unconsolidated joint venture (1) | 330 | 392 | 1,512 | 1,390 | |||||||||||||||||||
| EBITDA | 73,361 | 75,892 | 316,288 | 344,655 | |||||||||||||||||||
| Loss (gain) on sale of hotel properties, net | 2,328 | 39 | 1,526 | (8,262) | |||||||||||||||||||
| EBITDAre | 75,689 | 75,931 | 317,814 | 336,393 | |||||||||||||||||||
| Transaction costs | 170 | 21 | 410 | 320 | |||||||||||||||||||
| Pre-opening costs (2) | 354 | 247 | 874 | 1,335 | |||||||||||||||||||
| Loss on extinguishment of indebtedness, net | 13 | — | 47 | 129 | |||||||||||||||||||
| Amortization of share-based compensation | 4,060 | 4,544 | 15,340 | 20,804 | |||||||||||||||||||
| Other expenses (3) | 144 | 385 | 130 | 2,641 | |||||||||||||||||||
| Adjusted EBITDA | 80,430 | 81,128 | 334,615 | 361,622 | |||||||||||||||||||
| General and administrative | 8,018 | 8,434 | 32,304 | 34,000 | |||||||||||||||||||
| Other corporate adjustments | 306 | 848 | 2,159 | 3,133 | |||||||||||||||||||
| Consolidated Hotel EBITDA | 88,754 | 90,410 | 369,078 | 398,755 | |||||||||||||||||||
| Comparable adjustments - income from sold hotels | (935) | (1,286) | (5,562) | (7,240) | |||||||||||||||||||
| Comparable adjustments - income from acquired hotel | — | — | — | 525 | |||||||||||||||||||
| Comparable Hotel EBITDA | $ | 87,819 | $ | 89,124 | $ | 363,516 | $ | 392,040 | |||||||||||||||
Notes: Comparable statistics reflect the Company's 92 hotel portfolio owned as of December 31, 2025.
(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 of 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 December 31, | For the year ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Total revenue | $ | 328,593 | $ | 329,989 | $ | 1,349,860 | $ | 1,369,440 | |||||||||||||||
| Comparable adjustments - revenue from sold hotels | (3,431) | (5,336) | (17,015) | (27,284) | |||||||||||||||||||
| Comparable adjustments - revenue from prior ownership of acquired hotels | — | — | — | 3,834 | |||||||||||||||||||
| Other corporate adjustments / non-hotel revenue | (17) | (24) | (70) | (76) | |||||||||||||||||||
| Comparable Hotel Revenue | $ | 325,145 | $ | 324,629 | $ | 1,332,775 | $ | 1,345,914 | |||||||||||||||
| Comparable Hotel EBITDA | $ | 87,819 | $ | 89,124 | $ | 363,516 | $ | 392,040 | |||||||||||||||
| Comparable Hotel EBITDA Margin | 27.0 | % | 27.5 | % | 27.3 | % | 29.1 | % | |||||||||||||||
Note: Comparable statistics reflect the Company's 92 hotel portfolio owned as of December 31, 2025.
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 | $ | 0.3 | $ | 28.3 | |||||||
| Depreciation and amortization | 191.0 | 191.0 | |||||||||
| Interest expense, net of interest income | 101.0 | 103.0 | |||||||||
| Income tax expense | 1.4 | 1.4 | |||||||||
| Adjustments related to joint ventures | 1.5 | 1.5 | |||||||||
| EBITDA | 295.2 | 325.2 | |||||||||
| Amortization of share-based compensation | 16.8 | 16.8 | |||||||||
| Adjusted EBITDA | 312.0 | 342.0 | |||||||||
| General and administrative | 32.5 | 33.5 | |||||||||
| Other corporate adjustments | (0.5) | (1.5) | |||||||||
| Comparable Hotel EBITDA | $ | 344.0 | $ | 374.0 | |||||||
Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders
| For the year ended December 31, 2026 | |||||||||||
| Low End | High End | ||||||||||
| Net income | $ | 0.3 | $ | 28.3 | |||||||
| Preferred dividends | (25.1) | (25.1) | |||||||||
| Depreciation and amortization | 191.0 | 191.0 | |||||||||
| Adjustments related to joint ventures | 1.0 | 1.0 | |||||||||
| FFO | 167.2 | 195.2 | |||||||||
| Amortization of share-based compensation | 16.8 | 16.8 | |||||||||
| All other items, net | (1.4) | 0.6 | |||||||||
| Adjusted FFO | $ | 182.6 | $ | 212.6 | |||||||
| Adjusted FFO per common share and unit-diluted | $ | 1.21 | $ | 1.41 | |||||||
| Diluted weighted-average common shares and units outstanding | 150.8 | 150.8 | |||||||||
12
RLJ Lodging Trust
Consolidated Debt Summary
(Amounts in thousands except interest rate data)
(unaudited)
| Loan | Base Term (Years) | Maturity (incl. extensions) | Floating / Fixed (1) | Interest Rate (2) | Balance as of December 31, 2025 (3) | |||||||||||||||
| Mortgage Debt | ||||||||||||||||||||
| Mortgage loan - 1 hotel | 10 | Jan 2029 | Fixed | 5.06% | $ | 25,000 | ||||||||||||||
| Mortgage loan - 2 hotels (4) | 5 | Apr 2026 | Floating | 5.39% | 69,750 | |||||||||||||||
| Mortgage loan - 4 hotels (4) | 5 | Apr 2026 | Floating | 5.39% | 85,000 | |||||||||||||||
| Weighted Average / Mortgage Total | 5.34% | $ | 179,750 | |||||||||||||||||
| Corporate Debt | ||||||||||||||||||||
| Revolver (5) | 4 | May 2028 | Floating | — | $ | — | ||||||||||||||
| $225 Million Term Loan Maturing 2026 (6) | 3 | May 2028 | Floating | 5.01% | 225,000 | |||||||||||||||
| $500 Million Term Loan Maturing 2027 | 3 | September 2029 | Floating | 4.85% | 500,000 | |||||||||||||||
| $500 Million Senior Notes due 2026 | 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 | 5.54% | 300,000 | |||||||||||||||
| Weighted Average / Corporate Total | 4.49% | $ | 2,025,000 | |||||||||||||||||
| Weighted-Average / Gross Debt | 4.56% | $ | 2,204,750 | |||||||||||||||||
Notes:
(1) The floating interest rate is hedged, or partially hedged, with an interest rate swap.
(2) Interest rates as of December 31, 2025, inclusive of the impact of interest rate hedges.
(3) Excludes the impact of fair value adjustments and deferred financing costs.
(4) In December 2025, the Company sold one asset in the prior $96 million mortgage loan pool and paid down $26.3 million as required under the release provision. In January 2026, the Company amended these mortgage loans, extending the initial maturity date to April 2029, with two one-year extension options at the Company's discretion, subject to certain conditions. On the $69.8 million and $85.0 million mortgage loans, the Company paid down approximately $1.5 million and $3.9 million, respectively, in principal in connection with the amendments.
(5) As of December 31, 2025, there was $600.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually. In February 2026, the Company amended its Revolver extending the maturity date of the Revolver to February 11, 2030 with the ability to extend the maturity date for up to an additional year.
(6) In February 2026, the Company replaced its $225 million term loan with a new and upsized $569 million delayed draw term loan, extending the scheduled maturity date to February 11, 2031.
13
FAQ
How did RLJ Lodging Trust (RLJ) perform financially in full year 2025?
RLJ Lodging Trust generated total 2025 revenues of $1.35 billion and net income of $28.6 million. Adjusted EBITDA was $334.6 million, while Adjusted FFO reached $209.4 million, or $1.39 per diluted common share and unit, down from 2024 levels.
What were RLJ Lodging Trust’s key fourth quarter 2025 results?
In Q4 2025, RLJ reported comparable RevPAR of $136.79, down 1.5%, and comparable hotel revenue of $325.1 million. Net income was $0.5 million, with Adjusted EBITDA of $80.4 million and Adjusted FFO of $48.7 million, or $0.32 per diluted common share and unit.
What is RLJ Lodging Trust’s 2026 earnings outlook?
For 2026, RLJ expects Comparable Hotel EBITDA of $344–$374 million and Adjusted EBITDA of $312–$342 million. The company projects Adjusted FFO per diluted share between $1.21 and $1.41, based on diluted weighted-average common shares and units of 150.8 million.
How strong is RLJ Lodging Trust’s balance sheet and liquidity?
As of December 31, 2025, RLJ held over $1.0 billion in total liquidity, including about $410.2 million of unrestricted cash and $600.0 million of revolver capacity. Total debt outstanding was $2.2 billion, supported by a diversified mix of mortgage, term loan, and senior note obligations.
What strategic capital actions did RLJ Lodging Trust take in 2025?
In 2025, RLJ sold two hotels for $49.5 million at a 16.3x 2025 Hotel EBITDA multiple and repurchased 3.3 million shares for about $28.6 million. These moves complemented debt repayments, including a $26.3 million mortgage paydown using disposition proceeds.
What dividends did RLJ Lodging Trust declare for late 2025?
RLJ’s Board declared a quarterly cash dividend of $0.15 per common share, paid January 15, 2026 to holders as of December 31, 2025. It also declared a quarterly dividend of $0.4875 on Series A preferred shares, paid January 30, 2026 to the same record date.
Filing Exhibits & Attachments
4 documents
Rlj Lodging Tr
NYSE:RLJ
RLJ Rankings
RLJ Latest News
RLJ Latest SEC Filings
Feb 24, 2026
[Form 4] RLJ Lodging Trust Insider Trading Activity
Feb 24, 2026
[Form 4] RLJ Lodging Trust Insider Trading Activity
Feb 24, 2026
[Form 4] RLJ Lodging Trust Insider Trading Activity
Feb 24, 2026
[Form 4] RLJ Lodging Trust Insider Trading Activity
Feb 24, 2026
[Form 4] RLJ Lodging Trust Insider Trading Activity