RLJ Lodging Trust Delivers Strong Q1 2026 Results, Raises Full-Year Outlook, and Announces Major Share Repurchase Program

Key Highlights from Q1 2026 Earnings Report

• Comparable RevPAR: \$148.55, up 4.8% year-over-year
• Comparable Hotel Revenue: \$340.0 million, up 5.4% year-over-year
• Comparable Hotel EBITDA: \$89.9 million, up 7.2% year-over-year
• Comparable Hotel EBITDA Margin: 26.4%, up 45 basis points year-over-year
• Adjusted EBITDA: \$80.9 million, up 4.2% year-over-year
• Adjusted FFO per diluted common share and unit: \$0.33, up 6.5% year-over-year
• Net Loss: \$0.3 million
• All debt maturities addressed until 2029

Management Commentary and Strategic Highlights

Leslie D. Hale, President and CEO, confirmed that RLJ Lodging Trust exceeded internal expectations in Q1 2026, citing improved fundamentals, robust performance in key urban markets, and the successful ramp-up of recent renovations and conversions. The company also highlighted effective cost controls and strong growth in non-room revenues, which contributed to higher margins and EBITDA.

Despite global geopolitical uncertainties, management remains optimistic about healthy demand trends and has raised its full-year guidance. RLJ believes the industry environment continues to favor urban markets, driven by sustained business transient demand and urban leisure travel, which aligns well with RLJ’s portfolio.

Operational and Financial Details

• Comparable ADR (Average Daily Rate): \$209.91, up 2.1%
• Comparable Occupancy: 70.8%, up from 69.0% last year
• Total Revenue: \$339.98 million, up 3.6%
• Comparable Non-Room Revenues: Increased 8.2%, outpacing RevPAR growth
• Disciplined Expense Management: Helped expand EBITDA margin by 45 basis points year-over-year
• Liquidity: Over \$950 million, including \$353.1 million in unrestricted cash and \$600 million available on the revolving credit facility
• Debt: Nearly \$2.2 billion outstanding, with all maturities refinanced or extended until at least 2029

The refinancing included an extension of the Revolver, upsizing and recasting of an existing term loan, a new 7-year term loan, and refinancing of mortgage debt maturing in 2026. The company intends to use delayed draw proceeds to repay \$500 million in senior notes due July 2026. The next debt maturity is not until 2029, providing substantial financial flexibility.

Shareholder Returns: Dividends and Share Repurchase Program

• Common Dividend: \$0.15 per share, paid April 15, 2026
• Series A Preferred Dividend: \$0.4875 per share, paid April 30, 2026
• New Share Repurchase Program: Board approved up to \$250 million in common and preferred share repurchases, effective May 9, 2026

The announcement of a major share buyback program is a significant move that could be price-sensitive and positively impact shareholder value, demonstrating management’s confidence in RLJ’s financial position and future prospects.

Updated 2026 Full-Year Outlook

• Comparable RevPAR Growth: +1.5% to +3.5% for FY 2026
• Comparable Hotel EBITDA: \$356 million to \$380 million
• Adjusted EBITDA: \$324 million to \$348 million
• Adjusted FFO per diluted share: \$1.29 to \$1.45
• Net Interest Expense: \$101 million to \$103 million
• Cash Corporate G&A: \$32.5 million to \$33.5 million
• Capital Expenditures: \$80 million to \$90 million
• Diluted Weighted Average Shares and Units: 150.8 million

The company’s outlook does not incorporate potential future acquisitions, dispositions, financings, or share repurchases, which could further impact results.

Additional Financial and Portfolio Information

• Portfolio: 92 premium-branded, rooms-oriented, high-margin, urban-centric hotels, geographically diverse and focused on major urban markets
• Recent Dispositions: Sold Courtyard Atlanta Buckhead (March 2025), Embassy Suites by Hilton Dallas-Love Field (December 2025), and Residence Inn Houston the Galleria (December 2025)
• Balance Sheet Strength: As of March 31, 2026, shareholders’ equity totaled \$2.14 billion
• Debt Structure: Weighted average interest rate of 4.56% on gross debt

Reconciliations and Non-GAAP Measures

RLJ provides detailed reconciliations for non-GAAP metrics such as FFO, Adjusted FFO, EBITDA, and Adjusted EBITDA. These are important for investors to assess operating performance, as these measures strip out non-cash and non-recurring items, and provide a clearer picture of core operations. Adjusted FFO per diluted share for Q1 2026 was \$0.33, up from \$0.31 in Q1 2025.

Shareholder Risks and Forward-Looking Statements

Management notes ongoing geopolitical uncertainties that could impact demand trends but remains confident in the resilience of urban markets and the company’s positioning. All forward-looking statements are subject to risks and uncertainties as outlined in RLJ’s filings with the SEC.

Conclusion: Key Investor Takeaways

• RLJ Lodging Trust delivered strong Q1 2026 results, exceeding expectations and raising full-year guidance.
• The company bolstered its balance sheet by refinancing all near-term debt and announced a significant \$250 million share repurchase program—both highly supportive for shareholder value.
• Dividend payments remain robust, and the company’s urban-focused portfolio continues to benefit from favorable business and leisure demand trends.
• Investors should monitor the impact of the share buyback and ongoing financial flexibility on RLJ’s share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review RLJ Lodging Trust’s official filings and consult a financial advisor before making investment decisions. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

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