RLJ Lodging Trust Posts Strong Q4 Results

BETHESDA, MD—RLJ Lodging Trust has reported its results for the three months and year ended Dec. 31, 2019. The company saw both income and RevPAR growth and completed the sale of approximately $724 million of non-core hotels.

“2019 was a transformational year for RLJ as we successfully executed on our strategic plan to reshape our portfolio, enhance operating metrics and improve our growth profile,” said Leslie D. Hale, president/CEO, RLJ Lodging Trust.

Fourth Quarter Highlights:

  • Pro forma RevPAR decrease of 0.5%
  • Pro forma Hotel EBITDA Margin of 30.0%
  • Net income of $34.9 million
  • Adjusted EBITDA of $96.3 million
  • Adjusted FFO per diluted common share and unit of $0.41
  • Repurchased 0.7 million common shares for approximately $12.2 million

Full Year Highlights:

  • Pro forma RevPAR increase of 0.7%
  • Pro forma Hotel EBITDA Margin of 31.8%
  • Net income of $129.4 million
  • Adjusted EBITDA of $462.5 million
  • Adjusted FFO per diluted common share and unit of $2.03
  • Strategically reshaped portfolio with sale of 47 non-core hotels for approximately $724 million
  • Executed Wyndham termination agreement and received $35.0 million payment
  • Refinanced $1.4 billion of debt, reducing borrowing costs and extending maturities
  • Repurchased 4.6 million common shares for approximately $77.8 million

Hale continued, “As we enter 2020, our portfolio is uniquely positioned with tangible catalysts despite choppy fundamentals. We have a fortress balance sheet, which enables us to be nimble, and significant investment capacity, which allows us to pursue multiple value creation opportunities in both the near and long term. RLJ is well positioned to create value in all phases of the lodging cycle.”

Pro forma RevPAR for the fourth quarter declined 0.5% from the comparable period in 2018. The company’s top performing markets were Louisville, KY; Tampa, FL; and Orlando, FL, with Pro forma RevPAR growth of 21.8%, 20.4%, and 9.0%, respectively. For the full year, the company’s top performing markets were Louisville, KY; Austin, TX; and Charleston, SC, with Pro forma RevPAR growth of 26.2%, 6.3%, and 5.4%, respectively.

Net Income for the fourth quarter was $34.9 million, an increase of $7 million from the comparable period in 2018.

Adjusted EBITDA for the fourth quarter was $96.3 million, a decrease of $17.6 million from the comparable period in 2018. For the three months ended December 31, 2018, adjusted EBITDA included $17.2 million from sold hotels.

Non-recurring items for the fourth quarter included an impairment loss of $13.5 million related to two hotel properties. The impairment loss is included in net income attributable to common shareholders but is excluded for the purpose of calculating Adjusted EBITDA and Adjusted FFO.

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