RLJ Lodging Trust : Wells Fargo Conference – May 2025

Published: 2025-05-07 08:22:12 ET RLJ

Published on 05/07/2025 at 08:22

WELLS FARGO REAL ESTATE SECURITIES

CONFERENCE

MAY 2025

RLJ | INVESTMENT HIGHLIGHTS

RLJ has a diversified, urban-centric portfolio with unique growth catalysts, a lean operating model, and a favorable capital structure.

HIGH-QUALITY PORTFOLIO

Urban-centric portfolio positioned to capture all segments of demand

Urban markets represent over two-thirds of RLJ's portfolio

High margin portfolio generates significant free cash flow

INTERNAL GROWTH

Six completed conversions in ramp-up, achieved 14% y/y RevPAR growth in Q1 2025

Conversions in Nashville and downtown Pittsburgh in 2025

Wyndham Boston Beacon Hill conversion to commence in 2026

EXTERNAL GROWTH

Provides an advantage in a tight lending environment

Acquired Hotel Teatro in Denver for $35.5M in June 2024

BALANCE SHEET

Repurchased $24.3M of shares YTD through May 2, 2025

Over $0.9B of liquidity provided optionality

No near term debt maturities

MAY 2025 2

RLj LODGING T&UST

OPERATING PERFORMANCE

THE PIERSIDE SANTA MONICA

MAY 2025 3

1.6% RevPAR growth, led by ADR growth of 2.1%

Urban hotels (two-thirds of portfolio) achieved 3.6% RevPAR growth

Adjusted EBTIDA exceeded the high end of our forecast

Operating expenses grew 2.9%

Sold one non-core asset at an attractive 18x forward multiple and recycled proceeds into share repurchases

Addressed all 2025 debt maturities

Advanced conversions in Nashville and Pittsburgh and continued ramping our six completed conversions

Comparable RevPAR growth -1% to +1%

Comparable Hotel EBITDA of $365.5-395.5M

Adj. EBITDA of $332.5M to $362.5M

Adj. FFO/share of $1.38-1.58

OPERATING PERFORMANCE | Q1 UPDATE

RLJ's urban-centric portfolio achieved robust RevPAR growth led by urban markets

MAY 2025

4

RLJ | MULTIPLE CHANNELS OF GROWTH

URBAN CENTRIC PORTFOLIO ORGANIC GROWTH

Multiple demand drivers

Capture new normal

Limited new supply

Next leg of recovery

INITIAL CONVERSIONS / ACQUISITIONS

Pacing ahead of underwriting

External growth from high-growth markets

Additional growth to stabilization

FUTURE

PIPELINE OF CONVERSIONS

Targeting two conversions per year

Executing incremental revenue enhancement opportunities

BALANCE SHEET OPTIONALITY

Strong Liquidity

Generate significant free cash flow

Optionality to drive external / internal growth

Demonstrated ability to return capital to shareholders

MAY 2025 5

Disclaimer

RLJ Lodging Trust published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 12:21 UTC.