RLJ Lodging Trust
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did RLJ Beat Earnings? Q2 2025 Results
RLJ Lodging Trust delivered a sharply mixed second quarter for 2025, posting adjusted FFO per diluted share of $0.48 against a consensus estimate of $0.13, a beat of 284.00%, even as total revenues of $363.10 million came in just 0.50% below expectations and declined 1.7% year over year. The headline earnings strength was tempered by broad softness across the portfolio, with comparable RevPAR falling 2.1% to $155 as occupancy slipped 1.6 percentage points to 75.5% and ADR edged down 0.5% to $205, conditions CEO Leslie Hale attributed to a softer lodging environment rather than company-specific weakness. Disciplined cost controls and the continued ramp of brand conversions helped cushion margin pressure, with comparable Hotel EBITDA margins compressing 90 basis points to 31.1%. Looking ahead, management guided toward the low end of its full-year outlook, calling for Adjusted FFO per diluted share of $1.38 to $1.58, citing anticipated Q3 softness from calendar shifts and tough citywide comparables, while pointing to favorable Q4 tailwinds as a potential offset.
- Comparable RevPAR of $155.08, a decrease of 2.1% year-over-year
- Comparable ADR declined 0.5% to $205.27
- Comparable Occupancy decreased 1.6 percentage points to 75.5%
- Comparable Hotel EBITDA margin of 31.1%, down 90 basis points year-over-year
- Continued ramp of brand conversions
- Disciplined cost controls and lean operating model
“We are pleased with our second quarter results, which exceeded our expectations. This quarter we demonstrated the resiliency of our portfolio, the continued ramp of our conversions, and disciplined cost controls. In addition to achieving solid operating results, we executed on several key initiatives during the quarter, including advancing our transformative renovations, addressing our near-term maturities, and recycling capital into accretive share repurchases.”
RLJ Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
The company now expects the low end of its full-year 2025 guidance ranges to be the most likely outcome, reflecting softer than previously anticipated Q3 results and limited visibility due to macroeconomic uncertainty. FY 2025 outlook: Comparable RevPAR Growth of -1.0% to +1.0%; Comparable Hotel EBITDA of $365.5M to $395.5M; Adjusted EBITDA of $332.5M to $362.5M; Adjusted FFO per diluted share of $1.38 to $1.58. Additional full-year assumptions include net interest expense of $94.0M to $96.0M, cash corporate G&A of $34.0M to $35.0M, capital expenditures for renovations of $80.0M to $100.0M, and diluted weighted average shares and units of 151.5 million. Management anticipates a softer Q3 due to calendar shifts, tough citywide comps, and ongoing renovations, but sees positive tailwinds in Q4 from a more favorable calendar, strong citywides, and ramping conversions.
RLJ YoY Financials
RLJ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.