RLJ Lodging Trust
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.44%.
Did RLJ Beat Earnings? Q1 2026 Results
RLJ Lodging Trust delivered a standout first quarter for fiscal 2026, posting Adjusted FFO of $0.33 per diluted share against a consensus estimate of negative $0.08, a beat of 512.50%, while revenue of $339.98 million exceeded the $324.24 million consensus by 4.85% and grew 3.6% year over year. The primary engine behind the results was a meaningful improvement in lodging fundamentals across urban markets, where comparable RevPAR climbed 4.8% to $148.55 driven by a 2.1% rise in average daily rate to $209.91 and a 260 basis point gain in occupancy to 70.8%, complemented by disciplined expense management that expanded comparable hotel EBITDA margins by 45 basis points to 26.4%. The company also completed a comprehensive debt refinancing that effectively cleared all maturities through 2028 and left total liquidity above $950 million, removing a meaningful overhang for investors. Shares recently touched a new 52-week high, reflecting growing confidence in the thesis. Management raised its full-year 2026 outlook, now guiding for Adjusted FFO per diluted share of $1.29 to $1.45 and Adjusted EBITDA of $324 million to $348 million.
- Comparable RevPAR increased 4.8% year-over-year driven by ADR growth of 2.1% and occupancy improvement of 260 basis points
- Comparable non-room revenues increased 8.2%, exceeding RevPAR growth by 340 basis points
- Disciplined expense management contributed to 45 bps Comparable Hotel EBITDA margin expansion
- Strong performance in top urban markets
- Continued ramp of recently completed high-impact renovations and brand conversions
- Sustained strength in business transient demand and robust urban leisure demand
“We are pleased with our strong first quarter results, which exceeded our expectations, driven by improving fundamentals, strong performance in a number of our top Urban markets, and the continued ramp of our recently completed, high-impact renovations and conversions. These elements, combined with our success driving non-room revenues and managing expenses, allowed us to grow EBITDA and expand margins.”
RLJ Lodging Trust CEO, on the earnings call
Forward Guidance & Outlook
The company raised its full-year 2026 outlook to incorporate Q1 outperformance while keeping expectations for the remainder of the year unchanged. Updated guidance: Comparable RevPAR Growth of +1.5% to +3.5%; Comparable Hotel EBITDA of $356M to $380M; Adjusted EBITDA of $324M to $348M; Adjusted FFO per diluted share of $1.29 to $1.45. Additional assumptions include net interest expense of $101M–$103M, cash corporate G&A of $32.5M–$33.5M, renovation-related capital expenditures of $80M–$90M, and diluted weighted average common shares and units of 150.8 million. Future acquisitions, dispositions, financings, or share repurchases are not incorporated into the outlook.
RLJ YoY Financials
RLJ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.