RLJ Lodging Trust (RLJ)

Price$10.93Cached quoteAs of 2026-09-04 23:31 UTC

AI: Undervalued

Price checkLow cash-earnings multiple and a covered dividend outweigh the company’s heavy debt.

At the observed market value, RLJ trades at about 7.6 times the midpoint of management’s 2026 adjusted funds from operations forecast of $1.37–$1.50 per share. This measure adds back property depreciation to better reflect hotel cash earnings. The annualized $0.60 common dividend yields roughly 5.5% and uses only 40%–44% of forecast funds from operations. Even after allowing $80–$90 million of renovation spending, the valuation looks discounted, though debt keeps it from being a low-risk bargain.

Big pictureHotel cash flow has recovered, but past downturns show it can collapse quickly.

Revenue recovered from $473 million in 2020 to $1.37 billion in 2024, then slipped 1.4% to $1.35 billion in 2025. Operating cash flow—cash produced by normal operations—fell from $315 million in 2023 to $244 million in 2025, showing that recovery was uneven. Encouragingly, first-half 2026 operating cash flow rose 20% to $141 million, while comparable revenue per available room, a blend of price and occupancy, rose 5.8%. The 2020 cash outflow of $169 million demonstrates severe downturn sensitivity.

Business strengthLonger debt maturities protect liquidity, while rising share count and floating rates limit comfort.

Quarter-end cash was temporarily inflated by refinancing: $494 million was borrowed on June 30, then used with cash to repay $500 million of notes on July 1. Net debt remained about $1.88 billion, roughly 5.4 times the midpoint of forecast adjusted cash earnings before interest and depreciation. RLJ nevertheless reported $1.0 billion of liquidity and no maturities until 2029. Shares fell 9% from 2021 through 2025, but rose 0.9% by June; the new $250 million buyback authority remained unused, making future dilution control uncertain.

What could change the storySustained room growth and buying cheap shares offer upside; weaker business travel threatens it.

The bull case strengthens if 2026 revenue per available room reaches or exceeds management’s 3.5%–4.5% growth range, completed renovations lift earnings above $1.50 per share, and repurchases begin below common book value—accounting equity after preferred stock—of roughly $12 per share. The bear case is company-specific: business travelers form the larger guest group, so a corporate-travel pullback can hit occupancy quickly. Persistent $80–$90 million annual renovation needs or higher unhedged borrowing costs would also consume the apparent cash-earnings discount.

AI: News

Outlook raised againStrong room demand lifted second-quarter earnings and prompted management to raise its full-year expectations.

On August 6, RLJ reported second-quarter comparable revenue per available room growth of 6.8%, while adjusted funds from operations rose 8.3% to $0.52 per share. Management raised expected full-year room-revenue growth to 3.5%–4.5% from 1.5%–3.5% after the first quarter. Its adjusted funds from operations forecast increased to $1.37–$1.50 per share from $1.29–$1.45. The improvement matters because stronger occupancy and room prices spread hotel operating costs across more revenue.

Debt wall pushed outwardRLJ repaid a major near-term note and removed scheduled maturities until 2029.

On July 1, RLJ repaid $500 million of senior notes using $494 million drawn from longer-dated term loans plus cash. The refinancing moved the next maturity to 2029, including extension options, and left approximately $1.0 billion of liquidity. It reduced near-term refinancing danger but did not remove leverage: post-repayment debt remained around $2.2 billion. About 39% of debt was not fixed or effectively fixed, leaving cash flow partly exposed to changing interest rates.

Buyback authority renewedThe board approved substantial repurchase capacity, although no common shares had yet been bought.

The board approved a new $250 million common-and-preferred-share repurchase program on April 24, effective May 9, 2026. That capacity equals roughly 15% of the common company value at the observed market price, so purchases could meaningfully reduce the share count if concentrated on common stock. However, RLJ had repurchased no common shares under announced programs during the first half. The authorization is optional, and employee-award activity lifted outstanding shares from 151.1 million at year-end to 152.4 million in June.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$1.35B	$1.37B	$1.33B	$1.19B	$785.7M	$473.1M	$1.57B	$1.76B	$1.36B	$1.16B	$1.14B	$1.11B	$970.4M	$849.7M	$754.9M	$516.7M	$455.8M
Operating expenses	$1.22B	$1.22B	$1.17B	$1.07B	$980.6M	$730.2M	$1.35B	$1.51B	$1.18B	$939.6M	$932.4M	$917.8M	$805.8M	$722.6M	$670.7M	$475.2M	$492.4M
Operating income	$127.0M	$150.2M	$152.6M	$121.1M	—	—	—	—	$181.1M	$220.4M	$203.9M	$191.4M	$164.5M	$127.1M	$84.2M	$41.5M	−$36.6M
Operating margin	9.41%	10.97%	11.51%	10.14%	—	—	—	—	13.36%	19.00%	17.94%	17.26%	16.96%	14.95%	11.15%	8.03%	−8.04%
EBITDA	$325.0M	$359.5M	$354.6M	$319.1M	—	—	—	—	$368.1M	$382.9M	$360.1M	$335.7M	$292.0M	$253.9M	$214.9M	$142.3M	$62.3M
EBITDA margin	24.08%	26.25%	26.75%	26.73%	—	—	—	—	27.14%	33.01%	31.69%	30.26%	30.09%	29.88%	28.47%	27.54%	13.66%
Net income	$28.5M	$68.0M	$76.4M	$41.9M	−$305.2M	−$404.4M	$127.8M	$188.6M	$74.8M	$200.4M	$218.2M	$136.5M	$112.9M	$41.3M	$11.4M	−$22.4M	−$168.0M
Net profit margin	2.11%	4.97%	5.76%	3.51%	−38.84%	−85.49%	8.16%	10.71%	5.52%	17.27%	19.20%	12.30%	11.64%	4.86%	1.51%	−4.34%	−36.86%
Basic EPSper basic share	$0.01	$0.27	$0.32	$0.10	-$2.01	-$2.61	$0.59	$0.93	$0.47	$1.61	$1.69	$1.06	$0.95	$0.38	$0.12	—	—
Diluted EPSper diluted share	$0.01	$0.27	$0.32	$0.10	-$2.01	-$2.61	$0.59	$0.93	$0.47	$1.61	$1.68	$1.05	$0.94	$0.38	$0.12	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

12.45%of listed shares

BlackRock, Inc.18.97M shares · Jun 30, 2026

View holders

Top 20 reported holders of RLJ
Holder	% owned
BlackRock, Inc.	12.45%18.97M shares
DONALD SMITH & CO., INC.	8.08%12.31M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	8.04%12.25M shares
H/2 CREDIT MANAGER LP	6.29%9.58M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.07%6.2M shares
TWO SIGMA INVESTMENTS, LP	3.98%6.06M shares
STATE STREET CORP	3.97%6.05M shares
GEODE CAPITAL MANAGEMENT, LLC	2.57%3.91M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	2.44%3.71M shares
Allianz Asset Management GmbH	2.36%3.59M shares
MILLENNIUM MANAGEMENT LLC	2.31%3.52M shares
Fisher Asset Management, LLC	2.11%3.21M shares
BNP PARIBAS ASSET MANAGEMENT Holding S.A.	1.96%2.99M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.90%2.89M shares
GOLDMAN SACHS GROUP INC	1.84%2.81M shares
AMERIPRISE FINANCIAL INC	1.73%2.63M shares
Nuveen, LLC	1.57%2.39M shares
LSV ASSET MANAGEMENT	1.47%2.25M shares
Hale Leslie D.	≈1.42%2.17M shares
AEGIS FINANCIAL CORP	1.34%2.05M shares

Percentages use 152.38M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$174.1K disclosed value

Sells (SEC code S)1$100.7K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Nov 21, 2025Form 4	Zeigler Robin McBrideDirector	SellCommon Stock	13.4K	$7.51	$100.7K	37.2K
Mar 28, 2025Form 4	Gibson Patricia LDirector	BuyCommon Stock	10.0K	$8.03	$80.3K	124.2K
Mar 7, 2025Form 4	Gibson Patricia LDirector	BuyCommon Stock	10.0K	$9.38	$93.8K	114.2K

Review ownership filings at SEC.gov ↗

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RLJ Lodging Trust (RLJ)

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