Overview

* RLJ Lodging ( RLJ ) Q2 revenue falls 1.7% yr/yr, missing analyst expectations

* Net income for Q2 declines 23.2% compared to last year

* Company repurchased 0.8 mln shares and addressed all near-term maturities

Outlook

* Company expects FY 2025 Comparable RevPAR growth of -1.0% to +1.0%

* RLJ Lodging Trust ( RLJ ) sees FY 2025 Adjusted EBITDA of $332.5M to $362.5M

* Company anticipates softer Q3 due to calendar shifts and renovations

* RLJ Lodging Trust ( RLJ ) sees FY 2025 Adjusted FFO per share $1.38 to $1.58

Result Drivers

* PORTFOLIO RESILIENCE - RLJ attributes its performance to the resilience of its portfolio and disciplined cost controls, despite a decline in RevPAR

* RENOVATIONS AND CONVERSIONS - Continued ramp-up of conversions and transformative renovations contributed to results, per CEO Leslie D. Hale

* SHARE REPURCHASES - Company executed accretive share repurchases, addressing near-term maturities and recycling capital

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $363.10 $364.90

Revenue mln mln (9

Analysts

)

Q2 Net $28.63

Income mln

Q2 $113.02

Adjusted mln

Hotel

EBITDA

Q2 $72.66

Adjusted mln

FFO

Q2 $155.08

Adjusted

RevPAR

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "buy."

* Wall Street's median 12-month price target for RLJ Lodging Trust ( RLJ ) is $9.50, about 22.8% above its August 6 closing price of $7.33

* The stock recently traded at 140 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)