NYSE$RLJ

RLJ Lodging Trust · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a Q4 with RevPAR increase of 5.2% and executed multiple capital allocation initiatives.

RLJ Lodging Trust reported a successful Q4 2023, marked by top-quartile RevPAR growth and strategic capital allocation moves, including share repurchases and acquisitions. The company's urban-centric portfolio is positioned to capture improving demand in urban markets, with incremental lift from completed conversions expected to continue into 2024.

  • Portfolio Comparable RevPAR increased to $133.84.
  • Total Revenue reached $319.7 million.
  • Net income attributable to common shareholders was $1.7 million.
  • Adjusted FFO per diluted common share and unit stood at $0.34.

Headline financials

Total Revenue

$320M

Previous: $302M+5.8%
EPS (adj)

$0.01

Previous: $0.33-97.0%
Comparable RevPAR

$134.57

Previous: $127.25+5.8%
Comparable ADR

$193.96

No prior period
Comparable Occupancy

69.4%

No prior period
Comparable Hotel EBITDA

$89.9K

No prior period
Comparable Hotel EBITDA Margin

28.1%

No prior period
Adjusted EBITDA

$79.2K

Previous: $79M-99.9%
Adjusted FFO

$53.4K

No prior period
Net Income

$1.7M

Previous: $6.8M-75.0%
Operating Income

$8.16M

Previous: $6.98M+17.0%
Gross Profit

$43M

No prior period
Stock-Based Comp

$6.26M

No prior period

Revenue & EPS history

RLJ · Revenue · Quarterly

$320M

Q4 2023+5.8%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

RLJ · $334M total across 3 segments · Q3 2023

  • Room Revenue
    $277M
  • Food and Beverage Revenue
    $34.2M
  • Other Revenue
    $23.1M

Forward guidance

The Company provided its annual outlook for all hotels owned as of February 26, 2024. FY 2024 Comparable RevPAR Growth is expected to be 2.5% to 5.5%. Comparable Hotel EBITDA is expected to be $395.0M to $425.0M. Adjusted EBITDA is expected to be $360.0M to $390.0M. Adjusted FFO per diluted share is expected to be $1.55 to $1.75.

Tailwinds

  • Comparable RevPAR Growth of 2.5% to 5.5%
  • Comparable Hotel EBITDA of $395.0M to $425.0M
  • Adjusted EBITDA of $360.0M to $390.0M
  • Adjusted FFO per diluted share of $1.55 to $1.75
  • Net interest expense of $91.0 million to $93.0 million.

Headwinds

  • First quarter of 2024 to be impacted by the timing of Easter
  • Difficult comparisons to prior year growth rates for Q1
  • First quarter RevPAR growth to be positive but below the low-end of the full-year range.
  • Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the Company's outlook
  • Capital expenditures related to renovations in the range of $100.0 million to $120.0 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.5%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.0%

Avg return

30 days after

42%

25 / 60 earnings

Positive

+11.1%

Q2 2020

Best reaction

-13.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+7.8%+22.7%
Q4 2025-3.5%-1.8%-9.8%
Q3 2025+0.1%+6.3%+6.7%
Q1 2025-3.3%+1.5%-0.7%
Q4 2024+1.2%+2.4%-12.6%
Q3 2024+6.7%+10.3%+17.3%
Q2 2024-2.3%-3.7%+0.6%
Q1 2024-2.7%-2.7%-9.3%
Q4 2023-3.2%+2.7%-1.0%
Q3 2023+5.4%+8.6%+16.4%
Q2 2023-2.5%-0.5%-0.6%
Q1 2023+6.0%+7.1%+7.8%
Q4 2022-1.0%+0.4%-12.3%
Q3 2022-6.9%-8.0%-1.8%
Q2 2022+0.6%+2.7%-4.3%
Q1 2022-3.5%-9.2%+1.3%
Q4 2021-1.5%-3.8%-4.8%
Q3 2021-2.5%-5.0%-21.7%
Q2 2021+6.5%+4.3%+5.3%
Q1 2021-3.2%-3.3%-2.8%
Q4 2020-1.0%-4.2%-2.5%
Q3 2020-4.0%+27.9%+57.2%
Q2 2020+11.1%+19.2%+19.1%
Q1 2020-13.4%-3.3%+17.3%
Q4 2019-9.4%-15.3%-45.4%
Q3 2019-2.0%-3.7%-0.9%
Q2 2019+2.7%-1.7%+0.6%
Q1 2019+0.8%+0.4%-2.1%
Q4 2018-1.9%+0.2%-5.9%
Q3 2018+2.0%+2.0%+1.8%
Q2 2018-3.1%-4.4%-0.3%
Q1 2018+3.6%+3.1%+7.7%
Q4 2017-5.3%-6.8%-7.1%
Q3 2017-2.1%-3.2%-0.8%
Q2 2017-0.3%-2.4%-3.0%
Q1 2017-5.3%-8.9%-4.2%
Q4 2016-2.2%-1.3%-5.0%
Q3 2016-1.0%+2.1%+16.4%
Q2 2016-1.2%+2.0%-1.0%
Q1 2016-1.1%
Q4 2015+4.7%
Q3 2015+0.6%
Q2 2015-3.4%
Q1 2015+2.6%
Q4 2014-0.5%
Q3 2014+0.5%
Q2 2014+0.4%
Q1 2014+2.4%
Q4 2013-0.8%
Q3 2013-3.7%
Q2 2013+0.2%
Q1 2013-1.0%
Q4 2012+2.3%
Q3 2012-1.3%
Q2 2012-0.3%
Q1 2012+2.8%
Q4 2011+2.5%
Q3 2011+6.6%
Q2 2011+2.4%
Q1 2011-2.1%
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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