– Q2 RevPAR increased 4.5% over last
year – Announced 25% increase in quarterly dividends –
Nashville property joined the Tapestry Collection by Hilton
– Continued share repurchases
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported
results for the three and six months ended June 30, 2023.
Second Quarter
Highlights
- Portfolio Comparable RevPAR of $152.89; an increase of 4.5%
from last year
- Total revenue of $357.0 million
- Net income of $41.7 million
- Net income per diluted share attributable to common
shareholders of $0.22
- Comparable Hotel EBITDA of $122.8 million
- Adjusted EBITDA of $113.8 million
- Adjusted FFO per diluted common share and unit of $0.56
- Recast $600.0 million senior unsecured revolving credit
facility, extending maturity to May 2027
- Entered into a new $225.0 million senior unsecured term loan,
maturing May 2026
- Repurchased 2.5 million common shares for approximately $25.5
million at an average price per share of $10.23
“We were pleased with our second quarter results as our
portfolio once again achieved RevPAR growth ahead of the industry.
Our results continued to benefit from our urban-centric portfolio
which saw ongoing improvement in corporate demand, strength in
urban leisure travel, continued strong production in group, and
rising inbound international demand, all of which provided the
momentum that drove our RevPAR growth,” commented Leslie D. Hale,
President and Chief Executive Officer. “We are successfully
executing on our strategy to unlock significant incremental value
embedded within our portfolio with our Nashville hotel joining the
Tapestry Collection by Hilton, in addition to the ramping of our
recently completed conversions. We are also demonstrating our
ability to execute on the optionality of our strong balance sheet
by repurchasing our shares, increasing our quarterly dividend by
25% and deploying capital towards our current year
conversions."
The prefix “comparable” as defined by the Company, denotes
operating results which include results for periods prior to its
ownership and excludes sold hotels. Explanations of EBITDA,
EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO,
and Adjusted FFO, as well as reconciliations of those measures to
net income or loss, if applicable, are included within this
release.
Financial and Operating Highlights
($ in thousands, except ADR,
RevPAR, and per share amounts)
(unaudited)
For the three months ended
June 30,
For the six months ended June
30,
2023
2022
2023
2022
Operational Overview: (1)
Comparable ADR
$203.53
$196.09
$201.41
$187.03
Comparable Occupancy
75.1%
74.6%
71.9%
67.9%
Comparable RevPAR
$152.89
$146.37
$144.72
$127.01
Financial Overview:
Total Revenues
$356,960
$330,501
$671,463
$573,400
Comparable Hotel Revenue
$356,904
$333,491
$671,392
$576,001
Net Income
$41,720
$33,202
$52,234
$17,732
Comparable Hotel EBITDA (2)
$122,797
$119,152
$213,723
$182,403
Comparable Hotel EBITDA Margin
34.4%
35.7%
31.8%
31.7%
Adjusted EBITDA
$113,829
$110,978
$196,513
$165,570
Adjusted FFO
$87,836
$80,999
$143,916
$104,892
Adjusted FFO Per Diluted Common Share and
Unit
$0.56
$0.49
$0.90
$0.64
Note:
(1) Comparable statistics reflect the
Company's 96 hotel portfolio owned as of June 30, 2023.
(2) Comparable Hotel EBITDA for the three
months ended June 30, 2023 and 2022 excludes $0.2 million and $0.1
million net income, respectively, from sold hotels. Comparable
Hotel EBITDA for the six months ended June 30, 2023 and 2022
excludes $0.4 million and $0.3 million net income, respectively,
from sold hotels. Comparable Hotel EBITDA for the three months
ended June 30, 2022 includes $0.6 million net income from acquired
hotels. Comparable Hotel EBITDA for the six months ended June 30,
2022 includes $0.7 million net income from acquired hotels.
Operational Update
During the second quarter, the Company’s portfolio generated
Comparable RevPAR of $152.89, an increase of 4.5% from the
comparable period in 2022 and achieved 96.4% of the comparable
period in 2019. ADR during the second quarter of 2023 increased by
3.8% compared to the comparable period in 2022, achieving 106.5% of
the comparable period in 2019. The Company’s performance during the
second quarter was positively impacted by continued strength in ADR
across the portfolio and sustained improvement in urban
markets.
Conversions
As previously announced, the Company's Nashville property joined
the Tapestry Collection by Hilton. This marks the Company’s third
conversion in 2023, joining previously announced conversions in New
Orleans and Houston, and building on its three successful 2022
completed conversions. The affiliation with the Tapestry Collection
allows this outstanding lifestyle boutique hotel to fully unlock
its potential by immediately leveraging Hilton’s extensive Hilton
Honors system. The 124-room property will undergo a comprehensive
renovation next year and relaunch as a rebranded lifestyle boutique
hotel within the Tapestry Collection by Hilton.
Share Repurchases
During the second quarter the Company repurchased 2.5 million
common shares for approximately $25.5 million at an average price
per share of $10.23. Additionally, year-to-date through June 30,
2023, the Company has repurchased approximately 5.2 million common
shares for approximately $52.9 million, at an average price per
share of $10.23. As of August 3, 2023, the 2023 Share Repurchase
Program had a remaining capacity of $235.0 million.
Balance Sheet
As of June 30, 2023, the Company had approximately $1.1 billion
of total liquidity, comprising approximately $476.9 million of
unrestricted cash and $600.0 million available under its revolving
credit facility ("Revolver"), and $2.2 billion of debt outstanding,
93.0% of which is currently either fixed or hedged.
During the second quarter, the Company amended its $600.0
million Revolver, extending the maturity of the Revolver to May
2027 with the option to extend up to one additional year.
Additionally, the Company entered into a new $225.0 million senior
unsecured term loan maturing May 2026, with two, one-year extension
options to May 2028. The proceeds from the new term loan were used
to repay two term loans maturing in January 2024. In addition, all
of the Company's unsecured credit agreements were amended to modify
the calculation of certain financial covenants, creating more
flexibility.
The Company remained active in managing interest rate risk and
executed $250.0 million in interest rate swaps in May, with a
weighted average rate of 2.88%.
Dividends
The Company’s Board of Trustees declared a second quarter cash
dividend of $0.08 per common share of beneficial interest of the
Company. The dividend was paid on July 17, 2023 to shareholders of
record as of June 30, 2023. The Company’s Board of Trustees also
declared an increase in its quarterly cash dividend to $0.10 per
common share of beneficial interest of the Company for the third
quarter of 2023, which represents a 25% increase from the prior
quarter dividend. The dividend will be paid on October 17, 2023 to
shareholders of record as of September 30, 2023.
The Company's Board of Trustees declared a second quarter cash
dividend of $0.4875 on the Company’s Series A Preferred Shares. The
dividend was paid on July 31, 2023 to shareholders of record as of
June 30, 2023. The Company's Board of Trustees recently declared a
quarterly cash dividend of $0.4875 on the Company’s Series A
Preferred Shares. The dividend will be paid on October 31, 2023 to
shareholders of record as of September 30, 2023.
Q3 2023 Outlook
Based on current trends and assuming no material disruptions to
travel caused by pandemics or worsening macro-economic conditions,
the Company's third quarter 2023 outlook is as follows:
Q3 2023
Comparable RevPAR
$137.00 to $143.00
Comparable Hotel EBITDA
$94.0M to $104.0M
Adjusted EBITDA
$85.0M to $95.0M
Adjusted FFO per diluted
share
$0.37 to $0.44
No future acquisitions, dispositions, financings, or share
repurchases are incorporated into the Company's outlook and could
result in a material change to the Company's outlook.
Earnings Call
The Company will conduct its quarterly analyst and investor
conference call on August 4, 2023 at 10:00 a.m. (Eastern Time). The
conference call can be accessed by dialing (877) 407-3982 or (201)
493-6780 for international participants and requesting RLJ Lodging
Trust’s second quarter earnings conference call. Additionally, a
live webcast of the conference call will be available through the
Company’s website at http://www.rljlodgingtrust.com. A replay of
the conference call webcast will be archived and available through
the Investor Relations section of the Company’s website for two
weeks.
Supplemental Information
Please refer to the schedule of supplemental information for
additional detail and comparable operating statistics, which is
available through the Investor Relations section of the Company's
website.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate
investment trust that owns primarily premium-branded, high-margin,
focused-service and compact full-service hotels. The Company's
portfolio currently consists of 96 hotels with approximately 21,200
rooms, located in 23 states and the District of Columbia and an
ownership interest in one unconsolidated hotel with 171 rooms.
Forward Looking
Statements
This information contains certain statements, other than purely
historical information, including estimates, projections,
statements relating to the Company’s business plans, objectives and
expected operating results, and the assumptions upon which those
statements are based, that are “forward looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally are identified by the
use of the words “believe,” “project,” “expect,” “anticipate,”
“estimate,” “plan,” “may,” “will,” “will continue,” “intend,”
“should,” “may,” or similar expressions. Although the Company
believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, beliefs and
expectations, such forward-looking statements are not predictions
of future events or guarantees of future performance and our actual
results could differ materially from those set forth in the
forward-looking statements. Except as required by law, the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. The Company cautions investors not to
place undue reliance on these forward looking statements and urges
investors to carefully review the disclosures the Company makes
concerning risks and uncertainties in the sections entitled “Risk
Factors,” “Forward-Looking Statements,” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s Annual Report and the Company's
Quarterly Reports on Form 10-Q, as well as risks, uncertainties and
other factors discussed in other documents filed by the Company
with the Securities and Exchange Commission.
For additional information or to receive press
releases via email, please visit our website:
http://www.rljlodgingtrust.com
RLJ Lodging Trust
Non-GAAP and Accounting Commentary
Non-Generally Accepted Accounting
Principles (“Non-GAAP”) Financial Measures
The Company considers the following non-GAAP financial measures
useful to investors as key supplemental measures of its
performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre,
(5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin.
These Non-GAAP financial measures should be considered along with,
but not as alternatives to, net income or loss as a measure of its
operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre,
Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin, as
calculated by the Company, may not be comparable to other companies
that do not define such terms exactly as the Company defines such
terms.
Funds From Operations
(“FFO”)
The Company calculates Funds from Operations (“FFO”) in
accordance with standards established by the National Association
of Real Estate Investment Trusts, or NAREIT, which defines FFO as
net income or loss (calculated in accordance with GAAP), excluding
gains or losses from sales of real estate, impairment, the
cumulative effect of changes in accounting principles, plus
depreciation and amortization, and adjustments for unconsolidated
partnerships and joint ventures. Historical cost accounting for
real estate assets implicitly assumes that the value of real estate
assets diminishes predictably over time. Since real estate values
have instead historically risen or fallen with market conditions,
most real estate industry investors consider FFO to be helpful in
evaluating a real estate company’s operations. The Company believes
that the presentation of FFO provides useful information to
investors regarding the Company’s operating performance and can
facilitate comparisons of operating performance between periods and
between real estate investment trusts (“REITs”), even though FFO
does not represent an amount that accrues directly to common
shareholders.
The Company’s calculation of FFO may not be comparable to
measures calculated by other companies who do not use the NAREIT
definition of FFO or do not calculate FFO per diluted share in
accordance with NAREIT guidance. Additionally, FFO may not be
helpful when comparing the Company to non-REITs. The Company
presents FFO attributable to common shareholders, which includes
unitholders of limited partnership interest (“OP units”) in RLJ
Lodging Trust, L.P., the Company’s operating partnership, because
the OP units may be redeemed for common shares of the Company. The
Company believes it is meaningful for the investor to understand
FFO attributable to all common shares and OP units.
EBITDA and EBITDAre
Earnings Before Interest, Taxes, Depreciation, and Amortization
(“EBITDA”) is defined as net income or loss excluding: (1) interest
expense; (2) income tax expense; and (3) depreciation and
amortization expense. The Company considers EBITDA useful to an
investor in evaluating and facilitating comparisons of its
operating performance between periods and between REITs by removing
the impact of its capital structure (primarily interest expense)
and asset base (primarily depreciation and amortization expense)
from its operating results. In addition, EBITDA is used as one
measure in determining the value of hotel acquisitions and
dispositions.
In addition to EBITDA, the Company presents EBITDAre in
accordance with NAREIT guidelines, which defines EBITDAre as net
income or loss (calculated in accordance with GAAP) excluding
interest expense, income tax expense, depreciation and amortization
expense, gains or losses from sales of real estate, impairment, and
adjustments for unconsolidated joint ventures. The Company believes
that the presentation of EBITDAre provides useful information to
investors regarding the Company's operating performance and can
facilitate comparisons of operating performance between periods and
between REITs.
Adjustments to FFO and
EBITDA
The Company adjusts FFO, EBITDA, and EBITDAre for certain items
that the Company considers outside the normal course of operations.
The Company believes that Adjusted FFO, Adjusted EBITDA, and
Adjusted EBITDAre provide useful supplemental information to
investors regarding its ongoing operating performance that, when
considered with net income or loss, FFO, EBITDA, and EBITDAre, are
beneficial to an investor’s understanding of the Company's
operating performance. The Company adjusts FFO, EBITDA, and
EBITDAre for the following items:
- Transaction Costs: The Company excludes transaction costs
expensed during the period
- Pre-Opening Costs: The Company excludes certain costs related
to pre-opening of hotels
- Non-Cash Expenses: The Company excludes the effect of certain
non-cash items such as the amortization of share-based
compensation, non-cash income tax expense or benefit, and non-cash
interest expense related to discontinued interest rate hedges
- Other Non-Operational Expenses: The Company excludes the effect
of certain non-operational expenses representing income and
expenses outside the normal course of operations
Hotel EBITDA and Hotel EBITDA
Margin
With respect to Consolidated Hotel EBITDA, the Company believes
that excluding the effect of corporate-level expenses and certain
non-cash items provides a more complete understanding of the
operating results over which individual hotels and operators have
direct control. The Company believes property-level results provide
investors with supplemental information about the ongoing
operational performance of the Company’s hotels and the
effectiveness of third-party management companies.
Comparable Hotel EBITDA and Comparable Hotel EBITDA margin
include prior ownership information provided by the sellers of the
hotels for periods prior to our acquisition of the hotels and
excludes results from sold hotels as applicable. The following is a
summary of Comparable hotel adjustments:
Comparable adjustments: Acquired
hotels
For the three and six months ended June 30, 2022 and 2023,
Comparable adjustments included the following acquired hotel:
- 21c Hotel Nashville acquired in July 2022
Comparable adjustments: Sold
hotels
For the three and six months ended June 30, 2022 and 2023,
comparable adjustments included the following sold hotels:
- Marriott Denver Airport at Gateway Park sold in March 2022
- SpringHill Suites Denver North Westminster sold in April
2022
RLJ Lodging Trust
Consolidated Balance
Sheets
(Amounts in thousands, except
share and per share data)
(unaudited)
June 30, 2023
December 31, 2022
Assets
Investment in hotel properties, net
$
4,150,176
$
4,180,328
Investment in unconsolidated joint
ventures
7,480
6,979
Cash and cash equivalents
476,936
481,316
Restricted cash reserves
34,396
55,070
Hotel and other receivables, net of
allowance of $291 and $319, respectively
41,748
38,528
Lease right-of-use assets
139,163
136,915
Prepaid expense and other assets
82,601
79,089
Total assets
$
4,932,500
$
4,978,225
Liabilities and Equity
Debt, net
$
2,218,737
$
2,217,555
Accounts payable and other liabilities
126,901
155,916
Advance deposits and deferred revenue
25,042
23,769
Lease liabilities
120,376
117,010
Accrued interest
22,067
20,707
Distributions payable
19,292
14,622
Total liabilities
2,532,415
2,549,579
Equity
Shareholders’ equity:
Preferred shares of beneficial interest,
$0.01 par value, 50,000,000 shares authorized
Series A Cumulative Convertible Preferred
Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475
shares issued and outstanding, liquidation value of $328,266, at
June 30, 2023 and December 31, 2022
366,936
366,936
Common shares of beneficial interest,
$0.01 par value, 450,000,000 shares authorized; 157,686,191 and
162,003,533 shares issued and outstanding at June 30, 2023 and
December 31, 2022, respectively
1,577
1,620
Additional paid-in capital
3,011,350
3,054,958
Distributions in excess of net
earnings
(1,035,566
)
(1,049,441
)
Accumulated other comprehensive income
41,733
40,591
Total shareholders’ equity
2,386,030
2,414,664
Noncontrolling interests:
Noncontrolling interest in the Operating
Partnership
6,380
6,313
Noncontrolling interest in consolidated
joint ventures
7,675
7,669
Total noncontrolling interest
14,055
13,982
Total equity
2,400,085
2,428,646
Total liabilities and equity
$
4,932,500
$
4,978,225
Note: The corresponding notes to
the consolidated financial statements can be found in the Company’s
Quarterly Report on Form 10-Q.
RLJ Lodging Trust
Consolidated Statements of
Operations
(Amounts in thousands, except
share and per share data)
(unaudited)
For the three months ended June
30,
For the six months ended June
30,
2023
2022
2023
2022
Revenues
Operating revenues
Room revenue
$
295,496
$
280,676
$
556,328
$
486,455
Food and beverage revenue
38,132
31,154
71,420
52,055
Other revenue
23,332
18,671
43,715
34,890
Total revenues
356,960
330,501
671,463
573,400
Expenses
Operating expenses
Room expense
70,333
65,793
136,384
119,621
Food and beverage expense
28,037
21,770
54,174
37,939
Management and franchise fee expense
29,277
26,067
55,459
46,456
Other operating expenses
84,207
76,888
166,831
145,542
Total property operating expenses
211,854
190,518
412,848
349,558
Depreciation and amortization
44,925
46,922
89,921
93,787
Property tax, insurance and other
24,684
22,949
49,332
45,462
General and administrative
14,627
13,348
28,283
27,482
Transaction costs
4
136
24
198
Total operating expenses
296,094
273,873
580,408
516,487
Other income, net
736
721
1,585
8,006
Interest income
5,011
347
8,675
519
Interest expense
(24,543
)
(23,855
)
(48,673
)
(48,416
)
(Loss) gain on sale of hotel properties,
net
(44
)
(364
)
(44
)
1,053
Loss on extinguishment of indebtedness,
net
(169
)
—
(169
)
—
Income before equity in income from
unconsolidated joint ventures
41,857
33,477
52,429
18,075
Equity in income from unconsolidated joint
ventures
220
283
501
405
Income before income tax expense
42,077
33,760
52,930
18,480
Income tax expense
(357
)
(558
)
(696
)
(748
)
Net income
41,720
33,202
52,234
17,732
Net (income) loss attributable to
noncontrolling interests:
Noncontrolling interest in the Operating
Partnership
(171
)
(125
)
(188
)
(21
)
Noncontrolling interest in consolidated
joint ventures
(154
)
(111
)
(6
)
7
Net income attributable to RLJ
41,395
32,966
52,040
17,718
Preferred dividends
(6,279
)
(6,279
)
(12,557
)
(12,557
)
Net income attributable to common
shareholders
$
35,116
$
26,687
$
39,483
$
5,161
Basic per common share data:
Net income per share attributable to
common shareholders - basic
$
0.22
$
0.16
$
0.25
$
0.03
Weighted-average number of common
shares
156,424,444
163,539,446
157,945,406
163,857,785
Diluted per common share data:
Net income per share attributable to
common shareholders - diluted
$
0.22
$
0.16
$
0.25
$
0.03
Weighted-average number of common
shares
156,741,187
163,784,573
158,381,380
164,217,150
Note: The Statements of
Comprehensive Income and corresponding notes to the consolidated
financial statements can be found in the Company’s Quarterly Report
on Form 10-Q.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands, except
per share data)
(unaudited)
Funds from Operations (FFO)
Attributable to Common Shareholders and Unitholders
For the three months ended
June 30,
For the six months ended June
30,
2023
2022
2023
2022
Net income
$
41,720
$
33,202
$
52,234
$
17,732
Preferred dividends
(6,279
)
(6,279
)
(12,557
)
(12,557
)
Depreciation and amortization
44,925
46,922
89,921
93,787
Loss (gain) on sale of hotel properties,
net
44
364
44
(1,053
)
Noncontrolling interest in consolidated
joint ventures
(154
)
(111
)
(6
)
7
Adjustments related to consolidated joint
venture (1)
(44
)
(49
)
(87
)
(98
)
Adjustments related to unconsolidated
joint venture (2)
236
295
473
590
FFO
80,448
74,344
130,022
98,408
Transaction costs
4
136
24
198
Pre-opening costs (3)
639
378
860
612
Loss on extinguishment of indebtedness,
net
169
—
169
—
Amortization of share-based
compensation
6,089
5,470
11,781
10,654
Non-cash income tax expense
—
135
—
—
Non-cash interest expense related to
discontinued interest rate hedges
482
285
964
241
Derivative gains in accumulated other
comprehensive income reclassified to earnings (4)
—
—
—
(5,866
)
Other expenses (5)
5
251
96
645
Adjusted FFO
$
87,836
$
80,999
$
143,916
$
104,892
Adjusted FFO per common share and
unit-basic
$
0.56
$
0.49
$
0.91
$
0.64
Adjusted FFO per common share and
unit-diluted
$
0.56
$
0.49
$
0.90
$
0.64
Basic weighted-average common shares and
units outstanding (6)
157,196
164,311
158,717
164,630
Diluted weighted-average common shares and
units outstanding (6)
157,513
164,556
159,153
164,989
Notes:
(1)
Includes depreciation and amortization
expense allocated to the noncontrolling interest in the
consolidated joint venture.
(2)
Includes our ownership interest in the
depreciation and amortization expense of the unconsolidated joint
venture.
(3)
Represents expenses related to the brand
conversions of certain hotel properties prior to opening.
(4)
Reclassification of interest rate swap
gains from accumulated other comprehensive income to earnings for
discontinued interest rate hedges.
(5)
Represents expenses and income outside of
the normal course of operations.
(6)
Includes 0.8 million weighted-average
operating partnership units for the three and six month periods
ended June 30, 2023 and 2022.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands)
(unaudited)
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA)
For the three months ended
June 30,
For the six months ended June
30,
2023
2022
2023
2022
Net income
$
41,720
$
33,202
$
52,234
$
17,732
Depreciation and amortization
44,925
46,922
89,921
93,787
Interest expense, net of interest
income
19,532
23,508
39,998
47,897
Income tax expense
357
558
696
748
Adjustments related to unconsolidated
joint venture (1)
345
408
690
815
EBITDA
106,879
104,598
183,539
160,979
Loss (gain) on sale of hotel properties,
net
44
364
44
(1,053
)
EBITDAre
106,923
104,962
183,583
159,926
Transaction costs
4
136
24
198
Pre-opening costs (2)
639
378
860
612
Loss on extinguishment of indebtedness,
net
169
—
169
—
Amortization of share-based
compensation
6,089
5,470
11,781
10,654
Derivative gains in accumulated other
comprehensive income reclassified to earnings (3)
—
—
—
(5,866
)
Other expenses (4)
5
32
96
46
Adjusted EBITDA
113,829
110,978
196,513
165,570
General and administrative
8,538
7,878
16,502
16,828
Other corporate adjustments
666
(194
)
1,137
(359
)
Consolidated Hotel EBITDA
123,033
118,662
214,152
182,039
Comparable adjustments - income from sold
hotels
(236
)
(106
)
(429
)
(297
)
Comparable adjustments - income from
acquired hotels
—
596
—
661
Comparable Hotel EBITDA
$
122,797
$
119,152
$
213,723
$
182,403
Notes: Comparable statistics
reflect the Company's 96 hotel portfolio owned as of June 30,
2023.
(1)
Includes our ownership interest in the
interest, depreciation, and amortization expense of the
unconsolidated joint venture.
(2)
Represents expenses related to the brand
conversions of certain hotel properties prior to opening.
(3)
Reclassification of interest rate swap
gains from accumulated other comprehensive income to earnings for
discontinued interest rate hedges.
(4)
Represents expenses and income outside of
the normal course of operations.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands except
%)
(unaudited)
Comparable Hotel EBITDA Margin
For the three months ended
June 30,
For the six months ended June
30,
2023
2022
2023
2022
Total revenue
$
356,960
$
330,501
$
671,463
$
573,400
Comparable adjustments - revenue from sold
hotels
(35
)
(117
)
(35
)
(2,337
)
Comparable adjustments - revenue from
prior ownership of acquired hotels
—
3,124
—
4,970
Other corporate adjustments / non-hotel
revenue
(21
)
(17
)
(36
)
(32
)
Comparable Hotel Revenue
$
356,904
$
333,491
$
671,392
$
576,001
Comparable Hotel EBITDA
$
122,797
$
119,152
$
213,723
$
182,403
Comparable Hotel EBITDA Margin
34.4
%
35.7
%
31.8
%
31.7
%
RLJ Lodging Trust
Consolidated Debt
Summary
(Amounts in thousands except
%)
(unaudited)
Loan
Base Term (Years)
Maturity
(incl. extensions)
Floating / Fixed (1)
Interest Rate (2)
Balance as of
June 30, 2023 (3)
Mortgage Debt
Mortgage loan - 1 hotel
10
Jan 2029
Fixed
5.06
%
$
25,000
Mortgage loan - 7 hotels (4)
3
Apr 2024
Floating
5.94
%
200,000
Mortgage loan - 3 hotels
5
Apr 2026
Floating
4.95
%
96,000
Mortgage loan - 4 hotels
5
Apr 2026
Floating
5.51
%
85,000
Weighted Average / Mortgage
Total
5.56
%
$
406,000
Corporate Debt
Revolver (5)
4
May 2028
Floating
—
$
—
$225 Million Term Loan Maturing 2026
3
May 2028
Floating
3.02
%
225,000
$200 Million Term Loan Maturing 2026
3
January 2028
Floating
3.50
%
200,000
$400 Million Term Loan Maturing 2025
5
May 2025
Floating
3.43
%
400,000
$500 Million Senior Notes due 2026
5
July 2026
Fixed
3.75
%
500,000
$500 Million Senior Notes due 2029
8
September 2029
Fixed
4.00
%
500,000
Weighted Average / Corporate
Total
3.63
%
$
1,825,000
Weighted Average / Total
3.98
%
$
2,231,000
Notes:
(1)
The floating interest rate is hedged with
an interest rate swap.
(2)
Interest rates as of June 30, 2023,
inclusive of the impact of interest rate hedges.
(3)
Excludes the impact of fair value
adjustments and deferred financing costs.
(4)
In April 2023 the Company exercised the
right to a one-year extension on this loan.
(5)
As of June 30, 2023, there was $600.0
million of borrowing capacity on the Revolver, which is charged an
unused commitment fee of 0.25% annually.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230803569129/en/
Sean M. Mahoney, Executive Vice President and Chief Financial
Officer – (301) 280-7774
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