Fourth Quarter RevPAR increased 5.2%
Executed Multiple Capital Allocation
Initiatives in 2023
Acquired the Wyndham Boston Beacon
Hill
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported
results for the three months and year ended December 31, 2023.
Fourth Quarter
Highlights
- Portfolio Comparable RevPAR of $133.84
- Total Revenue of $319.7 million
- Net income attributable to common shareholders of $1.7
million
- Net income per diluted share attributable to common
shareholders of $0.01
- Adjusted EBITDA of $79.2 million
- Adjusted FFO per diluted common share and unit of $0.34
- Repurchased 0.9 million common shares for $9.9 million at an
average price per share of $10.69
- Ended year with $1.1 billion of liquidity, including
approximately $516.7 million of unrestricted cash and $600.0
million in undrawn revolver capacity
Full Year Highlights
- Portfolio Comparable RevPAR of $141.24
- Total Revenue of $1.3 billion
- Net income attributable to common shareholders of $51.3
million
- Net income per diluted share attributable to common
shareholders of $0.32
- Adjusted EBITDA of $364.5 million
- Adjusted FFO per diluted common share and unit of $1.66
- Repurchased 7.6 million common shares for $77.2 million at an
average price per share of $10.20
“We are pleased to have achieved top-quartile RevPAR growth,
capping off a very successful year of outperformance for RLJ,”
commented Leslie D. Hale, President and Chief Executive Officer.
“Our urban-centric portfolio is uniquely positioned to capture the
improving demand that urban markets are disproportionately seeing,
and the incremental lift from the first wave of our completed
conversions, which should continue to be a tailwind into 2024.
Additionally, throughout the year we demonstrated the optionality
our strong balance sheet provided by launching several new
conversions, repurchasing shares at an attractive basis, doubling
our dividend and more recently bringing forward another compelling
conversion opportunity by acquiring the Wyndham Boston Beacon Hill.
Our strong execution has positioned us to maintain our momentum in
2024 and beyond, supported by continued strength of Urban leisure,
ongoing improvement in business travel, and robust group
bookings."
The prefix “comparable” as defined by the Company, denotes
operating results which include results for periods prior to its
ownership and excludes sold hotels. Explanations of EBITDA,
EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO,
and Adjusted FFO, as well as reconciliations of those measures to
net income or loss, if applicable, are included within this
release.
Financial and
Operating Highlights
($ in millions, except ADR, RevPAR, and
per share amounts)
(unaudited)
For the three months
ended
December 31,
For the year ended
December 31,
2023
2022
Change
2023
2022
Change
Operational Overview: (1)
Comparable ADR
$
193.14
$
190.20
1.5
%
$
196.77
$
188.21
4.5
%
Comparable Occupancy
69.3
%
66.9
%
3.6
%
71.8
%
68.9
%
4.2
%
Comparable RevPAR
$
133.84
$
127.25
5.2
%
$
141.24
$
129.61
9.0
%
Financial Overview:
Total Revenues
$
319.7
$
302.2
5.8
%
$
1,325.6
$
1,193.7
11.0
%
Comparable Hotel Revenue
$
319.5
$
302.2
5.7
%
$
1,325.3
$
1,196.9
10.7
%
Net income attributable to common
shareholders
$
1.7
$
0.3
466.7
%
$
51.3
$
16.8
205.4
%
Comparable Hotel EBITDA (2)
$
89.6
$
87.6
2.3
%
$
401.4
$
370.0
8.5
%
Comparable Hotel EBITDA Margin
28.1
%
29.0
%
(93) bps
30.3
%
30.9
%
(63) bps
Adjusted EBITDA
$
79.2
$
79.0
0.3
%
$
364.5
$
336.5
8.3
%
Adjusted FFO
$
53.4
$
52.8
1.1
%
$
260.4
$
221.1
17.8
%
Adjusted FFO Per Diluted Common Share and
Unit - Diluted
$
0.34
$
0.33
3.0
%
$
1.66
$
1.36
22.1
%
Note:
(1) Comparable statistics reflect the
Company's 96 hotel portfolio owned as of December 31, 2023.
(2) Comparable Hotel EBITDA for the three
months ended December 31, 2023 and 2022 excludes $0.3 million and
$0.7 million, respectively, from sold hotels. Comparable Hotel
EBITDA for the years ended December 31, 2023 and 2022 excludes $0.8
million and $1.2 million, respectively, from sold hotels.
Comparable Hotel EBITDA for the full year ended December 31, 2022
includes $0.6 million net income from acquired hotels.
Acquisitions
During the first quarter of 2024, the Company completed the
purchase of the 304-room Wyndham Boston Beacon Hill for $125
million, which was previously subject to a ground lease that
expired in 2028. The Company funded the acquisition with existing
cash on hand.
Conversions
During the fourth quarter of 2023, the Company announced that
its Renaissance Pittsburgh Hotel will join Marriott's Autograph
Collection, and the Wyndham Pittsburgh University Center will
convert to a Courtyard by Marriott. Including these two
conversions, the Company has announced eight conversions since 2021
including three which have already been completed.
Share Repurchases
During 2023, the Company repurchased 7.6 million shares for
$77.2 million, at an average price per share of $10.20, which
included approximately 0.9 million common shares for $9.9 million
at an average price per share of $10.69 during the fourth quarter.
The Company's share buyback program currently has approximately
$212.7 million of remaining capacity.
Balance Sheet
As of December 31, 2023, the Company had approximately $1.1
billion of total liquidity, comprising approximately $516.7 million
of unrestricted cash and $600.0 million available under its
revolving credit facility ("Revolver"), and $2.2 billion of debt
outstanding.
Dividends
The Company’s Board of Trustees declared a quarterly cash
dividend of $0.10 per common share of beneficial interest of the
Company in the fourth quarter. The dividend was paid on January 16,
2024 to shareholders of record as of December 29, 2023.
The Company's Board of Trustees declared a quarterly cash
dividend of $0.4875 on the Company’s Series A Preferred Shares in
the fourth quarter. The dividend was paid on January 31, 2024 to
shareholders of record as of December 29, 2023.
2024 Outlook
($ in millions, except growth and per share amounts) The
Company is providing its annual outlook for all hotels owned as of
February 26, 2024.
FY 2024
Comparable RevPAR Growth
2.5% to 5.5%
Comparable Hotel EBITDA
$395.0M to $425.0M
Adjusted EBITDA
$360.0M to $390.0M
Adjusted FFO per diluted share
$1.55 to $1.75
Additionally, the Company's full year 2024 outlook includes:
- Net interest expense of $91.0 million to $93.0 million. The
year over year increase is due to the impact of expiring
swaps.
- Capital expenditures related to renovations in the range of
$100.0 million to $120.0 million
- Diluted weighted average common shares and units of 154.0
million
The Company expects the first quarter of 2024 to be impacted by
the timing of Easter and difficult comparisons to prior year growth
rates, which will lead the 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
above 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 February 27, 2024 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 fourth 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,
rooms-oriented, 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 on Form 10-K for the
year ended December 31, 2023, which will be filed on February 27,
2024, 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) provision for income taxes, including income taxes
applicable to sales of assets; 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 benefit or 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
hotel
For the twelve months ended December 31, 2022, Comparable
adjustments included the following acquired hotel:
- 21c Hotel Nashville acquired in July 2022
Comparable adjustments: Sold
hotels
For the twelve months ended December 31, 2022, 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)
December 31,
2023
December 31, 2022
Assets
Investment in hotel properties, net
$
4,136,216
$
4,180,328
Investment in unconsolidated joint
ventures
7,398
6,979
Cash and cash equivalents
516,675
481,316
Restricted cash reserves
38,652
55,070
Hotel and other receivables, net of
allowance of $265 and $319, respectively
26,163
38,528
Lease right-of-use assets
136,140
136,915
Prepaid expense and other assets
58,051
79,089
Total assets
$
4,919,295
$
4,978,225
Liabilities and Equity
Debt, net
$
2,220,778
$
2,217,555
Accounts payable and other liabilities
147,819
155,916
Advance deposits and deferred revenue
32,281
23,769
Lease liabilities
122,588
117,010
Accrued interest
22,539
20,707
Distributions payable
22,500
14,622
Total liabilities
2,568,505
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
December 31, 2023 and 2022
366,936
366,936
Common shares of beneficial interest,
$0.01 par value, 450,000,000 shares authorized; 155,297,829 and
162,003,533 shares issued and outstanding at December 31, 2023 and
2022, respectively
1,553
1,620
Additional paid-in capital
3,000,894
3,054,958
Accumulated other comprehensive income
22,662
40,591
Distributions in excess of net
earnings
(1,055,183
)
(1,049,441
)
Total shareholders’ equity
2,336,862
2,414,664
Noncontrolling interest:
Noncontrolling interest in consolidated
joint ventures
7,634
7,669
Noncontrolling interest in the Operating
Partnership
6,294
6,313
Total noncontrolling interest
13,928
13,982
Total equity
2,350,790
2,428,646
Total liabilities and equity
$
4,919,295
$
4,978,225
Note:
The corresponding notes to the
consolidated financial statements can be found in the Company’s
Annual Report on Form 10-K.
RLJ Lodging Trust
Consolidated Statements of
Operations
(Amounts in thousands, except
share and per share data)
(unaudited)
For the three months ended
December 31,
For the year ended December
31,
2023
2022
2023
2022
Revenues
Operating revenues
Room revenue
$
261,612
$
248,636
$
1,095,028
$
1,002,454
Food and beverage revenue
36,024
34,372
141,625
117,027
Other revenue
22,072
19,183
88,924
74,181
Total revenues
319,708
302,191
1,325,577
1,193,662
Expenses
Operating expenses
Room expense
69,396
65,426
277,058
253,441
Food and beverage expense
28,103
26,088
109,707
87,402
Management and franchise fee expense
24,863
23,719
107,417
95,565
Other operating expenses
85,918
80,437
340,485
308,000
Total property operating expenses
208,280
195,670
834,667
744,408
Depreciation and amortization
44,455
44,529
179,103
184,875
Property tax, insurance and other
23,961
20,790
100,229
86,996
General and administrative
15,968
15,402
58,998
56,330
Transaction costs
197
230
223
(345
)
Total operating expenses
292,861
276,621
1,173,220
1,072,264
Other income (expense), net
858
780
4,364
9,496
Interest income
5,766
2,759
19,743
4,559
Interest expense
(25,301
)
(22,114
)
(98,807
)
(93,155
)
(Loss) gain on sale of hotel properties,
net
(6
)
21
(34
)
1,017
(Loss) on extinguishment of indebtedness,
net
—
(39
)
(169
)
(39
)
Income before equity in income from
unconsolidated joint ventures
8,164
6,977
77,454
43,276
Equity in income from unconsolidated joint
ventures
104
202
419
457
Income before income tax expense
8,268
7,179
77,873
43,733
Income tax expense
(228
)
(379
)
(1,256
)
(1,518
)
Net income
8,040
6,800
76,617
42,215
Net (income) loss attributable to
noncontrolling interests:
Noncontrolling interest in consolidated
joint ventures
(96
)
(181
)
35
(210
)
Noncontrolling interest in the Operating
Partnership
(9
)
(6
)
(247
)
(80
)
Net income attributable to RLJ
7,935
6,613
76,405
41,925
Preferred dividends
(6,279
)
(6,279
)
(25,115
)
(25,115
)
Net income attributable to common
shareholders
$
1,656
$
334
$
51,290
$
16,810
Basic per common share data:
Net income per share attributable to
common shareholders
$
0.01
$
—
$
0.32
$
0.10
Weighted-average number of common
shares
153,326,317
159,769,645
155,928,663
161,947,807
Diluted per common share data:
Net income per share attributable to
common shareholders
$
0.01
$
—
$
0.32
$
0.10
Weighted-average number of common
shares
154,406,530
160,327,264
156,556,414
162,292,865
Note:
The Statements of Comprehensive Income and
corresponding notes to the consolidated financial statements can be
found in the Company’s Annual Report on Form 10-K.
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
December 31,
For the year ended December
31,
2023
2022
2023
2022
Net income
$
8,040
$
6,800
$
76,617
$
42,215
Preferred dividends
(6,279
)
(6,279
)
(25,115
)
(25,115
)
Depreciation and amortization
44,455
44,529
179,103
184,875
Loss (gain) on sale of hotel properties,
net
6
(21
)
34
(1,017
)
Noncontrolling interest in consolidated
joint ventures
(96
)
(181
)
35
(210
)
Adjustments related to consolidated joint
venture (1)
(45
)
(43
)
(175
)
(187
)
Adjustments related to unconsolidated
joint venture (2)
232
239
941
1,070
FFO
46,313
45,044
231,440
201,631
Transaction costs
197
230
223
(345
)
Pre-opening costs (3)
163
738
1,351
2,258
Loss on extinguishment of indebtedness,
net
—
39
169
39
Amortization of share-based
compensation
6,258
5,590
24,285
21,664
Non-cash income tax benefit
(5
)
(17
)
(5
)
(17
)
Non-cash interest expense related to
discontinued interest rate hedges
482
178
1,929
680
Derivative gains in accumulated other
comprehensive income reclassified to earnings (4)
—
—
—
(5,866
)
Other (income) expenses (5)
(30
)
1,011
996
1,067
Adjusted FFO
$
53,378
$
52,813
$
260,388
$
221,111
Adjusted FFO per common share and
unit-basic
$
0.35
$
0.33
$
1.66
$
1.36
Adjusted FFO per common share and
unit-diluted
$
0.34
$
0.33
$
1.66
$
1.36
Basic weighted-average common shares and
units outstanding (6)
154,098
160,541
156,700
162,720
Diluted weighted-average common shares and
units outstanding (6)
155,178
161,099
157,328
163,065
Note:
(1) Includes depreciation and amortization
expense, impairment loss and loss on sale of hotel allocated to the
noncontrolling interest in the consolidated joint ventures.
(2) Includes our ownership interest in the
depreciation and amortization expense of the unconsolidated joint
ventures.
(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. For the year ended December 31,
2023, other expenses included one-time management company
transition costs of $0.6 million.
(6) Includes 0.8 million weighted-average
operating partnership units for the three months and year ended
December 31, 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
December 31,
For the year ended December
31,
2023
2022
2023
2022
Net income
$
8,040
$
6,800
$
76,617
$
42,215
Depreciation and amortization
44,455
44,529
179,103
184,875
Interest expense, net of interest
income
19,535
19,355
79,064
88,596
Income tax expense
228
379
1,256
1,518
Adjustments related to unconsolidated
joint venture (1)
340
351
1,374
1,519
EBITDA
72,598
71,414
337,414
318,723
Loss (gain) on sale of hotel properties,
net
6
(21
)
34
(1,017
)
EBITDAre
72,604
71,393
337,448
317,706
Transaction costs
197
230
223
(345
)
Pre-opening costs (2)
163
738
1,351
2,258
Loss on extinguishment of indebtedness,
net
—
39
169
39
Amortization of share-based
compensation
6,258
5,590
24,285
21,664
Derivative gains in accumulated other
comprehensive income reclassified to earnings (3)
—
—
—
(5,866
)
Other expenses (4)
(30
)
1,011
996
1,067
Adjusted EBITDA
79,192
79,001
364,472
336,523
General and administrative
9,710
9,812
34,713
34,666
Other corporate adjustments
1,022
(568
)
3,031
(569
)
Consolidated Hotel EBITDA
89,924
88,245
402,216
370,620
Comparable adjustments - income from sold
hotels
(309
)
(676
)
(813
)
(1,186
)
Comparable adjustments - income from
acquired hotel
—
—
—
558
Comparable Hotel EBITDA
$
89,615
$
87,569
$
401,403
$
369,992
Notes: Comparable statistics
reflect the Company's 96 hotel portfolio owned as of December 31,
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. For the year ended December 31,
2023, other expenses included one-time management company
transition costs of $0.6 million.
RLJ Lodging Trust
Reconciliation of Non-GAAP
Measures
(Amounts in thousands except
margin data)
(unaudited)
Comparable Hotel EBITDA
Margin
For the three months ended
December 31,
For the year ended December
31,
2023
2022
2023
2022
Total revenue
$
319,708
$
302,191
$
1,325,577
$
1,193,662
Comparable adjustments - revenue from sold
hotels
(215
)
—
(250
)
(2,337
)
Comparable adjustments - revenue from
prior ownership of acquired hotels
—
—
—
5,585
Other corporate adjustments / non-hotel
revenue
(18
)
(15
)
(70
)
(60
)
Comparable Hotel Revenue
$
319,475
$
302,176
$
1,325,257
$
1,196,850
Comparable Hotel EBITDA
$
89,615
$
87,569
$
401,403
$
369,992
Comparable Hotel EBITDA Margin
28.1
%
29.0
%
30.3
%
30.9
%
RLJ Lodging Trust
Consolidated Debt
Summary
(Amounts in thousands except
interest rate data)
(unaudited)
Loan
Base Term (Years)
Maturity (incl.
extensions)
Floating / Fixed (1)
Interest Rate (2)
Balance as of December 31,
2023
Mortgage Debt
Mortgage loan - 1 hotel
10
Jan 2029
Fixed
5.06%
$
25,000
Mortgage loan - 7 hotels
3
Apr 2024
Floating
5.94%
200,000
Mortgage loan - 3 hotels
5
Apr 2026
Floating
5.10%
96,000
Mortgage loan - 4 hotels
5
Apr 2026
Floating
5.67%
85,000
Weighted Average / Mortgage
Total
5.63%
$
406,000
Corporate Debt
Revolver (3)
4
May 2028
Floating
—
$
—
$225 Million Term Loan
3
May 2028
Floating
3.03%
225,000
$200 Million Term Loan
3
January 2028
Floating
4.88%
200,000
$400 Million Term Loan
5
May 2025
Floating
3.44%
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
3.79%
$
1,825,000
Weighted-Average / Gross Debt
4.12%
$
2,231,000
Notes:
(1) The floating interest rate is hedged,
or partially hedged, with an interest rate swap.
(2) Interest rates as of December 31,
2023, inclusive of the impact of interest rate hedges.
(3) As of December 31, 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/20240226599312/en/
Sean M. Mahoney, Executive Vice President and Chief Financial
Officer – (301) 280-7774
RLJ Lodging (NYSE:RLJ)
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