RLJ Lodging Trust Reports First Quarter 2017 Results

- Net income of $21.8 million

- Pro forma Hotel EBITDA Margin of 32.9%

- Pro forma Consolidated Hotel EBITDA of $85.6 million

BETHESDA, Md.--()--RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months ended March 31, 2017.

Highlights

  • Net income decreased 14.1% to $21.8 million
  • Pro forma RevPAR decreased 0.6%, Pro forma ADR increased 0.1%, and Pro forma Occupancy decreased 0.8%
  • Pro forma Hotel EBITDA Margin of 32.9%
  • Pro forma Consolidated Hotel EBITDA of $85.6 million
  • Adjusted FFO of $64.4 million

“Our results this quarter were slightly better than our initial expectations and highlight the advantages of a diversified portfolio.  Strong performance in markets such as Washington, D.C. and Southern California and growth in Houston, partially offset short-term softness in markets like Louisville and Northern California,” commented Ross H. Bierkan, President and Chief Executive Officer. “We consistently generate one of the highest margins in the industry. Our ability to continue to drive strong profitability demonstrates the benefits of owning a high-quality portfolio of premium focused-service and compact full-service hotels.”

Financial and Operating Results

Performance metrics such as Occupancy, Average Daily Rate (“ADR”), Revenue Per Available Room (“RevPAR”), Hotel EBITDA, and Hotel EBITDA Margin are Pro forma. The prefix “Pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership. Pro forma RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis and therefore exclude any hotels sold during the period and non-comparable hotels that were not open for operation or were closed for renovation for comparable periods. Explanations of EBITDA, 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.

Net income for the three months ended March 31, 2017, decreased $3.6 million to $21.8 million, representing a 14.1% decrease over the comparable period in 2016.

Pro forma RevPAR for the three months ended March 31, 2017, decreased 0.6% over the comparable period in 2016, driven by a Pro forma Occupancy decrease of 0.8%, partially offset by a Pro forma ADR increase of 0.1%. Some of the Company’s top performing markets were Washington, D.C., Atlanta, and Tampa, with RevPAR growth of 14.3%, 12.5%, and 9.3%, respectively. Excluding Louisville and Northern California, which experienced softness in the quarter, Pro forma RevPAR growth was 1.6%

Pro forma Hotel EBITDA Margin for the three months ended March 31, 2017, decreased 142 basis points over the comparable period in 2016 to 32.9%.

Pro forma Consolidated Hotel EBITDA includes the results of non-comparable hotels. For the three months ended March 31, 2017, Pro forma Consolidated Hotel EBITDA was $85.6 million, representing a 5.6% decrease over the comparable period in 2016.

Adjusted FFO for the three months ended March 31, 2017, decreased $6.3 million to $64.4 million, representing a 9.0% decrease over the comparable period in 2016.

Adjusted FFO per common share and unit-diluted for the three months ended March 31, 2017, was $0.52, representing a decrease of 8.8% over the comparable period in 2016.

Adjusted EBITDA for the three months ended March 31, 2017, decreased $7.0 million to $79.0 million, representing an 8.2% decrease over the comparable period in 2016. Adjusted EBITDA for the comparable period in 2016 included approximately $2.0 million of Hotel EBITDA from sold hotels.

Net cash flow from operating activities for the three months ended March 31, 2017, totaled $49.9 million, compared to $55.2 million for the comparable period in 2016.

Balance Sheet

As of March 31, 2017, the Company had $451.0 million of unrestricted cash on its balance sheet, $400.0 million available on its revolving credit facility, and $1.6 billion of debt outstanding. The Company’s ratio of net debt to Adjusted EBITDA, pro forma for dispositions, for the trailing twelve month period ended March 31, 2017, was 3.1 times.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the first quarter. The dividend was paid on April 14, 2017, to shareholders of record as of March 31, 2017.

Subsequent Events

On April 23, 2017, the Company and FelCor Lodging Trust Incorporated (“FelCor”) entered into a definitive Agreement and Plan of Merger under which FelCor will merge with and into an indirect subsidiary of the Company in a stock-for-stock merger transaction. The transaction is expected to close by the end of 2017 and is subject to customary closing conditions, including the approval of certain aspects of the transaction by both the Company’s and FelCor’s shareholders.

2017 Outlook

The outlook excludes potential future acquisitions and dispositions, which could result in a material change to the Company’s outlook. The 2017 outlook is also based on a number of other assumptions, many of which are outside the Company’s control and all of which are subject to change.

Pro forma guidance removes income from hotels that have been sold. During the three months ended March 31, 2017, the Company did not acquire or sell any hotels.

For the full year 2017, the Company is maintaining its prior outlook of:

         
        Current Outlook
Pro forma RevPAR growth       -1.0% to +1.0%
Pro forma Hotel EBITDA Margin 34.5% to 35.5%
Pro forma Consolidated Hotel EBITDA $380.0M to $400.0M
Corporate Cash General & Administrative       $27.5M to $28.5M
 

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on May 9, 2017, at 9:00 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 first quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company’s website at http://rljlodgingtrust.com. A replay of the conference call webcast will be archived and available online through the Investor Relations page of the Company’s website.

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. The Company owns 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia.

Forward Looking Statements

The following 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,” 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 the Company’s actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the current global economic uncertainty, increased direct competition, changes in government regulations or accounting rules, changes in local, national, and global real estate conditions, declines in the lodging industry, seasonality of the lodging industry, risks related to natural disasters, such as earthquakes and hurricanes, hostilities, including future terrorist attacks or fear of hostilities that affect travel, the Company’s ability to obtain lines of credit or permanent financing on satisfactory terms, changes in interest rates, access to capital through offerings of the Company’s common and preferred shares of beneficial interest, or debt, the Company’s ability to identify suitable acquisitions, the Company’s ability to close on identified acquisitions and integrate those businesses, and inaccuracies of the Company’s accounting estimates. Given these uncertainties, undue reliance should not be placed on such 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, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the SEC.

For additional information or to receive press releases via email, please visit our website: http://rljlodgingtrust.com

RLJ Lodging Trust
Non-GAAP and Accounting Commentary

Non-Generally Accepted Accounting Principles (“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) Adjusted EBITDA, (5) Hotel EBITDA, and (6) 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, 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.

Funds From Operations (“FFO”)

The Company calculates 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 instead have 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 are redeemable 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.

Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)

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. 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) from its operating results.

In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions. The Company presents EBITDA attributable to common shareholders, which includes OP units, because the OP units are redeemable for common shares of the Company. The Company believes it is meaningful for the investor to understand EBITDA attributable to all common shares and OP units.

Adjustments to FFO and EBITDA

The Company adjusts FFO and EBITDA for certain items that the Company considers outside the normal course of operations or extraordinary. The Company believes that Adjusted FFO and Adjusted EBITDA provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income, FFO, and EBITDA, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO and EBITDA for the following items:

  • Transaction and Pursuit Costs: The Company excludes transaction and pursuit costs expensed during the period.
  • Non-Cash Expenses: The Company excludes the effect of certain non-cash items. The Company has excluded the amortization of share-based compensation, non-cash gain or loss on the sale of assets, and certain non-cash income taxes.
  • Other Non-Operational Expenses: The Company excludes the effect of certain non-operational expenses. The Company excludes property-level severance costs, debt modification and extinguishment costs, and other 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.

Pro forma Consolidated Hotel EBITDA includes unadjusted prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels, which has not been audited and excludes results from sold hotels as applicable. Pro forma Hotel EBITDA and Pro forma Hotel EBITDA Margin exclude the results of any non-comparable hotels that were under renovation or not open for the entirety of the comparable periods. The following is a summary of pro forma hotel adjustments:

Pro forma adjustments: Sold hotels

Hotels sold during the year ended December 31, 2016, are noted below:

  • Holiday Inn Express Merrillville was sold in February 2016
  • SpringHill Suites Bakersfield was sold in November 2016
  • Hilton Garden Inn New York 35th Street was sold in December 2016
  • Hilton New York Fashion District was sold in December 2016
         

RLJ Lodging Trust

Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

 

March 31,
2017

December 31,
2016

(unaudited)

Assets
Investment in hotel properties, net $ 3,341,219 $ 3,368,674
Cash and cash equivalents 451,010 456,672
Restricted cash reserves 61,538 67,206
Hotel and other receivables, net of allowance of $157 and $182, respectively 34,668 26,018
Deferred income tax asset 43,676 44,614
Prepaid expense and other assets 60,653   60,209  
Total assets $ 3,992,764   $ 4,023,393  
Liabilities and Equity
Debt, net $ 1,582,432 $ 1,582,715
Accounts payable and other liabilities 116,273 137,066
Deferred income tax liability 11,430 11,430
Advance deposits and deferred revenue 14,263 11,975
Accrued interest 3,697 3,444
Distributions payable 41,699   41,486  
Total liabilities 1,769,794 1,788,116
Equity
Shareholders’ equity:

Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued
and outstanding at March 31, 2017 and December 31, 2016, respectively

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 124,607,489
and 124,364,178 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively

1,246 1,244
Additional paid-in capital 2,189,179 2,187,333
Accumulated other comprehensive income (loss) 646 (4,902 )
Retained earnings 18,711   38,249  
Total shareholders’ equity 2,209,782 2,221,924
Noncontrolling interest:
Noncontrolling interest in consolidated joint venture 5,907 5,973
Noncontrolling interest in the Operating Partnership 7,281   7,380  
Total noncontrolling interest 13,188   13,353  
Total equity 2,222,970   2,235,277  
Total liabilities and equity $ 3,992,764   $ 4,023,393  
 

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
March 31,

2017

   

2016

Revenue
Operating revenue
Room revenue $ 224,965 $ 239,512
Food and beverage revenue 26,691 26,555
Other operating department revenue 8,576   9,104  
Total revenue $ 260,232   $ 275,171  
Expense
Operating expense
Room expense $ 51,922 $ 55,028
Food and beverage expense 19,297 19,817
Management and franchise fee expense 26,913 28,501
Other operating expense 57,823   60,021  
Total property operating expense 155,955 163,367
Depreciation and amortization 38,665 40,730
Property tax, insurance and other 19,158 20,155
General and administrative 9,123 9,649
Transaction and pursuit costs 625   79  
Total operating expense 223,526   233,980  
Operating income 36,706 41,191
Other income 140 302
Interest income 485 397
Interest expense (14,328 ) (14,892 )
Income before income tax expense 23,003 26,998
Income tax expense (1,166 ) (1,476 )
Income from operations 21,837 25,522
Loss on sale of hotel properties (60 ) (172 )
Net income 21,777 25,350
Net loss (income) attributable to noncontrolling interests
Noncontrolling interest in consolidated joint venture 66 62
Noncontrolling interest in the Operating Partnership (85 ) (114 )
Net income attributable to common shareholders $ 21,758   $ 25,298  
Basic per common share data:
Net income per share attributable to common shareholders $ 0.17   $ 0.20  
Weighted-average number of common shares 123,734,173   123,739,823  
Diluted per common share data:
Net income per share attributable to common shareholders $ 0.17   $ 0.20  
Weighted-average number of common shares 123,841,400   124,141,824  
 

Note:

The Statements of Comprehensive Income and corresponding notes 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
March 31,

2017

   

2016

Net income $ 21,777 $ 25,350
Depreciation and amortization 38,665 40,730
Loss on sale of hotel properties 60 172
Noncontrolling interest in consolidated joint venture 66 62
Adjustments related to consolidated joint venture (1) (33 ) (39 )
FFO 60,535 66,275
Transaction and pursuit costs 625 79
Amortization of share-based compensation 2,334 2,591
Non-cash income tax expense 938 1,131
Loan related costs (2) 341
Other expenses (3)   356  
Adjusted FFO $ 64,432   $ 70,773  
 
Adjusted FFO per common share and unit-basic $ 0.52 $ 0.57
Adjusted FFO per common share and unit-diluted $ 0.52 $ 0.57
 
Basic weighted-average common shares and units outstanding (4) 124,293 124,490
Diluted weighted-average common shares and units outstanding (4) 124,400 124,892
 

Note:

(1)   Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(2) Represents debt modification costs.
(3) Represents expenses outside of the normal course of operations, including property-level severance costs.
(4) Includes 0.6 million and 0.8 million weighted-average operating partnership units for the three months ended March 31, 2017 and 2016, respectively.
 
     

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
March 31,

2017

   

2016

Net income $ 21,777 $ 25,350
Depreciation and amortization 38,665 40,730
Interest expense, net (1) 14,317 14,886
Income tax expense 1,166 1,476
Noncontrolling interest in consolidated joint venture 66 62
Adjustments related to consolidated joint venture (2) (33 ) (39 )
EBITDA 75,958 82,465
Transaction and pursuit costs 625 79
Loss on sale of hotel properties 60 172
Amortization of share-based compensation 2,334 2,591
Loan related costs (3) 341
Other expenses (4)   356  
Adjusted EBITDA 78,977 86,004
General and administrative (5) 6,789 6,717
Operating results from noncontrolling interest in joint venture (33 ) (23 )
Other corporate adjustments 1   (265 )
Consolidated Hotel EBITDA 85,734   92,433  
Pro forma adjustments - income from sold hotels (173 ) (1,811 )
Pro forma Consolidated Hotel EBITDA 85,561   90,622  
Pro forma Hotel EBITDA $ 85,561   $ 90,622  
 

Note::

(1)   Excludes amounts attributable to investment in loans of $0.5 million and $0.4 million for the three months ended March 31, 2017 and 2016, respectively.
(2) Includes depreciation and amortization expense allocated to the noncontrolling interest in the joint venture.
(3) Represents debt modification costs.
(4) Represents expenses outside of the normal course of operations, including property-level severance costs.
(5) General and administrative expenses exclude amortization of share-based compensation and other non-recurring expenses reflected in Adjusted EBITDA.
 
     

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

Pro forma Hotel EBITDA Margin

 

For the three months ended
March 31,

2017

   

2016

Total revenue $ 260,232 $ 275,171
Pro forma adjustments - revenue from sold hotels (10,960 )
Other corporate adjustments (25 ) (15 )
Pro forma Hotel Revenue $ 260,207   $ 264,196  
 
Pro forma Hotel EBITDA $ 85,561   $ 90,622  
 
Pro forma Hotel EBITDA Margin 32.9 % 34.3 %
 
                   

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands)

(unaudited)

 

Loan

   

Base Term
(Years)

   

Maturity
(incl. extensions)

   

Floating /
Fixed

   

Interest
Rate (1)

   

Balance as of
March 31, 2017 (2)

Secured Debt
Wells Fargo - 4 hotels 3 Oct 2021 Floating (3) 4.02 % $ 150,000
Wells Fargo - 4 hotels 2 Mar 2022 Floating (3) 4.04 % 145,500
Wells Fargo - 1 hotel (4) 10 Jun 2022 Fixed 5.25 % 32,496
PNC Bank - 5 hotels 5     Mar 2023     Floating     3.08 %     85,000
Weighted-Average / Secured Total 3.93 % $ 412,996
 
Unsecured Debt
Revolver (5) 4 Apr 2021 Floating 2.48 % $
$400 Million Term Loan Maturing 2019 5 Mar 2019 Floating (3) 2.72 % 400,000
$225 Million Term Loan Maturing 2019 7 Nov 2019 Floating (3) 4.04 % 225,000
$400 Million Term Loan Maturing 2021 5 Apr 2021 Floating (3)(6) 2.97 % 400,000
$150 Million Term Loan Maturing 2022 7     Jan 2022     Floating (3)     3.43 %     150,000
Weighted-Average / Unsecured Total 3.15 % $ 1,175,000
                         
Weighted-Average / Total Debt                   3.35 %     $ 1,587,996
 

Note:

(1)   Interest rates as of March 31, 2017.
(2) Excludes deferred financing costs.
(3) The floating interest rate is hedged with an interest rate swap.
(4) Excludes the $1.0 million impact of a fair value adjustment.
(5) There is $400.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.30% annually.
(6) Reflects interest rate swap on $350.0 million.
 
           

RLJ Lodging Trust

Pro forma Operating Statistics - Top 60 Assets

(unaudited)

 

Property

   

City/State

   

# of Rooms

   

Pro forma Consolidated
Hotel EBITDA

Marriott Louisville Downtown Louisville, KY 616 $ 14,899
DoubleTree Metropolitan Hotel New York City New York, NY 764 11,393
Courtyard Austin Downtown Convention Center Austin, TX 270 9,419
Courtyard Portland City Center Portland, OR 256 8,757
Courtyard Chicago Downtown Magnificent Mile Chicago, IL 306 7,929
Embassy Suites Tampa Downtown Convention Center Tampa, FL 360 7,780
DoubleTree Grand Key Resort Key West, FL 216 7,733
Courtyard Waikiki Beach Honolulu, HI 403 7,021
Courtyard San Francisco San Francisco, CA 166 6,747
Fairfield Inn & Suites Washington DC Downtown Washington, DC 198 6,681
Hyatt House Emeryville San Francisco Bay Area Emeryville, CA 234 6,486
Embassy Suites Boston Waltham Waltham, MA 275 6,389
Hilton Garden Inn San Francisco Oakland Bay Brg Emeryville, CA 278 6,346
Residence Inn Palo Alto Los Altos Los Altos, CA 156 6,130
Renaissance Pittsburgh Hotel Pittsburgh, PA 300 6,025
Marriott Denver South @ Park Meadows Lone Tree, CO 279 5,917
Hyatt House San Jose Silicon Valley San Jose, CA 164 5,902
Hilton Cabana Miami Beach Miami Beach, FL 231 5,368
Courtyard Charleston Historic District Charleston, SC 176 5,350
Renaissance Fort Lauderdale Plantation Hotel Plantation, FL 250 5,234
Embassy Suites Los Angeles Downey Downey, CA 220 5,233
Hyatt House Santa Clara Santa Clara, CA 150 5,193
Homewood Suites Washington DC Downtown Washington, DC 175 5,121
Residence Inn Austin Downtown Convention Center Austin, TX 179 5,119
Residence Inn Bethesda Downtown Bethesda, MD 188 4,800
Marriott Denver Airport @ Gateway Park Aurora, CO 238 4,754
Hilton Garden Inn Los Angeles Hollywood Los Angeles, CA 160 4,754
Hilton Garden Inn New Orleans Convention Center New Orleans, LA 286 4,354
Hyatt Place Washington DC Downtown K Street Washington, DC 164 4,277
Embassy Suites Irvine Orange County Irvine, CA 293 4,253
Marriott Austin South Austin, TX 211 4,147
Hyatt House San Diego Sorrento Mesa San Diego, CA 193 4,086
Hyatt Place Fremont Silicon Valley Fremont, CA 151 4,046
Renaissance Boulder Flatiron Hotel Broomfield, CO 232 4,033
Residence Inn National Harbor Washington DC Oxon Hill, MD 162 3,827
Fairfield Inn & Suites Key West Key West, FL 106 3,756
Hyatt House Charlotte Center City Charlotte, NC 163 3,713
Hyatt Atlanta Midtown Atlanta, GA 194 3,626
Courtyard Atlanta Buckhead Atlanta, GA 181 3,480
Courtyard Houston Downtown Convention Center Houston, TX 191 3,361
Residence Inn Houston Downtown Convention Center Houston, TX 171 3,243
Homewood Suites Seattle Lynnwood Lynnwood, WA 170 3,239
Residence Inn Indianapolis Downtown On The Canal Indianapolis, IN 134 3,234
Embassy Suites West Palm Beach Central West Palm Beach, FL 194 3,162
Courtyard Houston By The Galleria Houston, TX 190 3,119
SpringHill Suites Portland Hillsboro Hillsboro, OR 106 3,039
Residence Inn Louisville Downtown Louisville, KY 140 3,038
Residence Inn Chicago Oak Brook Oak Brook, IL 156 2,998
Hyatt House San Ramon San Ramon, CA 142 2,977
Hilton Garden Inn Bloomington Bloomington, IN 168 2,892
Hyatt Place Madison Downtown Madison, WI 151 2,811
Hampton Inn Garden City Garden City, NY 143 2,774
Courtyard Indianapolis @ The Capitol Indianapolis, IN 124 2,769
Hyatt House Dallas Lincoln Park Dallas, TX 155 2,645
Hyatt House Cypress Anaheim Cypress, CA 142 2,642
Residence Inn Detroit Novi Novi, MI 107 2,551
Hilton Garden Inn Pittsburgh University Place Pittsburgh, PA 202 2,550
Courtyard Austin Airport Austin, TX 150 2,519
Residence Inn Fort Lauderdale Plantation Plantation, FL 138 2,441
Hyatt House Dallas Uptown Dallas, TX 141       2,305
Top 60 Assets 12,759 290,387
Other (62 Assets) 7,379       104,900
Total Portfolio 20,138       $ 395,287
 

Note:

For the trailing twelve months ended March 31, 2017. Results reflect 100% of DoubleTree Metropolitan Hotel New York City financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture. Amounts in thousands, except rooms.
 
 

RLJ Lodging Trust

Pro forma Operating Statistics

 

For the three months ended March 31, 2017

 

Top Markets  

# of
Hotels

  Occupancy   ADR   RevPAR
2017   2016   Var 2017   2016   Var 2017   2016   Var
Northern California 8 77.8 % 85.1 % (8.5 )% $ 218.88 $ 219.89 (0.5 )% $ 170.37 $ 187.02 (8.9 )%
Austin 13 78.9 % 79.4 % (0.7 )% 175.10 177.77 (1.5 )% 138.18 141.22 (2.1 )%
South Florida 10 89.4 % 89.0 % 0.5 % 213.83 218.29 (2.0 )% 191.18 194.28 (1.6 )%
Denver 13 69.3 % 68.6 % 1.1 % 127.32 127.99 (0.5 )% 88.24 87.77 0.5 %
Washington, DC 8 70.2 % 66.8 % 5.1 % 191.63 176.26 8.7 % 134.44 117.67 14.3 %
Chicago 14 54.1 % 54.5 % (0.9 )% 120.81 129.28 (6.6 )% 65.30 70.48 (7.4 )%
Louisville 5 60.6 % 73.6 % (17.6 )% 148.82 152.92 (2.7 )% 90.22 112.54 (19.8 )%
Southern California 5 85.7 % 81.4 % 5.3 % 168.31 165.00 2.0 % 144.26 134.31 7.4 %
Houston 10 71.4 % 71.2 % 0.2 % 164.86 161.39 2.2 % 117.66 114.93 2.4 %
New York City 3 87.4 % 90.0 % (2.9 )% 150.39 158.44 (5.1 )% 131.40 142.63 (7.9 )%
Other 33 76.6 %   75.3 %   1.8 %   159.82     155.43   2.8 %   122.44     117.03   4.6 %
Total 122 74.4 %   75.0 %   (0.8 )% $ 166.82   $ 166.60   0.1 % $ 124.12   $ 124.91   (0.6 )%
 
Service Level

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Focused-Service 102 73.3 % 74.1 % (1.0 )% $ 161.43 $ 160.82 0.4 % $ 118.40 $ 119.14 (0.6 )%
Compact Full-Service 19 79.9 % 77.9 % 2.6 % 181.47 183.20 (0.9 )% 145.06 142.73 1.6 %
Full-Service 1 56.4 %   73.2 %   (23.0 )%   171.27     167.81   2.1 %   96.55     122.80   (21.4 )%
Total 122 74.4 %   75.0 %   (0.8 )% $ 166.82   $ 166.60   0.1 % $ 124.12   $ 124.91   (0.6 )%
 
Chain Scale

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Upper Upscale 17 74.5 % 74.6 % 0.0 % $ 182.25 $ 181.82 0.2 % $ 135.86 $ 135.58 0.2 %
Upscale 89 75.2 % 75.9 % (0.9 )% 163.58 163.65 0.0 % 123.08 124.22 (0.9 )%
Upper Midscale 15 69.7 % 71.0 % (1.8 )% 158.13 155.89 1.4 % 110.27 110.72 (0.4 )%
Midscale 1 46.5 %   44.1 %   5.4 %   84.96     96.90   (12.3 )%   39.49     42.74   (7.6 )%
Total 122 74.4 %   75.0 %   (0.8 )% $ 166.82   $ 166.60   0.1 % $ 124.12   $ 124.91   (0.6 )%
 
Flags

# of
Hotels

Occupancy ADR RevPAR
2017 2016 Var 2017 2016 Var 2017 2016 Var
Residence Inn 29 75.3 % 74.6 % 0.9 % $ 157.58 $ 156.94 0.4 % $ 118.69 $ 117.12 1.3 %
Courtyard 24 74.4 % 73.7 % 0.9 % 162.82 163.67 (0.5 )% 121.07 120.66 0.3 %
Hyatt House 11 78.1 % 85.1 % (8.2 )% 173.94 172.18 1.0 % 135.91 146.59 (7.3 )%
Hilton Garden Inn 8 70.8 % 71.8 % (1.4 )% 164.30 165.58 (0.8 )% 116.28 118.85 (2.2 )%
SpringHill Suites 8 67.6 % 68.9 % (1.9 )% 134.72 134.52 0.1 % 91.12 92.74 (1.7 )%
Embassy Suites 6 84.9 % 80.8 % 5.0 % 194.77 189.45 2.8 % 165.38 153.16 8.0 %
Hampton Inn 7 70.8 % 72.0 % (1.7 )% 145.09 145.38 (0.2 )% 102.75 104.70 (1.9 )%
Fairfield Inn & Suites 7 72.4 % 73.7 % (1.7 )% 173.57 167.02 3.9 % 125.60 123.02 2.1 %
Marriott 5 63.8 % 71.0 % (10.1 )% 160.43 160.83 (0.3 )% 102.35 114.18 (10.4 )%
Renaissance 3 70.2 % 66.0 % 6.4 % 169.84 170.60 (0.4 )% 119.23 112.57 5.9 %
DoubleTree 3 87.6 % 88.0 % (0.5 )% 175.39 180.72 (2.9 )% 153.72 159.12 (3.4 )%
Hyatt 2 80.0 % 74.9 % 6.9 % 201.14 209.11 (3.8 )% 160.96 156.60 2.8 %
Hyatt Place 3 77.6 % 81.9 % (5.2 )% 177.76 165.86 7.2 % 137.96 135.80 1.6 %
Hilton 1 87.9 % 86.6 % 1.5 % 223.92 252.72 (11.4 )% 196.81 218.90 (10.1 )%
Homewood Suites 2 71.5 % 61.8 % 15.7 % 179.28 176.79 1.4 % 128.12 109.17 17.4 %
Other 3 52.5 %   51.8 %   1.5 %   147.71     156.67   (5.7 )%   77.62     81.12   (4.3 )%
Total 122 74.4 %   75.0 %   (0.8 )% $ 166.82   $ 166.60   0.1 % $ 124.12   $ 124.91   (0.6 )%
 

Note: Results reflect 100% of DoubleTree Metropolitan Hotel New York City financial results, which have not been adjusted to reflect the noncontrolling interest in the joint venture.

 

Contacts

RLJ Lodging Trust
Leslie D. Hale, 301-280-7774
Chief Operating Officer and Chief Financial Officer

Release Summary

RLJ Lodging Trust Reports First Quarter 2017 Results

Contacts

RLJ Lodging Trust
Leslie D. Hale, 301-280-7774
Chief Operating Officer and Chief Financial Officer