RLJ Lodging Trust Reports Fourth Quarter and Full Year 2019 Results

- Achieved 2019 RevPAR growth of 0.7%

- Completed sale of approximately $724 million of non-core hotels

- Repurchased 7.2 million shares for approximately $124 million since fourth quarter 2018

BETHESDA, Md.--()--RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months and year ended December 31, 2019.

Fourth Quarter Highlights

  • Pro forma RevPAR decrease of 0.5%
  • Pro forma Hotel EBITDA Margin of 30.0%
  • Net income of $34.9 million
  • Adjusted EBITDA of $96.3 million
  • Adjusted FFO per diluted common share and unit of $0.41
  • Repurchased 0.7 million common shares for approximately $12.2 million

Full Year Highlights

  • Pro forma RevPAR increase of 0.7%
  • Pro forma Hotel EBITDA Margin of 31.8%
  • Net income of $129.4 million
  • Adjusted EBITDA of $462.5 million
  • Adjusted FFO per diluted common share and unit of $2.03
  • Strategically reshaped portfolio with sale of 47 non-core hotels for approximately $724 million
  • Executed Wyndham termination agreement and received $35.0 million payment
  • Refinanced $1.4 billion of debt, reducing borrowing costs and extending maturities
  • Repurchased 4.6 million common shares for approximately $77.8 million

2019 was a transformational year for RLJ as we successfully executed on our strategic plan to reshape our portfolio, enhance operating metrics, and improve our growth profile,” commented Leslie D. Hale, President and Chief Executive Officer. “As we enter 2020, our portfolio is uniquely positioned with tangible catalysts despite choppy fundamentals. We have a fortress balance sheet, which enables us to be nimble, and significant investment capacity, which allows us to pursue multiple value creation opportunities in both the near and long-term. RLJ is well positioned to create value in all phases of the lodging cycle.”

The prefix “Pro forma” as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. 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, 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.

Pro forma RevPAR for the fourth quarter declined 0.5% from the comparable period in 2018. The Company's top performing markets were Louisville, Tampa, and Orlando with Pro forma RevPAR growth of 21.8%, 20.4%, and 9.0%, respectively. For the full year, the Company's top performing markets were Louisville, Austin, and Charleston with Pro forma RevPAR growth of 26.2%, 6.3%, and 5.4%, respectively.

Net Income for the fourth quarter was $34.9 million, an increase of $7.0 million from the comparable period in 2018.

Adjusted EBITDA for the fourth quarter was $96.3 million, a decrease of $17.6 million from the comparable period in 2018. For the three months ended December 31, 2018, adjusted EBITDA included $17.2 million from sold hotels.

Non-recurring items for the fourth quarter included an impairment loss of $13.5 million related to two hotel properties. The impairment loss is included in net income attributable to common shareholders but is excluded for the purpose of calculating Adjusted EBITDA and Adjusted FFO.

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,

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Operational Overview: (1)

 

 

 

 

 

 

 

Pro forma ADR

$179.56

 

$181.72

 

(1.2)%

 

$182.96

 

$182.53

 

0.2%

Pro forma Occupancy

75.7%

75.2%

0.7%

 

79.0%

78.6%

0.4%

Pro forma RevPAR

$135.87

 

$136.62

 

(0.5)%

 

$144.51

 

$143.55

 

0.7%

 

 

 

 

 

 

 

 

Financial Overview:

 

 

 

 

 

 

 

Total Revenues

$347.1

 

$399.9

 

(13.2)%

 

$1,566.2

 

$1,761.2

 

(11.1)%

Pro forma Hotel Revenue

$342.1

 

$339.8

 

0.7%

 

$1,419.2

 

$1,398.8

 

1.5%

 

 

 

 

 

 

 

 

Net Income (2)

$34.9

 

$27.9

 

25.1%

 

$129.4

 

$190.9

 

(32.2)%

 

 

 

 

 

 

 

 

Pro forma Hotel EBITDA

$102.6

 

$106.0

 

(3.2)%

 

$450.7

 

$451.5

 

(0.2)%

Pro forma Hotel EBITDA Margin

30.0%

31.2%

(119) bps

 

31.8%

32.3%

(52) bps

Adjusted EBITDA (3)

$96.3

 

$113.8

 

(15.4)%

 

$462.5

 

$522.1

 

(11.4)%

 

 

 

 

 

 

 

 

Adjusted FFO

$69.3

 

$84.9

 

(18.5)%

 

$350.3

 

$395.7

 

(11.5)%

Adjusted FFO Per Diluted Common Share and Unit

$0.41

 

$0.49

 

(16.3)%

 

$2.03

 

$2.26

 

(10.2)%

Note:

(1) Pro forma statistics reflect the Company's 103 hotel portfolio as of February 25, 2020.

(2) Net Income for the three months ended December 31, 2019 and 2018, included $19.5 million and $5.1 million respectively, from sold hotels. Net Income for the year ended December 31, 2019 and 2018, included $18.1 million and $81.9 million respectively, from sold hotels.

(3) Adjusted EBITDA for the three months ended December 31, 2018 included $17.2 million from sold hotels. Adjusted EBITDA for the year ended December 31, 2019 and 2018, included $47.0 million and $106.2 million respectively, from sold hotels.

Fourth Quarter Disposition

On November 22, 2019, the Company sold five hotels in Austin, TX for a total sales price of $67.6 million. The sold portfolio included the following hotels:

  • 211-room Marriott Austin South
  • 152-room SpringHill Suites Austin South
  • 110-room Courtyard Austin South
  • 66-room Residence Inn Austin South
  • 63-room Fairfield Inn & Suites Austin South

Full Year Dispositions

For the year ended December 31, 2019, the Company sold 47 properties in five separate transactions consisting of:

  • 21 hotel portfolio with 2,555 rooms in June 2019
  • 255-room Embassy Suites Myrtle Beach Oceanfront Resort and the 385-room Hilton Myrtle Beach Resort in Myrtle Beach, SC in June 2019
  • 18 hotel portfolio with 2,119 rooms in August 2019
  • 108-room Residence Inn Columbia in September 2019
  • 5 hotel portfolio with 602 rooms in Austin, TX in November 2019

Share Repurchases

For the three months ended December 31, 2019, the Company repurchased 0.7 million shares of its common stock at an average price per share of $16.52 for approximately $12.2 million.

For the year ended December 31, 2019, the Company repurchased 4.6 million shares of its common stock at an average price per share of $17.01 for approximately $77.8 million.

Subsequent to year-end, the Company repurchased approximately 1.5 million shares of its common stock for approximately $24.5 million.

The Company's existing repurchase program will expire on February 29, 2020. On February 14, 2020, the Company's Board of Trustees authorized a new one year $250.0 million share repurchase program that will expire on February 28, 2021.

Balance Sheet

As of December 31, 2019, the Company had $882.5 million of unrestricted cash on its balance sheet, $600.0 million in capacity on its revolving credit facility, and $2.2 billion of debt outstanding.

The Company’s ratio of net debt to Adjusted EBITDA for the year ended December 31, 2019, was 3.1x.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.33 per common share of beneficial interest in the fourth quarter. The dividend was paid on January 15, 2020, to shareholders of record as of December 31, 2019. For the year ended December 31, 2019, the Company declared total dividends of $1.32 per common share of beneficial interest.

The Company's Board of Trustees declared a preferred dividend of $0.4875 on its Series A cumulative convertible preferred shares. The dividend was paid on January 31, 2020, to shareholders of record as of December 31, 2019. For the year ended December 31, 2019, the Company declared total dividends of $1.95 per Series A cumulative convertible preferred share.

Full Year Impact from Dispositions

The following table shows the impact of the sale of 47 non-core hotels in 2019 on Adjusted FFO and Adjusted EBITDA.

 

 

As Reported

for the Year Ended

December 31, 2019

 

Impact of

Dispositions

 

As Adjusted

for the Year Ended

December 31, 2019

Adjusted FFO

$350.3M

($46.2M)

$304.1M

Adjusted EBITDA

$462.5M

($47.0M)

$415.5M

 

The Company has provided the pro forma operating results of its current 103 hotel portfolio for all four quarters and full year 2019 in the pro forma supplemental presentation posted to the Company's Investor Relations website at http://investor.rljlodgingtrust.com.

2020 Outlook

The Company’s outlook includes only hotels owned as of February 25, 2020. The outlook does not incorporate the refinancing of the $475 million senior unsecured notes or any incremental share repurchases, as both are future transactions that will be influenced by market dynamics at the time of execution. Future acquisitions or dispositions are also not assumed in the Company's outlook.

For the full year 2020, the Company anticipates:

 

Current Outlook

Pro forma RevPAR growth

-1.5% to +0.5%

Pro forma Hotel EBITDA Margin

29.4% to 31.0%

Pro forma Consolidated Hotel EBITDA

$413.0M to $443.0M

Corporate Cash General & Administrative Expense

$35.0M to $36.0M

Adjusted EBITDA

$378.0M to $408.0M

Adjusted FFO per Diluted Share and Unit

$1.62 to $1.77

Additionally, the Company's full year 2020 outlook includes:

  • Interest expense of $88.0 million to $90.0 million
  • Capital expenditures related to renovations in the range of $90.0 million to $110.0 million
  • Cash income tax expense of $3.0 million to $4.0 million
  • Diluted weighted average common shares and units of 169.5 million

The Company's outlook for Pro forma Hotel EBITDA margin at the midpoint includes an impact of 65 basis points from increases in insurance premiums and property taxes.

For the first quarter 2020, the Company expects Pro forma Consolidated Hotel EBITDA to be between $89.0 million to $94.0 million and Adjusted EBITDA to be between $83.0 million to $88.0 million.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on February 26, 2020, 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 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 that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 103 hotels with approximately 22,570 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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 Securities and Exchange Commission.

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.

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 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.

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. 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.

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 partnerships and 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 either outside the normal course of operations or extraordinary. 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, is beneficial to an investor’s understanding of its operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:

  • Transaction Costs: The Company excludes transaction costs expensed during the period
  • Non-Cash Expenses: The Company excludes the effect of certain non-cash items such as the amortization of share-based compensation, non-cash income taxes, and unrealized gains and loss related to 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.

Pro forma Consolidated Hotel EBITDA includes 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 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: Acquired hotels

For the years ended December 31, 2019 and 2018, respectively, no hotels were acquired.

Pro forma adjustments: Sold hotels

For the years ended December 31, 2019 and 2018, pro forma adjustments included the following sold hotels:

  • Embassy Suites Boston Marlborough in February 2018
  • Sheraton Philadelphia Society Hill Hotel in March 2018
  • Embassy Suites Napa Valley in July 2018
  • DoubleTree Hotel Columbia in August 2018
  • The Vinoy Renaissance St. Petersburg Resort & Golf Club in August 2018
  • DoubleTree by Hilton Burlington Vermont in September 2018
  • Holiday Inn San Francisco - Fisherman's Wharf in October 2018
  • Courtyard Austin Airport in June 2019
  • Courtyard Boulder Longmont in June 2019
  • Courtyard Fort Lauderdale SW Miramar in June 2019
  • Courtyard Salt Lake City Airport in June 2019
  • Fairfield Inn & Suites San Antonio Downtown Market in June 2019
  • Hampton Inn Fort Walton Beach in June 2019
  • Hampton Inn West Palm Beach Airport Central in June 2019
  • Hampton Inn & Suites Clearwater St. Petersburg Ulmerton Road in June 2019
  • Hampton Inn & Suites Denver Tech Center in June 2019
  • Hilton Garden Inn Bloomington in June 2019
  • Hilton Garden Inn Durham Raleigh Research Triangle Park in June 2019
  • Hilton Garden Inn West Palm Beach Airport in June 2019
  • Residence Inn Chicago Oak Brook in June 2019
  • Residence Inn Detroit Novi in June 2019
  • Residence Inn Fort Lauderdale Plantation in June 2019
  • Residence Inn Fort Lauderdale SW Miramar in June 2019
  • Residence Inn Longmont Boulder in June 2019
  • Residence Inn Salt Lake City Airport in June 2019
  • Residence Inn San Antonio Downtown Market Square in June 2019
  • Residence Inn Silver Spring in June 2019
  • SpringHill Suites Boulder Longmont in June 2019
  • Embassy Suites Myrtle Beach Oceanfront Resort in June 2019
  • Hilton Myrtle Beach Resort in June 2019
  • Courtyard Austin Northwest Arboretum in August 2019
  • Courtyard Boulder Louisville in August 2019
  • Courtyard Denver West Golden in August 2019
  • Courtyard Louisville Northeast in August 2019
  • Courtyard South Bend Mishawaka in August 2019
  • Hampton Inn Houston Galleria in August 2019
  • Hyatt House Austin Arboretum in August 2019
  • Hyatt House Houston Galleria in August 2019
  • Hyatt House Dallas Lincoln Park in August 2019
  • Hyatt House Dallas Uptown in August 2019
  • Residence Inn Austin Northwest Arboretum in August 2019
  • Residence Inn Austin North Parmer Lane in August 2019
  • Residence Inn Boulder Louisville in August 2019
  • Residence Inn Denver West Golden in August 2019
  • Residence Inn Louisville Northeast in August 2019
  • SpringHill Suites Austin North Parmer Lane in August 2019
  • SpringHill Suites Louisville Hurstbourne North in August 2019
  • SpringHill Suites South Bend Mishawaka in August 2019
  • Residence Inn Columbia in September 2019
  • Courtyard Austin South in November 2019
  • Fairfield Inn & Suites Austin South Airport in November 2019
  • Marriott Austin South in November 2019
  • Residence Inn Austin South in November 2019
  • SpringHill Suites Austin South in November 2019
 

RLJ Lodging Trust
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(unaudited)

 

 

December 31,

2019

December 31,

2018

Assets

Investment in hotel properties, net

$

4,614,966

 

 

$

5,378,651

 

Investment in unconsolidated joint ventures

 

15,171

 

 

 

22,279

 

Cash and cash equivalents

 

882,474

 

 

 

320,147

 

Restricted cash reserves

 

44,686

 

 

 

64,695

 

Hotel and other receivables, net of allowance of $251 and $598, respectively

 

39,762

 

 

 

52,115

 

Lease right-of-use assets

 

144,358

 

 

Deferred income tax asset, net

 

51,447

 

 

 

44,629

 

Intangible assets, net

 

 

52,448

 

Prepaid expense and other assets

 

58,536

 

 

 

67,367

 

Total assets

$

5,851,400

 

 

$

6,002,331

 

Liabilities and Equity

 

 

 

Debt, net

$

2,195,707

 

 

$

2,202,676

 

Accounts payable and other liabilities

 

183,408

 

 

 

203,833

 

Advance deposits and deferred revenue

 

57,459

 

 

 

25,411

 

Lease liabilities

 

121,154

 

 

Accrued interest

 

3,024

 

 

 

7,913

 

Distributions payable

 

64,165

 

 

 

65,557

 

Total liabilities

 

2,624,917

 

 

 

2,505,390

 

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, 2019 and 2018

 

366,936

 

 

 

366,936

 

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 169,852,246 and 174,019,616 shares issued and outstanding at December 31, 2019 and 2018, respectively

 

1,699

 

 

 

1,740

 

Additional paid-in capital

 

3,127,982

 

 

 

3,195,381

 

Accumulated other comprehensive (loss) income

 

(19,514

)

 

 

16,195

 

Distributions in excess of net earnings

 

(274,769

)

 

 

(150,476

)

Total shareholders’ equity

 

3,202,334

 

 

 

3,429,776

 

Noncontrolling interest:

 

 

 

Noncontrolling interest in consolidated joint ventures

 

14,065

 

 

 

11,908

 

Noncontrolling interest in the Operating Partnership

 

10,084

 

 

 

10,827

 

Total noncontrolling interest

 

24,149

 

 

 

22,735

 

Preferred equity in a consolidated joint venture, liquidation value of $45,544 at December 31, 2018

 

 

44,430

 

Total equity

 

3,226,483

 

 

 

3,496,941

 

Total liabilities and equity

$

5,851,400

 

 

$

6,002,331

 

 

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,

 

2019

 

2018

 

2019

 

2018

Revenues

 

 

 

 

Operating revenues

 

 

 

 

Room revenue

$

286,364

 

$

334,933

 

$

1,317,085

 

$

1,473,047

 

Food and beverage revenue

 

44,348

 

 

47,668

 

 

177,499

 

 

205,518

 

Other revenue

 

16,362

 

 

17,297

 

 

71,608

 

 

82,659

 

Total revenues

 

347,074

 

 

399,898

 

 

1,566,192

 

 

1,761,224

 

Expenses

 

 

 

 

Operating expenses

 

 

 

 

Room expense

 

75,341

 

 

85,231

 

 

329,077

 

 

364,820

 

Food and beverage expense

 

32,662

 

 

35,707

 

 

134,206

 

 

157,156

 

Management and franchise fee expense

 

24,421

 

 

30,377

 

 

120,797

 

 

138,143

 

Other operating expense

 

84,369

 

 

96,784

 

 

373,130

 

 

417,110

 

Total property operating expenses

 

216,793

 

 

248,099

 

 

957,210

 

 

1,077,229

 

Depreciation and amortization

 

48,929

 

 

58,212

 

 

211,584

 

 

241,641

 

Impairment loss

 

13,500

 

 

13,500

 

Property tax, insurance and other

 

28,692

 

 

30,641

 

 

119,287

 

 

135,059

 

General and administrative

 

11,065

 

 

11,136

 

 

45,252

 

 

49,195

 

Transaction costs

 

438

 

 

(123

)

 

1,211

 

 

2,057

 

Total operating expenses

 

319,417

 

 

347,965

 

 

1,348,044

 

 

1,505,181

 

Other income

 

304

 

 

276

 

 

1,242

 

 

2,791

 

Interest income

 

3,785

 

 

1,552

 

 

8,720

 

 

4,891

 

Interest expense

 

(22,662

)

 

(22,870

)

 

(91,295

)

 

(101,643

)

Gain (loss) on sale of hotel properties, net

 

16,572

 

 

(2,016

)

 

(9,300

)

 

30,941

 

(Loss) gain on extinguishment of indebtedness, net

 

(214

)

 

(14

)

 

(214

)

 

5,996

 

Income before equity in income (loss) from unconsolidated joint ventures

 

25,442

 

 

28,861

 

 

127,301

 

 

199,019

 

Equity in income (loss) from unconsolidated joint ventures

 

1,245

 

 

(1

)

 

(1,673

)

 

636

 

Income before income tax benefit (expense)

 

26,687

 

 

28,860

 

 

125,628

 

 

199,655

 

Income tax benefit (expense)

 

8,225

 

 

(942

)

 

3,751

 

 

(8,793

)

Net income

 

34,912

 

 

27,918

 

 

129,379

 

 

190,862

 

Net (income) loss attributable to noncontrolling interests:

 

 

 

 

Noncontrolling interest in consolidated joint ventures

 

(70

)

 

(186

)

 

289

 

 

(17

)

Noncontrolling interest in the Operating Partnership

 

(159

)

 

(93

)

 

(487

)

 

(719

)

Preferred distributions - consolidated joint venture

 

(186

)

 

(1,483

)

Redemption of preferred equity - consolidated joint venture

 

(373

)

 

(1,153

)

Net income attributable to RLJ

 

34,683

 

 

27,266

 

 

127,842

 

 

188,643

 

Preferred dividends

 

(6,279

)

 

(6,279

)

 

(25,115

)

 

(25,115

)

Net income attributable to common shareholders

$

28,404

 

$

20,987

 

$

102,727

 

$

163,528

 

Basic per common share data:

 

 

 

 

Net income per share attributable to common shareholders

$

0.17

 

$

0.12

 

$

0.59

 

$

0.93

 

Weighted-average number of common shares

 

169,241,536

 

 

174,141,263

 

 

171,287,086

 

 

174,225,130

 

Diluted per common share data:

 

 

 

 

Net income per share attributable to common shareholders

$

0.17

 

$

0.12

 

$

0.59

 

$

0.93

 

Weighted-average number of common shares

 

169,376,667

 

 

174,194,141

 

 

171,388,476

 

 

174,316,405

 

 

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,

 

2019

 

2018

 

2019

 

2018

Net income

$

34,912

 

$

27,918

 

$

129,379

 

$

190,862

 

Preferred dividends

 

(6,279

)

 

(6,279

)

 

(25,115

)

 

(25,115

)

Preferred distributions - consolidated joint venture

 

(373

)

 

(186

)

 

(1,483

)

Redemption of preferred equity - consolidated joint venture

 

 

(1,153

)

 

Depreciation and amortization

 

48,929

 

 

58,212

 

 

211,584

 

 

241,641

 

Impairment loss

 

13,500

 

 

 

13,500

 

 

(Gain) loss on sale of hotel properties, net

 

(16,572

)

 

2,016

 

 

9,300

 

 

(30,941

)

Noncontrolling interest in consolidated joint ventures

 

(70

)

 

(186

)

 

289

 

 

(17

)

Adjustments related to consolidated joint ventures (1)

 

(74

)

 

(74

)

 

(298

)

 

(307

)

Adjustments related to unconsolidated joint ventures (2)

 

(355

)

 

646

 

 

4,379

 

 

2,644

 

FFO

 

73,991

 

 

81,880

 

 

341,679

 

 

377,284

 

Transaction costs

 

438

 

 

(123

)

 

1,211

 

 

2,057

 

Loss (gain) on extinguishment of indebtedness, net

 

214

 

 

14

 

 

214

 

 

(5,996

)

Amortization of share-based compensation

 

2,751

 

 

2,529

 

 

11,459

 

 

12,251

 

Non-cash income tax (benefit) expense

 

(9,768

)

 

413

 

 

(6,818

)

 

6,584

 

Other expenses (3)

 

1,641

 

 

228

 

 

2,538

 

 

3,558

 

Adjusted FFO

$

69,267

 

$

84,941

 

$

350,283

 

$

395,738

 

 

 

 

 

 

Adjusted FFO per common share and unit-basic

$

0.41

 

$

0.49

 

$

2.04

 

$

2.26

 

Adjusted FFO per common share and unit-diluted

$

0.41

 

$

0.49

 

$

2.03

 

$

2.26

 

 

 

 

 

 

Basic weighted-average common shares and units outstanding (4)

 

170,014

 

 

174,915

 

 

172,060

 

 

174,999

 

Diluted weighted-average common shares and units outstanding (4)

 

170,149

 

 

174,968

 

 

172,161

 

 

175,090

 

Note:

(1)

 

Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint ventures.

(2)

 

Includes our ownership interest in the depreciation and amortization expense and loss on sale of the unconsolidated joint ventures.

(3)

 

Represents income and expenses outside of the normal course of operations, including debt modification and extinguishment costs, hurricane-related costs that were not reimbursed by insurance, unrealized gains and losses on certain discontinued cash flow hedges, activist shareholder costs, executive transition costs, receipts of pre-merger employee tax credits, and non-cash changes to pre-merger insurance reserves.

(4)

 

Includes 0.8 million weighted-average operating partnership units for the three months ended December 31, 2019 and 2018, respectively, and 0.8 million and weighted-average operating partnership units for the years ended December 31, 2019 and 2018, 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

December 31,

 

For the year ended

December 31,

2019

 

2018

 

2019

 

2018

Net income

$

34,912

 

$

27,918

 

$

129,379

 

$

190,862

 

Depreciation and amortization

 

48,929

 

 

58,212

 

 

211,584

 

 

241,641

 

Interest expense, net

 

18,877

 

 

21,319

 

 

82,575

 

 

96,752

 

Income tax (benefit) expense

 

(8,225

)

 

941

 

 

(3,751

)

 

8,793

 

Adjustments related to unconsolidated joint ventures (1)

 

620

 

 

773

 

 

2,799

 

 

3,152

 

EBITDA

 

95,113

 

 

109,163

 

 

422,586

 

 

541,200

 

(Gain) loss on sale of hotel properties, net

 

(16,572

)

 

2,016

 

 

9,300

 

 

(30,941

)

Impairment loss

 

13,500

 

 

13,500

 

(Gain) loss on sale of unconsolidated joint ventures (2)

 

(851

)

 

2,075

 

EBITDAre

 

91,190

 

 

111,179

 

 

447,461

 

 

510,259

 

Transaction costs

 

438

 

 

(123

)

 

1,211

 

 

2,057

 

Loss (gain) on extinguishment of indebtedness, net

 

214

 

 

14

 

 

214

 

 

(5,996

)

Amortization of share-based compensation

 

2,751

 

 

2,529

 

 

11,459

 

 

12,251

 

Other expenses (3)

 

1,660

 

 

228

 

 

2,144

 

 

3,558

 

Adjusted EBITDA

 

96,253

 

 

113,827

 

 

462,489

 

 

522,129

 

General and administrative (4)

 

8,314

 

 

8,593

 

 

33,784

 

 

33,802

 

Other corporate adjustments (5)

 

84

 

 

1,354

 

 

2,182

 

 

2,478

 

Consolidated Hotel EBITDA

 

104,651

 

 

123,774

 

 

498,455

 

 

558,409

 

Pro forma adjustments - income from sold hotels

 

(2,058

)

 

(17,820

)

 

(47,777

)

 

(106,876

)

Pro forma Consolidated Hotel EBITDA

 

102,593

 

 

105,954

 

 

450,678

 

 

451,533

 

Pro forma adjustments - income from non-comparable hotels

Pro forma Hotel EBITDA

$

102,593

 

$

105,954

 

$

450,678

 

$

451,533

 

Note:

(1)

 

Includes our ownership interest of the interest, depreciation, and amortization expense of the unconsolidated joint ventures.

(2)

 

Includes our ownership interest in the loss on sale of the unconsolidated joint ventures associated with two resort hotel properties sold by the Company in Myrtle Beach, SC.

(3)

 

Represents income and expenses outside of the normal course of operations, including debt modification and extinguishment costs, hurricane-related costs that were not reimbursed by insurance, activist shareholder costs, executive transition costs, receipts of pre-merger employee tax credits, and non-cash changes to pre-merger insurance reserves.

(4)

 

Excludes amortization of share-based compensation and activist shareholder costs reflected in Adjusted EBITDA.

(5)

 

Other corporate adjustments include property-level adjustments and certain revenues and expenses at corporate entities. These items include interest income, amortization of deferred management fees, key money amortization, ground rent amortization, legal fees, revenues and expenses associated with non-hotel properties, income (loss) from unconsolidated entities, internal lease rent expense, and other items.

RLJ Lodging Trust
Reconciliation of Non-GAAP Measures
(Amounts in thousands)
(unaudited)

 

Pro forma Hotel EBITDA Margin

 

For the three months ended

December 31,

 

For the year ended

December 31,

 

2019

 

2018

 

2019

 

2018

Total revenue

$

347,074

 

$

399,898

 

$

1,566,192

 

$

1,761,224

 

Pro forma adjustments - revenue from sold hotels

 

(4,864

)

 

(59,623

)

 

(145,553

)

 

(358,664

)

Other corporate adjustments / non-hotel revenue

 

(141

)

 

(465

)

 

(1,464

)

 

(3,758

)

Pro forma Hotel Revenue

$

342,069

 

$

339,810

 

$

1,419,175

 

$

1,398,802

 

 

 

 

 

 

Pro forma Hotel EBITDA

$

102,593

 

$

105,954

 

$

450,678

 

$

451,533

 

 

 

 

 

 

Pro forma Hotel EBITDA Margin

 

30.0

%

 

31.2

%

 

31.8

%

 

32.3

%

 

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

December 31, 2019 (2)

Secured Debt

 

 

 

 

 

Mortgage Loan - 1 hotel

10

Jun 2022

Fixed

5.25

%

$

30,760

Mortgage Loan - 2 hotels

10

Oct 2022

Fixed

4.95

%

 

55,836

Mortgage Loan - 1 hotel

10

Oct 2022

Fixed

4.95

%

 

32,095

Mortgage Loan - 1 hotel

10

Oct 2022

Fixed

4.94

%

 

28,351

Mortgage Loan - 7 hotels

3

Apr 2024

Floating (3)

3.33

%

 

200,000

Mortgage Loan - 3 hotels

5

Apr 2026

Floating (3)

2.88

%

 

96,000

Mortgage Loan - 4 hotels

5

Apr 2026

Floating (3)(5)

3.38

%

 

85,000

Weighted-Average / Secured Total

 

 

 

3.72

%

$

528,042

 

 

 

 

 

 

Unsecured Debt

 

 

 

 

 

Revolver (4)

4

May 2025

Floating

3.21

%

$

$150 Million Term Loan Maturing 2022

7

Jan 2022

Floating (3)

3.08

%

 

150,000

$400 Million Term Loan Maturing 2023

5

Jan 2023

Floating (3)

3.78

%

 

400,000

$225 Million Term Loan Maturing 2023

5

Jan 2023

Floating (3)

3.78

%

 

225,000

$400 Million Term Loan Maturing 2025

5

May 2025

Floating (3)(5)

2.92

%

 

400,000

Senior Unsecured Notes

10

Jun 2025

Fixed

6.00

%

 

474,888

Weighted-Average / Unsecured Total

 

 

 

4.15

%

$

1,649,888

 

 

 

 

 

 

Weighted-Average / Gross Debt

 

 

 

4.04

%

$

2,177,930

Note:

(1)

Interest rates as of December 31, 2019.

(2)

Excludes the impact of fair value adjustments and deferred financing costs.

(3)

The floating interest rate is hedged with an interest rate swap.

(4)

As of December 31, 2019, there was $600.0 million of capacity on the revolver, which is charged an unused commitment fee of 0.25% annually.

(5)

Reflects an interest rate swap of $83.8 million on the $85.0 million loan and $399.0 million on the $400.0 million term loan.

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

620

 

$16,398

The Knickerbocker New York

New York, NY

330

 

12,781

San Francisco Marriott Union Square

San Francisco, CA

401

 

11,921

Wyndham San Diego Bayside

San Diego, CA

600

 

10,823

Wyndham Boston Beacon Hill

Boston, MA

304

 

9,670

The Mills House Wyndham Grand Hotel

Charleston, SC

216

 

9,630

Courtyard Austin Downtown Convention Center

Austin, TX

270

 

9,439

Embassy Suites San Francisco Airport - Waterfront

Burlingame, CA

340

 

8,916

Wyndham New Orleans - French Quarter

New Orleans, LA

374

 

8,274

Embassy Suites Los Angeles - International Airport South

El Segundo, CA

349

 

8,200

Embassy Suites San Francisco Airport - South San Francisco

South San Francisco, CA

312

 

8,128

DoubleTree Grand Key Resort

Key West, FL

216

 

7,873

Embassy Suites Fort Lauderdale 17th Street

Fort Lauderdale, FL

361

 

7,633

Wyndham Philadelphia Historic District

Philadelphia, PA

364

 

7,338

Courtyard San Francisco

San Francisco, CA

166

 

7,230

Courtyard Portland City Center

Portland, OR

256

 

7,155

Embassy Suites Mandalay Beach - Hotel & Resort

Oxnard, CA

250

 

7,134

Courtyard Waikiki Beach

Honolulu, HI

403

 

6,856

Embassy Suites Tampa Downtown Convention Center

Tampa, FL

360

 

6,749

Residence Inn Palo Alto Los Altos

Los Altos, CA

156

 

6,729

Hilton Garden Inn San Francisco Oakland Bay Bridge

Emeryville, CA

278

 

6,525

Renaissance Pittsburgh Hotel

Pittsburgh, PA

300

 

6,495

Hyatt House Emeryville San Francisco Bay Area

Emeryville, CA

234

 

6,304

Embassy Suites Deerfield Beach - Resort & Spa

Deerfield Beach, FL

244

 

6,030

Wyndham Santa Monica At the Pier

Santa Monica, CA

132

 

5,986

Fairfield Inn & Suites Washington DC Downtown

Washington, DC

198

 

5,811

Hyatt House Santa Clara

Santa Clara, CA

150

 

5,699

DoubleTree Suites by Hilton Austin

Austin, TX

188

 

5,642

Courtyard Charleston Historic District

Charleston, SC

176

 

5,605

Hyatt House San Jose Silicon Valley

San Jose, CA

164

 

5,325

Wyndham Houston - Medical Center Hotel & Suites

Houston, TX

287

 

5,219

Courtyard Chicago Downtown Magnificent Mile

Chicago, IL

306

 

5,077

Residence Inn Bethesda Downtown

Bethesda, MD

188

 

5,043

Embassy Suites Milpitas Silicon Valley

Milpitas, CA

266

 

4,985

Embassy Suites Atlanta - Buckhead

Atlanta, GA

316

 

4,851

Hyatt Centric Midtown Atlanta

Atlanta, GA

194

 

4,825

Marriott Denver South @ Park Meadows

Lone Tree, CO

279

 

4,577

Homewood Suites Washington DC Downtown

Washington, DC

175

 

4,566

Hyatt House San Diego Sorrento Mesa

San Diego, CA

193

 

4,563

Embassy Suites Irvine Orange County

Irvine, CA

293

 

4,561

Residence Inn Austin Downtown Convention Center

Austin, TX

179

 

4,547

DoubleTree Metropolitan Hotel New York City

New York, NY

764

 

4,328

Embassy Suites Orlando - International Drive South/Convention Center

Orlando, FL

244

 

4,290

Embassy Suites Los Angeles Downey

Downey, CA

220

 

4,243

Hilton Garden Inn New Orleans Convention Center

New Orleans, LA

286

 

4,206

Embassy Suites Dallas - Love Field

Dallas, TX

248

 

4,131

Hilton Cabana Miami Beach

Miami Beach, FL

231

 

4,099

Embassy Suites Boston Waltham

Waltham, MA

275

 

4,049

Hyatt Place Washington DC Downtown K Street

Washington, DC

164

 

4,025

Residence Inn National Harbor Washington DC

Oxon Hill, MD

162

 

3,989

Embassy Suites Minneapolis - Airport

Bloomington, MN

310

 

3,855

Renaissance Fort Lauderdale Plantation Hotel

Plantation, FL

250

 

3,853

Hyatt House San Ramon

San Ramon, CA

142

 

3,841

Embassy Suites Miami - International Airport

Miami, FL

318

 

3,810

Renaissance Boulder Flatiron Hotel

Broomfield, CO

232

 

3,808

Embassy Suites Phoenix - Biltmore

Phoenix, AZ

232

 

3,669

Marriott Denver Airport @ Gateway Park

Aurora, CO

238

 

3,615

Hilton Garden Inn Los Angeles Hollywood

Los Angeles, CA

160

 

3,445

Wyndham Pittsburgh University Center

Pittsburgh, PA

251

 

3,423

Hyatt Place Fremont Silicon Valley

Fremont, CA

151

 

3,290

Top 60 Assets

 

16,266

 

365,082

Other (43 Assets)

 

6,311

 

85,596

Total Portfolio

 

22,577

 

$450,678

Note: For the trailing twelve months ended December 31, 2019. Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. Amounts in thousands, except rooms. The information has not been audited and is presented only for comparison purposes.

RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)

 

For the three months ended December 31, 2019 and 2018

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Top Markets

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Northern California

12

79.0

%

80.4

%

(1.8

)%

$

228.13

$

222.84

2.4

%

$

180.18

$

179.22

0.5

%

Southern California

9

78.3

%

78.0

%

0.3

%

 

164.23

 

171.55

(4.3

)%

 

128.54

 

133.81

(3.9

)%

South Florida

8

81.1

%

81.4

%

(0.3

)%

 

169.33

 

169.12

0.1

%

 

137.35

 

137.58

(0.2

)%

New York City

5

92.7

%

92.1

%

0.6

%

 

257.82

 

274.52

(6.1

)%

 

239.06

 

252.92

(5.5

)%

Washington, DC

5

77.6

%

77.5

%

0.0

%

 

207.01

 

198.05

4.5

%

 

160.54

 

153.53

4.6

%

Chicago

13

68.0

%

67.6

%

0.6

%

 

135.74

 

136.42

(0.5

)%

 

92.26

 

92.19

0.1

%

Houston

9

65.4

%

66.2

%

(1.1

)%

 

133.16

 

140.41

(5.2

)%

 

87.09

 

92.89

(6.2

)%

Austin

3

74.3

%

73.8

%

0.7

%

 

222.36

 

214.67

3.6

%

 

165.23

 

158.47

4.3

%

Louisville

2

64.9

%

56.2

%

15.5

%

 

169.68

 

160.93

5.4

%

 

110.21

 

90.51

21.8

%

Denver

5

67.2

%

63.8

%

5.4

%

 

133.67

 

136.57

(2.1

)%

 

89.84

 

87.09

3.2

%

Other

32

74.3

%

73.7

%

0.7

%

 

162.57

 

164.26

(1.0

)%

 

120.72

 

121.13

(0.3

)%

Total

103

75.7

%

75.2

%

0.7

%

$

179.56

$

181.72

(1.2

)%

$

135.87

$

136.62

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Service Level

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Focused-Service

58

73.5

%

74.0

%

(0.6

)%

$

171.69

$

171.45

0.1

%

$

126.27

$

126.82

(0.4

)%

Compact Full-Service

44

77.7

%

77.2

%

0.6

%

 

185.47

 

189.66

(2.2

)%

 

144.13

 

146.51

(1.6

)%

Full-Service

1

67.4

%

52.2

%

29.1

%

 

174.66

 

169.47

3.1

%

 

117.64

 

88.42

33.0

%

Total

103

75.7

%

75.2

%

0.7

%

$

179.56

$

181.72

(1.2

)%

$

135.87

$

136.62

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Chain Scale

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Upper Upscale

34

75.1

%

73.5

%

2.2

%

$

174.60

$

176.23

(0.9

)%

$

131.06

$

129.44

1.2

%

Upscale

59

76.3

%

76.3

%

0.0

%

 

178.12

 

180.70

(1.4

)%

 

135.94

 

137.93

(1.4

)%

Upper Midscale

8

70.2

%

72.4

%

(3.1

)%

 

155.16

 

153.13

1.3

%

 

108.98

 

110.94

(1.8

)%

Other

2

83.7

%

86.3

%

(3.1

)%

 

352.66

 

356.93

(1.2

)%

 

295.15

 

308.12

(4.2

)%

Total

103

75.7

%

75.2

%

0.7

%

$

179.56

$

181.72

(1.2

)%

$

135.87

$

136.62

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Flags

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Embassy Suites

21

76.5

%

76.3

%

0.3

%

$

166.99

$

170.09

(1.8

)%

$

127.82

$

129.85

(1.6

)%

Courtyard

14

76.4

%

75.7

%

0.9

%

 

182.87

 

180.19

1.5

%

 

139.67

 

136.34

2.4

%

Residence Inn

14

69.8

%

71.8

%

(2.7

)%

 

166.53

 

163.23

2.0

%

 

116.30

 

117.14

(0.7

)%

Wyndham

8

76.0

%

75.9

%

0.2

%

 

164.02

 

169.58

(3.3

)%

 

124.71

 

128.74

(3.1

)%

Hyatt House

7

80.7

%

82.1

%

(1.8

)%

 

192.68

 

195.35

(1.4

)%

 

155.44

 

160.41

(3.1

)%

Marriott

5

71.1

%

62.7

%

13.3

%

 

194.97

 

192.41

1.3

%

 

138.58

 

120.66

14.9

%

Fairfield Inn & Suites

5

70.7

%

75.0

%

(5.7

)%

 

162.03

 

157.24

3.0

%

 

114.61

 

117.96

(2.8

)%

Hilton Garden Inn

5

71.0

%

73.1

%

(2.8

)%

 

164.61

 

167.94

(2.0

)%

 

116.94

 

122.69

(4.7

)%

DoubleTree

4

91.3

%

90.1

%

1.4

%

 

220.10

 

232.08

(5.2

)%

 

201.05

 

209.16

(3.9

)%

SpringHill Suites

3

65.1

%

60.4

%

7.7

%

 

129.39

 

135.70

(4.6

)%

 

84.24

 

82.01

2.7

%

Hyatt Place

3

74.5

%

71.5

%

4.2

%

 

178.35

 

184.54

(3.4

)%

 

132.93

 

131.96

0.7

%

Renaissance

3

70.6

%

73.3

%

(3.7

)%

 

169.81

 

167.74

1.2

%

 

119.93

 

122.98

(2.5

)%

Hampton Inn

2

73.0

%

71.7

%

1.8

%

 

145.99

 

146.19

(0.1

)%

 

106.61

 

104.87

1.7

%

Homewood Suites

2

74.9

%

73.0

%

2.6

%

 

172.74

 

167.83

2.9

%

 

129.39

 

122.52

5.6

%

Hyatt

2

72.0

%

74.7

%

(3.6

)%

 

197.24

 

196.16

0.5

%

 

141.98

 

146.48

(3.1

)%

Hilton

1

78.2

%

75.5

%

3.6

%

 

173.52

 

185.12

(6.3

)%

 

135.65

 

139.76

(2.9

)%

Other

4

78.0

%

79.1

%

(1.4

)%

 

288.42

 

299.28

(3.6

)%

 

224.87

 

236.75

(5.0

)%

Total

103

75.7

%

75.2

%

0.7

%

$

179.56

$

181.72

(1.2

)%

$

135.87

$

136.62

(0.5

)%

Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. The information has not been audited and is presented only for comparison purposes.

RLJ Lodging Trust
Pro forma Operating Statistics
(unaudited)

For the year ended December 31, 2019 and 2018

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Top Markets

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Northern California

12

84.1

%

83.3

%

0.9

%

$

237.97

$

229.81

3.6

%

$

200.19

$

191.52

4.5

%

Southern California

9

83.3

%

84.3

%

(1.2

)%

 

178.51

 

180.10

(0.9

)%

 

148.71

 

151.84

(2.1

)%

South Florida

8

82.3

%

85.1

%

(3.3

)%

 

178.37

 

178.47

(0.1

)%

 

146.82

 

151.93

(3.4

)%

New York City

5

90.1

%

90.1

%

0.0

%

 

230.65

 

235.99

(2.3

)%

 

207.71

 

212.52

(2.3

)%

Washington, DC

5

80.2

%

80.9

%

(0.9

)%

 

208.72

 

205.50

1.6

%

 

167.31

 

166.28

0.6

%

Chicago

13

72.9

%

70.8

%

3.0

%

 

138.96

 

143.23

(3.0

)%

 

101.31

 

101.38

(0.1

)%

Houston

9

69.4

%

69.8

%

(0.6

)%

 

139.77

 

144.89

(3.5

)%

 

96.96

 

101.10

(4.1

)%

Austin

3

77.7

%

74.3

%

4.6

%

 

221.85

 

218.27

1.6

%

 

172.34

 

162.08

6.3

%

Louisville

2

70.7

%

57.8

%

22.3

%

 

176.08

 

170.70

3.2

%

 

124.43

 

98.61

26.2

%

Denver

5

73.4

%

73.5

%

(0.1

)%

 

143.86

 

143.62

0.2

%

 

105.56

 

105.51

0.1

%

Other

32

77.2

%

77.3

%

(0.2

)%

 

167.13

 

166.39

0.4

%

 

129.01

 

128.70

0.2

%

Total

103

79.0

%

78.6

%

0.4

%

$

182.96

$

182.53

0.2

%

$

144.51

$

143.55

0.7

%

 

 

 

 

 

 

 

 

 

 

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Service Level

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Focused-Service

58

77.7

%

77.6

%

0.1

%

$

175.24

$

175.00

0.1

%

$

136.23

$

135.86

0.3

%

Compact Full-Service

44

80.4

%

80.7

%

(0.3

)%

 

188.60

 

188.11

0.3

%

 

151.65

 

151.73

(0.1

)%

Full-Service

1

69.7

%

53.5

%

30.1

%

 

184.51

 

181.54

1.6

%

 

128.53

 

97.19

32.2

%

Total

103

79.0

%

78.6

%

0.4

%

$

182.96

$

182.53

0.2

%

$

144.51

$

143.55

0.7

%

 

 

 

 

 

 

 

 

 

 

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Chain Scale

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Upper Upscale

34

78.0

%

77.4

%

0.8

%

$

184.10

$

182.34

1.0

%

$

143.59

$

141.15

1.7

%

Upscale

59

79.9

%

79.8

%

0.1

%

 

179.63

 

180.12

(0.3

)%

 

143.49

 

143.75

(0.2

)%

Upper Midscale

8

76.4

%

75.2

%

1.5

%

 

159.95

 

160.62

(0.4

)%

 

122.13

 

120.83

1.1

%

Other

2

81.7

%

81.0

%

0.9

%

 

297.55

 

296.90

0.2

%

 

242.99

 

240.35

1.1

%

Total

103

79.0

%

78.6

%

0.4

%

$

182.96

$

182.53

0.2

%

$

144.51

$

143.55

0.7

%

 

 

 

 

 

 

 

 

 

 

 

# of

Hotels

 

Occupancy

 

ADR

 

RevPAR

Flags

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

 

2019

 

2018

 

Var

Embassy Suites

21

79.6

%

80.4

%

(1.0

)%

$

176.80

$

176.24

0.3

%

$

140.67

$

141.63

(0.7

)%

Courtyard

14

79.6

%

78.5

%

1.3

%

 

182.35

 

181.64

0.4

%

 

145.09

 

142.67

1.7

%

Residence Inn

14

75.1

%

76.0

%

(1.2

)%

 

167.65

 

167.31

0.2

%

 

125.95

 

127.23

(1.0

)%

Wyndham

8

79.8

%

79.4

%

0.5

%

 

171.47

 

172.78

(0.8

)%

 

136.75

 

137.11

(0.3

)%

Hyatt House

7

84.2

%

85.9

%

(2.0

)%

 

202.75

 

199.33

1.7

%

 

170.74

 

171.26

(0.3

)%

Marriott

5

74.6

%

67.2

%

11.1

%

 

206.87

 

201.00

2.9

%

 

154.36

 

135.04

14.3

%

Fairfield Inn & Suites

5

79.0

%

78.3

%

0.9

%

 

166.01

 

165.14

0.5

%

 

131.14

 

129.31

1.4

%

Hilton Garden Inn

5

75.9

%

76.2

%

(0.3

)%

 

169.12

 

170.63

(0.9

)%

 

128.37

 

129.96

(1.2

)%

DoubleTree

4

91.0

%

90.2

%

1.0

%

 

205.39

 

210.81

(2.6

)%

 

186.95

 

190.07

(1.6

)%

SpringHill Suites

3

71.0

%

68.8

%

3.2

%

 

138.62

 

137.99

0.5

%

 

98.47

 

94.98

3.7

%

Hyatt Place

3

77.0

%

79.2

%

(2.7

)%

 

186.07

 

187.13

(0.6

)%

 

143.32

 

148.17

(3.3

)%

Renaissance

3

74.5

%

77.3

%

(3.7

)%

 

170.62

 

169.02

0.9

%

 

127.06

 

130.68

(2.8

)%

Hampton Inn

2

76.1

%

74.7

%

1.9

%

 

149.62

 

151.92

(1.5

)%

 

113.85

 

113.45

0.4

%

Homewood Suites

2

79.4

%

77.5

%

2.5

%

 

180.34

 

178.27

1.2

%

 

143.20

 

138.11

3.7

%

Hyatt

2

77.4

%

79.0

%

(2.1

)%

 

203.67

 

195.81

4.0

%

 

157.66

 

154.78

1.9

%

Hilton

1

75.1

%

81.2

%

(7.5

)%

 

193.01

 

200.42

(3.7

)%

 

145.01

 

162.79

(10.9

)%

Other

4

76.1

%

74.8

%

1.7

%

 

253.79

 

256.83

(1.2

)%

 

193.10

 

192.21

0.5

%

Total

103

79.0

%

78.6

%

0.4

%

$

182.96

$

182.53

0.2

%

$

144.51

$

143.55

0.7

%

Note: Results reflect 100% of the financial results of three consolidated joint ventures and exclude the Chateau LeMoyne-French Quarter New Orleans, which is an unconsolidated hotel. The information has not been audited and is presented only for comparison purposes.

 

Contacts

Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
http://www.rljlodgingtrust.com

Release Summary

RLJ Lodging Trust Reports Fourth Quarter and Full Year 2019 Results

Contacts

Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774
For additional information or to receive press releases via email, please visit our website:
http://www.rljlodgingtrust.com