RLJ Lodging Trust Reports Q2 2025 Financial Results with Revenue Decline

RLJ Lodging Trust reported its financial results for the second quarter of 2025, revealing a total revenue of $363.1 million, a decrease of 1.7% from $369.3 million in the same period last year. The decline was primarily driven by a $7.6 million drop in room revenue, which fell to $296.1 million, while food and beverage revenue increased by $1.1 million to $41.9 million. For the first half of 2025, total revenues were $691.2 million, down from $693.7 million in the prior year, with room revenue also experiencing a decrease of $6.5 million.

The company's net income for the second quarter was $28.6 million, compared to $37.3 million in the same quarter of 2024, reflecting a decline of 23.4%. This resulted in a net income attributable to common shareholders of $22.2 million, or $0.15 per share, down from $30.8 million, or $0.20 per share, in the previous year. For the first half of 2025, net income attributable to common shareholders was $19.3 million, a decrease from $29.5 million in the same period of 2024.

In terms of operational developments, RLJ Lodging Trust owned 95 hotel properties with approximately 21,200 rooms as of June 30, 2025, a slight reduction from 97 properties a year earlier. The company sold the 181-room Courtyard Atlanta Buckhead for $24.3 million during the quarter, contributing to a net gain of $0.9 million for the first half of the year. Additionally, the company refinanced a term loan to increase its capacity to $300 million and extended the maturity to April 2028, while also repaying $100 million on its revolving credit facility.

The company’s total assets decreased to $4.82 billion from $4.88 billion at the end of 2024, with total liabilities remaining relatively stable at $2.58 billion. Shareholders' equity also saw a decline, totaling $2.24 billion compared to $2.30 billion at the end of the previous fiscal year. The company declared a cash dividend of $0.15 per common share for the first two quarters of 2025, up from $0.10 per share in the same periods of 2024.

Looking ahead, RLJ Lodging Trust remains focused on enhancing its hotel portfolio and maintaining a prudent capital structure. The company has approved a new share repurchase program to acquire up to $250 million of common and preferred shares, reflecting its commitment to returning value to shareholders. The management anticipates that ongoing strategic initiatives, including property improvements and potential acquisitions, will support long-term growth and profitability.