RLJ Lodging Trust reported a decrease in total revenues for the fiscal year ending December 31, 2025, amounting to $1.35 billion, down from $1.37 billion in 2024. This decline was primarily driven by a $28.3 million drop in room revenue, which totaled $1.09 billion, attributed to reduced demand from international, government, corporate, and group travel. However, food and beverage revenue increased by $5.1 million to $158.2 million, and other revenue rose by $3.6 million to $98.4 million. The company's net income also fell significantly, from $68.2 million in 2024 to $28.5 million in 2025, reflecting a decrease of $39.6 million.
In terms of operational performance, the company reported an occupancy rate of 71.6% for 2025, slightly down from 72.7% in the previous year. The average daily rate (ADR) remained relatively stable, decreasing marginally from $200.88 to $200.22, while revenue per available room (RevPAR) also saw a slight decline from $145.99 to $143.43. The overall decrease in room revenue was attributed to lower demand across comparable properties, which was impacted by broader economic conditions.
Strategically, RLJ Lodging Trust engaged in several significant activities during 2025, including the sale of three hotel properties for a total of $73.7 million and the refinancing of a term loan to increase its amount to $300 million, extending its maturity to April 2028. The company also repurchased approximately 3.3 million common shares for about $28.6 million as part of its share repurchase program, which has a total authorization of $250 million. Additionally, RLJ entered into $225 million in interest rate swaps to manage its exposure to interest rate fluctuations.
As of December 31, 2025, RLJ Lodging Trust owned 93 hotel properties across 23 states and the District of Columbia, with a total of approximately 20,800 rooms. The company employed 75 individuals and maintained a flexible capital structure, with $442.1 million in cash and cash equivalents. The total debt outstanding was approximately $2.2 billion, with a weighted average interest rate of 4.56%. Looking ahead, RLJ Lodging Trust anticipates that its performance will continue to be influenced by macroeconomic factors, including demand for lodging, competition, and operational efficiencies. The company remains focused on enhancing its portfolio and maintaining a prudent capital structure to support future growth.
About RLJ Lodging Trust
RLJ Lodging Trust is a Maryland REIT that owns and manages a portfolio of primarily premium-branded, focused-service, and compact full-service hotels across the U.S. The company generates revenue through hotel ownership, leasing, and asset management, emphasizing high-margin properties in demand-driven markets. It leverages strong brand affiliations, proactive asset management, and a flexible capital structure to deliver long-term value and competitive advantages in the lodging industry.
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