RLJ Lodging Trust Reports Q1 2025 Financial Results with Revenue Growth but Declining Net Income

RLJ Lodging Trust reported its financial results for the first quarter of 2025, revealing total revenues of $328.1 million, a 1.1% increase from $324.4 million in the same period last year. The growth was driven by a $1.0 million rise in room revenue, which reached $267.7 million, alongside a $1.8 million increase in food and beverage revenue, totaling $37.5 million. However, the company experienced a decline in net income, which fell to $3.2 million from $4.7 million year-over-year, resulting in a net loss attributable to common shareholders of $2.9 million, compared to a loss of $1.3 million in the prior year.

In terms of operational metrics, the company reported an average daily rate (ADR) of $204.38, up from $200.17, while occupancy slightly decreased to 69.2% from 69.5%. The revenue per available room (RevPAR) improved to $141.39 from $139.13. The increase in ADR was attributed to a rise in corporate and group travel, although leisure travel demand was noted to be lower. Total property operating expenses also increased by $3.6 million to $217.1 million, primarily due to higher wages and benefits, as well as increased sales and marketing costs.

Strategically, RLJ Lodging Trust sold the Courtyard Atlanta Buckhead hotel for $24.3 million, recording a net gain of $1.3 million from the sale. The company also refinanced a term loan, increasing it to $300 million and extending its maturity to April 2028, which allowed it to pay off a $100 million balance on its revolving credit facility. Additionally, the company repurchased approximately 2.2 million common shares for about $20.8 million during the quarter, as part of its ongoing share repurchase program.

As of March 31, 2025, RLJ Lodging Trust owned 95 hotel properties with approximately 21,200 rooms across 23 states and the District of Columbia. The company reported total assets of $4.8 billion, with total liabilities of $2.6 billion, resulting in shareholders' equity of $2.2 billion. The company continues to maintain a strong liquidity position, with cash and cash equivalents totaling $347.5 million, down from $409.8 million at the end 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 over the next year. Management expressed confidence in the long-term growth prospects of its hotel properties, driven by a diversified portfolio and strategic investments in high-demand locations.