Earnings Analysis November 4, 2026

RLJ Lodging Trust ($RLJ) Q3 2026 Earnings Analysis: Revenue Beats Estimates, Annual Guidance Raised

Earnings Report

Revenue: $354.48 million (YoY +7.4%, expected $341 million) ✅ Beat

EPS (Earnings Per Share): GAAP -$0.01, Adjusted Free Cash Flow $0.34 per share · expected -$0.05 (GAAP) ✅ Beat

Guidance: Raised · Annual adjusted free cash flow per share $1.47~$1.51, adjusted EBITDA $352 million~$358 million, comparable revenue per available room (RevPAR) +5.75%~+6.25%

Stock Reaction: After-hours -0.08% ($12.71, as of 11-05 06:30 KST)

Highlights

Simultaneous rise in ADR and occupancy: Comparable RevPAR $153.36, up 9.7% YoY

Profit growth outpacing revenue by twofold: Comparable hotel EBITDA rose 17.5% to $93.86 million, with margins improving by 190bp

Improved shareholder return metrics: Adjusted free cash flow per share increased 25.9% to $0.34, with a quarterly dividend payment of $0.15

As demand for urban hotels recovered, both average daily rates (ADR) and occupancy rates rose together. With effective cost management, profits grew faster than revenue. The company stated that October preliminary results were also strong.

Lowlights

Net loss for common stock remains: Net loss attributable to common stock $1.71 million, diluted loss per share -$0.01

Increased interest expense burden: Quarterly interest expense $29.83 million, up 5.4% YoY

Increase in G&A expenses: Rose 13.1% to $13.33 million, outpacing the revenue growth rate

On a GAAP basis, the portion attributable to common stock is still a loss. Preferred stock dividends consume most of the quarterly net income, and the interest burden has not decreased due to the large scale of debt. With renovation capital expenditures projected at $80 million~$90 million annually, cash flow management is required.

What the Company Said

CEO Leslie D. Hale stated that third-quarter results once again exceeded the company's expectations across all metrics. The company raised its annual outlook based on the third-quarter outperformance, strong preliminary results for October, and the positive momentum expected to continue through year-end.

Market Reaction and Future Key Points

Immediately following the announcement, after-hours stock prices remained near the break-even point. The company's Q4 guidance and cash flow trends are expected to be clarified during the conference call the following day.

It is necessary to check whether Q4 booking trends and urban demand outlooks are provided during the conference call on November 5, Eastern Time.

A key point to watch is how the $110 million in proceeds from the sale of seven hotels near Chicago Midway Airport will be utilized.

Whether the annual adjusted cash flow of $1.47 to $1.51 per share is achieved depends on Q4 results.

Earnings Call Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added to this section. We will select and summarize only the most important details, such as how management explained performance and guidance and what questions analysts asked.