NAREIT
PRESENTATION
JUNE 2024
RLJ | INVESTMENT HIGHLIGHTS
The evolution of RLJ's portfolio over the last several years has positioned it to benefit from the upside in urban demand and to capitalize on unique internal and external growth catalysts
HIGH-QUALITY
PORTFOLIO
INTERNAL
GROWTH
EXTERNAL
GROWTH
BALANCE
SHEET
High-quality portfolio with an attractive growth profile
- Urban-centricportfolio growth expected to exceed the Industry
- Urban markets represent over two-thirds of RLJ's portfolio
Phase I and II initiatives to generate $14M to $18M of incremental EBITDA
- Three conversions announced in 2023 underway in New Orleans, Houston and Nashville
- Two conversions of the Renaissance and the Wyndham in Pittsburgh
- Expanded conversion pipeline by acquiring Wyndham Boston Beacon Hill
Well-positioned to drive external growth
- Ability to execute all-cash transactions in a constrained lending environment
- Attractive pipeline of off-market, external growth opportunities
Low leveraged balance sheet with a strong track record of returning capital
- ~$1B of liquidity providing optionality
- In 2023, repurchased $77.2M of common shares while doubling dividend
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OPERATING PERFORMANCE
THE PIERSIDE SANTA MONICA
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OPERATING PERFORMANCE | FY & Q2 UPDATE
RLJ's urban-centric portfolio achieves strong RevPAR growth in May
May Forecasted RevPAR Growth of ~ 6.5%
- Sequential improvement from April RevPAR (down 0.3% vs. 2023)
- Month benefitted from robust demand from all segments
- May is expected to be the strongest month of Q2
Q2 Expected to Sequentially Improve From Q1
- Group demand expected to remain strong due to small group and favorable citywides
- Expect continued momentum in business transient
- Urban leisure to benefit from special events such as 150th Kentucky Derby
FY 2024 and Q2 Outlook
- The Company continues to expect 2024 full year results to be within existing guidance ranges
- The Company currently expects Q2 Adjusted EBITDA in the range of $104.0M to $107.0M
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RLJ | MULTIPLE CHANNELS OF GROWTH
URBAN CENTRIC PORTFOLIO
ORGANIC GROWTH
INITIAL CONVERSIONS /
ACQUISITIONS
FUTURE
PIPELINE OF CONVERSIONS
BALANCE SHEET
OPTIONALITY
▪ | Multiple demand drivers | ▪ Pacing ahead of | ▪ Targeting two conversions | |
▪ | Capture new normal | underwriting | per year | |
▪ | Limited new supply | ▪ External growth from high- | ▪ Executing incremental | |
growth markets | revenue enhancement | |||
▪ | Next leg of recovery | |||
▪ | Additional growth to | opportunities | ||
stabilization
Based on pro forma FY 2019 EBITDA for hotels owned As of June 30, 2023
- Strong Liquidity
- Generate significant free cash flow
- Optionality to drive external / internal growth
- Ability to return capital to shareholders
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HIGH-QUALITY PORTFOLIO
THE PIERSIDE SANTA MONICA
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RLJ | HIGH QUALITY PORTFOLIO
RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels
Portfolio Overview(1)
Hotels96(1)
ADR$197
RevPAR$141
EBITDA/Key$19k
Urban Footprint | 66% |
Y/Y Growth %
- 4.5%
- 9.0%
- 8.5%
Brand Exposure
12%
42%
36%
9%
Independent/Other
Based on proforma FY 2023 for Comparable Hotels owned as of December 31, 2023
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RLJ | HIGH QUALITY PORTFOLIO
U R B A N L I F E S T Y L E
U R B A N G AT E W AY
R E S O R T
U R B A N M E T R O
33 | 32 | 11 | 20 |
# of HOTELS | # of HOTELS | # of HOTELS | # of HOTELS |
41% | 31% | 17% | 11% |
of EBITDA | of EBITDA | of EBITDA | of EBITDA |
$21K | $22K | $25K | $16K |
EBITDA / KEY | EBITDA / KEY | EBITDA / KEY | EBITDA / KEY |
Based on pro forma FY 2019 EBITDA for Comparable hotels owned as of December 31, 2023 | |||
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URBAN LIFESTYLE
P R O P E R T I E S I N T O P U R B A N S U B M A R K E T S T H A T B E N E F I T F R O M
S E V E N - D AY- A - W E E K D E M A N D A N D " B L E I S U R E " W I T H H I G H L E I S U R E M I X 4 1 % O F E B I T D A ( 1 )
THE BANKER'S ALLEY HOTEL NASHVILLE
THE KNICKERBOCKER NEW YORK
AC HOTEL BOSTON DOWNTOWN | MOXY DENVER CHERRY CREEK | MARRIOTT LOUISVILLE DOWNTOWN | HYATT CENTRIC MIDTOWN ATLANTA |
(1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2023; excludes Chateau LeMoyne which is unconsolidated
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URBAN GATEWAY
P R O P E R T I E S L O C A T E D I N T O P H O T E L M A R K E T S I N T H E U . S . , T H A T A R E A L S O T H E N A T I O N ' S K E Y E C O N O M I C C E N T E R S
3 1 % O F E B I T D A ( 1 )
COURTYARD NEW YORK MANHATTAN UPPER EAST SIDE
HYATT PLACE WASHINGTON DC DTWN K ST
COURTYARD / RESIDENCE INN / SPRINGHILL SUITES HOUSTON DTWN CONV CTR | SAN FRANCISCO MARRIOTT UNION SQUARE | HILTON GARDEN INN NEW ORLEANS CONV CTR | COURTYARD SAN FRANSISCO |
(1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2023; excludes Chateau LeMoyne which is unconsolidated
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Disclaimer
RLJ Lodging Trust published this content on 04 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2024 13:27:09 UTC.