Slide 1: NAREIT Presentation June 2022
NAREIT PRESENTATION JUNE 2022
Slide 2: RLJ | Near-Term Catalysts
RLJ | NEAR-TERM CATALYSTS RLJ is well-positioned in the near-term, with significant internal and external growth catalysts HYATT CENTRIC ATLANTA JUNE 2022 2
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS RLJ’s reshaped portfolio is positioned to capitalize on unique internal and external growth opportunities to drive significant EBITDA expansion URBAN MARKET Urban markets are driving the next leg of lodging recovery GROWTH ▪ Urban markets represent 2/3rds of EBITDA(1) INTERNAL
Slide 4: $34M of Tangible Incremental EBITDA
TANGIBLE EBITDA GROWTH DRIVERS Accretive capital recycling, unlocking of embedded value creation opportunities and lean operating model positions RLJ to exceed 2019 Hotel EBITDA $34M OF TANGIBLE INCREMENTAL EBITDA From Complete / In-progress External + Internal Growth Initiatives $498M $478M $20M $7
Slide 5: Operating Update
OPERATING UPDATE AC HOTEL BOSTON DOWNTOWN JUNE 2022 5
Slide 6: Operating Performance | April - May
OPERATING PERFORMANCE | APRIL - MAY Strong momentum from Q1 has accelerated into Q2, driven by recovery in Urban markets April – May RevPAR accelerated from March, relative to 2019 ▪ April and May achieved 91% and 93% of 2019 RevPAR, vs. 83% In March ▪ May Occupancy / ADR achieved 91% / 102% of 2019
Slide 7: Operating Performance | Outlook
OPERATING PERFORMANCE | OUTLOOK Operating performance positioned to continue to strengthen throughout the year Expect operating trends in June to be generally in-line with May ▪ Strong citywides in markets such as Austin, Boston, Chicago, DC and NoCal ▪ Leisure demand remains healthy heading into th
Slide 8: Weekly Trends | Occupancy
WEEKLY TRENDS | OCCUPANCY Occupancy in April - May accelerated from March and relative to 2019 Total Portfolio Weekly Occupancy vs % of 2019(1) Total Portfolio Total Portfolio as % of 2019 80% Christmas / NYE Memorial Day Thanksgiving 75% 98% 100% Labor Day 73% 70% 80% 65% 60% 60% 55% 50% 40% 45% 40
Slide 9: Weekly Trends | ADR
WEEKLY TRENDS | ADR April - May ADR accelerated from March, achieving the highest ADR of the pandemic Total Portfolio Weekly ADR vs % of 2019(1) Total Portfolio Total Portfolio as % of 2019 Memorial Day $200 115% 120% Christmas / NYE Thanksgiving $193 $180 Labor Day 100% $160 80% $140 60% $120 40% $
Slide 10: High-Quality Portfolio
HIGH - QUALITY PORTFOLIO RENAISSANCE PITTSBURGH JUNE 2022 10
Slide 11: Portfolio Profile
PORTFOLIO PROFILE RLJ owns a geographically diversified portfolio of premium branded, high-margin, focused-service and compact full-service hotels Portfolio Overview(1) Property Types(2) Operating Metrics(3) 22 Compact Full-Service 79% States Focused-Service Occupancy 53% 43% Traditional Full-Servic
Slide 12: Diversified Portfolio
DIVERSIFIED PORTFOLIO RLJ’s footprint in top Urban markets is well-positioned to capture recovery in all segments ▪ Sunbelt markets represent 46% of RLJ’s Hotel EBITDA(1) ▪ 2/3rds of RLJ’s portfolio is concentrated in Urban markets Seattle Portland Minneapolis 5% Boston Greater San Francisco Madison
Slide 13: High Quality Portfolio
HIGH QUALITY PORTFOLIO URBAN LIFESTYLE U R B A N G AT E W AY RESORT URBAN METRO 32 32 11 20 # of HOTELS # of HOTELS # of HOTELS # of HOTELS 38% 36% 14% 12% of EBITDA of EBITDA of EBITDA of EBITDA $21K $22K $25K $15K EBITDA / KEY EBITDA / KEY EBITDA / KEY EBITDA / KEY Based on pro forma FY 2019 EBITD
Slide 14: Urban Lifestyle
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 A Y- A - WEEK DEMAND AND “BLEISURE” WITH HIGH LEISURE MIX REPRESENT 3 8 % OF E B IT DA HAMPTON INN & SUITES ATLANTA MIDTOWN THE KNICKERBOCKER NEW YORK AC HOTEL BOSTON DOWNTOWN MOXY
Slide 15: Urban Gateway
Breakout slide option 1 URBAN GATEWAY P R O P E RT I E S L O C AT E D I N T O P H OT E L M A R K E T S I N T H E U . S . , T H AT A R E A L S O T H E N AT I O N ’ S K E Y E C O N O M I C C E N T E R S R E P R E S E N T 3 6 % OF E B IT DA COURTYARD NEW YORK MANHATTAN UPPER EAST SIDE HYATT PLACE WASHI
Slide 16: Resort
RESORT P R O P E RT I E S L O C AT E D I N R E S O RT D E S T I N AT I O N S W I T H A H I G H L E I S U R E MIX REPRESENT 1 4 % OF E B IT DA WYNDHAM SANTA MONICA AT THE PIER (rendering) EMBASSY SUITES MANDALAY BEACH-HOTEL & RESORT EMBASSY SUITES DEERFIELD BEACH RESORT DOUBLETRREE GRAND KEY RESORT F
Slide 17: Urban Metro
URBAN METRO P R O P E RT I E S L O C AT E D I N N I C H E S U B M A R K E T S W I T H I N M A J O R U . S . H OT E L MARKETS REPRESENT 1 2 % OF E B IT DA HYATT HOUSE SANTA CLARA EMBASSY SUITES MINNEAPOLIS AIRPORT MARRIOTT CHICAGO MIDWAY EMBASSY SUITES DALLAS LOVE FIELD HYATT PLACE MADISON DOWNTOWN J
Slide 18: Significant Underlying Value
SIGNIFICANT UNDERLYING VALUE RENAISSANCE PITTSBURGH JUNE 2022 18
Slide 19: Underlying Value | Recent Market Comps
UNDERLYING VALUE | RECENT MARKET COMPS Recent comparable hotel sales in RLJ’s key markets have transacted at price points that support the underlying value of RLJ’s portfolio San Francisco Boston Hyatt Place Residence Inn ~$610K / key ~$490K / key February 2022 October 2020 Los Angeles Washington D.
Slide 20: Underlying Value | Transactions in Key RLJ Markets
UNDERLYING VALUE | TRANSACTIONS IN KEY RLJ MARKETS The value of RLJ’s portfolio is supported by recent transactions in key markets, on a price per key basis Recent Market Comps RLJ Key Markets % Hotel EBITDA(1) Range of Market Transactions (Price / Key) NorCal 18% San Francisco CBD 4% 380K 620K Sili
Slide 21: External Growth
EXTERNAL GROWTH HAMPTON INN & SUITES ATLANTA MIDTOWN JUNE 2022 21
Slide 22: Capital Recycling | Enhanced Growth Profile
CAPITAL RECYCLING | ENHANCED GROWTH PROFILE During 2021, RLJ accretively recycled ~$200M of capital into high-quality acquisitions Mature assets, in slower-growth markets, Younger, high-margin assets, in high-growth with high capital needs markets with no near-term capital needs $144 ~$200M $175 - $
Slide 23: External Growth | 2021 Acquisitions
EXTERNAL GROWTH | 2021 ACQUISITIONS RLJ actively deployed capital and acquired three high-quality acquisitions HAMPTON INN & SUITES AC HOTEL MOXY ATLANTA MIDTOWN BOSTON DOWNTOWN DENVER CHERRY CREEK 186 $150 2020 205 $200 2018 170 $170 2017 KEYS STABILIZED YEAR KEYS STABILIZED YEAR KEYS STABILIZED YE
Slide 24: Internal Growth
INTERNAL GROWTH MARRIOTT LOUISVILLE DOWNTOWN JUNE 2022 24
Slide 25: Internal Growth | Unlocking Incremental Value
INTERNAL GROWTH | UNLOCKING INCREMENTAL VALUE $23M to $28M $9M -11M+ of Incremental EBITDA (1) RLJ IS UNLOCKING SIGNIFICANT EBITDA(1) EMBEDDED VALUE across three areas of opportunity creating ~$325M REVENUE ENHANCEMENTS of value(2) $7M-10M+ EBITDA(1) 2022 CONVERSIONS $7M+ EBITDA(1) MARGIN EXPANSION
Slide 26: Internal Growth | Value Creation Strategy
INTERNAL GROWTH | VALUE CREATION STRATEGY Conversions, Revenue Enhancement and Margin Expansion opportunities represent a significant source of value creation Incremental Value Property Project Investment(1) EBITDA(2) Creation(3) Unlevered IRR 2022 Conversions Wyndham Conversion to $10.0M to $11.0M
Slide 27: Internal Growth | 2022 Conversions
INTERNAL GROWTH | 2022 CONVERSIONS On track to unlock embedded growth through execution of 2022 conversions WYNDHAM SANTA MONICA MILLS HOUSE CHARLESTON EMBASSY SUITES MANDALAY BEACH $50 - $60 $2M - $3M 40%+ $30 - $40 $2M - $3M 50%+ $30 - $40 $3M - $4M 40%+ INCREMENTAL INCREMENTAL UNLEVERED INCREMENT
Slide 28: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET AC HOTEL BOSTON DOWNTOWN JUNE 2022 28
Slide 29: Best-in-Class Balance Sheet
BEST-IN-CLASS BALANCE SHEET RLJ has solid liquidity, low leverage and a well-staggered maturity profile with no debt maturities until 2023 RLJ maintains best-in-class balance sheet MOXY DENVER CHERRY CREEK ▪ ~$480M of cash as of March 31st – Repaid $200M of outstanding LOC balance in early 2022 ▪ Mi
Slide 30: Investment Highlights
INVESTMENT HIGHLIGHTS RLJ’s reshaped portfolio is positioned to capitalize on unique internal and external growth opportunities to drive significant EBITDA expansion URBAN MARKET Urban markets are driving the next leg of lodging recovery GROWTH ▪ Urban markets represent 2/3rds of EBITDA(1) INTERNAL
Slide 31: Corporate Responsibility
CORPORATE RESPONSIBILITY EMBASSY SUITES TAMPA DOWNTOWN CONVENTION CENTER JUNE 2022 31
Slide 32: RLJ ESG | Corporate Responsibility
RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to all stakeholders In recognition of the strategic importance of increasing environmental efficiency we… ▪ Achieved cost reductions through investment in energy, carbon and water efficiency
Slide 33: RLJ ESG | Corporate Responsibility Impact
RLJ ESG | CORPORATE RESPONSIBILITY IMPACT Our longstanding commitment to ESG is evidenced by… ENVIRONMENTAL SOCIAL GOVERNANCE ▪ 77% of our properties have equipped Associate Ethnicity ▪ Maintain a highly diverse and independent guestrooms with digital thermostats Board, and committed to continuing r
Slide 34: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, measures being taken in response to the COVID-19 pand