Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — ALIS Conference 2023
34 slides from Rlj Lodging Trust's conference presentation, January 2023
Slide 1: ALIS Conference Update
ALIS CONFERENCE UPDATE JANUARY 2023
Slide 2: RLJ | Near-Term Catalysts
RLJ | NEAR-TERM CATALYSTS RLJ is well-positioned in the near-term, with multiple channels to drive growth HYATT CENTRIC ATLANTA JANUARY 2023 2
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS RLJ’s reshaped portfolio is well-positioned to capitalize on unique internal and external growth opportunities to drive significant EBITDA expansion URBAN MARKET Urban markets are driving the current leg of lodging recovery GROWTH Urban markets represent over 2/3rds of EBITDA
Slide 4: $40M of Tangible Incremental EBITDA
RLJ | TANGIBLE EBITDA GROWTH DRIVERS Accretive capital recycling, unlocking of embedded value creation opportunities and lean operating model position RLJ to exceed 2019 Hotel EBITDA $40M OF TANGIBLE INCREMENTAL EBITDA From Complete / In-progress External + Internal Growth Initiatives $504M $484M $2
Slide 5: Weekly Update
WEEKLY UPDATE AC HOTEL BOSTON DOWNTOWN JANUARY 2023 5
Slide 6: Weekly Trends | Occupancy
WEEKLY TRENDS | OCCUPANCY Occupancy levels continue to approach 2019 levels, adjusting for seasonality Total Portfolio Weekly Occupancy vs % of 2019(1) Total Portfolio Total Portfolio as % of 2019 NYE 85% Christmas/NYE July 4th Memorial Day Labor Day 80% Thanksgiving 100% MLK Holiday 75% 84% 70% 80%
Slide 7: Weekly Trends | ADR
WEEKLY TRENDS | ADR ADR continues to exceed 2019 levels Preliminary 4Q Hotel EBITDA expected to be between 87% and 88% of 2019 Total Portfolio Weekly ADR vs % of 2019(1) MLK Holiday Total Portfolio Total Portfolio as % of 2019 $220 $215 140% Christmas / NYE Memorial Day July 4th NYE Labor Day Than
Slide 8: High-Quality Portfolio
HIGH - QUALITY PORTFOLIO RENAISSANCE PITTSBURGH JANUARY 2023 8
Slide 9: RLJ | Portfolio Profile
RLJ | PORTFOLIO PROFILE RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels Portfolio Overview(1) Property Types(2) Operating Metrics(3) 23 Compact Full-Service 79% States Focused-Service Occupancy 54% 43% Traditional Full-Service $185 96 4% ADR Comparable Hotels F
Slide 10: RLJ | Diversified Portfolio
RLJ | DIVERSIFIED PORTFOLIO RLJ’s footprint in top Urban markets is well-positioned to capture recovery in all segments Sunbelt markets represent 51% of RLJ’s Hotel EBITDA(1) Over 2/3rds of RLJ’s portfolio is concentrated in Urban markets (1) Seattle Portland Minneapolis 5% Boston Greater San Fr
Slide 11: RLJ | High Quality Portfolio
RLJ | HIGH QUALITY PORTFOLIO URBAN LIFESTYLE U R B A N G AT E W AY RESORT URBAN METRO 33 32 11 20 # of HOTELS # of HOTELS # of HOTELS # of HOTELS 39% 36% 14% 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
Slide 12: Urban Lifestyle
URBAN LIFESTYLE P R O P E RT 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 AT B E N E F I T F R O M S E V E N - D A Y- 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 3 9 % OF E B IT DA 21c HOTEL NASHVILLE THE KNICKERBOCKER NEW YORK AC HOTEL BOSTON DOWNTOWN
Slide 13: 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 3 6 % OF E B IT DA COURTYARD NEW YORK MANHATTAN UPPER EAST SIDE HYATT PLACE WASHINGTON DC DTWN K ST
Slide 14: 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 HIGH LEISURE MIX 1 4 % OF E B IT DA WYNDHAM SANTA MONICA AT THE PIER ZACHARI DUNES ON MANDALAY BEACH-HOTEL & RESORT EMBASSY SUITES DEERFIELD BEACH RESORT DOUBLETRREE GRAND KEY RESORT FAIRFIELD INN & SUITES KEY WES
Slide 15: 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 M A R K E T S 1 1 % 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 JANUA
Slide 16: External Growth
EXTERNAL GROWTH 21C HOTEL NASHVILLE JANUARY 2023 16
Slide 17: External Growth | Recent Acquisitions
EXTERNAL GROWTH | RECENT ACQUISITIONS RLJ accretively deployed capital into four high-quality acquisitions in top growth markets HAMPTON INN & SUITES AC HOTEL MOXY 21C HOTEL ATLANTA MIDTOWN BOSTON DOWNTOWN DENVER CHERRY CREEK NASHVILLE 186 $150 2020 205 $200 2018 170 $170 2017 124 $260 2017 KEYS STA
Slide 18: External Growth | 21C Hotel Nashville
EXTERNAL GROWTH | 21C HOTEL NASHVILLE Acquired the boutique lifestyle, 21C Hotel located in Nashville in July 2022 Nashville is a top growth market Ranked in Top-5 Metros for population growth and job creation ‒ Diversified economy benefiting from the growth of healthcare, technology, and entertai
Slide 19: External Growth | 21C Hotel Nashville (cont.)
EXTERNAL GROWTH | 21C HOTEL NASHVILLE (cont.) 21C Hotel is accretive to RLJs portfolio metrics and expands footprint into the high growth, Nashville market In line with RLJ’s investment parameters… Lifestyle Oriented Heart of demand location Strong RevPAR Young asset Rooms-oriented Off-market transa
Slide 20: Internal Growth
INTERNAL GROWTH MARRIOTT LOUISVILLE DOWNTOWN JANUARY 2023 20
Slide 21: Internal Growth | Value Creation Strategy
INTERNAL GROWTH | VALUE CREATION STRATEGY RLJ has high conviction in unlocking $23M to $28M of incremental Hotel EBITDA from Conversions, Revenue Enhancements and Margin Expansion opportunities Incremental Value Property Project EBITDA(2) Unlevered IRR Investment(1) Creation(3) 2022 Conversions Wynd
Slide 22: Internal Growth | Conversions
INTERNAL GROWTH | CONVERSIONS Unlocking embedded growth through execution of conversions, with Zachari Dunes on Mandalay Beach and The Mills House Hotel relaunched, and Santa Monica on track for January 2023 relaunch ZACHARI DUNES ON MANDALAY BEACH THE MILLS HOUSE HOTEL CHARLESTON WYNDHAM SANTA MONI
Slide 23: 2022 Conversions | Zachari Dunes on Mandalay Beach
2022 CONVERSIONS | ZACHARI DUNES ON MANDALAY BEACH VALUE CREATION SUMMARY UNLOCKING EMBEDDED ROI Relaunched in October 2022 as a “curated” lifestyle resort affiliated with Curio Collection by Hilton Addition of a new restaurant concept ‒ Resort is one of only two beachfront Hilton affiliated hot
Slide 24: 2022 Conversions | The Mills House Hotel Charleston
2022 CONVERSIONS | THE MILLS HOUSE HOTEL CHARLESTON VALUE CREATION SUMMARY UNLOCKING EMBEDDED ROI Relaunched in October 2022 as a lifestyle hotel affiliated with Curio Collection by Hilton Key expansion with the addition of ‒ Attract higher rated guests and Hilton Honors members as the brand’s f
Slide 25: Margin Expansion | Completed
MARGIN EXPANSION | COMPLETED Recent amendments have added ~50 bps of incremental margins Embedded Value From Completed Contract Amendments +20 bps +30 bps 33.9% 33.4% 2019 Previously Amended Recently Amended Adj. Pro forma Total margin lift incremental to expected industrywide post COVID-19 EBITDA m
Slide 26: Revenue Enhancement | Opportunities
REVENUE ENHANCEMENT | OPPORTUNITIES Revenue ROI opportunities expected to generate incremental EBITDA PIPELINE TOTAL COMPLETED $6M $9M $3M EBITDA(1) + $8M to = $11M to EBITDA(1) EBITDA(1) RECENTLY COMPLETED PIPELINE TOTAL REVENUE ENHANCING Additional rooms in Emeryville, Guestroom additions Pr
Slide 27: Incremental Value Creation Opportunities
INCREMENTAL VALUE CREATION OPPORTUNITIES RLJ has unlocked a number of embedded value initiatives and is currently evaluating the next phase of incremental opportunities EXECUTED NEW Mandalay Beach and Mills House to relaunched as At least two additional conversions planned for 2023 CONVERSIONS C
Slide 28: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET AC HOTEL BOSTON DOWNTOWN JANUARY 2023 28
Slide 29: Best-in-Class Balance Sheet
BEST-IN-CLASS BALANCE SHEET RLJ has strong balance sheet and well-staggered debt maturity profile with no maturities until 2024 RLJ maintains best-in-class balance sheet ~$1.1B of total liquidity, comprising of $488M of unrestricted cash and $600M available under the revolving credit facility No
Slide 30: Investment Highlights
INVESTMENT HIGHLIGHTS RLJ’s reshaped portfolio is well-positioned to capitalize on unique internal and external growth opportunities to drive significant EBITDA expansion URBAN MARKET Urban markets are driving the current leg of lodging recovery GROWTH Urban markets represent over 2/3rds of EBITDA
Slide 31: Corporate Responsibility
CORPORATE RESPONSIBILITY HILTON CABANA MIAMI BEACH JANUARY 2023 31
Slide 32: RLJ ESG | Corporate Responsibility
RLJ ESG | CORPORATE RESPONSIBILITY Our corporate responsibility focus aligns our ESG objectives with our commitment to all stakeholders In recognition of the strategic importance of increasing environmental efficiency we… Achieved total portfolio reductions through investment in energy, carbon and
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