Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — Investor Presentation (July 2023)
33 slides from Rlj Lodging Trust's investor presentation, July 2023
Slide 1: RLJ Presentation July 2023
RLJ PRESENTATION JULY 2023
Slide 2: RLJ Investment Highlights
RLJ | INVESTMENT HIGHLIGHTS RLJ’s portfolio is well-positioned to capture recovery in urban demand and to capitalize on unique internal and external opportunities to drive 2023 EBITDA growth Urban market growth expected to drive industry growth URBAN MARKET GROWTH Urban markets represent two-third
Slide 3: Operating Performance & Outlook
OPERATING PERFORMANCE & OUTLOOK THE MILLS HOUSE HOTEL CHARLESTON JULY 2023 3
Slide 4: Operating Update Q2 2023
OPERATING UPDATE | Q2 2023 RLJ’s urban-centric portfolio continues to outpace industry RevPAR growth April RevPAR grew 6.8% above 2022 and exceeded industry growth by 490 bps(1) May RevPAR grew 4% above 2022, primarily driven by urban markets Positive trends in urban markets allowing portfolio Rev
Slide 5: Weekly Trends | Occupancy
WEEKLY TRENDS | OCCUPANCY Occupancy improved with seasonal trends continuing RLJ Weekly Occupancy vs % of 2019 (1) Total Portfolio Total Portfolio as % of 2019 90% 120% Christmas / NYE Memorial Day 110% 85% President’s Day Thanksgiving Easter 80% MLK Day 79% 100% 75% 80% 70% 65% 60% 60% 40% 55% 50%
Slide 6: Weekly Trends | ADR
WEEKLY TRENDS | ADR ADR maintaining pricing power and has consistently exceeded pre-pandemic levels RLJ Weekly ADR vs % of 2019 (1) Total Portfolio Total Portfolio as % of 2019 $240 140% MLK Day Memorial Day Christmas / NYE 122% Thanksgiving Easter President’s Day 120% $220 100% $200 $195 80% $180 6
Slide 7: High-Quality Portfolio
HIGH-QUALITY PORTFOLIO AC HOTEL BOSTON DOWNTOWN JULY 2023 7
Slide 8: 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 9: 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 10: 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 % O F E B I T DA (1) 21c HOTEL NASHVILLE THE KNICKERBOCKER NEW YORK AC HOTEL BOSTON DOW
Slide 11: 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 % O F E B I T DA (1) COURTYARD NEW YORK MANHATTAN UPPER EAST SIDE HYATT PLACE WASHINGTON DC DTW
Slide 12: 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 % O F E B I T DA (1) 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 K
Slide 13: 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 % O F E B I T DA (1) HYATT HOUSE SANTA CLARA EMBASSY SUITES MINNEAPOLIS AIRPORT MARRIOTT CHICAGO MIDWAY EMBASSY SUITES DALLAS LOVE FIELD HYATT PLACE MADISON DOWNTOWN
Slide 14: 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 15: External Growth Catalysts
EXTERNAL GROWTH CATALYSTS 21C HOTEL NASHVILLE JULY 2023 15
Slide 16: 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 17: Internal Growth Catalysts
INTERNAL GROWTH CATALYSTS ZACHARI DUNES ON MANDALAY BEACH JULY 2023 17
Slide 18: Internal Growth | Phase I Value Creation Strategy
INTERNAL GROWTH | PHASE I VALUE CREATION STRATEGY Conversions, Revenue Enhancement and Margin Expansion opportunities represent a significant source of value creation Incremental Value Property Project EBITDA(2) Unlevered IRR Investment (1) Creation (3) 2022 Conversions Wyndham Conversion to $10.0M
Slide 19: Internal Growth | 2022 Conversions
INTERNAL GROWTH | 2022 CONVERSIONS Completed 2022 conversions poised to significantly exceed initial underwriting ZACHARI DUNES ON MANDALAY BEACH THE MILLS HOUSE HOTEL CHARLESTON THE PIERSIDE SANTA MONICA $30 - $40 $3M - $4M 40%+ $30 - $40 $2M - $3M 50%+ $50 - $60 $2M - $3M 40%+ INCREMENTAL INCREMEN
Slide 20: 2022 Conversions | Embassy Suites Mandalay Beach
2022 CONVERSIONS | EMBASSY SUITES MANDALAY BEACH Mandalay Beach Embassy Suites relaunched as The Zachari Dunes, joining Hilton’s Curio Collection BEFORE AFTER JULY 2023 20
Slide 21: 2022 Conversions | Mills House Charleston
2022 CONVERSIONS | MILLS HOUSE CHARLESTON Wyndham Charleston converted to The Mills House Hotel, joining Hilton’s Curio Collection BEFORE AFTER JULY 2023 21
Slide 22: 2022 Conversions | Wyndham Santa Monica
2022 CONVERSIONS | WYNDHAM SANTA MONICA Santa Monica Wyndham converted to an Independent hotel BEFORE AFTER JULY 2023 22
Slide 23: 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 24: Further Opportunities in the Pipeline
FURTHER OPPORTUNITIES IN THE PIPELINE RLJ is well positioned for continued value creation through incremental conversions and value-add opportunities CONVERSION & INCREMENTAL OPPORTUNITIES REPRESENT ~ 20%(1) OF PORTFOLIO Brand expirations Remix customer base Conversions with Boston renovations
Slide 25: 2023 Conversions | Market Highlights & Value Creation
2023 CONVERSIONS | MARKET HIGHLIGHTS & VALUE CREATION In 2023 RLJ is repositioning the former Houston Medical Center as a DoubleTree and the Garden District Hotel is joining Marriott’s Tribute portfolio HOTEL TONNELLE NEW ORLEANS (RENDERING) DOUBLETREE HOUSTON MEDICAL CENTER (RENDERING) HOTEL TONNEL
Slide 26: Strong Liquidity & Balance Sheet
STRONG LIQUIDITY & BALANCE SHEET MARRIOTT LOUISVILLE DOWNTOWN JULY 2023 26
Slide 27: Best-in-Class Balance Sheet
BEST-IN-CLASS BALANCE SHEET RLJ has a strong balance sheet and well-staggered debt maturity profile with no debt maturities until 2024 RLJ maintains best-in-class balance sheet ~$1.1B of liquidity, comprising of ~$474M of unrestricted cash and $600M available under the revolving credit facility
Slide 28: RLJ Investment Highlights
RLJ | INVESTMENT HIGHLIGHTS RLJ’s portfolio is well-positioned to capture recovery in urban demand and to capitalize on unique internal and external opportunities to drive 2023 EBITDA growth Urban market growth expected to drive industry growth URBAN MARKET GROWTH Urban markets represent two-third
Slide 29: Corporate Responsibility
CORPORATE RESPONSIBILITY HILTON CABANA MIAMI BEACH JULY 2023 29
Slide 30: RLJ ESG | Corporate Responsibility
RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value In recognition of the strategic importance of increasing environmental efficiency we… Achieved cost reductions through investment in energy, carbon a
Slide 31: RLJ ESG | Corporate Responsibility Approach
RLJ ESG | CORPORATE RESPONSIBILITY APPROACH Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value Drive revenue growth by following a disciplined investment strategy and D through aggressive asset management Reduce cost through investments
Slide 32: 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 33: 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, and the assumptions upon which those statements are b
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