Rlj Lodging Trust · NYSE:RLJ

Rlj Lodging Trust — NAREIT Conference June 2020

20 slides from Rlj Lodging Trust's conference presentation, June 2020

  1. Slide 1: NAREIT Conference June 2020

    NAREIT Conference June 2020 1 RLJ: W ELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1

  2. Slide 2: RLJ Is Well-Positioned

    RLJ IS WELL-POSITIONED RLJ has the liquidity and balance sheet strength to weather the COVID-19 crisis, ramp-up sooner in a recovery and embedded catalysts to outperform long-term  Successful execution of 2019 priorities improved our portfolio and strengthened our balance sheet  Quickly implemente

  3. Slide 3: Strong Positioning Entering 2020

    STRONG POSITIONING ENTERING 2020 HILTON CABANA MIAMI BEACH

  4. Slide 4: RLJ Successfully Executed Its 2019 Strategy

    RLJ SUCCESSFULLY EXECUTED ITS 2019 STRATEGY Successful execution of key 2019 strategic priorities enabled RLJ to enter 2020 in a position of strength RLJ executed strategic priorities in 2019 to reshape our portfolio and strengthen our Sold 47 non-core balance sheet assets and generated significant

  5. Slide 5: RLJ Began 2020 in Solid Financial Condition

    RLJ BEGAN 2020 IN SOLID FINANCIAL CONDITION RLJ entered 2020 with a strong balance sheet, significant liquidity and low leverage Best-In-Class Balance Sheet  Significant liquidity: entered 2020 with ~$900M of cash  Net Debt to EBITDA of 3.1x, below the lodging REIT peer average  No debt maturitie

  6. Slide 6: Well-Staggered Maturities

    WELL-STAGGERED MATURITIES RLJ entered 2020 with a well-staggered maturity profile with no debt maturities until 2022 Debt Maturity Schedule (1) $400 Amount Due ($ in millions) $400 $625 $150 $475 $147 $200 $181 2020 2021 2022 2023 2024 2025 2026 Senior Unsecured Notes Secured Unsecured Revolver 1. D

  7. Slide 7: Proactive Response

    PROACTIVE RESPONSE RENAISSANCE PITTSBURGH

  8. Slide 8: RLJ COVID-19 Response

    RLJ COVID-19 RESPONSE RLJ took proactive and aggressive steps to mitigate the impact of the demand shock from COVID-19 to preserve liquidity Cost Containment Suspending Operations Minimizing CapEx Corporate Initiatives  Staff reduction / employee  Temporary suspension of  Postponed all non-essent

  9. Slide 9: Strong Liquidity

    STRONG LIQUIDITY EMBASSY SUITES TAMPA

  10. Slide 10: Strong Liquidity Position

    STRONG LIQUIDITY POSITION RLJ is well positioned with both significant liquidity and a long runway  RLJ holds cash on hand of $1.2B and $200M undrawn line of credit  Monthly cash burn lower for RLJ portfolio vs. traditional Full-Service portfolios Peer Liquidity Summary (1) Cash LOC Draw Balance R

  11. Slide 11: Cash Burn Assessment

    CASH BURN ASSESSMENT RLJ estimates average monthly cash burn across its portfolio to be ~$25M to $35M(1)  Expects to maintain strong liquidity position even if there is a long duration of COVID-19 impact  RLJ’s Focused-Service and Compact Full-Service portfolio have lower operating cost model vs.

  12. Slide 12: More Resilient Portfolio

    MORE RESILIENT PORTFOLIO RLJ’s operating model is more resilient than lodging REIT peers with our lean operating cost structure RevPAR Growth | 1Q 2020 DRH APLE CLDT HT PK HST RLJ INN PEB SHO XHR (19.2%) (19.9%) (21.8%) (22.4%) (22.6%) (22.6%) Avg: 23.4% (23.3%) (23.3%) (24.5%) (25.3%) (25.5%) (25.7

  13. Slide 13: Positioned for Recovery

    POSITIONED FOR RECOVERY HYATT HOUSE EMERYVILLE

  14. Slide 14: Framework for Hotel Recovery

    FRAMEWORK FOR HOTEL RECOVERY RLJ expects ramp-up of hotels to be influenced by hotel type and location  Leisure and drive-to segments are recovering sooner than group, which is expected to lag Market Asset Comments Comments Type Type SOONER - Economy hotels are seeing from “drive-to”, Drive-to - “D

  15. Slide 15: Positioned for Early Ramp-Up in a Recovery

    POSITIONED FOR EARLY RAMP-UP IN A RECOVERY RLJ’s transient orientation and exposure to a number of drive-to, leisure markets should allow for early ramp up Transient segment, especially leisure is expected to ramp up first during a recovery  RLJ’s portfolio is primarily transient oriented (>80% of

  16. Slide 16: RLJ Is Well-Positioned

    RLJ IS WELL-POSITIONED RLJ has the liquidity and balance sheet strength to weather the COVID-19 crisis, ramp-up sooner in a recovery and embedded catalysts to outperform long-term  Successful execution of 2019 priorities improved our portfolio and strengthened our balance sheet  Quickly implemente

  17. Slide 17: Q&A

    Q&A RENAISSANCE FORT LAUDERDALE-PLANTATION

  18. Slide 18: Appendix

    APPENDIX HUMBLE OIL BUILDING MARRIOTT COMPLEX

  19. Slide 19: RLJ Embedded Growth Catalysts Remain

    RLJ EMBEDDED GROWTH CATALYSTS REMAIN Although currently paused, we continue to maintain high conviction in the embedded growth catalysts within our portfolio and their potential to unlock significant value Wyndham conversion opportunity  8 Wyndham branded hotels represented over 13% of 2019 EBITDA

  20. Slide 20: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS Forward-Looking Statements This presentation 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 res

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