Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — Investor Presentation (March 2013)
22 slides from Rlj Lodging Trust's investor presentation, March 2013
Slide 1: Investor Presentation
Investor Presentation March 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning ma
Slide 3: Investment Highlights
Investment Highlights • Seasoned management team with proven track record of success • Proven investment strategy focused on upscale focused-service and compact full- service hotels • Attractive platform with significant scale and high quality assets • Strong internal and external growth prospects;
Slide 4: Demonstrated Track Record as a Public Company
Demonstrated Track Record as a Public Company Since going public, RLJ has consistently met or exceeded its guidance, with seven consecutive quarters of solid performance. Over the last two years RLJ has: – Acquired six properties in key gateway markets totaling $360.8 million (1) – Completed $210.0
Slide 5: Experienced Management with Proven Track Record
Experienced Management with Proven Track Record Deep and experienced senior management team that has worked together for over ten years and has over 150 years of combined lodging and real estate experience • Strong platform with significant expertise in acquisitions, asset management and portfolio m
Slide 6: Geographic Diversification and Strong Market Presence
Geographic Diversification and Strong Market Presence RLJ owns 145 properties with more than 21,600 rooms across 21 states and the District of Columbia • Approximately 96% of the portfolio is Marriott, Hilton or Hyatt branded • RLJ’s top 40 hotels represent 62% of the Company’s Hotel EBITDA 2012 Hot
Slide 7: Strong Platform with Significant Scale
Strong Platform with Significant Scale RLJ is the 3rd largest lodging REIT and the largest REIT in the focused-service category • Scale and platform provide significant benefits – Asset management, acquisitions, ability to work with brands, cost savings 2012 Corporate Adjusted EBITDA (As Reported) (
Slide 8: 2012 Highlights
2012 Highlights • Operational – Pro forma RevPAR increased 7.4% and Pro forma Hotel EBITDA Margin improved 78 basis points to 33.9% (1) – Pro forma Consolidated Hotel EBITDA increased 10.8% to $293.7 million • Capital Allocation – Acquired five assets totaling approximately $320 million – includes o
Slide 9: Company Overview & Outlook
Company Overview & Outlook
Slide 10: Guiding Principles
Guiding Principles Continue to execute proven investment strategies Drive operating performance − Increase RevPAR premiums and operating margins through aggressive asset management and asset repositioning Prudent capital allocation − Continue to enhance portfolio quality through selective acquisitio
Slide 11: Proven Investment Strategy
Proven Investment Strategy Create shareholder value through prudent capital investments and aggressive asset management • Acquire premium branded focused-service and compact full-service hotels with Marriott, Hilton and Hyatt flags Investment Thesis – Courtyard by Marriott, Hilton Garden Inn, Hyatt
Slide 12: Superior Focused-Service / Compact Full-Service Model
Superior Focused-Service / Compact Full-Service Model Target premium branded focused-service and compact full-service hotels J.D. Power & Associates 2012 North American Hotel Guest Satisfaction Guest Satisfaction Ranking Among… Rank Brand Strong Loyalty 1 Programs Extended Stay Chains 3 4 Worldwide
Slide 13: Existing Portfolio Positioned for Outsized Growth
Existing Portfolio Positioned for Outsized Growth Strong growth embedded within existing portfolio • Acquired 29 assets for a total purchase price of more than $1.3 Portfolio Mix Change billion over 35 months in core urban markets: – New York City, Washington D.C., Los Angeles • Approximately $210 m
Slide 14: Value Add Renovations
Value Add Renovations • In 2012, the Company completed its two-year renovation program totaling approximately $210.0 million – Largely focused on upgrading and/or repositioning 24 hotels acquired in 2010 and 2011, including seven brand conversions – Included a $25.0 million rooms renovation at the D
Slide 15: Superior Asset Management Program
Superior Asset Management Program RLJ has a proven asset management platform that supports investment efforts • In-house operational expertise strengthens investment underwriting process • Asset management expertise promotes effective utilization of capital – Franchise requirements – Asset preservat
Slide 16: Attractive Focused-Service Acquisition Environment
Attractive Focused-Service Acquisition Environment More targets with less competition: RLJ benefits from both a large universe of acquisition targets and a limited universe of competing public buyers Domestic System-Wide Hotels by Brand Premium Branded Focused-Service – 5,463 Hotels Upper Upscale Fu
Slide 17: Disciplined Investment Strategy
Disciplined Investment Strategy Proven track record of completing attractive acquisitions • Focus on limited bid and off-market transactions • Leverage relationships with developers, owners, managers and lenders to access deals • Strong balance sheet provides a significant advantage • Continue to pu
Slide 18: Recently-Announced Acquisitions
Recently-Announced Acquisitions Continue to execute investment strategy in core urban markets • Purchase assets that represent a significant discount to replacement cost • Enter markets that exhibit multiple demand generators and dynamic growth • Leverage industry relationships to purchase off-marke
Slide 19: Financial Update
Financial Update
Slide 20: 2012 Financial Update
2012 Financial Update • Pro forma RevPAR – Industry leading growth of 10.2% in Q4 2012; increased 7.4% for the full year • Pro Forma Hotel EBITDA Margin – Increased 162 basis points to 34.6% in Q4 2012; increased 78 basis points to 33.9% for the full year • Adjusted Corporate EBITDA – Increased 24.1
Slide 21: Strong Balance Sheet – Limited Near Term Debt Maturities
Strong Balance Sheet – Limited Near Term Debt Maturities RLJ continues to strengthen its balance sheet by increasing the number of unencumbered assets, reducing interest rates and staggering debt maturities • RLJ’s unencumbered asset pool consists of 57 assets and represents 53% of 2012 Pro Forma Ho
Slide 22: Significant Growth Potential
Significant Growth Potential
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