Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — Capital One Investor Presentation July 2020
23 slides from Rlj Lodging Trust's conference presentation, July 2020
Slide 1: Capital One Investor Presentation July 2020
Capital One Investor Presentation July 2020 1 RLJ: W ELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1
Slide 2: RLJ Is Well-Positioned
RLJ IS WELL-POSITIONED RLJ has the liquidity and balance sheet strength to weather the COVID-19 crisis, relative advantage in a recovery and embedded catalysts to outperform long-term Successful execution of 2019 priorities improved our portfolio and strengthened our balance sheet Quickly and pr
Slide 3: Strong Positioning Entering 2020
STRONG POSITIONING ENTERING 2020 HILTON CABANA MIAMI BEACH
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
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 YE 2019 Net Debt to EBITDA of 3.1x, below lodging REIT peer average No debt matur
Slide 6: Well-Staggered Maturities
WELL-STAGGERED MATURITIES RLJ has 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. Debt maturity s
Slide 7: Proactive Response
PROACTIVE RESPONSE RENAISSANCE PITTSBURGH
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 and preserve liquidity Cost Containment Suspended Operations Minimizing CapEx Corporate Initiatives Staff reduction / employee Temporarily suspended Postponed all non-essentia
Slide 9: Hotel Re-Opening Update
HOTEL RE-OPENING UPDATE As restrictions have lifted in many states, RLJ has been reopening hotels in a socially and financially responsible manner As demand recovered, RLJ has reopened 31 hotels Reopened hotels include resort/beach locations, select-service or extended-stay, and/or located in dr
Slide 10: Strong Liquidity
STRONG LIQUIDITY EMBASSY SUITES TAMPA
Slide 11: Strong Liquidity Position
STRONG LIQUIDITY POSITION RLJ is well positioned with both significant liquidity and a long runway RLJ held cash on hand of $1.2B and $200M undrawn line of credit(1) Monthly cash burn lower for RLJ portfolio vs. traditional Full-Service portfolios Peer Liquidity Summary (1) Cash LOC Draw Balance
Slide 12: Achieved Covenant Waivers
ACHIEVED COVENANT WAIVERS Successful amendment of the credit facilities provides both flexibility and optionality Full covenant waiver through Q1 2021, with the option to terminate earlier by the Company Modification of covenants until Q2 2022 Significant optionality to pursue growth opportuni
Slide 13: Cash Burn Assessment
CASH BURN ASSESSMENT RLJ estimates average monthly cash burn across its portfolio to be ~$25M to $35M(1) April and May cash burn was better than expectations Expects to maintain strong liquidity position even if there is a long duration of COVID-19 impact RLJ’s Focused-Service and Compact Full
Slide 14: 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
Slide 15: Positioned for Recovery
POSITIONED FOR RECOVERY HYATT HOUSE EMERYVILLE
Slide 16: 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 benefitting from “drive-to”, Drive-to
Slide 17: 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
Slide 18: Encouraging Weekly Occupancy Trends
ENCOURAGING WEEKLY OCCUPANCY TRENDS RLJ has seen sequential improvement in week-over-week occupancies through 2Q Occupancy at open hotels currently at ~36%, steadily improved since early April Average Daily Rate has also shown steady improvement and was ~$125 in the last week of June Improveme
Slide 19: RLJ Is Well-Positioned
RLJ IS WELL-POSITIONED RLJ has the liquidity and balance sheet strength to weather the COVID-19 crisis, relative advantage in a recovery and embedded catalysts to outperform long-term Successful execution of 2019 priorities improved our portfolio and strengthened our balance sheet Quickly and pr
Slide 20: Q&A
Q&A RENAISSANCE FORT LAUDERDALE-PLANTATION
Slide 21: Appendix
APPENDIX HUMBLE OIL BUILDING MARRIOTT COMPLEX
Slide 22: 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
Slide 23: 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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