Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — Investor Presentation (April 2025)
37 slides from Rlj Lodging Trust's investor presentation, April 2025
Slide 1: Investor Presentation April 2025
INVESTOR PRESENTATION APRIL 2025
Slide 2: RLJ | Investment Highlights
RLJ | INVESTMENT HIGHLIGHTS The evolution of RLJ’s portfolio over the last several years has positioned it to benefit from the upside in urban demand and to capitalize on unique internal and external growth catalysts High-quality portfolio with an attractive growth profile HIGH-QUALITY Urban-centr
Slide 3: Operating Performance
OPERATING PERFORMANCE THE PIERSIDE SANTA MONICA APRIL 2025 3
Slide 4: Operating Performance | 2024 Update
OPERATING PERFORMANCE | 2024 UPDATE RLJ’s urban-centric portfolio achieved RevPAR growth that outperformed the industry Achieved 2.2% RevPAR growth in 4Q, which was in top quartile of peers Urban hotels (two-thirds of portfolio) achieved 3.7% RevPAR growth Business transient increased ~8%, drive
Slide 5: Operating Performance | 2025 Outlook
OPERATING PERFORMANCE | 2025 OUTLOOK RLJ’s urban-centric portfolio and multiple channels of growth are well-positioned to continue to drive outperformance relative to the industry Urban markets are expected to outperform, benefitting from tailwinds across all segments Group demand is expected to b
Slide 6: RLJ | Multiple Channels of Growth
RLJ | MULTIPLE CHANNELS OF GROWTH URBAN CENTRIC PORTFOLIO INITIAL CONVERSIONS / FUTURE BALANCE SHEET ORGANIC GROWTH ACQUISITIONS PIPELINE OF CONVERSIONS OPTIONALITY Multiple demand drivers Pacing ahead of Targeting two conversions Strong Liquidity Capture new normal underwriting per year
Slide 7: High-Quality Portfolio
HIGH-QUALITY PORTFOLIO MOXY DENVER CHERRY CREEK APRIL 2025 7
Slide 8: RLJ | High Quality Portfolio
RLJ | HIGH QUALITY PORTFOLIO RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels Portfolio Overview(1) Hotels 95 Rooms 21,156 ADR $199 RevPAR $145 EBITDA/Key $19k Brand Exposure(1) 13% 41% 37% 8% Independent/Other (1) Based on TTM pro forma EBITDA for the portfolio
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 34 32 11 18 # 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 FY 2019 EBITDA pr
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) THE BANKER’S ALLEY HOTEL NASHVILLE THE KNICKERBOCKER NEW YORK AC H
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) THE PIERSIDE AT SANTA MONICA ZACHARI DUNES ON MANDALAY BEACH-HOTEL & RESORT EMBASSY SUITES DEERFIELD BEACH RESORT DOUBLETRREE GRAND KEY RESORT FAIRFIELD INN & SUITES KEY W
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 Footprint
RLJ | DIVERSIFIED FOOTPRINT RLJ’s footprint in top Urban markets is well-positioned to capture recovery in all segments Sunbelt markets represent +50% 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 F
Slide 15: External Growth Catalysts
EXTERNAL GROWTH CATALYSTS MOXY DENVER CHERRY CREEK APRIL 2025 15
Slide 16: External Growth | Acquisition of Hotel Teatro in 2024
EXTERNAL GROWTH | ACQUISITION OF HOTEL TEATRO IN 2024 RLJ acquired the Hotel Teatro Downtown Denver in May 2024 for $35.5M Rooms-Oriented - 110-room, boutique lifestyle hotel in the Denver CBD High Margins - ~32% stabilized margins High Growth Market - Colorado is one of the fastest growing lodging
Slide 17: External Growth | Recent Acquisitions
EXTERNAL GROWTH | RECENT ACQUISITIONS Since 2021, RLJ has accretively deployed capital into a number of high-quality acquisitions in top growth markets HAMPTON INN & SUITES AC HOTEL MOXY THE BANKER’S ALLEY HOTEL ATLANTA MIDTOWN BOSTON DOWNTOWN DENVER CHERRY CREEK NASHVILLE 186 $150 2021 205 $200 202
Slide 18: Internal Growth Catalysts
INTERNAL GROWTH CATALYSTS THE SURFING FOX AT THE PIERSIDE APRIL 2025 18
Slide 19: Internal Growth | Value Creation Strategy
INTERNAL GROWTH | VALUE CREATION STRATEGY Initial Phase of opportunities only represents a fraction of the total portfolio of opportunities $28M EBITDA (1) Phase I results have significantly outpaced initial underwriting ~$9M ~$12M Conversions Remaining Opportunities Revenue Enhancements Phase I U/W
Slide 20: Internal Growth | Phase 1 Value Creation Achieved
INTERNAL GROWTH | PHASE 1 VALUE CREATION ACHIEVED Phase 1 Value Creation Initiatives are exceeding the top-end of initial underwriting with room for stabilized EBITDA to grow by an incremental $6M+ $34M+ AT STABILIZATION $ 2 8 M (2) +$6M Incremental EBITDA(1) +$3M $28M $23-$28M Incremental EBITDA Ac
Slide 21: Internal Growth | Phase 2 Conversions
INTERNAL GROWTH | PHASE 2 CONVERSIONS The 2023 conversions are at or nearing completion and poised to significantly exceed initial underwriting HOTEL TONNELLE NEW ORLEANS - COMPLETE DOUBLETREE HOUSTON MEDICAL CENTER - COMPLETE BANKERS ALLEY HOTEL NASHVILLE – ON TRACK New Orleans is a top leisure,
Slide 22: Internal Growth | Phase 2 Conversions
INTERNAL GROWTH | PHASE 2 CONVERSIONS Announced two conversion in Pittsburgh in 2024 Completed the conversion of the Courtyard in Q4 – ahead of schedule AUTOGRAPH PITTSBURGH DOWNTOWN – ON TRACK COURTYARD AT THE UNIVERSITY OF PITTSBURGH - COMPLETE Conversion from Renaissance Pittsburgh Hotel Conver
Slide 23: Capital Allocation | 2024 ROIs
CAPITAL ALLOCATION | 2024 ROIs Executed on a number of high return ROI projects to increase out-of-room spend by reimagining and optimizing non-revenue generating space EMBASSY SUITES DEERFIELD BEACH RESORT Re-imagined indoor / outdoor oceanfront bar to drive out-of-room spend Added new sundries
Slide 24: Capital Allocation | 2024 ROIs (Cont.)
CAPITAL ALLOCATION | 2024 ROIs (CONT.) DOUBLETREE SUITES BY HILTON HOTEL AUSTIN Added new guestrooms and suites Activated the lobby bar, elevating guest experience RESIDENCE INN BETHESDA DOWNTOWN Created new rooftop bar with city views Added a new “Grab & Go” market as a profit center DOUBLE
Slide 25: Internal Growth | Phase 2 Aggregate Value Creation
INTERNAL GROWTH | PHASE 2 – AGGREGATE VALUE CREATION In addition to conversions, Phase 2 value creation will also benefit from $2M in incremental EBITDA from ROI projects Phase 2 Value Creation: Expected +$9M - $11M Of Incremental EBITDA $2M Revenue Enhancement Projects $7M - $9M Phase 2 Conversions
Slide 26: RLJ | Incremental EBITDA Bridge
RLJ | INCREMENTAL EBITDA BRIDGE RLJ expects to generate significant incremental EBITDA over the next several years from its internal and external growth initiatives Portfolio EBITDA Expectations $505M $14M Acquisitions $14 M $10 M Phase 2 $10M Initial Underwriting $34 M(1) Phase 1 $34M $447M 2023 Ac
Slide 27: Internal Growth | Embedded Pipeline of Opportunities
INTERNAL GROWTH | EMBEDDED PIPELINE OF OPPORTUNITIES RLJ is well positioned for continued value creation through incremental conversions and value-add opportunities Incremental 10-to-15 conversion and value-add opportunities in portfolio Brand expirations Remix customer base Conversions with B
Slide 28: Internal Growth | Wyndham Boston Beacon Hill
INTERNAL GROWTH | WYNDHAM BOSTON BEACON HILL RLJ acquired the fee-simple ownership of the Wyndham Boston Beacon Hill in January of 2024 Pulls forward an additional compelling conversion opportunity with significant upside potential Boston represents a top hotel market with a favorable growth out
Slide 29: Strong Liquidity & Balance Sheet
STRONG LIQUIDITY & BALANCE SHEET MARRIOTT LOUISVILLE DOWNTOWN APRIL 2025 29
Slide 30: Best-in-Class Balance Sheet
BEST-IN-CLASS BALANCE SHEET RLJ has a strong balance sheet and well-staggered debt maturity profile Best-in-class balance sheet (1) Over $0.9B of liquidity, including $410M of cash and $500M availability on LOC ‒ No debt maturing until 2026 with weighted average maturity of 3.4 years ‒ Weighted av
Slide 31: RLJ | Investment Highlights
RLJ | INVESTMENT HIGHLIGHTS The evolution of RLJ’s portfolio over the last several years has positioned it to benefit from the upside in urban demand and to capitalize on unique internal and external growth catalysts High-quality portfolio with an attractive growth profile HIGH-QUALITY Urban-centr
Slide 32: Corporate Responsibility
CORPORATE RESPONSIBILITY COURTYARD WAIKIKI BEACH APRIL 2025 32
Slide 33: 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 D R I V E Drive Reduce Improve Validate Expand revenue growth by cost through investments our human capital by our sustainability our engageme
Slide 34: 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 35: RLJ ESG | Corporate Responsibility
RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value Our commitment and leadership on social responsibility continues with… Supporting communities through inclusive labor practices, policies and philant
Slide 36: RLJ ESG | Corporate Responsibility
RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value We are strengthening our approach to governance by… Maintaining transparency with investors on our strategic approach to ESG performance Having for
Slide 37: 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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