Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — NAREIT June 2021
23 slides from Rlj Lodging Trust's conference presentation, June 2021
Slide 1: NAREIT June 2021
NAREIT June 2021 1 RLJ: W ELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1
Slide 2: RLJ Is Well-Positioned
RLJ IS WELL-POSITIONED RLJ is well-positioned to benefit early during recovery and outperform throughout the entire lodging cycle ▪ Lodging fundamentals are continuing to strengthen with increasing vaccination rates, easing restrictions and the passing of additional economic stimulus ▪ 98% of hotels
Slide 3: Portfolio Update
PORTFOLIO UPDATE HILTON CABANA MIAMI BEACH
Slide 4: Portfolio Update: Nearly all of RLJ's hotels are now open
PORTFOLIO UPDATE 98% of portfolio now open and benefitting from continuing improvement in demand ▪ Nearly all of RLJ’s hotels are now open ▪ 98% of portfolio now open ▪ Open hotels achieving strong relative performance and gaining market share ▪ Open hotels achieved 46.4% occupancy and gained over 5
Slide 5: 2021 Operating Trends
2021 | OPERATING TRENDS Occupancy accelerated each month with April at the highest level of the pandemic Improving vaccination adoption, seasonality and new government stimulus driving improving performance ▪ April Open Hotel Occupancy and RevPAR achieved pandemic peaks at ~59% and ~$79, respectivel
Slide 6: Improving Occupancies
IMPROVING OCCUPANCIES RLJ’s weekly occupancy trends have continued to strengthen through May 2021 Open and Total Portfolio Weekly Occupancy Performance(1) (2) 70% Open Hotels Total Portfolio U.S. Avg. 61% 61% 61% 61% 61% 60% 59% 58% 58% 60% 58% 58% 54% 51% 50% 48% 48% 46% 42% 38% 38% 37% 38% 40% 34%
Slide 7: Portfolio Construct Driving Outperformance
PORTFOLIO CONSTRUCT DRIVING OUTPERFORMANCE Portfolio construct and diversification is allowing RLJ to outperform ▪ RLJ’s open hotels achieved 46.4% occupancy in Q1 and exceeded the industry during February through April ▪ Q1 occupancy significantly ahead of the “Urban” segment occupancy of 38.5% ▪ R
Slide 8: More Resilient Portfolio
MORE RESILIENT PORTFOLIO Occupancy and Margin relative outperformance underscores RLJ’s resilient model Occupancy Performance | Q1 2021(1) 60% 55.8% 52.0% 50.3% 50% 45.9% 43.0% 40% 34.8% Q1 Avg.: 36.6% 26.9% 26.6% 26.4% 30% 21.6% 18.8% 20% 10% 0% APLE CLDT INN HT RLJ XHR DRH HST PK SHO PEB EBITDA Ma
Slide 9: Improving Cash Burn
IMPROVING CASH BURN RLJ’s lean operating model is allowing for a reduction in average monthly burn rate against the backdrop of improving fundamentals ▪ Ended Q1 2021 with a monthly average cash burn of $14.0M(1), 30% better than the low-end of the prior estimated range RLJ ranks among the best posi
Slide 10: Positioned to Benefit Throughout the Lodging Cycle
POSITIONED TO BENEFIT THROUGHOUT THE LODGING CYCLE COURTYARD WAIKIKI BEACH
Slide 11: Positioned to Benefit Throughout the Cycle
POSITIONED TO BENEFIT THROUGHOUT THE CYCLE RLJ’s markets and assets are poised to benefit in all phases of this cycle ▪ Portfolio benefiting early from recovery in leisure and drive-to segments ▪ As Business Travel, Group / Conventions recover, Urban hotels should drive portfolio growth Market Asset
Slide 12: Well-Positioned to Benefit Early in the Recovery
WELL-POSITIONED TO BENEFIT EARLY IN THE RECOVERY RLJ’s transient orientation, exposure to a number of drive-to / leisure markets and portfolio construct is allowing for an early ramp up Transient segment, especially leisure, continues to ramp up early during this recovery ▪ RLJ’s portfolio is primar
Slide 13: ...and Also for Long-Term Outperformance
…AND ALSO FOR LONG-TERM OUTPERFORMANCE RLJ has unique catalysts to outperform throughout the next lodging cycle Significant liquidity of over $1B should enable RLJ to emerge with a healthy balance sheet ▪ Minimize the need to raise potentially unattractive capital ▪ Efficiencies achieved during the
Slide 14: Conversions to Unlock Significant Embedded Value
CONVERSIONS TO UNLOCK SIGNIFICANT EMBEDDED VALUE Three conversions currently underway are expected to amplify EBITDA growth throughout this cycle Leisure is expected to be a dominant demand segment during this cycle ▪ Pent-up travel demand and significant household savings should support leisure dem
Slide 15: Strong Liquidity
STRONG LIQUIDITY HUMBLE OIL BUILDING MARRIOTT COMPLEX
Slide 16: Strong Liquidity Position
STRONG LIQUIDITY POSITION RLJ is well-positioned with significant liquidity ▪ Nearly $650M of unrestricted cash(1) and $400M undrawn on the Company’s line of credit (“LOC”) Cash Position Net of LOC Borrowing(1) Cash LOC Draw Balance Remaining LOC Capacity $2,000 $1,500 Liquidity ($ in millions) $1,0
Slide 17: RLJ Remains in Solid Financial Condition
RLJ REMAINS IN SOLID FINANCIAL CONDITION RLJ entered the pandemic with solid liquidity, low leverage and a well-staggered maturity profile with no debt maturities until 2022 RLJ maintains best-in-class balance sheet(1) ▪ Entered 2020 with Net Debt to EBITDA of 3.1x, below peer average ▪ ~$650M of ca
Slide 18: RLJ Is Well-Positioned
RLJ IS WELL-POSITIONED RLJ is well-positioned to benefit early during recovery and outperform throughout the entire lodging cycle ▪ Lodging fundamentals are continuing to strengthen with increasing vaccination rates, easing restrictions and the passing of additional economic stimulus ▪ 98% of hotels
Slide 19: Appendix
APPENDIX EMBASSY SUITES TAMPA
Slide 20: Successful Execution of 2019 Strategy Strengthened RLJ
SUCCESSFUL EXECUTION OF 2019 STRATEGY STRENGTHENED RLJ Successful execution of key 2019 strategic priorities enabled RLJ to enter 2020 in a position of strength Sold 47 non-core assets and generated significant liquidity ▪ Improved 2019 absolute RevPAR by over 8% ▪ Generated over $720M of cash proce
Slide 21: Proactive Response
PROACTIVE RESPONSE RENAISSANCE PITTSBURGH
Slide 22: 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 Minimized CapEx Corporate Initiatives ▪ Staff reduction / employee ▪ Temporarily suspended ▪ Postponed all non-essential
Slide 23: 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, measures being taken in response to the COVID-19 pandem