Rlj Lodging Trust · NYSE:RLJ
Rlj Lodging Trust — Truist Securities Gaming, Lodging, Leisure and Restaurants Summit December 2020
23 slides from Rlj Lodging Trust's conference presentation, December 2020
Slide 1: Truist Securities Gaming, Lodging, Leisure and Restaurants Summit
Truist Securities Gaming, Lodging, Leisure and Restaurants Summit December 2020 1 RLJ: W ELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1
Slide 2: RLJ Is Well-Positioned
RLJ IS WELL-POSITIONED RLJ remains well-positioned to navigate the current environment and outperform throughout the next lodging cycle ▪ 97 hotels open, representing 94% of the portfolio ▪ Occupancy ramp-up is benefitting from portfolio construct and geographic diversification ▪ Reduced cash burn f
Slide 3: Business Update
BUSINESS UPDATE HILTON CABANA MIAMI BEACH
Slide 4: Hotel Reopening Update
HOTEL REOPENING UPDATE RLJ has reopened 51 hotels, which have outperformed expectations ▪ 94% of RLJ’s portfolio is now open ▪ 97 of our 103 hotels are open ▪ Remaining six suspended properties are full-service hotels located in urban markets (New York and San Francisco) and clustered hotels (Chicag
Slide 5: Occupancy Primarily Driven by Leisure
OCCUPANCY PRIMARILY DRIVEN BY LEISURE RLJ’s weekly occupancies are trending similar to Q3 ▪ Occupancy at open hotels of ~35% in November ▪ Overall portfolio occupancy of ~32% in November ▪ Open hotels continue to achieve higher occupancies during weekends relative to the weekdays Weekly Occupancy 43
Slide 6: Portfolio Construct Driving Performance
PORTFOLIO CONSTRUCT DRIVING PERFORMANCE Portfolio construct and diversification enabled RLJ to benefit from relative strength in leisure, and an uptick in Business Transient and Group demand during Q3 ▪ Open hotels achieved ~50% occupancy on weekends and 33% on weekdays ▪ All-suite hotels remained p
Slide 7: More Resilient Portfolio
MORE RESILIENT PORTFOLIO RLJ’s portfolio construct and diversification has resulted in strong occupancy Open Hotel Occupancy | Q3 20201 52.5% 48.6% 37.1% 36.8% 36.4% 28.3% 28.3% Avg: 26.1% 18.9% CLDT APLE RLJ HT PK XHR DRH SHO Total Portfolio Occupancy | Q3 2020 52.5% 48.6% 44.4% 29.3% 29.4% 24.7% A
Slide 8: Improving Cash Burn
IMPROVING CASH BURN Reduced monthly cash burn estimate to ~$23M to $27M1, a $2.5M reduction from prior outlook2, representing 48 months of runway at the midpoint ▪ Reduced cash burn cumulatively by over $70M from the high-end of initial estimates3 ▪ RLJ maintains strong liquidity of ~$1.2B4 ▪ RLJ’s
Slide 9: Positioned for Recovery
POSITIONED FOR RECOVERY COURTYARD CHICAGO DOWNTOWN / MAGNIFICENT MILE
Slide 10: Framework for Lodging Recovery
FRAMEWORK FOR LODGING 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-t
Slide 11: RLJ Is Positioned to Benefit Early in a Recovery
RLJ IS POSITIONED TO BENEFIT EARLY IN A 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, is ramping up first during this recovery ▪ RLJ’s portfolio is primarily tr
Slide 12: …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 dilutive capital ▪ Cost efficiencies should allow for re
Slide 13: Strong Liquidity
STRONG LIQUIDITY HUMBLE OIL BUILDING MARRIOTT COMPLEX
Slide 14: Strong Liquidity Position
STRONG LIQUIDITY POSITION RLJ is well-positioned with significant liquidity and a long runway ▪ Nearly $1B of unrestricted cash1 and $200M undrawn on line of credit (LOC) ▪ Monthly cash burn continues to be lower for RLJ’s portfolio relative to peers (48 months at current run rate) Cash Position Net
Slide 15: RLJ Is Well-Positioned
RLJ IS WELL-POSITIONED RLJ remains well-positioned to navigate the current environment and outperform throughout the next lodging cycle ▪ 97 hotels open, representing 94% of the portfolio ▪ Occupancy ramp-up is benefitting from portfolio construct and geographic diversification ▪ Reduced cash burn f
Slide 16: Appendix
APPENDIX EMBASSY SUITES TAMPA
Slide 17: Strong Positioning Entering 2020
STRONG POSITIONING ENTERING 2020 COURTYARD CHARLESTON HISTORIC DISTRICT
Slide 18: 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 19: RLJ Entered 2020 in Solid Financial Condition
RLJ ENTERED 2020 IN SOLID FINANCIAL CONDITION RLJ entered 2020 with solid liquidity, low leverage and a well-staggered maturity profile with no debt maturities until 2022 Entered 2020 with best-in-class balance sheet ▪ Entered 2020 with ~$900M of cash ▪ YE 2019 Net Debt to EBITDA of 3.1x, below peer
Slide 20: Proactive Response
PROACTIVE RESPONSE RENAISSANCE PITTSBURGH
Slide 21: 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 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 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 response to the COVID-19 pande