RLJ Lodging Trust's Q1 revenue beats on urban performance

Overview

• U.S. hotel REIT's Q1 revenue rose, beating analyst expectations

• Adjusted FFO per share for Q1 increased 6.5% yr/yr to $0.33

• Company approved $250 mln share repurchase program, effective May 2026

Outlook

• Company raises full-year 2026 outlook after first-quarter outperformance

• Company sees FY 2026 comparable RevPAR growth of 1.5% to 3.5%

• RLJ Lodging Trust expects FY 2026 adjusted FFO per diluted share of $1.29 to $1.45

Result Drivers

• URBAN MARKET PERFORMANCE - Co said strong results in top urban markets helped drive Q1 growth

• NON-ROOM REVENUE GROWTH - Co said comparable non-room revenues rose 8.2%, outpacing RevPAR growth

• EXPENSE MANAGEMENT - Co said disciplined expense management contributed to hotel EBITDA margin expansion

Company press release: ID:nBw6Cc41Va

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for RLJ Lodging Trust is $8.50, about 2.4% above its May 1 closing price of $8.30

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