Le Lézard
Classified in: Business
Subjects: EARNINGS, Dividend, Conference Call, Webcast

RLJ Lodging Trust Reports Third Quarter 2023 Results


RLJ Lodging Trust (the "Company") (NYSE: RLJ) today reported results for the three and nine months ended September 30, 2023.

Third Quarter Highlights

"We were pleased that our urban-centric portfolio achieved RevPAR growth that exceeded the industry for the third straight quarter. Our results were led by our urban markets, which benefited from the continued improvement in business travel, ongoing robust group demand, healthy urban leisure trends and recovering inbound international travel. Our RevPAR growth accelerated throughout the third quarter, with RevPAR exceeding 2019 levels for the first time in September. These positive trends also carried into October," commented Leslie D. Hale, President and Chief Executive Officer. "Overall, we remain constructive on the outlook for lodging fundamentals, which continue to unfold with trends favorable for our urban-centric portfolio. In addition to achieving above industry RevPAR growth, we also executed on multiple capital allocation initiatives including share repurchases and increasing our dividend, demonstrating the optionality of our strong balance sheet."

The prefix "comparable" as defined by the Company, denotes operating results which include results for periods prior to its ownership and excludes sold hotels. Explanations of EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA Margin, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, are included within this release.

Financial and Operating Highlights

($ in thousands, except ADR, RevPAR, and per share amounts)

(unaudited)

 

 

For the three months ended September 30,

For the nine months ended September 30,

 

2023

2022

2023

2022

Operational Overview: (1)

 

 

 

 

Comparable ADR

$191.33

$188.54

$197.94

$187.56

Comparable Occupancy

74.1%

72.7%

72.6%

69.5%

Comparable RevPAR

$141.81

$137.09

$143.74

$130.41

 

 

 

 

 

Financial Overview:

 

 

 

 

Total Revenues

$334,406

$318,071

$1,005,869

$891,471

Comparable Hotel Revenue

$334,389

$318,673

$1,005,782

$894,674

 

 

 

 

 

Net Income

$16,343

$17,683

$68,577

$35,415

 

 

 

 

 

Comparable Hotel EBITDA (2)

$98,065

$100,020

$311,788

$282,423

Comparable Hotel EBITDA Margin

29.3%

31.4%

31.0%

31.6%

Adjusted EBITDA

$88,767

$91,952

$285,281

$257,522

 

 

 

 

 

Adjusted FFO

$63,092

$63,994

$207,009

$168,288

Adjusted FFO Per Diluted Common Share and Unit

$0.40

$0.40

$1.31

$1.03

Note:

(1) Comparable statistics reflect the Company's 96 hotel portfolio owned as of September 30, 2023.

(2) Comparable Hotel EBITDA for the three months ended September 30, 2023 and 2022 excludes $0.1 million and $0.2 million net income, respectively, from sold hotels. Comparable Hotel EBITDA for the nine months ended September 30, 2023 and 2022 excludes $0.5 million net income from sold hotels. Comparable Hotel EBITDA for the three months ended September 30, 2022 includes $0.1 million net loss from acquired hotels. Comparable Hotel EBITDA for the nine months ended September 30, 2022 includes $0.6 million net income from acquired hotels.

Operational Update

During the third quarter, the Company's portfolio generated Comparable RevPAR of $141.81, an increase of 3.4% from the comparable period in 2022 and achieved 98% of the third quarter of 2019. Comparable Revenues were $334.4 million for the third quarter, a 4.9% increase over the prior year. The third quarter comparable RevPAR increase over last year was led by a 1.9% increase in Occupancy and a 1.5% increase in ADR. The Company's performance during the third quarter was positively impacted by sustained positive trends in its Urban markets.

Share Repurchases

During the third quarter the Company repurchased approximately 1.5 million common shares for approximately $14.4 million at an average price per share of $9.81.

Year-to-date the Company has repurchased approximately 6.6 million common shares for approximately $70 million, at an average price per share of $10.12 including repurchasing approximately 0.3 million shares for $2.7 million, subsequent to September 30, 2023. As of November 1, 2023, the 2023 Share Repurchase Program had a remaining capacity of $219.9 million.

Balance Sheet

As of September 30, 2023, the Company had approximately $1.1 billion of total liquidity, comprising approximately $494.6 million of unrestricted cash and $600.0 million available under its revolving credit facility, and $2.2 billion of debt outstanding, 93.0% of which is currently either fixed or hedged.

Dividends

The Company's Board of Trustees declared a third quarter cash dividend of $0.10 per common share of beneficial interest of the Company. The dividend was paid on October 16, 2023 to shareholders of record as of September 29, 2023.

The Company's Board of Trustees declared a third quarter cash dividend of $0.4875 on the Company's Series A Preferred Shares. The dividend was paid on October 31, 2023 to shareholders of record as of September 29, 2023.

Q4 2023 Outlook

Based on current trends and assuming no material disruptions to travel or worsening macro-economic conditions, the Company's fourth quarter 2023 outlook is as follows:

 

Q4 2023

Comparable RevPAR

$129.50 to $134.50

Comparable Hotel EBITDA

$82.0M to $92.0M

Adjusted EBITDA

$73.0M to $83.0M

Adjusted FFO per diluted share

$0.30 to $0.36

No future acquisitions, dispositions, financings, or share repurchases are incorporated into the Company's outlook and could result in a material change to the Company's outlook.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on November 2, 2023 at 12:00 p.m. (Eastern Time). The conference call can be accessed by dialing (877) 407-3982 or (201) 493-6780 for international participants and requesting RLJ Lodging Trust's third quarter earnings conference call. Additionally, a live webcast of the conference call will be available through the Company's website at http://www.rljlodgingtrust.com. A replay of the conference call webcast will be archived and available through the Investor Relations section of the Company's website for two weeks.

Supplemental Information

Please refer to the schedule of supplemental information for additional detail and comparable operating statistics, which is available through the Investor Relations section of the Company's website.

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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 based, that are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words "believe," "project," "expect," "anticipate," "estimate," "plan," "may," "will," "will continue," "intend," "should," "may," or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled "Risk Factors," "Forward-Looking Statements," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report and the Company's Quarterly Reports on Form 10-Q, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.

For additional information or to receive press releases via email, please visit our website: http://www.rljlodgingtrust.com

RLJ Lodging Trust
Non-GAAP and Accounting Commentary

Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDAre, (5) Adjusted EBITDA, (6) Hotel EBITDA, and (7) Hotel EBITDA Margin. These Non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of its operating performance. FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, and Hotel EBITDA Margin, as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company defines such terms.

Funds From Operations ("FFO")

The Company calculates Funds from Operations ("FFO") in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding gains or losses from sales of real estate, impairment, the cumulative effect of changes in accounting principles, plus depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company's operations. The Company believes that the presentation of FFO provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between real estate investment trusts ("REITs"), even though FFO does not represent an amount that accrues directly to common shareholders.

The Company's calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing the Company to non-REITs. The Company presents FFO attributable to common shareholders, which includes unitholders of limited partnership interest ("OP units") in RLJ Lodging Trust, L.P., the Company's operating partnership, because the OP units may be redeemed for common shares of the Company. The Company believes it is meaningful for the investor to understand FFO attributable to all common shares and OP units.

EBITDA and EBITDAre

Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") is defined as net income or loss excluding: (1) interest expense; (2) income tax expense; and (3) depreciation and amortization expense. The Company considers EBITDA useful to an investor in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization expense) from its operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions.

In addition to EBITDA, the Company presents EBITDAre in accordance with NAREIT guidelines, which defines EBITDAre as net income or loss (calculated in accordance with GAAP) excluding interest expense, income tax expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. The Company believes that the presentation of EBITDAre provides useful information to investors regarding the Company's operating performance and can facilitate comparisons of operating performance between periods and between REITs.

Adjustments to FFO and EBITDA

The Company adjusts FFO, EBITDA, and EBITDAre for certain items that the Company considers outside the normal course of operations. The Company believes that Adjusted FFO, Adjusted EBITDA, and Adjusted EBITDAre provide useful supplemental information to investors regarding its ongoing operating performance that, when considered with net income or loss, FFO, EBITDA, and EBITDAre, are beneficial to an investor's understanding of the Company's operating performance. The Company adjusts FFO, EBITDA, and EBITDAre for the following items:

Hotel EBITDA and Hotel EBITDA Margin

With respect to Consolidated Hotel EBITDA, the Company believes that excluding the effect of corporate-level expenses and certain non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. The Company believes property-level results provide investors with supplemental information about the ongoing operational performance of the Company's hotels and the effectiveness of third-party management companies.

Comparable Hotel EBITDA and Comparable Hotel EBITDA margin include prior ownership information provided by the sellers of the hotels for periods prior to our acquisition of the hotels and excludes results from sold hotels as applicable. The following is a summary of Comparable hotel adjustments:

Comparable adjustments: Acquired hotel

For the three and nine months ended September 30, 2022, Comparable adjustments included the following acquired hotel:

Comparable adjustments: Sold hotels

For the nine months ended September 30, 2022, comparable adjustments included the following sold hotels:

RLJ Lodging Trust

Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

(unaudited)

 

 

September 30, 2023

 

December 31, 2022

Assets

 

 

 

Investment in hotel properties, net

$

4,142,365

 

 

$

4,180,328

 

Investment in unconsolidated joint ventures

 

7,294

 

 

 

6,979

 

Cash and cash equivalents

 

494,563

 

 

 

481,316

 

Restricted cash reserves

 

35,807

 

 

 

55,070

 

Hotel and other receivables, net of allowance of $237 and $319, respectively

 

47,990

 

 

 

38,528

 

Lease right-of-use assets

 

137,546

 

 

 

136,915

 

Prepaid expense and other assets

 

74,777

 

 

 

79,089

 

Total assets

$

4,940,342

 

 

$

4,978,225

 

Liabilities and Equity

 

 

 

Debt, net

$

2,219,781

 

 

$

2,217,555

 

Accounts payable and other liabilities

 

150,650

 

 

 

155,916

 

Advance deposits and deferred revenue

 

30,995

 

 

 

23,769

 

Lease liabilities

 

119,780

 

 

 

117,010

 

Accrued interest

 

12,593

 

 

 

20,707

 

Distributions payable

 

22,448

 

 

 

14,622

 

Total liabilities

 

2,556,247

 

 

 

2,549,579

 

Equity

 

 

 

Shareholders' equity:

 

 

 

Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized

 

 

 

Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at September 30, 2023 and December 31, 2022

 

366,936

 

 

 

366,936

 

Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 156,172,739 and 162,003,533 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

1,562

 

 

 

1,620

 

Additional paid-in capital

 

3,003,316

 

 

 

3,054,958

 

Distributions in excess of net earnings

 

(1,041,171

)

 

 

(1,049,441

)

Accumulated other comprehensive income

 

39,553

 

 

 

40,591

 

Total shareholders' equity

 

2,370,196

 

 

 

2,414,664

 

Noncontrolling interests:

 

 

 

Noncontrolling interest in the Operating Partnership

 

6,361

 

 

 

6,313

 

Noncontrolling interest in consolidated joint ventures

 

7,538

 

 

 

7,669

 

Total noncontrolling interest

 

13,899

 

 

 

13,982

 

Total equity

 

2,384,095

 

 

 

2,428,646

 

Total liabilities and equity

$

4,940,342

 

 

$

4,978,225

 

Note: The corresponding notes to the consolidated financial statements can be found in the Company's Quarterly Report on Form 10-Q.

RLJ Lodging Trust

Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(unaudited)

 

 

For the three months ended
September 30,

 

For the nine months ended
September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

Room revenue

$

277,088

 

 

$

267,363

 

 

$

833,416

 

 

$

753,818

 

Food and beverage revenue

 

34,181

 

 

 

30,600

 

 

 

105,601

 

 

 

82,655

 

Other revenue

 

23,137

 

 

 

20,108

 

 

 

66,852

 

 

 

54,998

 

Total revenues

 

334,406

 

 

 

318,071

 

 

 

1,005,869

 

 

 

891,471

 

Expenses

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Room expense

 

71,278

 

 

 

68,394

 

 

 

207,662

 

 

 

188,015

 

Food and beverage expense

 

27,430

 

 

 

23,375

 

 

 

81,604

 

 

 

61,314

 

Management and franchise fee expense

 

27,095

 

 

 

25,390

 

 

 

82,554

 

 

 

71,846

 

Other operating expenses

 

87,736

 

 

 

82,021

 

 

 

254,567

 

 

 

227,563

 

Total property operating expenses

 

213,539

 

 

 

199,180

 

 

 

626,387

 

 

 

548,738

 

Depreciation and amortization

 

44,727

 

 

 

46,559

 

 

 

134,648

 

 

 

140,346

 

Property tax, insurance and other

 

26,936

 

 

 

20,744

 

 

 

76,268

 

 

 

66,206

 

General and administrative

 

14,747

 

 

 

13,446

 

 

 

43,030

 

 

 

40,928

 

Transaction costs

 

2

 

 

 

(773

)

 

 

26

 

 

 

(575

)

Total operating expenses

 

299,951

 

 

 

279,156

 

 

 

880,359

 

 

 

795,643

 

Other income, net

 

1,921

 

 

 

710

 

 

 

3,506

 

 

 

8,716

 

Interest income

 

5,302

 

 

 

1,281

 

 

 

13,977

 

 

 

1,800

 

Interest expense

 

(24,833

)

 

 

(22,625

)

 

 

(73,506

)

 

 

(71,041

)

Gain (loss) on sale of hotel properties, net

 

16

 

 

 

(57

)

 

 

(28

)

 

 

996

 

Loss on extinguishment of indebtedness, net

 

?

 

 

 

?

 

 

 

(169

)

 

 

?

 

Income before equity in (loss) income from unconsolidated joint ventures

 

16,861

 

 

 

18,224

 

 

 

69,290

 

 

 

36,299

 

Equity in (loss) income from unconsolidated joint ventures

 

(186

)

 

 

(150

)

 

 

315

 

 

 

255

 

Income before income tax expense

 

16,675

 

 

 

18,074

 

 

 

69,605

 

 

 

36,554

 

Income tax expense

 

(332

)

 

 

(391

)

 

 

(1,028

)

 

 

(1,139

)

Net income

 

16,343

 

 

 

17,683

 

 

 

68,577

 

 

 

35,415

 

Net (income) loss attributable to noncontrolling interests:

 

 

 

 

 

 

 

Noncontrolling interest in the Operating Partnership

 

(50

)

 

 

(53

)

 

 

(238

)

 

 

(74

)

Noncontrolling interest in consolidated joint ventures

 

137

 

 

 

(36

)

 

 

131

 

 

 

(29

)

Net income attributable to RLJ

 

16,430

 

 

 

17,594

 

 

 

68,470

 

 

 

35,312

 

Preferred dividends

 

(6,279

)

 

 

(6,279

)

 

 

(18,836

)

 

 

(18,836

)

Net income attributable to common shareholders

$

10,151

 

 

$

11,315

 

 

$

49,634

 

 

$

16,476

 

Basic per common share data:

 

 

 

 

 

 

 

Net income per share attributable to common shareholders - basic

$

0.06

 

 

$

0.07

 

 

$

0.31

 

 

$

0.10

 

Weighted-average number of common shares

 

154,563,284

 

 

 

160,368,297

 

 

 

156,805,643

 

 

 

162,681,840

 

Diluted per common share data:

 

 

 

 

 

 

 

Net income per share attributable to common shareholders - diluted

$

0.06

 

 

$

0.07

 

 

$

0.31

 

 

$

0.10

 

Weighted-average number of common shares

 

155,081,645

 

 

 

160,784,709

 

 

 

157,280,206

 

 

 

163,064,462

 

Note: The Statements of Comprehensive Income and corresponding notes to the consolidated financial statements can be found in the Company's Quarterly Report on Form 10-Q.

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands, except per share data)

(unaudited)

 

Funds from Operations (FFO) Attributable to Common Shareholders and Unitholders

 

 

For the three months ended
September 30,

For the nine months ended
September 30,

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Net income

$

16,343

 

 

$

17,683

 

$

68,577

 

 

$

35,415

 

Preferred dividends

 

(6,279

)

 

 

(6,279

)

 

(18,836

)

 

 

(18,836

)

Depreciation and amortization

 

44,727

 

 

 

46,559

 

 

134,648

 

 

 

140,346

 

(Gain) loss on sale of hotel properties, net

 

(16

)

 

 

57

 

 

28

 

 

 

(996

)

Noncontrolling interest in consolidated joint ventures

 

137

 

 

 

(36

)

 

131

 

 

 

(29

)

Adjustments related to consolidated joint venture (1)

 

(44

)

 

 

(47

)

 

(131

)

 

 

(144

)

Adjustments related to unconsolidated joint venture (2)

 

236

 

 

 

241

 

 

709

 

 

 

831

 

FFO

 

55,104

 

 

 

58,178

 

 

185,126

 

 

 

156,587

 

Transaction costs

 

2

 

 

 

(773

)

 

26

 

 

 

(575

)

Pre-opening costs (3)

 

327

 

 

 

907

 

 

1,188

 

 

 

1,519

 

Loss on extinguishment of indebtedness, net

 

?

 

 

 

?

 

 

169

 

 

 

?

 

Amortization of share-based compensation

 

6,247

 

 

 

5,420

 

 

18,028

 

 

 

16,074

 

Non-cash interest expense related to discontinued interest rate hedges

 

482

 

 

 

252

 

 

1,446

 

 

 

493

 

Derivative gains in accumulated other comprehensive income reclassified to earnings (4)

 

?

 

 

 

?

 

 

?

 

 

 

(5,866

)

Other expenses (5)

 

930

 

 

 

10

 

 

1,026

 

 

 

56

 

Adjusted FFO

$

63,092

 

 

$

63,994

 

$

207,009

 

 

$

168,288

 

 

 

 

 

 

 

 

Adjusted FFO per common share and unit-basic

$

0.41

 

 

$

0.40

 

$

1.31

 

 

$

1.03

 

Adjusted FFO per common share and unit-diluted

$

0.40

 

 

$

0.40

 

$

1.31

 

 

$

1.03

 

 

 

 

 

 

 

 

Basic weighted-average common shares and units outstanding (6)

 

155,335

 

 

 

161,140

 

 

157,577

 

 

 

163,454

 

Diluted weighted-average common shares and units outstanding (6)

 

155,853

 

 

 

161,557

 

 

158,052

 

 

 

163,836

 

Notes:

(1)

Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint venture.

(2)

Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint venture.

(3)

Represents expenses related to the brand conversions of certain hotel properties prior to opening.

(4)

Reclassification of interest rate swap gains from accumulated other comprehensive income to earnings for discontinued interest rate hedges.

(5)

Represents expenses and income outside of the normal course of operations. For the three and nine months ended September 30, 2023, other expenses included one-time management company transition costs of $0.6 million.

(6)

Includes 0.8 million weighted-average operating partnership units for the three and nine month periods ended September 30, 2023 and 2022.

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands)

(unaudited)

 

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

 

 

For the three months ended
September 30,

For the nine months ended
September 30,

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

Net income

$

16,343

 

 

$

17,683

 

$

68,577

 

 

$

35,415

 

Depreciation and amortization

 

44,727

 

 

 

46,559

 

 

134,648

 

 

 

140,346

 

Interest expense, net of interest income

 

19,531

 

 

 

21,344

 

 

59,529

 

 

 

69,241

 

Income tax expense

 

332

 

 

 

391

 

 

1,028

 

 

 

1,139

 

Adjustments related to unconsolidated joint venture (1)

 

344

 

 

 

354

 

 

1,034

 

 

 

1,169

 

EBITDA

 

81,277

 

 

 

86,331

 

 

264,816

 

 

 

247,310

 

(Gain) loss on sale of hotel properties, net

 

(16

)

 

 

57

 

 

28

 

 

 

(996

)

EBITDAre

 

81,261

 

 

 

86,388

 

 

264,844

 

 

 

246,314

 

Transaction costs

 

2

 

 

 

(773

)

 

26

 

 

 

(575

)

Pre-opening costs (2)

 

327

 

 

 

907

 

 

1,188

 

 

 

1,519

 

Loss on extinguishment of indebtedness, net

 

?

 

 

 

?

 

 

169

 

 

 

?

 

Amortization of share-based compensation

 

6,247

 

 

 

5,420

 

 

18,028

 

 

 

16,074

 

Derivative gains in accumulated other comprehensive income reclassified to earnings (3)

 

?

 

 

 

?

 

 

?

 

 

 

(5,866

)

Other expenses (4)

 

930

 

 

 

10

 

 

1,026

 

 

 

56

 

Adjusted EBITDA

 

88,767

 

 

 

91,952

 

 

285,281

 

 

 

257,522

 

General and administrative

 

8,500

 

 

 

8,026

 

 

25,002

 

 

 

24,854

 

Other corporate adjustments

 

873

 

 

 

358

 

 

2,009

 

 

 

(1

)

Consolidated Hotel EBITDA

 

98,140

 

 

 

100,336

 

 

312,292

 

 

 

282,375

 

Comparable adjustments - income from sold hotels

 

(75

)

 

 

(213

)

 

(504

)

 

 

(510

)

Comparable adjustments - income from acquired hotels

 

?

 

 

 

(103

)

 

?

 

 

 

558

 

Comparable Hotel EBITDA

$

98,065

 

 

$

100,020

 

$

311,788

 

 

$

282,423

 

Notes: Comparable statistics reflect the Company's 96 hotel portfolio owned as of September 30, 2023.

(1)

Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint venture.

(2)

Represents expenses related to the brand conversions of certain hotel properties prior to opening.

(3)

Reclassification of interest rate swap gains from accumulated other comprehensive income to earnings for discontinued interest rate hedges.

(4)

Represents expenses and income outside of the normal course of operations. For the three and nine months ended September 30, 2023, other expenses included one-time management company transition costs of $0.6 million.

RLJ Lodging Trust

Reconciliation of Non-GAAP Measures

(Amounts in thousands except %)

(unaudited)

 

Comparable Hotel EBITDA Margin

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Total revenue

$

334,406

 

 

$

318,071

 

 

$

1,005,869

 

 

$

891,471

 

Comparable adjustments - revenue from sold hotels

 

?

 

 

 

?

 

 

 

(35

)

 

 

(2,337

)

Comparable adjustments - revenue from prior ownership of acquired hotels

 

?

 

 

 

614

 

 

 

?

 

 

 

5,585

 

Other corporate adjustments / non-hotel revenue

 

(17

)

 

 

(12

)

 

 

(52

)

 

 

(45

)

Comparable Hotel Revenue

$

334,389

 

 

$

318,673

 

 

$

1,005,782

 

 

$

894,674

 

 

 

 

 

 

 

 

 

Comparable Hotel EBITDA

$

98,065

 

 

$

100,020

 

 

$

311,788

 

 

$

282,423

 

 

 

 

 

 

 

 

 

Comparable Hotel EBITDA Margin

 

29.3

%

 

 

31.4

%

 

 

31.0

%

 

 

31.6

%

RLJ Lodging Trust

Consolidated Debt Summary

(Amounts in thousands except %)

(unaudited)

 

Loan

Base Term (Years)

Maturity

(incl. extensions)

Floating / Fixed (1)

Interest Rate (2)

 

Balance as of

September 30, 2023 (3)

Mortgage Debt

 

 

 

 

 

 

Mortgage loan - 1 hotel

10

Jan 2029

Fixed

5.06%

 

$ 25,000

Mortgage loan - 7 hotels

3

Apr 2024

Floating

5.94%

 

200,000

Mortgage loan - 3 hotels

5

Apr 2026

Floating

5.02%

 

96,000

Mortgage loan - 4 hotels

5

Apr 2026

Floating

5.61%

 

85,000

Weighted Average / Mortgage Total

 

 

 

5.60%

 

$ 406,000

 

 

 

 

 

 

 

Corporate Debt

 

 

 

 

 

 

Revolver (4)

4

May 2028

Floating

?

 

$ ?

$225 Million Term Loan Maturing 2026

3

May 2028

Floating

2.97%

 

225,000

$200 Million Term Loan Maturing 2026

3

January 2028

Floating

3.48%

 

200,000

$400 Million Term Loan Maturing 2025

5

May 2025

Floating

3.38%

 

400,000

$500 Million Senior Notes due 2026

5

July 2026

Fixed

3.75%

 

500,000

$500 Million Senior Notes due 2029

8

September 2029

Fixed

4.00%

 

500,000

Weighted Average / Corporate Total

 

 

 

3.61%

 

$ 1,825,000

 

 

 

 

 

 

 

Weighted Average / Total

 

 

 

3.97%

 

$ 2,231,000

Notes:

(1)

The floating interest rate is hedged, or partially hedged, with an interest rate swap.

(2)

Interest rates as of September 30, 2023, inclusive of the impact of interest rate hedges.

(3)

Excludes the impact of fair value adjustments and deferred financing costs.

(4)

As of September 30, 2023, there was $600.0 million of borrowing capacity on the Revolver, which is charged an unused commitment fee of 0.25% annually.

 


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