RLJ Lodging Trust completed a comprehensive refinancing of all debt maturities through 2028, extending the company’s revolver to 2031, upsizing an existing term loan to approximately $570 million, adding a new seven‑year, $150 million delayed‑draw term loan maturing in 2033, and refinancing $155 million of secured debt that was due in 2026. The refinancing also retired the $500 million senior notes that were scheduled to mature in July 2026, shifting the next significant debt maturity to 2029.
The new structure provides a laddered debt schedule that reduces RLJ’s near‑term refinancing risk. The $600 million revolver now has a maturity of 2031 with options for further extension, while the term loan upsizing and the new delayed‑draw facility give the company additional unsecured capacity for future capital allocation. The secured debt refinancing extends the maturity of the two mortgage loans to April 2031, further smoothing the debt profile.
Management highlighted the strategic benefits of the transaction. "We are thrilled with the successful execution of these transactions, which further ladder our debt maturities and strengthen our balance sheet, as we continue to execute on our growth initiatives. While we refinanced our lowest cost debt in a higher interest rate environment, we obtained attractive interest rates, thereby limiting the change in our annual interest expense," said President and CEO Leslie D. Hale. She added, "Our ability to successfully execute these transactions at attractive rates is a testament to our strong, longstanding lender relationships for which we value and appreciate their continued support. We are also pleased to welcome M&T Bank and Fifth Third Bank to our bank group."
Analysts viewed the refinancing positively, noting the laddering of maturities and the retention of substantial unsecured term loan capacity. The move was seen as a key step in RLJ’s strategy to recycle capital from non‑core asset sales into share buybacks and internal growth initiatives, reinforcing confidence in the company’s balance‑sheet strength.
Prior to the refinancing, RLJ reported total debt of approximately $2.2 billion in Q3 2025 and maintained a liquidity position of $1 billion, including $375 million in unrestricted cash and $600 million available under its revolver. The new debt structure preserves this liquidity while lowering refinancing risk and keeping leverage ratios low.
The refinancing positions RLJ to pursue opportunistic acquisitions and share repurchases without immediate debt pressure, supporting the company’s long‑term growth strategy and providing a more resilient capital structure in a higher‑rate environment.
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