RLJ Lodging Trust reported fourth‑quarter 2025 results that included an adjusted funds‑from‑operations (FFO) of $0.32 per diluted share and an adjusted EBITDA of $80.4 million. Q4 revenue totaled $328.6 million, with comparable hotel revenue of $325.1 million. Comparable RevPAR fell 1.5% to $136.79, driven by a 2.1% decline in room revenue to $262.14 million and a 7.2% increase in non‑room revenue. Occupancy slipped 0.9% to 68.7%. Management attributed the mix shift to a protracted U.S. government shutdown, disciplined cost containment, and the continued performance of urban markets and recently completed conversions.
For the full year, RLJ generated $1.3 billion in revenue, a 3.7% decline from the $1.36 billion reported in 2024. Comparable hotel revenue for the year matched the total revenue figure, reflecting a uniform decline across the portfolio. Hotel EBITDA margin held at 27.0%, slightly below the 27.5% margin recorded a year earlier, while operating expenses rose 90 basis points year‑over‑year, consistent with a 0.8% increase in quarterly operating costs and a 1.6% rise for the full year.
The company beat consensus estimates, delivering an EPS of $0.32 versus the $0.28 forecast and revenue of $328.6 million versus the $323.02 million estimate. The earnings beat was largely driven by disciplined cost management, robust non‑room revenue growth, and the resilience of urban markets, which offset the impact of the government shutdown and the modest decline in room demand.
Looking ahead, RLJ guided for comparable RevPAR growth of 0.5% to 3.0% for FY 2026, comparable hotel EBITDA of $344 million to $374 million, adjusted EBITDA of $312 million to $342 million, and adjusted FFO per diluted share of $1.21 to $1.41. Management expressed cautious optimism, citing the upcoming FIFA World Cup, America’s 250th Anniversary celebrations, and the continued momentum in urban markets and recent conversions as key tailwinds.
Strategically, the company sold two hotels for $49.5 million in Q4 2025, using the proceeds to fund share repurchases and strengthen its balance sheet. A comprehensive debt refinancing completed in February 2026 extends all maturities through 2028, reinforcing liquidity that exceeds $1 billion. RLJ also confirmed a quarterly cash dividend of $0.15 per share.
The results demonstrate RLJ’s resilience amid headwinds such as the government shutdown and inflationary cost pressures, while its diversified revenue mix, disciplined cost control, and strategic portfolio adjustments position the REIT for a cautiously optimistic outlook in 2026.
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