CAPITAL ONE CONFERENCE PORTFOLIO UPDATE JANUARY 2022 INVESTMENT HIGHLIGHTS JANUARY 2022 2 | --- | --- | |---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - The company reported a third quarter portfolio occupancy of 63.8%, a 310 basis point increase from the second quarter, achieving 79% of 2019 levels [9][28] - Average Daily Rate (ADR) reached $160, representing nearly 90% of 2019 levels, with over 25% of the portfolio exceeding 2019 ADR [10][29] - Adjusted EBITDA for the third quarter was $60.1 million, an increase of approximately 38% from the second quarter [33] Business Line Data and Key Metrics Changes - Leisure demand drove weekend occupancy to 76.8%, a 280 basis point increase over the prior quarter, with weekend ADR improving by nearly 12% [11] - Business transient revenues improved by 44% since the last quarter, with weekday occupancy growing to 58.5% [12] - Group revenues increased by 54% since the second quarter, with room nights improving by 34% [13] Market Data and Key Metrics Changes - The company achieved a market share gain of 340 basis points in the third quarter, indicating competitive strength [14] - Urban hotels achieved 76% of 2019 occupancy, resulting in a 400 basis point improvement over the second quarter [12] - The company noted strong performance in urban markets, with ADR growth of nearly 70% since the beginning of the year [97] Company Strategy and Development Direction - The company is focused on recycling capital from noncore asset sales into high-quality acquisitions, with plans to accretively recycle over $200 million into three acquisitions [15][19] - The company aims to unlock $23 million to $28 million in incremental EBITDA from internal growth catalysts [20][25] - The strategy includes maintaining a lean operating model and enhancing the balance sheet to support growth initiatives [21][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of lodging fundamentals, despite challenges from the Delta variant [6] - The company anticipates continued improvement in leisure and group bookings, with expectations for a meaningful step forward in 2022 [22][24] - Concerns around inflation were acknowledged, but management remains positive about the overall economic backdrop [22] Other Important Information - The company raised $1 billion through high-yield bond offerings to enhance liquidity and reduce the cost of capital [36] - The company ended the quarter with approximately $625 million of unrestricted cash and no debt maturities until 2023 [38] - The company is on track to generate positive operating cash flow for the full year 2021 [39] Q&A Session Summary Question: What are the conditions to closing and getting that deal done? - The deal is subject to normal customary closing conditions, with a sizable deposit from the buyer [44] Question: Can you provide details on customer mix across the portfolio in October? - Leisure demand remained strong, with improvements in group and business transient segments noted [46] Question: Can you compare October ADR and RevPAR versus 2019? - October ADR was down about 14% and occupancy was down roughly 25% compared to 2019 [51] Question: What is the company's exposure to international demand? - Historically, international demand was sub 3% across the portfolio, higher in specific markets like San Francisco and New York [68] Question: How close is the company to normalized staffing levels? - Overall staffing is at about 55% of 2019 levels, with leisure-focused hotels at approximately 75% [89] Question: What are the expectations for holiday bookings in cold weather markets? - There is a surge in bookings for Thanksgiving and December holidays, with strong demand noted in urban markets [92][96]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended September 30, 2021 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2021, total assets decreased to $5.12 billion, driven by a reduction in hotel property investments and net debt Balance Sheet Highlights | Balance Sheet Highlights | September 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$5,124,244** | **$5,617,172** | | Cash and cash equivalents | $624,551 | $899,813 | | Investment in hotel properties, net | $4,258,703 | $4,486,416 | | **Total Liabilities** | **$2,694,080** | **$2,929,784** | | Debt, net | $2,381,274 | $2,587,731 | | **Total Equity** | **$2,430,164** | **$2,687,388** | [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q3 2021 revenues grew significantly to $233.8 million, but a $138.9 million impairment loss resulted in a net loss of $151.8 million Income Statement Highlights (in thousands) | Income Statement Highlights (in thousands) | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$233,769** | **$83,932** | **$547,575** | **$382,005** | | Total Operating Expenses | $368,081 | $160,450 | $744,787 | $574,974 | | Impairment Losses | $138,899 | $— | $144,845 | $— | | **Net Loss** | **($151,818)** | **($173,919)** | **($283,157)** | **($320,914)** | | Net Loss per Share (Basic & Diluted) | ($0.94) | ($1.10) | ($1.81) | ($2.04) | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of 2021, operating activities provided $20.2 million in cash, a significant improvement from the prior year's cash use Cash Flow Highlights (in thousands) | Cash Flow Highlights (in thousands) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $20,247 | ($86,791) | | Net cash used in investing activities | ($63,886) | ($55,684) | | Net cash (used in) provided by financing activities | ($230,837) | $253,964 | | **Net change in cash, cash equivalents, and restricted cash** | **($274,476)** | **$111,489** | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Key disclosures include the COVID-19 impact, property transactions, a significant impairment loss, and extensive debt refinancing activities - As of September 30, 2021, the company owned **98 hotel properties** with approximately 22,300 rooms, with **96 of the 98 hotels open**[38](index=38&type=chunk)[39](index=39&type=chunk) - During the nine months ended September 30, 2021, the company acquired the Hampton Inn and Suites Atlanta Midtown for **$58.0 million** and sold six hotel properties for a combined price of approximately **$39.5 million**[54](index=54&type=chunk)[55](index=55&type=chunk) - An impairment loss of **$138.9 million** was recorded to write down the DoubleTree Metropolitan Hotel New York City to its estimated fair value of **$153.0 million**[53](index=53&type=chunk) - The company undertook significant debt restructuring, including issuing **$500.0 million of 4.00% senior secured notes due 2029** and **$500.0 million of 3.75% senior secured notes due 2026**[64](index=64&type=chunk)[69](index=69&type=chunk)[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial recovery from the COVID-19 pandemic, key strategic activities, operating results, and liquidity position [Overview and COVID-19 Impact](index=32&type=section&id=Overview%20and%20COVID-19%20Impact) The company, a REIT specializing in premium-branded hotels, continues to see financial results materially impacted by the COVID-19 pandemic despite a recovery in demand - The company's strategy is to own primarily premium-branded, focused-service and compact full-service hotels, which are believed to generate **high RevPAR and strong margins**[140](index=140&type=chunk) - As of September 30, 2021, the company owned **98 hotels**, of which **96 were open**, representing 98% of the portfolio[141](index=141&type=chunk)[142](index=142&type=chunk) - The ongoing effects of the COVID-19 pandemic are expected to continue to have a **material impact** on the company's financial results and liquidity[145](index=145&type=chunk) [2021 Significant Activities](index=33&type=section&id=2021%20Significant%20Activities) Key activities in 2021 included debt refinancing, credit facility amendments, and capital recycling through hotel sales and acquisitions - Issued **2029 and 2026 Senior Notes at 4.00% and 3.75%** respectively, using proceeds to redeem 2025 Senior Notes and repay other loans[146](index=146&type=chunk) - Amended its Revolver and Term Loans to **waive financial covenants through Q1 2022** and extend maturities[146](index=146&type=chunk) - Sold six hotels for a combined price of **$39.5 million** and acquired two hotels in Atlanta and Boston for a combined price of **$147.0 million**[146](index=146&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Operating results show a strong rebound driven by increased travel demand, though a significant impairment loss impacted net income Comparable Hotel Operating Statistics | Comparable Hotel Operating Statistics | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | Occupancy | 61.4% | 28.8% | +32.6 ppts | | ADR | $159.68 | $120.15 | +32.9% | | RevPAR | $98.11 | $34.59 | +183.6% | Comparable Hotel Operating Statistics | Comparable Hotel Operating Statistics | Nine Months 2021 | Nine Months 2020 | Change | | :--- | :--- | :--- | :--- | | Occupancy | 53.9% | 33.5% | +20.4 ppts | | ADR | $143.07 | $154.71 | -7.5% | | RevPAR | $77.15 | $51.90 | +48.6% | - A significant impairment loss of **$138.9 million** was recorded in Q3 2021 related to the DoubleTree Metropolitan New York City[166](index=166&type=chunk) - Property tax, insurance and other expenses decreased by **$13.9 million** for the nine-month period, primarily due to a decrease in real estate tax assessments[187](index=187&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with $660.3 million in cash reserves, enhanced by positive operating cash flow and covenant relief - The company had **$660.3 million of cash and cash equivalents** and restricted cash reserves as of September 30, 2021[215](index=215&type=chunk) - An amendment to the Revolver and Term Loans **suspends the testing of financial maintenance covenants** through the fiscal quarter ending March 31, 2022[214](index=214&type=chunk) - Net cash flow provided by operating activities was **$20.2 million** for the nine months ended September 30, 2021, compared to a use of $86.8 million in the prior-year period[216](index=216&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk from variable-rate debt is fully mitigated through the use of interest rate swaps - As of September 30, 2021, the company had approximately **$1.4 billion of total variable rate debt**, representing 58.3% of total indebtedness[225](index=225&type=chunk) - After accounting for interest rate swaps, **100.0% of the company's total indebtedness was fixed or effectively fixed**, insulating future earnings from interest rate increases[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's **disclosure controls and procedures were effective** as of September 30, 2021[230](index=230&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the period ended September 30, 2021[231](index=231&type=chunk) [PART II. OTHER INFORMATION](index=48&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any material litigation outside of routine claims from ordinary business operations - Other than routine litigation arising out of the ordinary course of business, the Company is **not presently subject to any material litigation**[232](index=232&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been made to the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K - **No material changes** to the risk factors previously disclosed in the Annual Report have occurred[233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered securities were sold; share repurchases were limited to shares surrendered by employees for tax obligations - During the three months ended September 30, 2021, **26,543 shares were repurchased** at an average price of $14.23 per share for employee tax obligations[235](index=235&type=chunk)

PRO FORMA SUPPLEMENTAL Q3 2021 NOVEMBER 4, 2021 OVERVIEW | --- | --- | --- | --- | |------------------------------------|-------------|-------|--------------------------| | Key Statistics \nProperties | (1)(2) \n97 | | | | Hotel Rooms | 22,093 | | | | Share Price | $15.91 | | | | Total Shares and Units Outstanding | 167.4M | | | | Market Capitalization | $2.7B | | | | Preferred Equity | $0.3B | | | | Net Debt Outstanding | $1.8B | | | | Total Enterprise Value (TEV) | $4.8B | | | | Total Capitalization | $5. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35169 RLJ LODGING TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland 27-4706509 (State or Other Jurisdi ...

RLJ Lodging Trust (NYSE:RLJ) Q2 2021 Earnings Conference Call August 6, 2021 9:00 AM ET Company Participants Nikhil Bhalla - Vice President and Treasurer, Corporate Strategy and IR Leslie Hale - President and CEO Sean Mahoney - Executive Vice President and CFO Tom Bardenett - Executive Vice President, Asset Management Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Michael Bellisario - Robert W. Baird Anthony Powell - Barclays Dori Kesten - Wells Fargo Gregory Miller - Truist Securi ...

RLJ | Lodging Trust Q2 2021 | Pro Forma Supplemental August 5, 2021 RLJ: WELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1 1 OVERVIEW | --- | --- | --- | --- | --- | --- | --- | |------------------------------|------------------------------------|--------------|------------------------|----------|------------------|---------------------------------------------| | Properties | Key Statistics | (1)(2) \n99 | | | | | | Hotel Rooms | | 22,184 | | | | | | Share Price | | $15.23 | | | | | | | Total Shares and Un ...

| --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------| | | | | | | | | | | | EMBEDDED VALUE CREATION UPDATE JUNE 2021 | | | | | | | | | | | | | | OVERVIEW | --- | --- | --- | |----------------------------------------------------------------------------------------------------|-------------------------------|----------------------| | | | | | RLJ is well-positioned to drive outperformance by executing | on its embedded | growth initiatives | | Improving lodging fundame ...

RLJ Lodging Trust (NYSE:RLJ) Q1 2021 Earnings Conference Call May 6, 2021 10:00 AM ET Company Participants Nikhil Bhalla - VP, Finance Leslie Hale - President, CEO & Trustee Sean Mahoney - EVP, CFO & Treasurer Thomas Bardenett - EVP, Asset Management Conference Call Participants Michael Bellisario - Baird Austin Wurschmidt - KeyBanc Capital Markets Tyler Batory - Janney Capital Markets Anthony Powell - Barclays Dany Asad - Bank of America Neil Malkin - Capital One Securities Floris van Dijkum - Compass Poin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 3 Bethesda Metro Center, Suite 1000 Bethesda, Maryland 20814 (Address of Principal Executive Offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE S ...