| --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------| | | | | | | | | | | | 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 ...

RLJ | Lodging Trust Q1 2021 | Pro Forma Supplemental May 5, 2021 RLJ: WELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1 1 OVERVIEW $400 $200 $144 $200 $181 $150 $475 $625 $400 % of Debt - 11% 24% 8% 50% 7% | --- | --- | --- | |-------------------------------------|--------|-------| | Key Statistics (1)(2) \nProperties | 101 | | | Hotel Rooms | 22,392 | | | Share Price | $15.48 | | | Total Shares and Units Outstanding | 165.7M | | | Market Capitalization | $2.6B | | | Preferred Equity | $0.3B | | | Net Debt ...

RLJ | Lodging Trust Q4 2020 | Pro Forma Supplemental February 25, 2021 RLJ: WELL-POSITIONED FOR GROWTH AND SUCCESS JUNE 2018 1 1 OVERVIEW $200 $400 $144 $200 $181 $150 $475 $625 $400 % of Debt - 11% 24% 8% 50% 7% | --- | --- | --- | |-------------------------------------|--------|-------| | Key Statistics (1)(2) \nProperties | 101 | | | Hotel Rooms | 22,392 | | | Share Price | $14.15 | | | Total Shares and Units Outstanding | 165.8M | | | Market Capitalization | $2.3B | | | Preferred Equity | $0.3B | | | Ne ...

Hotel Properties and Operations - As of December 31, 2020, the company owned 103 hotel properties with approximately 22,700 rooms, located in 23 states and the District of Columbia[19]. - Approximately 87% of the hotel properties operate under existing relationships with premium brands such as Marriott, Hilton, and Hyatt[28]. - The company operates 90 out of 103 hotel properties under the brands of Marriott, Hilton, or Hyatt, indicating a significant concentration risk[69]. - The company relies on third-party management companies for hotel operations, with 35 of the properties managed by Aimbridge Hospitality[63]. - The company operates under management agreements with 14 independent management companies, with Aimbridge managing 35 properties as of December 31, 2020[149]. - The management agreements for hotel properties have initial terms ranging from one to 25 years, with some providing for automatic extensions[149]. - The company cannot directly operate its hotel properties to qualify as a REIT, leasing all but one property to TRS lessees[148]. Financial Performance and Impact of COVID-19 - The COVID-19 pandemic has had a material adverse impact on the company's operations and financial results, with ongoing effects expected beyond the containment of the outbreak[22]. - The company has experienced a significant decline in occupancy and RevPAR since late February 2020 due to COVID-19, leading to historic lows in global lodging demand[57]. - As of December 31, 2020, 7 out of 103 hotel properties remain closed due to the COVID-19 pandemic, with all open hotels operating at significantly reduced occupancy levels[57]. - Total revenues decreased by $1.1 billion, or 69.8%, to $473.1 million for the year ended December 31, 2020, from $1.6 billion for the year ended December 31, 2019[211]. - Room revenue decreased by $919.3 million, or 69.8%, to $397.8 million for the year ended December 31, 2020, primarily due to a 66.8% decrease in RevPAR[212]. - Occupancy rate dropped to 33.8% in 2020 from 79.1% in 2019, representing a decline of 57.2%[213]. - The company suspended operations at 57 hotel properties due to reduced lodging demand, with 50 of these properties reopened by December 31, 2020, and 2 additional properties reopened subsequently[190]. - The company has implemented cost containment initiatives, including reducing staffing, energy costs, and closing non-essential amenities to preserve liquidity[197]. - The board of trustees authorized a significant reduction in common cash dividends to $0.01 per share for all four quarters, indicating a cautious approach to cash distribution during the pandemic[197]. - The company expects ADR, occupancy, and RevPAR performance to be influenced by macroeconomic factors such as employment growth, government spending, and business travel demand[202]. Debt and Capital Structure - As of December 31, 2020, the company had approximately $2.6 billion of outstanding debt, with about 81.3% of borrowings being fixed-rate[76]. - The company maintains a flexible capital structure to support its growth strategy, primarily using unsecured debt and a mix of fixed and floating rate debt[34]. - The company anticipates that its operating cash flow will only be sufficient to repay a portion of its debt at maturity, necessitating refinancing or securities offerings[77]. - The company must distribute at least 90% of its REIT taxable income to maintain its REIT status, limiting its ability to fund capital improvements solely from operating cash flows[74]. - The credit agreements governing the $600 million unsecured revolving credit facility limit dividend payments under certain circumstances, particularly during events of default[180]. - The company may need to borrow funds or rely on external sources to make distributions to shareholders, which could lead to a significant decline in the market price of its common shares[140]. Risk Factors - The lodging industry is highly competitive, with the company facing competition from various entities for hotel acquisitions, which may affect investment opportunities[32]. - The company faces significant competition from other lodging industry participants, which could adversely affect occupancy levels and average daily rates (ADRs)[75]. - The company may face increased competition from non-traditional accommodations, impacting market share[98]. - The company is subject to various environmental laws and regulations, which could lead to substantial costs for compliance and potential liabilities[42]. - The company is subject to various environmental regulations that could impose significant cleanup costs, potentially reducing profitability and cash available for shareholder distributions[121]. - Legal claims and litigation could expose the company to uncertain costs, which may not be covered by insurance, adversely impacting financial results[123]. - The company faces risks from over-building in hotel markets, which can adversely affect occupancy and revenues[98]. - Future terrorist attacks or changes in terror alert levels could adversely affect travel demand and hotel occupancy[103]. - The illiquid nature of real estate investments may impede the company's ability to respond to changing economic conditions, affecting cash flows and results[116]. Insurance and Liability - The company carries comprehensive insurance coverage, including business interruption and property damage, with limits deemed adequate by management[45]. - The company does not carry insurance for uninsurable risks, including losses from communicable diseases, which could expose it to additional financial risks[45]. - The company maintains comprehensive property insurance with a $250,000 deductible per claim, but certain catastrophic losses may not be insurable or may have high deductibles[118]. - Coastal hotel properties have a deductible of 5% of total insured value for named storms, which could materially affect financial stability if uninsured losses occur[120]. Shareholder Distributions and Equity - The company intends to make annual distributions to shareholders of at least 90% of REIT taxable income to maintain REIT status[179]. - A total of 18,925 shares were repurchased during the quarter ended December 31, 2020, with an average price of $10.08 per share[184]. - The company authorized a share repurchase program to repurchase up to $250.0 million of its common shares, but there is no obligation to repurchase any specific dollar amount or number of shares[142]. - Future issuances of debt or equity securities may negatively affect the market price of the company's common shares and dilute existing shareholders[141]. Management and Franchise Agreements - The franchise agreements require a royalty fee between 3.0% and 6.0% of room revenue, plus additional fees for marketing and other costs ranging from 1.0% to 4.3% of room revenue[157]. - The TRS leases have initial terms ranging from three to five years, with the majority being renewable for three successive five-year terms[161]. - TRS lessees are obligated to pay a fixed annual base rent plus percentage rent based on revenues from guest room rentals, food and beverage sales, and other sources[162]. - The company granted base rent abatement concessions to TRS lessees during the COVID-19 pandemic for the quarters ending June 30, September 30, and December 31, 2020[164]. Operational Metrics - Room revenue accounted for approximately 84.1% of total revenues for the year ended December 31, 2020, driven by occupancy and average daily rate (ADR) performance[199]. - The average daily rate (ADR) and revenue per available room (RevPAR) are critical metrics for evaluating hotel performance, with changes in ADR having a more significant impact on operating margins than changes in occupancy[203][205]. - Total property operating expenses decreased by $565.7 million, or 59.1%, to $391.6 million for the year ended December 31, 2020[216]. - Management and franchise fee expense decreased by $84.0 million, or 80.0%, to $21.0 million for the year ended December 31, 2020[217].

RLJ Lodging Trust (NYSE:RLJ) Q4 2020 Earnings Conference Call February 26, 2021 11:00 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 Austin Wurschmidt - KeyBanc Capital Markets Michael Bellisario - Robert W. Baird & Co. Neil Malkin - Capital One Securities Tyler Batory - Janney Montgomery Scott Chris Woronka - Deutsche Bank Gregory Miller - Truist Securitie ...

RLJ Lodging Trust (NYSE:RLJ) Q3 2020 Earnings Call November 5, 2020 11:00 AM ET Executives Nikhil Bhalla - RLJ Lodging Trust Leslie D. Hale - RLJ Lodging Trust Sean M. Mahoney - RLJ Lodging Trust Thomas J. Bardenett - RLJ Lodging Trust Analysts Michael J. Bellisario - Robert W. Baird & Co., Inc. Dori Kesten - Wells Fargo Securities LLC Austin Wurschmidt - KeyBanc Capital Markets, Inc. Chris Woronka - Deutsche Bank Securities, Inc. Neil Malkin - Capital One Securities, Inc. Gregory J. Miller - Truist Securit ...