[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) RLJ Lodging Trust's Q2 2025 performance exceeded expectations, driven by portfolio resilience and cost control, despite slight RevPAR declines, while maintaining strong liquidity and active capital returns [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) RLJ Lodging Trust reported Q2 2025 results that exceeded expectations, demonstrating portfolio resilience and disciplined cost control, advancing renovations, addressing near-term debt maturities, and repurchasing shares - Management highlighted the portfolio's **resilience**, the ramp-up of conversions, and **disciplined cost controls** as key drivers for exceeding Q2 expectations, anticipating a **softer Q3** but seeing **positive tailwinds for Q4** from a more favorable calendar and strong citywide events[3](index=3&type=chunk) Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Net Income per share | $0.15 | | Adjusted FFO per diluted share | $0.48 | | Adjusted EBITDA | $104.0 million | | Comparable RevPAR | $155.08 (-2.1% YoY) | | Shares Repurchased | 0.8 million | [Financial and Operating Results](index=2&type=section&id=Financial%20and%20Operating%20Results) In Q2 2025, RLJ Lodging Trust experienced a slight decline in key performance indicators compared to the prior year, with total revenue decreasing by 1.7% to $363.1 million and Comparable RevPAR falling by 2.1% Financial and Operating Highlights (Q2 & YTD 2025 vs 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Comparable RevPAR** | $155.08 | $158.44 | (2.1)% | $148.19 | $148.71 | (0.3)% | | **Total Revenue** | $363,103 | $369,297 | (1.7)% | $691,222 | $693,707 | (0.4)% | | **Net Income** | $28,631 | $37,291 | (23.2)% | $31,803 | $42,037 | (24.3)% | | **Comparable Hotel EBITDA** | $113,023 | $117,975 | (4.2)% | $198,320 | $206,312 | (3.9)% | | **Adjusted EBITDA** | $104,008 | $108,971 | (4.6)% | $181,602 | $188,563 | (3.7)% | | **Adjusted FFO Per Share** | $0.48 | $0.51 | (5.9)% | $0.79 | $0.84 | (6.0)% | [Capital Allocation](index=2&type=section&id=Capital%20Allocation) The company actively returned capital to shareholders through both share repurchases and dividends, repurchasing 0.8 million shares for $6.0 million in Q2 and declaring a quarterly cash dividend of $0.15 per common share - During the second quarter, the Company repurchased **0.8 million common shares** for approximately **$6.0 million**, with **3.2 million shares** repurchased year-to-date for **$28.0 million**, leaving **$246.3 million** remaining under the share repurchase program[7](index=7&type=chunk) - The Board of Trustees declared a quarterly cash dividend of **$0.15 per common share** and a dividend of **$0.4875 on its Series A Preferred Shares**[10](index=10&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, the company maintained a strong liquidity position with approximately $974 million, including $374 million in cash and $600 million available on its revolver, successfully addressing near-term debt maturities - As of June 30, 2025, the Company had approximately **$974 million of total liquidity**, comprised of **$374 million of unrestricted cash** and **$600 million available under its revolving credit facility**[8](index=8&type=chunk) - The company refinanced its **$200.0 million term loan**, upsizing it to **$300.0 million** and extending the maturity to **April 2030**, using the incremental proceeds to repay the outstanding balance on the Revolver[9](index=9&type=chunk) [2025 Outlook](index=3&type=section&id=2025%20Outlook) RLJ Lodging Trust updated its full-year 2025 outlook, anticipating the lower end of guidance due to Q3 softness and macroeconomic uncertainty, excluding future capital activities [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) RLJ Lodging Trust updated its full-year 2025 outlook, stating that the low end of its guidance ranges is now the most likely outcome, reflecting softer-than-anticipated third-quarter results and limited visibility due to macroeconomic uncertainty - The Company now expects the **low end of its guidance range** to be the most likely outcome, citing a softer than anticipated third quarter and macroeconomic uncertainty[11](index=11&type=chunk) FY 2025 Outlook (in millions) | Metric | FY 2025 Range | | :--- | :--- | | Comparable RevPAR Growth | -1.0% to +1.0% | | Comparable Hotel EBITDA | $365.5 to $395.5 | | Adjusted EBITDA | $332.5 to $362.5 | | Adjusted FFO per diluted share | $1.38 to $1.58 | - Additional full-year 2025 outlook assumptions include: Net interest expense: **$94.0 million - $96.0 million**; Cash corporate G&A: **$34.0 million - $35.0 million**; Renovation capital expenditures: **$80.0 million - $100.0 million**; Diluted weighted average shares: **151.5 million**[15](index=15&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section provides key financial statements, including consolidated balance sheets, statements of operations, and a detailed debt summary, offering a comprehensive view of the company's financial position and performance [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, RLJ's total assets stood at $4.82 billion, compared to $4.88 billion at the end of 2024, with total liabilities stable at $2.58 billion and cash decreasing to $373.9 million Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $373,896 | $409,809 | | Total assets | $4,822,810 | $4,883,879 | | Debt, net | $2,220,768 | $2,220,081 | | Total liabilities | $2,582,575 | $2,585,602 | | Total equity | $2,240,235 | $2,298,277 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenues were $363.1 million, a decrease from $369.3 million in the same period of 2024, with net income attributable to common shareholders declining to $22.2 million Key Income Statement Items (in thousands, except per share data) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenues | $363,103 | $369,297 | | Total operating expenses | $310,167 | $312,069 | | Net income | $28,631 | $37,291 | | Net income attributable to common shareholders | $22,174 | $30,827 | | Net income per share - diluted | $0.15 | $0.20 | [Consolidated Debt Summary](index=13&type=section&id=Consolidated%20Debt%20Summary) As of June 30, 2025, the company's total debt outstanding was approximately $2.23 billion with a weighted average interest rate of 4.53%, consisting of both fixed and floating rate instruments with staggered maturities Debt Summary as of June 30, 2025 | Debt Type | Balance (in thousands) | Weighted Avg. Rate | | :--- | :--- | :--- | | Mortgage Debt | $206,000 | 4.74% | | Corporate Debt | $2,025,000 | 4.51% | | **Total Debt** | **$2,231,000** | **4.53%** | - The company had **$600.0 million of borrowing capacity** on its Revolver, which was undrawn as of June 30, 2025[50](index=50&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles key non-GAAP financial measures, including FFO, EBITDA, and Hotel EBITDA, providing insights into the company's operational performance beyond GAAP metrics [Definitions of Non-GAAP Measures](index=5&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company utilizes several non-GAAP financial measures, including FFO, Adjusted FFO, EBITDA, EBITDAre, and Hotel EBITDA, to supplement its GAAP results and provide useful insights into operating performance - Funds from Operations (FFO) is calculated per NAREIT standards and is considered helpful in evaluating a real estate company's operations by excluding gains/losses from property sales and real estate depreciation[21](index=21&type=chunk) - Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is used to evaluate operating performance by removing the impact of a company's capital structure and asset base[23](index=23&type=chunk) - Hotel EBITDA is used to provide a clearer understanding of the operating results over which individual hotels have direct control by excluding corporate-level expenses and certain non-cash items[27](index=27&type=chunk) [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The report provides detailed reconciliations from GAAP Net Income to key non-GAAP metrics, with Q2 2025 Net Income of $28.6 million reconciled to Adjusted FFO of $72.7 million and Adjusted EBITDA of $104.0 million Reconciliation of Net Income to Adjusted FFO (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $28,631 | | Depreciation and amortization | $46,363 | | Other adjustments | ($2,336) | | **FFO** | **$69,216** | | Transaction costs, non-cash items, etc. | $3,442 | | **Adjusted FFO** | **$72,658** | Reconciliation of Net Income to Adjusted EBITDA (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $28,631 | | Depreciation and amortization | $46,363 | | Interest expense, net | $24,515 | | Other adjustments | $1,123 | | **EBITDA** | **$100,332** | | Adjustments for EBITDAre & other items | $3,676 | | **Adjusted EBITDA** | **$104,008** | [Reconciliation of Non-GAAP Measures - Full-Year Outlook](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures%20-%20Full-Year%20Outlook) The company provides a reconciliation of its full-year 2025 net income guidance to its Adjusted EBITDA and Adjusted FFO guidance, with the low end of net income ($36.8M) reconciling to Adjusted EBITDA of $332.5M and Adjusted FFO of $209.5M FY 2025 Outlook Reconciliation: Net Income to Adjusted EBITDA (in millions) | Line Item | Low End | High End | | :--- | :--- | :--- | | Net income | $36.8 | $64.8 | | D&A, Interest, Taxes, etc. | $281.4 | $283.4 | | **EBITDA** | **$318.2** | **$348.2** | | Adjustments | $14.3 | $14.3 | | **Adjusted EBITDA** | **$332.5** | **$362.5** | FY 2025 Outlook Reconciliation: Net Income to Adjusted FFO (in millions) | Line Item | Low End | High End | | :--- | :--- | :--- | | Net income | $36.8 | $64.8 | | D&A, Preferred Dividends, etc. | $160.2 | $160.2 | | **FFO** | **$197.0** | **$225.0** | | Adjustments | $12.5 | $14.5 | | **Adjusted FFO** | **$209.5** | **$239.5** |

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Portfolio & Performance - RLJ's urban-centric portfolio is expected to outperform the industry, with urban markets representing over two-thirds of the portfolio[3, 91] - In Q4, RLJ achieved 2.2% RevPAR growth, placing it in the top quartile of its peers[5] - Urban hotels, comprising two-thirds of the portfolio, experienced 3.7% RevPAR growth[8] - January 2025 RevPAR increased 3.2%, and February RevPAR increased 3.9%, primarily driven by ADR growth[11] Growth Initiatives - Phase I and II initiatives are projected to generate $14 million to $18 million of incremental EBITDA[3, 91] - RLJ acquired Hotel Teatro in Denver for $35.5 million in June 2024, with stabilized margins of approximately 32%[3, 38, 41] - Phase 2 conversions are expected to generate +$5 million-$6 million in incremental EBITDA[55] Capital Allocation & Balance Sheet - RLJ has approximately $0.9 billion of liquidity, providing optionality for growth[3, 90, 91] - The company repurchased $12.0 million of shares YTD through February 2025 and increased the dividend by 50% in 2024[3, 8, 90, 91] - RLJ recycled $22 million of non-core disposition proceeds into share repurchases in 2024[90] ESG & Sustainability - RLJ is active in social contribution with over $4 million in donations[105] - 76% of RLJ's properties utilize an environmental management system[101] - 56% of trustees are ethnically diverse, with 33% female[105]

Core Insights - Pearl Gray is a proprietary investment fund and independent market research firm specializing in systematic analysis, focusing primarily on Bonds, Investment Funds, and REITs, with a primary emphasis on the Financials and Real Estate sectors [1] Group 1 - The mission of Pearl Gray is to discover actionable total return ideas that integrate rigorous academic theories, practical experience, and common sense [1] - The firm emphasizes that its published content is independent analysis and does not constitute financial advice [1][2] - Analysts at Pearl Gray disclose that they have no stock, option, or similar derivative positions in any of the companies mentioned, nor do they plan to initiate any such positions within the next 72 hours [1] Group 2 - The content provided by Pearl Gray on platforms like Seeking Alpha is intended to set the tone for discussions among subscribers rather than serve as financial advice [2] - Seeking Alpha clarifies that past performance is not indicative of future results and that no recommendations are made regarding the suitability of investments for particular investors [3]

Group 1 - The article discusses the author's long-term investment approach, focusing on REITs, preferred stocks, and high-yield bonds, which began in high school in 2011 [1] - The author combines long stock positions with covered calls and cash secured puts, indicating a strategy that balances risk and return [1] - The primary focus of the author's coverage on Seeking Alpha includes REITs and financials, with occasional insights on ETFs and macro-driven stock ideas [1] Group 2 - The author has a beneficial long position in RLJ shares, indicating confidence in the company's performance [2] - The article expresses the author's personal opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship between the author and any company whose stock is discussed, ensuring an unbiased perspective [2]

Revenue Performance - Total revenues increased by $3.7 million to $328.1 million for the three months ended March 31, 2025, compared to $324.4 million for the same period in 2024[119]. - Room revenue rose by $1.0 million to $267.7 million, driven by increased ADR from corporate and group travel[120]. - Average Daily Rate (ADR) increased to $204.38 in Q1 2025 from $200.17 in Q1 2024, while RevPAR rose to $141.39 from $139.13[121]. - Food and beverage revenue increased by $1.8 million to $37.5 million, primarily due to higher outlet and banquet revenue[122]. - Other revenue grew by $0.9 million to $23.0 million, mainly from increased parking, resort, and cancellation fees[123]. Expenses and Losses - Property operating expenses increased by $3.6 million to $217.1 million, attributed to a $3.9 million rise in expenses from comparable properties[124]. - Net income attributable to common shareholders was a loss of $2.9 million for Q1 2025, compared to a loss of $1.3 million in Q1 2024[118]. - Property operating expenses increased by $3.9 million to $215.1 million for the three months ended March 31, 2025, compared to $211.2 million in the same period of 2024, primarily due to higher wages and benefits, and increased sales and marketing expenses[125]. - Depreciation and amortization expense rose by $1.1 million to $45.8 million for the three months ended March 31, 2025, from $44.7 million in the same period of 2024, mainly due to recently renovated hotels[126]. - General and administrative expenses decreased by $2.5 million to $12.6 million for the three months ended March 31, 2025, compared to $15.1 million in the same period of 2024, primarily due to lower non-cash compensation expenses[128]. - Interest expense increased by $1.1 million to $27.6 million for the three months ended March 31, 2025, from $26.5 million in the same period of 2024, attributed to higher unhedged debt and the expiration of certain swaps[131]. Asset Management and Transactions - The company sold one hotel property for $24.3 million and refinanced a term loan to increase it to $300.0 million[112]. - The company recorded a net gain of $1.3 million from the sale of a hotel property for $24.3 million during the three months ended March 31, 2025, with no hotel sales in the same period of 2024[132]. - As of March 31, 2025, the company owned 95 hotel properties with approximately 21,200 rooms across 23 states and the District of Columbia[105]. Cash Flow and Financial Position - Funds from operations (FFO) decreased by $1.8 million to $41.7 million for the three months ended March 31, 2025, compared to $43.5 million in the same period of 2024[136]. - Adjusted FFO fell by $4.9 million to $46.9 million for the three months ended March 31, 2025, from $51.9 million in the same period of 2024[136]. - EBITDA increased by $2.1 million to $73.9 million for the three months ended March 31, 2025, compared to $71.7 million in the same period of 2024[141]. - Cash flow from operating activities totaled $16.3 million for the three months ended March 31, 2025, down from $20.8 million in the same period of 2024[144]. - As of March 31, 2025, the company had $372.4 million in cash, cash equivalents, and restricted cash reserves, a decrease from $433.3 million at December 31, 2024[143]. Debt and Interest Rate Management - As of March 31, 2025, the company had approximately $1.2 billion in total variable rate debt, representing 54.1% of total indebtedness, with a weighted-average interest rate of 5.09% per annum[153]. - The company held approximately $24.9 million in FF&E reserve accounts for future capital expenditures as of March 31, 2025[152]. - If market interest rates on variable rate debt increase by 1.00%, interest expense would decrease future earnings and cash flows by approximately $6.1 million annually[153]. - The estimated fair value of the company's fixed rate debt was $963.3 million as of March 31, 2025, with a potential decrease of approximately $25.1 million if interest rates rise by 1.00%[157]. - The company manages interest rate risk through fixed rate debt instruments and derivative financial instruments such as interest rate swaps[154]. - The total principal repayments for fixed rate debt as of March 31, 2025, amounted to $1,025 million, with a weighted-average interest rate of 3.90%[155]. - The total principal repayments for variable rate debt as of March 31, 2025, amounted to $1,206 million, with a weighted-average interest rate of 5.09%[155]. - The company aims to limit the impact of interest rate fluctuations on earnings and cash flows while lowering overall borrowing costs[154]. - The principal repayments for 2026 include a $300 million term loan, which was amended in April 2025[158]. - The company does not engage in derivative or interest rate transactions for speculative purposes[154].

Financial Data and Key Metrics Changes - The company achieved RevPAR growth of 1.6% in the first quarter, driven by a 2.1% increase in ADR, slightly offset by a 0.5% decline in occupancy [5][18][19] - First quarter occupancy was 69.1%, average daily rate was $204.31, and RevPAR was $141.23 [18] - Total revenue growth was 1.2%, benefiting from a 3.8% increase in out-of-room spend [19][21] Business Line Data and Key Metrics Changes - Group segment was the best performing, with revenue growth of 10% driven by strong citywide events [10][19] - Urban hotels achieved robust RevPAR growth of 3.6%, with weekday urban RevPAR growing by 4.9% [8][9] - The six initial conversions achieved RevPAR growth of 14%, while three recent conversions in Houston, New Orleans, and Pittsburgh achieved 35% RevPAR growth [11][12] Market Data and Key Metrics Changes - March RevPAR was down 1.3%, reflecting a lack of compression due to an elongated spring break and macroeconomic uncertainty [8][19] - Northern California showed recovery momentum, supported by a stronger citywide calendar and improving business climate [9][52] - International demand remains soft, representing less than 3% of revenues, primarily in markets like New York and South Florida [14] Company Strategy and Development Direction - The company is focused on capital recycling and strengthening its balance sheet, with a proactive approach to refinancing debt maturities [11][22] - The urban-centric portfolio is geographically diverse and benefits from demand generators, positioning the company to navigate economic uncertainty [17] - The company plans to continue investing in projects to unlock embedded value while returning capital to shareholders through share repurchases and dividends [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fundamentals have moderated and uncertainty persists due to elevated macroeconomic risks [12][15] - The company adjusted its full-year guidance to reflect current trends, expecting RevPAR growth to range between negative 1% and up 1% [25] - Management remains constructive on the long-term outlook for lodging fundamentals, supported by consumer preferences favoring experiences over goods [15][16] Other Important Information - The company ended the first quarter with over $800 million of liquidity and $2.2 billion of debt [23] - The company has a new $250 million share repurchase program approved by the Board to take advantage of future market volatility [23] Q&A Session Summary Question: Can you provide insights on April's performance and how it compares to expectations? - Management indicated that April was expected to be slightly positive but projected to decline between 1% to 2% [30][41] Question: What is the current state of the balance sheet and capital availability? - Management noted that the bank group market remains strong, with capacity for top-quality sponsors, and high yield markets have seen some recovery [32][34] Question: What are the trends in the group segment and future bookings? - The group segment is performing well, with a healthy booking pace for the year, although cancellations were noted primarily in government-related travel [75][76] Question: How is the company addressing the uncertainty in the transaction market? - Management stated that the transaction market is currently cautious, with a focus on opportunistic sales rather than a programmatic approach [90]

Financial Data and Key Metrics Changes - The company achieved RevPAR growth of 1.6% in Q1 2025, driven by a 2.1% increase in ADR, slightly offset by a 0.5% decline in occupancy [5][17] - First quarter occupancy was 69.1%, average daily rate was $204.31, and RevPAR was $141.23 [17] - Total revenue growth was 1.2%, benefiting from a 3.8% increase in out-of-room spend [18][20] - Adjusted EBITDA for Q1 was $77.6 million, and adjusted FFO per diluted share was $0.31 [20][22] Business Line Data and Key Metrics Changes - Group segment was the best performing, with revenue growth of 10% driven by strong citywide events [8][18] - Urban hotels achieved RevPAR growth of 3.6%, with weekday urban RevPAR growing by 4.9% [7][8] - The leisure segment saw a 2% increase in revenues, with urban leisure outperforming at 3% growth [9] Market Data and Key Metrics Changes - Strong RevPAR growth was noted in urban markets such as San Jose (14.1%), Houston CBD (9.9%), Philadelphia (26.4%), Pittsburgh (12.6%), and Louisville (10.3%) [18] - International demand remains soft, representing less than 3% of revenues, primarily in markets like New York and South Florida [13] Company Strategy and Development Direction - The company is focused on capital recycling and strengthening its balance sheet, including opportunistic asset sales and share repurchases [6][10] - The company is optimistic about the long-term outlook for lodging fundamentals, supported by consumer preferences for experiences and a favorable operating environment for urban markets [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fundamentals have moderated and uncertainty persists due to macroeconomic risks, leading to an adjustment in full-year guidance [11][12] - The company expects RevPAR growth for 2025 to range between negative 1% and positive 1% [25] - The booking window has shortened, with a noted increase in cancellations primarily in the government segment [47][48] Other Important Information - The company ended Q1 with over $800 million in liquidity and $2.2 billion in debt, maintaining a strong balance sheet [22] - The company has a new $250 million share repurchase program approved by the Board [22] Q&A Session Summary Question: Can you provide insights on April's performance and how it compared to expectations? - Management indicated that April was expected to be slightly positive but came in lower than anticipated due to elongated spring break and softening government demand [30][31] Question: What is the current state of the balance sheet and capital markets? - The bank group market remains strong, with capacity for top-quality sponsors, while high-yield issuance has seen some widening in spreads [34][35] Question: What are the trends in the group segment and future bookings? - The group segment is performing well, with a healthy booking pace for the year, although cancellations were noted primarily in the government sector [78] Question: How is the company addressing the uncertainty in the transaction market? - The company is taking an opportunistic approach to asset sales, with one additional asset currently under consideration [92]

Core Insights - RLJ Lodging reported revenue of $328.12 million for the quarter ended March 2025, reflecting a 1.1% increase year-over-year, but a slight miss of 0.34% against the Zacks Consensus Estimate of $329.24 million [1] - The company achieved an EPS of $0.31, a significant improvement from -$0.01 in the same quarter last year, resulting in a positive surprise of 3.33% compared to the consensus estimate of $0.30 [1] Revenue Breakdown - Other revenue was reported at $22.95 million, slightly below the estimated $23.07 million, but showing a year-over-year increase of 3.9% [4] - Food and beverage revenue reached $37.51 million, exceeding the average estimate of $37.03 million, with a year-over-year growth of 5.1% [4] - Room revenue was $267.65 million, marginally below the estimated $268.06 million, but still reflecting a 0.4% increase compared to the previous year [4] Stock Performance - RLJ Lodging's shares have returned 6.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - RLJ Lodging reported quarterly funds from operations (FFO) of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, but down from $0.33 per share a year ago, indicating a 6.06% year-over-year decline [1] - The company achieved an FFO surprise of 3.33% for the quarter, following a previous surprise of 13.79% when it reported $0.33 per share against an expectation of $0.29 [1][2] - RLJ Lodging's revenues for the quarter were $328.12 million, slightly missing the Zacks Consensus Estimate by 0.34%, but up from $324.41 million year-over-year, reflecting a 2.21% increase [2] Market Performance - RLJ Lodging shares have declined approximately 28.9% since the beginning of the year, contrasting with the S&P 500's decline of 3.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.51 on revenues of $374.31 million, and for the current fiscal year, it is $1.52 on revenues of $1.39 billion [7] - The outlook for the REIT and Equity Trust - Other industry, to which RLJ Lodging belongs, is currently in the bottom 37% of Zacks industries, suggesting potential challenges ahead [8]