RLJ Lodging Trust(RLJ)2025-05-05 19:33Revenue 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].