RLJ Lodging Trust has recently released its 10-K report, revealing insights into the company's financial performance and operations. The company is a self-advised, publicly traded real estate investment trust that primarily owns premium-branded, high-margin, focused-service, and compact full-service hotels. RLJ's portfolio currently comprises 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia, along with an ownership interest in one unconsolidated hotel with 171 rooms.
In its 10-K report, RLJ Lodging Trust's management discussed various financial indicators and operating performance measures. The company emphasized that it uses key indicators such as Average Daily Rate (ADR), Occupancy, and Revenue Per Available Room (RevPAR) to evaluate the operating performance of its business. These measures are crucial for assessing pricing levels, demand, and hotel performance on a regional and company-wide basis. Additionally, RLJ highlighted the significance of non-GAAP financial measures such as Funds from Operations (FFO), Adjusted FFO, EBITDA, EBITDAre, and Adjusted EBITDA in evaluating its operating performance.
The report also delved into the principal factors affecting RLJ's results of operations, including the overall demand for lodging, supply of available hotel rooms, and the ability to increase or maintain revenues while controlling expenses. RLJ emphasized that macroeconomic factors such as regional and local employment growth, government spending, and corporate earnings significantly impact its ADR, Occupancy, and RevPAR performance.
Furthermore, the 10-K report outlined RLJ Lodging Trust's significant activities in 2024. These activities included the acquisition of a fee simple interest in the land at the Wyndham Boston Beacon Hill hotel property, exercising mortgage loan extension options, share repurchase programs, hotel property sales and acquisitions, and entering into a new Term Loan.
In terms of financial results, RLJ reported a comparison of its operating revenues and expenses for the year ended December 31, 2024, against the previous year. The report highlighted changes in room revenue, food and beverage revenue, other revenue, operating expenses, depreciation and amortization, interest income and expense, gain (loss) on sale of hotel properties, loss on extinguishment of indebtedness, and net income.
Following these announcements, the company's shares moved 1.6%, and are now trading at a price of $9.32. For more information, read the company's full 10-K submission here.
