RLJ Lodging Trust : Capital One Investor Presentation

RLJ IS WELL-POSITIONED

RLJ has the liquidity and balance sheet strength to weather the COVID-19 crisis, relative advantage in a recovery and embedded catalysts to outperform long-term

•  Successful execution of 2019 priorities improved our portfolio and strengthened our balance sheet

•  Quickly and proactively responded to COVID-19

•  Reopened 31 hotels in a socially and financially responsible manner

•  Recent covenant waivers provide flexibility

•  Well-positioned for recovery with a transient-oriented portfolio, lean operating model and broad geographic diversification

•  Embedded long-term growth catalysts such as Wyndham conversions, ROI projects and capital market opportunities remain intact

We remain confident that despite COVID-19's unprecedented impact on lodging, our balance sheet allows us to navigate through this crisis and be well-positioned for a recovery

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STRONG POSITIONING ENTERING 2020

HILTON CABANA MIAMI BEACH

RLJ SUCCESSFULLY EXECUTED ITS 2019 STRATEGY

Successful execution of key 2019 strategic priorities enabled RLJ to enter 2020 in a position of strength

RLJ executed strategic priorities in 2019 to reshape our portfolio and strengthen our bSaolaldnc4e7 nsohne-ectore assets and generated significant liquidity

•  Improved 2019 absolute RevPAR by over 8%

•  Generated over $720M of cash proceeds

Wyndham Guarantee Termination

•  Terminated Wyndham Guarantee and received $35M

Simplified capital structure over the last two years

•  Repaid $524M FCH Senior Notes in 2018

•  Refinanced approximately $1.4B of debt in 2019

•  Lowered interest rate, extended maturities and enhanced financial flexibility

Strong Strategic Execution in 2019

Strengthened PortfolioGenerated Incremental CashImproved Capital Structure

+8%

~ $0.8B

$1.4B

•  Increase in Absolute RevPAR

•  Sold 47 hotels

  •  Debt Refinanced

    +22%

•  Wyndham Termination

•  Reduced Interest Expense Enhanced Maturity Ladder

•  EBITDA per Hotel

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RLJ BEGAN 2020 IN SOLID FINANCIAL CONDITION

RLJ entered 2020 with a strong balance sheet, significant liquidity and low leverage

Best-In-Class Balance Sheet

•  Significant liquidity: entered 2020 with ~$900M of cash

•  YE 2019 Net Debt to EBITDA of 3.1x, below lodging REIT peer average

•  No debt maturities until 2022

•  Undrawn line of credit

Q1 2020 Net Debt / LTM EBITDA

8.5x

1. 2019 EBITDA pro forma adjusted for the disposition of 7 properties and adjusted to assume CHSP was acquired on 1/1/2019.

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