RLJ Lodging Trust : Bank of America Global Real Estate Conference – September 2023
September 12, 2023 at 08:06 am EDT
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BANK OF AMERICA
GLOBAL REAL ESTATE
CONFERENCE
SEPTEMBER 2023
RLJ | INVESTMENT HIGHLIGHTS
RLJ's portfolio is well-positioned to capture recovery in urban demand and to capitalize on unique internal and external opportunities to drive 2023 EBITDA growth
URBAN MARKET
GROWTH
INTERNAL
GROWTH
CATALYSTS
EXTERNAL
GROWTH
CATALYSTS
STRONG
BALANCE
SHEET
HIGH-QUALITY
PORTFOLIO
Urban markets expected to drive industry growth
Urban markets represent over two-thirds of RLJ's portfolio
Urban market performance continues to outpace the broader industry in Q3
Completed 2022 transformative conversions and launched 2023 conversions
The Mills House and Zachari Dunes joined Hilton's Curio Collection; The Pierside in Santa Monica launched as an independent
2023 Conversions include Hotel Tonnelle New Orleans, a Tribute Portfolio Hotel; the DoubleTree by Hilton Houston Medical Center; and, 21c Museum Hotel Nashville joining Hilton's Tapestry Collection
Acquired four high-quality, young assets in top growth markets since 2021
Acquisitions performing above RLJ's underwriting
Continue to maintain acquisition pipeline and ability to execute all-cash transactions
~$1.1B of liquidity available for internal and external growth initiatives
During Q2, repurchased $25.5 million of common shares on a leverage neutral basis
Following $825M of recent refinancings, have no maturities until 2024 and 93% of debt is fixed/hedged
High-quality portfolio with an attractive growth profile
Urban-centricportfolio growth expected to exceed the Industry
Lean operating model and efficient footprint with fewer FTEs than full-service properties
SEPTEMBER 2023
2
OPERATING PERFORMANCE & OUTLOOK
THE MILLS HOUSE HOTEL CHARLESTON
SEPTEMBER 2023
3
OPERATING PERFORMANCE | CURRENT 2023 & OUTLOOK
Urban hotel performance continues to outpace the overall portfolio
Q3 quarter-to-date RevPAR (July-August), up ~2.4%
Occupancy and ADR growth of 1.3% and 1.1% respectively, over last year
RevPAR growth in Urban markets continue to outperform the overall portfolio
Urban markets benefitting from improving business transient and international demand, strong group and "Bleisure" demand
Positive demand / supply dynamics in urban markets
Group pace for Q3 exceeding 2019 levels
Q3 group revenues at 103% of 2019 levels and significantly ahead of last year
Full-yeargroup pace at 97% of 2019 levels
Urban leisure seeing robust demand, with resorts continuing to normalize
Weekend RevPAR growth over last year in Urban markets ahead of portfolio by 100 bps in July - August
Updated Q3 Outlook
Given recent weather events and other factors, project Hotel EBITDA to be between the midpoint and low-end of outlook range
SEPTEMBER 2023
4
WEEKLY TRENDS | OCCUPANCY
Occupancy improved with seasonal trends continuing
RLJ Weekly Occupancy vs % of 2019 (1)
100%
Total Portfolio
Total Portfolio as % of 2019
120%
July 4th
Labor Day
Memorial Day
90%
MLK Day
President's Day
Easter
100%100%
80%
80%
70%
NYE
68%
60%
60%
50%
40%
40%
20%
30%
Jan. 14
Jan. 21
Jan. 28
Feb. 18 Feb. 25 Mar. 4 Mar. 11
Mar. 18
Mar. 25
Apr. 1
Apr. 8 Apr. 15
May 13
May 20
May 27
Jun. 10
Jun. 17
Jun. 24
Jul. 1
Jul. 8
Aug. 12
Aug. 19
Aug. 26
0%
Jan. 7
Feb. 4
Feb. 11
Apr. 22
Apr. 29
May 6
Jun. 3
Jul. 15
Jul. 22
Jul. 29
Aug. 5
Sep. 2
(1) As of week ending September 2, 2023; for comparable hotels; results excludes the Chateau LeMoyne-French Quarter New Orleans, which is a fully unconsolidated hotel. Unaudited, for comparison purposes only.
SEPTEMBER 2023
5
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Disclaimer
RLJ Lodging Trust published this content on 12 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2023 12:05:01 UTC.
RLJ Lodging Trust is a self-advised and self-administered real estate investment trust that owns primarily premium-branded, rooms-oriented, focused-service and compact full-service hotels. The Company's portfolio consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms. Its brand affiliations consist of Marriott, which includes Courtyard, Residence Inn, Marriott, Fairfield Inn & Suites, Renaissance, SpringHill Suites, AC Hotel, Moxy and Tribute Portfolio; Hilton, which includes Embassy Suites, Hilton Garden Inn, DoubleTree/DoubleTree Suites by Hilton, Hampton Inn/Hampton Inn & Suites, Curio Collection, Homewood Suites, Hilton and Tapestry Collection; Hyatt, which includes Hyatt House, Hyatt Place and Hyatt Centric, and Wyndham. The Company's hotel properties include Embassy Suites Milpitas Silicon Valley, Hyatt House San Ramon and Moxy Denver Cherry Creek.