RLJ Lodging Trust : Bank of America Global Real Estate Conference – September 2021

BANK OF AMERICA

GLOBAL REAL ESTATE

CONFERENCE

SEPTEMBER 2021

INVESTMENT HIGHLIGHTS

RLJ's portfolio construct, embedded growth catalysts and liquidity uniquely position the Company to outperform throughout the entire lodging cycle

• Outperforming during early recovery with strong occupancy and positive

OPERATING		cash flow
PERFORMANCE		-	Poised to benefit from the next leg of recovery as Business Travel and Group strengthen
	▪ RLJ's reshaped portfolio has an enhanced growth profile
HIGH-QUALITY
PORTFOLIO		- Lean operating model and footprint is ideally suited to benefit throughout this cycle
	▪	Actively deploying capital - executed on	a	high-quality	acquisition	in a
EXTERNAL
	growth market
GROWTH
		- Strong pipeline of attractive acquisition opportunities
	▪	Positioned to deliver $23M - $28M	of	incremental	EBITDA	from
UNLOCKING
INTERNAL		Conversions, Revenue Enhancements and Margin Expansion initiatives
GROWTH
CATALYSTS		-	Ability to generate "above-cycle" growth
	▪ Over $1.0B of liquidity, significant flexibility and a well-laddered	debt
STRONG
BALANCE		maturity profile
SHEET		- Balance sheet positioned to support growth initiatives
			EMBASSY SUITES MANDALAY BEACH RESORT

S E P T E M B E R 2 0 2 1

2

OPERATING PERFORMANCE

MARRIOTT LOUISVILLE DOWNTOWN

S E P T E M B E R 2 0 2 1

3

2021 | JULY - AUGUST OPERATING PERFORMANCE HIGHLIGHTS

Accelerating operating trends from Q2 continued into July, with some moderation during the second half of August

Portfolio benefitted from accelerating lodging demand in Q2(1)

• Open hotel occupancy of 61% and ADR of $142 increased 32% and 19%, respectively, from Q1
• "All-Suite"hotels (50% of portfolio) enabled portfolio to gain ~600 basis points of market share
• Business Transient and Group revenues increased 65% and 50%, respectively, from Q1

Operating trends improved from Q2 into July(1)

• July achieved the strongest monthly occupancy, ADR and EBITDA margins since the start of the pandemic
• Leisure revenues increased ~24% from June
• • Weekend occupancy achieved 90% of 2019 while ADR exceeded at 104%
• Business Transient / Group increased ~10% / ~13% from June, respectively
• • Weekday occupancy and ADR achieved 78% and 86% of 2019 levels, respectively

Trends moderated beginning mid-August(1)

1. • August occupancy and ADR of ~63% and ~$156 moderated from ~69% and $163 in July(1)
   • Weekday trends moderated more than weekends
2. Pro Forma Open Hotel Occupancy and ADR excludes three dispositions and includes one property acquired in early August. Open Hotels include those hotels that are open for at least 10 days of the month. Results exclude the Chateau LeMoyne-French Quarter New Orleans, which is a fully unconsolidated hotel. Unaudited, for comparison purposes only

S E P T E M B E R 2 0 2 1

4

2021 | MONTHLY OPERATING TRENDS

July RevPAR achieved 75% of 2019 while generating EBITDA margins above July 2019(1)

Portfolio construct benefitted from pent-up demand leading to strong July performance(1)

• Occupancy accelerated from 59% in April to 63% in June, and 69% in July
• ADR improved each month with open hotels achieving $163 in July, representing 91% of 2019 levels
• July RevPAR of $112 achieved new peak since the pandemic began, with markets such as Charleston and South Florida exceeding 2019 levels
• EBITDA Margins exceeded 2019 levels in July

August RevPAR moderated from July, however Hotel EBITDA margins were just ~150 bps below 2019 levels

Occupancy(1) | 2021 vs 2019
90%
80%	82.9%				80.9%
70%
60%					62.6%
	58.7%
50%
40%
30%
20%
10%
0%
	Apr.	May	Jun.	Jul.	Aug.
	Occupancy 2019		Occupancy 2021

	ADR(1) | 2021 vs 2019		RevPAR(1) | 2021 vs 2019	EBITDA Margin(1) | 2021 vs 2019
$200						$160						40%
					$152.52
$184.08
$180				$172.72	$140				$139.67 35%	36.1%
											31.1%
$160												30%
				$156.14	$120										29.6%
$140
$133.81					$100						25%	25.4%
$120											$97.71
$100						$80	$78.64				20%
$80						$60						15%
$60						$40						10%
$40
$20						$20						5%
$0	Apr.	May	Jun.	Jul.	Aug.	$0						0%
		Apr.	May	Jun.	Jul.	Aug.		Apr.	May	Jun.	Jul.	Aug.
	ADR 2019		ADR 2021		RevPAR 2019		RevPAR 2021		EBITDA Margin 2019	EBITDA Margin 2021

(1) For Open Hotels (include those hotels that are open for at least 10 days of the month). Results exclude three hotels sold and include one hotel acquired in early August and also exclude the Chateau LeMoyne-French Quarter New Orleans, which is a fully unconsolidated hotel

S E P T E M B E R 2 0 2 1

5