RLJ Lodging Trust : Raymond James/Wells Fargo Lodging HQ Tour – May 2024

R A Y M O N D J A M E S / W E L L S F A R G O L O D G I N G H Q T O U R - M A Y 2 0 2 4

AC HOTEL BOSTON DOWNTOWN

RLJ INVESTMENT HIGHLIGHTS

The evolution of RLJ's portfolio in recent years has positioned it to benefit from the upside in urban demand and to capitalize on unique internal and external growth catalysts

HIGH QUALITY

PORTFOLIO

High-quality portfolio

with an attractive

growth profile

INTERNAL GROWTH

Phase I & II initiatives to generate $14M to $18M of incremental EBITDA

EXTERNAL GROWTH

Well positioned to drive

external growth

BALANCE SHEET

Strong balance sheet with ~$1B of liquidity providing optionality((1)

• Urban-centricportfolio growth expected to exceed the industry
• Urban markets represent over two- thirds of RLJ's portfolio

• Three conversions announced in 2023 underway in New Orleans, Houston and Nashville
• Two conversion of the Renaissance and the Wyndham in Pittsburgh
• Expanded conversion pipeline by acquiring Wyndham Boston Beacon Hill

• Ability to execute all- cash transactions in a constrained lending environment
• Attractive pipeline of off-market, external growth opportunities

• Low leveraged balance sheet with a strong track record of returning capital
• In 2023, repurchased $77.2M of common shares while doubling dividend

2

1. As of March 31, 2024

THE PIERSIDE SANTA MONICA

OPERATING PERFORMANCE

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OPERATING PERFORMANCE | Q1 2024

RLJ's urban-centric portfolio outperformed the industry and gained market share

RevPAR increased 1%, led by increased Occupancy

• Q1 RevPAR growth exceeded the industry for the 5th consecutive quarter
• Portfolio gained 110 bps of market share in Q1

Urban-centric portfolio benefitted from improvement in all segments of demand

• BT revenue growth of 13% driven by balanced contribution of Occupancy and ADR growth
• • Benefitted from strength in SME's and broadening BT across consulting, technology and financial services
• Group strength continued, with January and February achieving revenue increases of 10% and 9%, respectively
• • Q1 Group ADR increased ~3% despite Easter impact in March
  • March impacted by Easter shift
• Leisure revenues increased 2%
• • Urban leisure revenues increased 3%

Total Revenues increased 3%

• ROI initiatives drove ~8% increase in out-of-room spend

Seeing strong returns from Conversions

• Charleston, Mandalay Beach, and Santa Monica, achieved ~27% RevPAR growth in Q1

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OPERATING PERFORMANCE | 2024 OUTLOOK

RLJ's urban-centric portfolio with multiple channels of growth position the portfolio to outperform the industry

Urban markets are expected to benefit from positive growth in all demand segments

• Group is expected to remain strong due to continued demand from small group and favorable citywides
• Expect continued momentum in business transient and improvement in international travel demand
• Leisure should remain healthy, with urban leisure to benefit from special events

Expect Q2 to sequentially improve from Q1

• 2nd quarter RevPAR growth to be below the mid-point of the full-year range
• May expected to be the strongest month of Q2
• • Citywides in Boston, Washington DC, Southern California, and Louisville to benefit from 150th Kentucky Derby

Performance should benefit from a favorable footprint

• Citywide calendars and event locations to drive divergence in individual market performance
• • RLJ has a favorable footprint in urban markets such as Boston, Southern California and New York

Outlook

• Reaffirmed FY 2024 Outlook
• Expect Q2 RevPAR growth to be below the mid-point of the full-year range

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RLJ | MULTIPLE CHANNELS OF GROWTH

URBAN CENTRIC

PORTFOLIO ORGANIC

GROWTH

• Multiple demand drivers
• Capture new normal
• Limited new supply
• Next leg of recovery

INITIAL CONVERSIONS /

ACQUISITIONS

• Pacing ahead of underwriting
• External growth from high-growth markets
• Additional growth to stabilization

FUTURE PIPELINE OF

CONVERSIONS

• Targeting two conversions per year
• Executing incremental revenue enhancement opportunities

BALANCE SHEET

OPTIONALITY

• Strong Liquidity
• Generate significant free cash flow
• Optionality to drive external / internal growth
• Ability to return capital to shareholders

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THE PIERSIDE SANTA MONICA

HIGH-QUALITYPORTFOLIO

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RLJ | HIGH QUALITY PORTFOLIO

RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels

Portfolio Overview (1)

Hotels	96(1)
ADR	$197
RevPAR	$141
EBITDA/Key	$19k
Urban Footprint	66%

Y/Y Growth

+4.5%

+9.0%

+8.5%

Brand Exposure

12%

42%

36%

9%

Independent/Oth er

(1) Based on proforma FY 2023 for Comparable Hotels owned as of December 31, 2023

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THE MILLS HOUSE CHARLESTON

RLJ | HIGH QUALITY PORTFOLIO

RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels

Urban	Urban	Resort	Urban
Lifestyle	Gateway		Metro

	COURTYARD / RESIDENCE INN / SPRINGHILL
MOXY DENVER CHERRY CREEK	SUITES HOUSTON DOWNTOWN CONVENTION
CENTER

33		32
# of Hotels		# of Hotels
41%		31%
of EBITDA1		of EBITDA1
$21K		$22K
EBITDA / KEY		EBITDA / KEY

ZACHARI DUNES ON MANDALAY BEACH HOTEL & RESORT

11

# of Hotels

17%

of EBITDA1,2

$25K

EBITDA / KEY

HYATT PLACE MADISON DOWNTOWN

20

# of Hotels

11%

of EBITDA1

$16K

EBITDA / KEY

1. Based on FY 2023 for Comparable Hotels owned as of December 31, 2023

(2) Includes the Pierside Santa Monica, Mills House Charleston and Zachari Dunes conversions currently in ramp up

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URBAN LIFESTYLE

P R O P E RT I E S I N T O P U R B A N S U B M A R K E T S T H AT B E N E F I T F R O M

S E V E N - D AY- A - W E E K D E M A N D A N D " B L E I S U R E " W I T H H I G H L E I S U R E M I X 4 1 % O F E B I T D A ( 1 )

THE BANKER'S ALLEY HOTEL NASHVILLE

THE KNICKERBOCKER NEW YORK

AC HOTEL BOSTON DOWNTOWN

MOXY DENVER CHERRY CREEK

MARRIOTT LOUISVILLE DOWNTOWN

HYATT CENTRIC MIDTOWN ATLANTA

(1) Based on FY 2023 for Comparable Hotels owned as of December 31, 2023; excludes Chateau LeMoyne which is unconsolidated